What to expect from the Fashion and Textile Industries in 2026

In 2026, the fashion industry is no longer reacting to change — it is operating within it. Economic volatility, trade tensions and accelerating technological change are no longer exceptional events but structural elements of the sector’s day-to-day reality. In this environment, adaptability has become a decisive competitive factor.

US-imposed tariffs sit at the centre of this new landscape. By reshaping global trade flows, they have forced brands and suppliers to reassess supply chains and cost structures at a time when growth remains constrained. Forecasts point to another year of modest expansion, with macroeconomic uncertainty reinforcing cautious, value-driven consumer behaviour across both the United States and Europe.

This context has favoured the mid-market segment, now the most dynamic area of the industry. Brands operating in this space have managed to meet consumer expectations without following the sharp price increases seen in luxury over recent years. The luxury segment itself is entering a phase of reinvention, seeking to regain relevance through a renewed focus on quality, craftsmanship and in-store experience.

At the same time, the second-hand market continues to gain momentum across all segments, positioning itself both as an entry point for new consumers and as a loyalty-building tool in an industry where price remains a key barrier.

In parallel, consumers are redefining their priorities, with growing attention to wellbeing — body, mind and health — creating opportunities for new approaches and adjacent categories for players operating within the fashion ecosystem.

Technology underpins all these shifts. Artificial Intelligence is transforming not only internal business processes but also the way consumers discover, compare and choose products. Advanced language models and digital agents are beginning to play a central role in the purchasing journey, within an ecosystem where AI-generated responses increasingly serve as the starting point for decision-making.

Taken together, these dynamics point to a year of controlled disruption: limited growth, structural change and, for the most agile companies, opportunities to redefine their position in an industry undergoing profound transformation.

Textile Industry

If fashion has learned to live with change, the textile industry faces a more structural test. In 2026, pressure on costs, volumes and margins is set to intensify amid increasingly aggressive global competition.

The partial withdrawal of Spanish procurement from nearshoring is a clear signal of this ongoing reconfiguration. Asian competition remains strong, while order volumes tend to decrease and prices stay under pressure — exacerbated by regulatory uncertainty and postponed decisions around sustainability.

In this environment, companies are adopting a more defensive approach to procurement, placing suppliers in direct competition. At the same time, marketing and communication are assuming a more strategic role, with collaborations designed not merely for visibility, but to deliver tangible value to customers.

More than a year of growth, 2026 will be a year of resilience and repositioning — a period in which the decisions made today may define the relevance of the sector over the next decade.