The European market potential for workwear

The Industrial and Occupational Workwear market is worth approximately €2.7 billion in Europe, and it is split between Men’s Workwear, which accounts for up to 85% of the value, and Women’s Workwear, which covers the remaining 15%. The market is growing at an average rate of 4.8% each year.

The biggest trends in this market include the development of more versatile and wearable pieces, as well as sustainable products and embedded new technologies. In 2020, the workwear segment was driven by the constantly evolving local legislation for employers, which are forced to cover the safety and health of their employees, the ongoing increasing amount of construction sites in Europe, and the sudden, intense need for protective workwear that protects employees from an infection with SARS Covid-19.

1. Product description

Workwear includes Men’s and Woman’s industrial and occupational workwear, for example occupational and protective garments worn at work. Men’s industrial and occupational workwear includes ensembles made of cotton, synthetic fibres, and artificial fibres; industrial and occupational jackets and blazers made of cotton, synthetic fibres and artificial fibres; industrial and occupational trousers and breeches made of cotton, synthetic fibres and artificial fibres; bib and brace overalls made of cotton, synthetic fibres or artificial fibres; industrial and occupational clothing made of cotton and man-made fibres (HS Codes: 62032210, 62032310, 62032911, 62033210, 62033310, 62033911, 62034211, 62034251, 62034311, 62034331, 62034911, 62034931, 62113210, 62113310).

Women’s industrial and occupational ensembles made of cotton, synthetic fibres, artificial fibres; industrial and occupational jackets and blazers made of cotton, synthetic fibres or artificial fibres; industrial and occupational trousers and breeches made of cotton, synthetics fibres and artificial fibres; industrial and occupational bib and brace overalls made of cotton, synthetic fibres and artificial fibres; aprons, overalls, smock-overalls and other industrial and occupational clothing made of cotton and man-made fibres (HS Codes: 62042210, 62042310, 62042911, 62043210, 62043310, 62043911, 62046211, 62046251, 62046311, 62046331, 62046911, 62046931, 62114210, 62114310).

Workwear in Europe gets mainly sold by specialist distributors and super stockists, of which many sell their products online. Public institutions in Europe are forced to look for workwear stocks through public tenders to comply with the European purchase regulations.

Figure 1: Workwear examples

Photo Source: Unsplash

2. What makes Europe an interesting market for Workwear?

Europe is one of the more significant importers of workwear in the world. In 2020, the value of workwear imports to Europe accounted for €2.7 billion, up from €2.1 billion in 2015. This corresponded to roughly 139 million units of workwear clothing in 2020 (up from 113 million in 2015). During the last five years, the value of the European Union’s workwear imports has grown on average by 4.8% annually. It is expected that in the years to come, the demand for workwear will continue to grow at a similar rate. The increase in demand for specialist protective clothing is a result of the European safety legislation.

The European Union is also a large re-exporter of workwear. In 2020, it exported €1.6 billion worth of workwear apparel (up from €1.3 billion in 2015). EU workwear exports grew at an average yearly rate of 4.4% between 2015 and 2020. The biggest EU exporters in 2020 were Poland (€228 million), Germany (€214 million), Belgium (€173 million), Denmark (€113 million), the Netherlands (€106 million) and Sweden (€103 million). Together, these six countries represent over 71.5% of the EU’s workwear apparel exports. Poland, the Netherlands, and Germany have seen the strongest export growth within this group, with an average yearly increase between 8.7% and 14.6%. In comparison, Belgium and France have experienced recent decreases of 0.6% and 1.3% annually.

Currently, 57.2% of European workwear imports originate in extra-EU countries and 42.8% originates in Intra-European Union countries. In 2020, suppliers from developing countries contributed 33.3% to all workwear imports into the European Union in terms of value (up from 32.5% in 2015) and suppliers from the rest of the world accounted for 23.9% of the import value (up from 21.7% in 2015). The value of European Union workwear imports originating from developing countries corresponded to €895 million in 2020 and has grown at an average yearly rate of 5.3% since 2015. This demonstrates that there is a strong demand for workwear from developing countries.

