French textile industry faces challenges and opportunities in 2025

Between the law against ultra fast fashion, the (relative) drop in mergers and acquisitions, and persistent deindustrialisation, the first six months of 2025 have been somewhat turbulent and tinged with warning signs for the French textile industry.

Adopted in early June, the new French law against ultra fast fashion marks a "historic turning point", in the words of the Minister for Ecological Transition. Passed by a large majority, this law aims to curb massive imports of low-priced, short-lived clothing, such as those offered by platforms like Shein and Temu. According to Les Echos, the legislation provides for a fine of five to 10 euros per product, which can reach up to 50 percent of the pre-tax price in the event of a repeat offence. The stated objective is to "disrupt the economic model of disposable textiles" and protect more virtuous local sectors.

The first concrete applications are expected for the second half of 2025, with increased monitoring of import volumes and marketing practices.

French textile industry welcomes law against ultra fast fashion

The president of the UFIMT, Yann Rivoallan, welcomed the new anti-fast fashion law as a major turning point. "It is a strong signal sent to our European partners and the rest of the world," he stated in an interview with Le Figaro in June 2025. "We cannot allow European textiles to be overwhelmed by production practices with disastrous social and environmental impacts. France is playing a pioneering role here."

This leadership position is also reinforced by the major French luxury groups. Although the heart of the French textile industry is struggling, giants like LVMH, Hermès and Kering continue to support and develop French expertise. According to a study by the Institut Français de la Mode, these groups have invested heavily in the relocation of high-end production, as well as in the training of craftspeople. "They are the guarantors of our excellence and the attractiveness of 'made in France' internationally," Rivoallan added, highlighting the crucial role of this sector in the industry's influence.

French textile industry impacted by high production costs

Despite relocation ambitions, the observation remains unenthusiastic. "Less than 10 percent of the clothes sold in France are actually produced there," reminds the firm Pragma Études in a note relayed by Les Echos. The French textile sector has approximately 2,400 companies and 58,550 employees, the Union des Industries Textiles indicated in December 2023. However, the majority of these are SMEs exposed to strong international competition. This is due to high production costs; recruitment difficulties; and the rising price of energy and raw materials.

According to the latest half-yearly report by PwC, the number of mergers and acquisitions in fashion fell by 26 percent between January and May 2025, from 35 to 26 deals worldwide. Despite some emblematic takeovers, including Skechers, Palm Angels and Versace, financial investors are becoming increasingly selective, focusing on brands with strong reputations or assets offering solid cash flows.

However, this decline must be put into perspective. It comes after an exceptionally active 2024, marked by unprecedented strategic consolidation in the sector. A Strategic Intelligence report for 2024 indicates that the apparel market totalled 304 M&A transactions, a 7 percent increase in volume, for a total value of 22 billion dollars, representing 90 percent growth compared to 2023. This dynamic was driven by mega-deals such as EssilorLuxottica's acquisition of Supreme and Kering's 30 percent stake in Valentino.

The next six months promise to be decisive. The effective implementation of the law against ultra fast fashion, the progress of the European StitchTogether project (and its Paris Declaration), and the potential revival of investments are to be closely monitored. The sector could benefit from new targeted aid or support measures for training and retraining. Because behind the rhetoric on innovation and circularity, the question of the survival of an entire section of French industry is also at stake.

This article was translated to English using an AI tool.

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