Apparel manufacturing experienced strong growth over the past five years, with a significant increase in 2017 and 2018. However, growth declined by 0.1% and 2.4% in 2020 and 2021, respectively, due to the recessionary impacts of the COVID-19 pandemic. The market is expected to experience moderate growth during the forecast period of 2021-2026. The Russian apparel and non-apparel manufacturing industry is likely to be affected by the Russia-Ukraine conflict, which is exacerbated by existing inflation and supply chain issues caused by the COVID-19 pandemic.

The Russian market had total revenues of $8.3 billion in 2021, with a compound annual growth rate (CAGR) of 6.2% between 2016 and 2021.  

Growth in the market was driven by strong trade links between Russia and Asian nations, especially China. This has supplemented manufacturing in Russia through increased demand for Russian goods and increased foreign direct investment (FDI). Population decline, which resulted in lower demand than in previous years, inhibited growth in the latter part of the period. The COVID-19 pandemic greatly inhibited the ability to conduct international trade and damaged business and consumer confidence, resulting in lower demand for apparel and non-apparel goods, and lower manufacturing capacity. Additionally, lockdown restrictions may have significantly inhibited manufacturing output as factories were forced to close due to the threat of transmitting the virus.

The apparel segment was the most lucrative in 2021, with total revenues of $6.2 billion, equivalent to 75.4% of the market’s overall value. The non-apparel products segment contributed revenues of $2.0 billion in 2021, equating to 24.6% of the market’s aggregate value.

As people spent more time indoors, spending on items for the home exceeded sales of clothing, which logically makes sense, as people spent less time going outside to socialize.

The performance of the market is expected to decelerate, with an anticipated CAGR of 4.9% for the five years 2021-2026, leading the market to a value of $10.5 billion by the end of 2026. Comparatively, the Czech and Polish markets are predicted to grow with CAGRs of 3.9% and 6.4% respectively over the same period, reaching respective values of $3.2 billion and $4.2 billion in 2026.

The market will experience a rebound effect from the recessionary impacts of COVID-19, with a growth of 5.4% forecast for 2022. During the forecast period, the apparel industry will face global ramifications impacting supply and demand from the Russia-Ukraine conflict. Significant sanctions imposed on Russia will directly impact the apparel market, particularly for native brands that rely on the country’s economy, with many already struggling after the ruble’s devaluation.