The textile industry of Serbia, including clothing, leather, and footwear, has a long tradition and is recognized worldwide. It employs a significant number of workers and is a key economic activity in several regions. Domestic companies stand out for the quality of their products, becoming recognizable brands both locally and regionally. Free trade agreements and regional initiatives like Open Balkans position Serbia as a promising market for further development of the textile industry.
Data from the Republic Institute of Statistics shows that in January-February 2025, industrial production in textiles decreased by 13 percent, clothing by 16.3 percent, and leather and leather goods by 22.2 percent compared to the same period last year. Prices increased by 6.8 percent in textiles and 2.3 percent in leather production, while clothing prices dropped by 1.8 percent.
Employment in the textile, clothing, leather, and footwear sector in the fourth quarter of 2024 was 53,665, representing 10 percent of total registered employment in Serbia. Clothing production employed 30,842 workers, leather 10,945, and textiles 11,878. Salaries in clothing production were 35.7 percent lower than the national average but saw a nominal growth of 12.4 percent and a real increase of 7.5 percent. Earnings in leather and textiles were also significantly below the national average.
In January-February 2025, exports of textiles, clothing, leather, and leather goods totaled about 246.3 million euros, 5.3 percent of Serbia’s total exports, showing a 7.9 percent decrease from the previous year. Imports reached 316 million euros, up 14.6 percent, resulting in a trade deficit of 69.7 million euros. Clothing exports had a positive trade balance, while textiles recorded a deficit with an import coverage of only 39.2 percent.
A survey by the Chamber of Commerce of Serbia indicated that about 44.2 percent of textile companies assessed the business climate as unchanged in the first quarter of 2025, while 50 percent viewed it as worse than the previous quarter. However, 80.8 percent expect the business climate to remain stable or improve in the coming period. Turnover decreased for 46.2 percent of companies in the first quarter, but nearly half expect growth in the second quarter. Employment levels remained stable for most companies, with 61.5 percent maintaining their workforce in early 2025.
The startup MSS – Marjanović Sewing Systems, supported by the Innovation Fund, produces innovative sewing machines that automate hemming using machine vision and artificial intelligence for quality control. These machines aim to provide sustainable, cost-effective, and high-quality solutions, addressing rapid changes in market needs and specialization in the textile machinery industry. MSS emphasizes automation, ease of use, and flexibility, developing systems capable of handling complex shapes with consistent quality and increased productivity. Their future plans include expanding services to textile production and developing specialized machine versions for different textile sub-sectors.