Europe’s extra-EU workwear imports are dominated by China, Tunisia, and Bangladesh. Together, these three countries account for 30.6% of all workwear imports into the European Union. China is the single largest workwear exporter to the EU with 12.8% of the EU imports value in 2020. It is followed by Tunisia with 8.9% and Bangladesh with 5.0%. Other extra-EU Workwear exporters have market shares of less than 4% of the overall workwear import value. Turkey (+35.1%), Bangladesh (+20.4%), Armenia (16.5%), and the United Kingdom (12.7%) have grown significantly in the last five years. Likewise, Turkey’s imports reached €55 million (in comparison to €12 million in 2015), while the average Extra-European Union countries experienced an average annual growth of 5.9% during the same period.

The Intra-European Union workwear trade is dominated by Germany, Belgium, and Poland. 43.5% of the total Intra-EU workwear imports originates in these three markets. They are followed by Sweden with 7.2%, Denmark with 6.7% and the Netherlands with 6.3%. All these countries have increased their shares within the last 5 years.

Table 1: Top 10 Extra-EU and Intra-EU workwear exporters to the European Union, 2020 EUR value; average yearly growth

Source: Eurostat

Impact of COVID-19 on the European apparel market

The COVID-19 pandemic is strongly influencing the sales and processes within all segments of the fashion industry in 2020. In most European countries, local shops had to close during lockdowns, depending heavily on support payments from their governments, the offer of heavy discounts and a seamless shift to digital channels. On one side, workwear sales have experienced a slight decline, due to local short-time work regulations and the temporary closure of companies as part of lockdowns. On the other side, protective workwear has experienced a large increase due to the need of Covid-19 protection for all professionals (within and out of the healthcare industry).

Also, the e-commerce market has helped to compensate losses made through physical sales. Likewise, Carhartt’s e-commerce businesses even grew to record heights in 2020. Overall, the workwear apparel segment has not been as dramatically influenced by the pandemic as other segments of the apparel industry as a whole.

According to industry experts, the pandemic can change all market dynamics on long-lasting terms. Asian countries are expected to lose stakes due to local lockdowns and experienced issues in delivery, while African companies or companies of other regions could potentially win market share by being a reliable and present partner. Additionally, the pandemic has created new trends and demands from the consumers. Likewise, some Chinese manufacturers have been observed providing buyers with bio-antibacterial fabrics.

Further tips and information on the impact of the coronavirus have been collected and can be found in the CBI market information on the impact of the Coronavirus.

3. Which European countries offer most opportunities for Workwear?

Western European markets are much larger and better developed than Central and Eastern European markets in terms of supply chain organisation and quality control. The top workwear import markets in the EU are Germany, France, the Netherlands, Belgium, Italy, and Poland. These top six countries together account for 61.8% of workwear imports in the EU and have grown at an average rate of 6.6% per year in the last five years.

4. Which trends offer opportunities or pose threats for the European Workwear market?

The European workwear market follows the general apparel trends related to sustainability, technological innovation, and increased emphasis on corporate and social responsibility. For more information, see the CBI study on Trends in the Apparel market. Aside from these general trends, the workwear market has its own, segment-specific trends:

Innovations in wearability and user comfort

There is an increased demand for lighter protective apparel and equipment because the more comfortable the protective garment, the greater the chance that the workers will wear it. The key is to create products that provide the appropriate amount of protection, while being lightweight. Fabric manufacturers have increasingly been incorporating properties such as flex and stretch, as well as increasing the garment softness and breathability to improve wearing comfort. Innovations around comfort without sacrificing the protective characteristics will continue to be the major focus in the coming years.

