Fashion brands contribute $388.2 billion to EU economy

According to a new report assessing the industry’s economic footprint, fashion brands contributed €331.8 billion ($388.2 billion) to the European Union’s gross domestic product (GDP) in 2023, supporting approximately 4.5 million jobs.

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The study, conducted by the European Branded Clothing Alliance (EBCA) in partnership with Oxford Economics, draws on public data from 2023 and covers all 27 EU member states. It evaluates the direct, indirect, and induced economic effects of branded fashion activity—including both physical and online sales of apparel, footwear, bags, accessories, home textiles, and cosmetics.

The report states that branded fashion accounts for 80% of the EU’s fashion retail market and represents approximately 2% of the region’s GDP and employment.

The sector’s direct contribution—through its own operations—amounted to €55.4 billion ($64.8 billion), equivalent to 8.5% of the EU’s entire trade and retail sector, and supported 1.3 million jobs. Indirect effects, driven by activity in the supply chain, accounted for €190.1 billion ($222.4 billion) and 2.2 million jobs. Induced effects—linked to consumer spending by employees in the sector—generated €86.2 billion ($100.9 billion) and roughly one million additional jobs.

“Although the sector is characterized by a high level of commercial intensity and global supply networks, most of its economic contribution can be attributed to the local supply chain, including logistics and marketing companies,” the report states.

The study highlights the EU’s central role in global clothing trade, noting that the region leads as the world’s largest apparel importer—accounting for 28% of global clothing imports—and ranks second in footwear and luggage exports.

It is also the only region that ranks among the top five global importers and exporters across all the product categories analyzed. For example, while the U.S. is the largest importer of most products, it has a limited export presence. In contrast, China ranks high as an exporter but much lower as an importer. According to the study, “this highlights the importance of the EU in the global supply chain networks of the fashion sector.”

The report also notes that 63% of workers in the branded fashion industry are women—a share higher than the overall retail trade average—emphasizing the sector’s key role in supporting female employment in Europe.

(€1 ≈ $1.17)