Sustainability in Fashion: Innovation and Competitiveness in Portugal
Portugal is home to almost 12,000 companies manufacturing textiles and clothing, accounting for over 118,000 jobs and generating over €8.2 billion in turnover in 2024. During that same year, the sector represented around 1.7% of GDP, 7.8% of national exports and 17.3% of manufacturing jobs.
Amid growing calls for more sustainable fashion, Portugal's textile and clothing industry is emerging as a hub for innovation, strengthening a strategically important sector’s competitiveness.
This study, by Céline Abecassis-Moedas, Laure Leglise and Mariana Pereira Silva, examines seven cases of innovation developed in Portugal: regenerative cotton (grown using agricultural practices designed to improve soil health and promote biodiversity); recycled polyester with a repellent treatment; polylactic acid (PLA) fibres; Lyocell textiles; microbial dyes; and more water-efficient finishing processes.
The authors conclude that collaboration between manufacturers and brands is crucial to developing more sustainable materials and processes, as well as boosting Portuguese industry’s international competitiveness.
Contrary to the perception that brands are the driving force behind innovation in fashion, the study shows that it is often manufacturers who drive the development of new sustainable solutions.
Portuguese suppliers are evolving from manufacturers into strategic partners for brands, offering not only products but also services such as traceability, recycling, joint materials development and technical support.
The research also finds that geographical proximity and long-term relationships reduce the use of water, energy and chemicals, as well as carbon emissions, thereby playing a crucial role in accelerating innovation and transforming production processes.
In a context characterised by complex and fragmented global supply chains, the fact that Portugal’s textile and clothing industry is concentrated in a single region (the north) is an additional competitive advantage.