New technologies and fibres

The need for lighter workwear garments has driven the innovations in textiles used and in garment design with manufacturers working on smarter textiles for protective clothing. There are significant advances in fabric technology used with regards to waterproof protection and chemical resistance. Materials made of stretch fabrics, breathable technologies, and antibacterial fabrics have also experienced strong growth in 2020.

For instance, flame-resistant fabrics are now often double treated to make sure that all materials are properly coated. The use of 3D printing to replace traditional knitting will soon alter the way protective clothing components are constructed. New welding methods for the seams use organic solvents and thus reduce the pollutant load in production and processing in the garment factories.

Many workwear companies collaborate for new technologies and manufacturing technologies, often directly with technology experts for electronic, optical or laser technologies. This enables the companies to develop new forms of workwear, which includes new functions such as light control, sensor recognition, remote control and (fall) protection capacities. Experts see these functions as the entry point for smart textile elements to workwear that supports the worker in the management of daily tasks and enhances the worker’s safety (for example by the use of an integrated Fallbag for workers in heights).

Entirely new players are entering the market by introducing their new technologies to the industry. Likewise, BenQ Materials from Taiwan launched its Xpore membrane consisting of carbon and hydrogen in the winter of 2020. In the future, new material technologies like this might influence the workwear design.

Sustainability and natural fibres

As sustainability topics become increasingly popular, workwear companies are looking for ways to make their products eco-friendlier. In the search for fabric alternatives, textile engineers also rediscover familiar fibres, such as hemp or organic cotton. Sustainability pioneer Patagonia, for example, has just launched a pure workwear collection made of industrial hemp. The hemp fibre is considered particularly hard-wearing and durable. The Italian Oberalp Group, to which the outdoor brand Salewa belongs, has also been investing in rebuilding the Italian hemp tradition since 2016.

With potentially less disposable income to play with, companies will be keen to invest in pieces with longevity. This fuels a return to minimalism and an emphasis on quality. Neutral palettes and basic products are often used as a starting point and gets included in every standard workwear assortment these days.

Designing multifunctional garments

Improvements in fibres and technologies allow companies to produce protective clothing that is suitable for multi-hazard environments, meaning workers can wear a single garment and be protected against concurrent hazards. For instance, inherent and treated fabrics are combined with liquid-proof membranes to protect against specific hazards such as hydrocarbon flash fire, electric arc flash and chemical splash, as well as steam and hot liquid.

E-Commerce growing

As workwear has traditionally often been rented to the end-using companies, workwear is now customised to clients’ individual needs and then sold in large bulks. Here, e-commerce has proven increasingly reliable and successful. Companies like Mascot, which likewise sports one of Europe’s largest stock of workwear with more than 700 unique products that can be processed within 24-48 hours.

Work less or from home

Because of the Covid-19 pandemic, many workforces started to work from home or are affected by short-time work. Working from home and getting into contact with work mates, partners, and clients only by video chat has influenced the workwear of employees normally working in offices. In many cases, the workwear became more comfortable, especially on the employee’s bottom part, which is not seen during video conferences. Smart t-shirts, cardigans and comfortable pullovers have become the status quo for many employees, reducing the overall need for traditional workwear. 

Once the employees return to the office, this trend is expected to have influenced the overall dress code in many companies, allowing sneakers, relaxed blazers, smart joggers and other more comfortable outfits.

Hybrid workwear

In the last few years, consumers increasingly demanded workwear to be as comfortable and casual as possible. Consequently, many fashion brands for daily wear have become involved in the industry by offering hybrid apparel, which can be worn both at work or at home. Nike has been recently collaborating with Carhartt to develop a line of sneakers featuring a performance twist, lining the shoe with wool for added warmth, with fabrics forming the rest of the sneaker, including durable ripstop, mesh and corduroy. The shoe has a very casual look but is intended to fulfil the role of a work protective shoe.

This study was carried out on behalf of CBI by M-Brain GmbH.

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