Market Overview

Organic textiles have become a rapidly growing market over the past decade. Between 2001 and 2009, the global industry turnover has experienced an average annual growth of 40 percent. From 2010 to 2011, it is forecasted that turnover will grow between 20 to 40 percent, amounting to a total of 6 billion Euros in 2011. The growing trend of organic textiles has been present in Germany for many years already. German consumers have always been highly environmentally and health conscious, and the domestic organic textiles market has been growing steadily since the 1990s.

Market Potential

Organic products in Germany are not only a trend, they are a way of life. For decades, German consumers have been aware of the benefits of using organic textiles. Furthermore, the fact that these textiles are produced under strict environmental and socially fair conditions reinforces the preference for these products. Germany has become one of the largest consumer markets for organic products in Europe only second to Switzerland. Since organic cotton is the main material used in the production of these textiles, German textile manufacturers are highly dependent on its import.

Market Access

In order to be classified as organic, textiles must fulfill all prerequisites in the production chain, from the raw fiber to the end product. Organic cotton is the material that is mostly used in the production of organic textiles. Other natural fibers like wool, flax, silk and hemp are also being used. Since the high demand for organic textiles cannot be fully covered by organically harvested raw materials, there are nowadays some synthetic fibers being used that are classified as organic, based on their environmental compatibility and their recycling properties.

The complexity of the organic textile production process motivated four leading organizations with expertise in organic farming and manufacturing processes to join efforts in establishing an effective and reliable system of quality assurance throughout the entire supply chain of organic textiles. The founding of the International Working Group on Global Organic Textile Standard (IWG) in 2002 and the subsequent introduction of the Global Organic Textile Standard scheme (GOTS) in 2006 are the results of such an initiative. The main goal of the IWG is to continuously harmonize the different existing quality standards in order to achieve a uniform standard for organic textiles worldwide. The German International Association of the Natural Textile Industry (IVN) is one of the four members working closely with organizations from the US, England and Japan to achieve this goal.

In Germany, the IVN is also responsible for certifying organic textiles with the established Global Organic Textile Standard (GOTS). The standard covers the certification of the raw material harvesting, processing, production, packaging, labeling, trade and distribution of natural fabrics. Companies interested in exporting their organic textiles to Germany must make sure that their natural fabrics meet all the GOTS requirements as it has become the leading processing standard for these products worldwide. Besides the GOTS seal, the IVN also offers two quality labels, the Naturtextil IVN and Naturtextil IVN Best. These seals are awarded to textiles that meet the strictest ecological and social production guidelines.

Distribution Channels

The most cost-effective way of entering the German textile market is to hire a commercial agent or representative. Commercial agents are normally paid on a commission basis and are specialized by branch. Organic textile companies and manufacturers interested in finding a qualified commercial agent or representative can contact the National Association of German Commercial Agencies and Distribution e. V. (CDH).

Mail order catalogs are also an efficient way of distributing natural textile products in Germany, since they are widely used by consumers throughout the country. Especially nowadays, mail order activities complement the extensive usage of e-commerce for the sales of natural fabrics and clothing very well.

Another way of entering the German market is by participating in sector related trade fairs in Germany. Trade fairs like BioFach or InNaTex, provide an excellent opportunity for foreign organic textile companies to obtain valuable market information and find the right contacts in the field.

Supporting Instituions

The leading organic textile association in Germany is the International Association of the Natural Textile Industry (IVN). It represents over 70 member companies active in all stages of the textile production chain. The IVN's main responsibility is to ensure that the production of organic textiles is environmentally friendly as well as socially responsible from the fiber to the finished product.