2026/02/23
Creative Hungary’s collaborative partner, the European Fashion Alliance (EFA), has published a new report analysing the structural challenges and development opportunities facing the European fashion industry. The study focuses on issues impacting the entire sector, with particular emphasis on small and medium-sized enterprises, which form the backbone of the European fashion industry.
The document titled Report on the Needs of the European Creativity-Driven Fashion Industry 2025 paints a comprehensive picture of the economic, regulatory, and market environment in which European fashion brands and creative businesses operate today, as well as the conditions necessary for the sector to remain competitive and sustainable in the long run.
The report is based on in-depth interviews with 26 European professional organisations and previous sector surveys. According to this analysis, one of the biggest challenges facing the European fashion industry is that the knowledge, resources, and regulatory information necessary for creative and responsible operation are often difficult to access for smaller players.
The research highlights that a significant proportion of businesses do not feel adequately prepared for the new EU regulations, and that sustainable and high-quality European brands struggle to communicate their values in comparison with global fast fashion players. It also points out that support for innovation, digitalisation, and circular models is often not tailored to the characteristics of the creative industries.
The report examines the sector’s operation across seven thematic areas, including sustainability, innovation and digitalisation, education and skills development, communication and market entry, and strengthening the value chain. Building on these findings, the report sets out 63 EU-level recommendations.
The recommendations include establishing a Europe-wide knowledge and information platform specifically supporting fashion SMEs, providing targeted research, development, and innovation funding, strengthening local and sustainable manufacturing, and promoting coordinated awareness-raising initiatives that encourage responsible consumption.
The report can serve as a strategic compass for European decision-makers. It aims to ensure that future EU funding instruments, policy programmes, and regulatory frameworks align better with the specific operations and real needs of the creative fashion industry.
The report is particularly relevant for Creative Hungary, as it identifies several challenges familiar to Hungarian fashion and creative industry players: difficulties in entering international markets, financing sustainable operations, and making creative values visible in a saturated global market.
The report is available HERE.
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