Since 1970, the German textile and apparel industry has been undergoing sustained structural change, which has been accompanied by a relative deterioration in its position both on the world market for textiles and apparel and in comparison with other industries at home. For example, the German textile and apparel industry has lost about nine-tenths of its plants and employees since 1970. In the new federal states, the process of structural adjustment took place in just a few years as a result of the transition from a planned economy to a market economy. From 1989 until now, the textile and clothing industry there also shrank to a tenth of the workforce.

Productivity advances and, above all, the ongoing globalization of the textile and apparel industry, as well as the expiry of all trade restrictions on sensitive textile and apparel products by 2005 (WTO Agreement on Textiles and Clothing, ATC), led to an intensified competitive situation with increased international cost pressure and were the causes of the reduction in production and employment in Germany.

In response to increasing import competition, the German textile and apparel industry began at an early stage to expand its exports to new sales markets outside the EU in order to benefit from the global opening of textile and apparel markets initiated by the ATC and the rising number of affluent consumers worldwide.

Today, strong and innovative brands and designs of German textile and apparel companies are in demand worldwide and are a guarantee for success in foreign trade, which is considered to play a key role in the development of the industry. In addition, investments are made in research and development. Thanks to its flexibility and innovative strength, the textile industry has succeeded in expanding its market position in promising business fields, e.g. technical textiles, and increasing its export share.

The member states of the European Union are by far the most important trading partners for the German textile and apparel industry. About 75 percent of their total export value goes to these states. This is followed by the other European countries with a share of around 12 percent and Asia with a share of around 6 percent. In terms of imports, on the other hand, Asia has the largest share with more than 50 percent, followed by the member states of the European Union with about 30 percent and the other European countries. In addition to the EU member states, China, Turkey and Bangladesh are among the most important supplier countries for the German textile and clothing market.

In an international comparison, Germany ranks third in the export of textiles and clothing in terms of value after China and Italy. In the import of textiles and clothing, Germany ranks 2nd behind the USA.

As an economic factor within the national economy, the German textile and apparel industry, which is structured as a medium-sized enterprise, is of comparatively minor importance. However, it is the second largest consumer goods sector in Germany after the food industry. Jobs in other industries depend directly and indirectly on the textile and clothing industry; for example, it is a supplier to the automotive, pharmaceutical and construction industries in the field of technical textiles and uses the services of other industries (e.g. mechanical engineering, chemical industry).

The locations of the textile and clothing industry in Germany are mainly concentrated in the federal states of Bavaria, Baden-Württemberg, North Rhine-Westphalia, Saxony and Thuringia, and in particular in the regions of Swabian Alb, South Baden, Upper Franconia, Swabia, Lower Rhine, East Westphalia, Münsterland, Wuppertal, Vogtland, Upper Lusatian Textile Region and Chemnitz/Zwickau.