Textile Manufacturing Market in Romania 2016-2020

Outlook of the textile manufacturing market in Romania

According to this market research, the market for textile manufacturing in Romania will grow at a slow but modest CAGR of over 2% by 2020. The market study also identifies eminent factors, such as low labor costs in the region, to foster market growth during the estimated period. In Romania, during 2014, the average monthly wage in Romania was around USD 345 in the clothing sector and around USD 425 in the textile industry, which is lesser than the wages in other EU countries. The presence of low-cost labor in the region has attracted numerous foreign manufacturers into the region, which in turn creates potential growth opportunities for the market.

The provision of subcontracting services is another factor that will lead to the growth of this market during the next four years. Following the privatization of the textile manufacturing industry in Romania post the 1990s, an increasing number of manufacturers have started adopting contract manufacturing business models to capture growth. As a result, the number of manufacturers that provide subcontracting services in this region has increased substantially. This trend is expected to continue during the forecast period, with a major share of such subcontracting manufacturers catering to demand from Western Europe and the US.

Competitive landscape and key vendors