In Italy, the clothing and textiles sector remains a dominant force in the national manufacturing sector. In 2025, the industry had a €58.39 billion turnover, with over 37,000 enterprises employing around 372,000 people (9.5% of the manufacturing workforce). Exports remain one of the sector's key strengths, with approximately €37 billion in international sales and an export propensity of more than 63%. However, the rapid growth seen in the two years after the pandemic has given way to a less hopeful prognosis. International demand is decreasing, the luxury industry is becoming less dynamic, and competition from low-cost digital platforms, fast fashion, and the second-hand market is increasing. Consumers are shopping less frequently and placing a higher value on product quality, longevity, and sustainability; in other words, they are becoming more picky. Credit risk patterns show signs of deterioration as well. In 2025, insolvencies in the sector rose by 19% in Italy. There is now a considerable emphasis on technical and industrial fabrics for industries such as defense, healthcare, automotive, and construction, which have more consistent demand than traditional fashion. Furthermore, sustainability, traceability, and circularity are becoming increasingly essential drivers of company competitiveness and market access.