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Portugal's textile industry: Where does it stand today?

06 Nov '25
7 min read
Portugal's textile industry: Where does it stand today?
Pic: Shutterstock

Insights

  • Portugal's textile heartland is navigating its toughest phase in a decade, marked by order declines and factory layoffs.
  • Yet, its strengths in premium, low-MOQ production, vertical integration, and compliance are keeping it resilient.
  • With EU sustainability rules reshaping sourcing, Portugal's blend of speed, quality, and trust secures its nearshoring edge.

Nearshoring, but Make it Premium

Walk the sample rooms of Portuguese knitters and cut-and-sew specialists and you see why small and premium labels come here first: minimum order quantities are genuinely low, sampling cycles are fast, and workmanship holds up at short runs. That combination—“small series” with proximity—has been codified by Portugal’s own trade agency, whose industry brief foregrounds short lead times, customisation and quality as the country’s competitive core. That is why Veja, the Paris-based ethical sneaker brand, launched its Aegean Project in **** and has since produced more than ***,*** pairs in Portugal. It is also why ISTO, a Lisbon basics label built on radical price and factory transparency, runs “Factourism” tours that bus customers into mills such as Somelos (a Guimarães-area shirting specialist) and Orfama (a long-running knitwear maker) to watch production up close.

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