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German fashion market holds steady in 2025 despite economic uncertainty

Jun 17, 2026 Germany

Despite ongoing economic uncertainty, the fashion and accessories market in Germany remained stable in 2025, generating 58.5 billion euros in sales, a modest increase compared to the previous year

According to the new Fashion Industry Report by the retail consulting bodies IFH KÖLN and BBE Retail Consulting, in 2025, the German fashion and accessories market reached a market volume of 58.5 billion euros, representing another slight increase compared to the previous year.

However, consumer caution continues to influence purchasing behaviour. In Germany, more than half of consumers (54%) are concerned about maintaining their standard of living in the long term. This has led many to prioritise essential spending and postpone discretionary purchases, such as clothing and footwear.

“Inflation, as well as political and economic uncertainties, are leading consumers to purchase fashion much more consciously, strategically, and increasingly independently of the season. Versatile products with clear, long-term utility are particularly in demand”, said Lukas Reischmann, Manager of Strategy Consulting at BBE Retail Consulting.

Sportswear remains the strongest-performing category, with an average annual growth rate of 4.8% since 2019. However, market analysts suggest that growth in this category may slow down as broader fashion trends evolve. “Casual and sporty styles are not declining, but they are changing significantly”, highlighted Carina Habke, project manager at IFH KÖLN.

“A lack of individuality in outfits is increasingly being countered by more conscious combinations and targeted styling – pure comfort is no longer enough for many consumers”, she noted. “The new casual is therefore more of a smart casual, from which higher-end product categories such as accessories could benefit more in the future”.

The report also highlights the growing competitive pressures posed by AI-powered shopping tools, an expanding second-hand market and changing consumer expectations in favour of versatile, durable products offering long-term value.

Looking ahead, IFH Köln and BBE predict that the market will grow to reach 58.8 billion euros by 2026. This suggests that the market will remain stable rather than experiencing significant growth.

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Germany Economy Fashion Retail Sales