Key Insights of Denmark's Textile and Fashion Industry: Sustainability, Stats, and History

When we think of Denmark, we often imagine the famous Little Mermaid in Copenhagen, the cosy hygge lifestyle, and the country's remarkable architecture, encompassing modern designs and majestic baroque palaces. But did you know this country is also a key player in the European textile industry? 

According to data published by the Dansk Mode & Textil (DM&T), a trade and employer organisation for Denmark's textile industry, this sector contributes DKK 87 billion to the country's GDP, corresponding to about 4%. This non-profit organisation represents over 375 companies nationwide and has been the focal point of the Danish textile and fashion industry since 1895. 

According to the 2021 DM&T report, of these DKK 87 billion, DKK 42 billion are directly earned by the Danish fashion and textile industry. In particular, DKK 12 billion of this comes from the retail sector, while DKK 30 billion are from manufacturing and wholesale. An extra DKK 18 billion is earned thanks to purchases of the Danish fashion and textile industry of goods and services from companies outside this sector, while the remaining DKK 26 billion is the result of the so-called' consumption effect', namely employee consumption. It's important to specify that this sector also accounts for 6% of total Danish merchandise exports, even though imports account for over 10% of the total Danish population goods imports.

The Danish apparel industry now employs over 96,000 people, roughly 5% of the country's total private-sector employment. Of these, 52,000 are full-time workers, almost equally distributed between the manufacturing and wholesale sectors, with roughly 27,000 employees, and the retail sector, with approximately 25,000 workers. In addition, 20,000 job positions have also been created by the demand from sub-suppliers, while an additional 24,000 jobs are the direct product of the consumption effect. 

The Danish fashion and textile industry employs people throughout the country. However, it is particularly concentrated in the Ikast-Brande municipality, where it accounts for 15% of all job positions, equal to roughly 2,700 full-time workers (DM&T, 2021). But is the Danish textile industry sustainable?

Sustainability in The Danish Fashion Industry

When it comes to sustainability, the Danish fashion industry seems to be focused on reducing its emissions and waste as much as possible. For instance, in early 2024, the Danish government set aside a total of DKK 404 million for a PFAS action plan. PFAS stands for per- and poly-fluoroalkyl substances, a synthetic chemical class negatively affecting our ecosystems and health. These substances are substantially used in the textile industry, particularly in impregnation agents, which ensure a material maintains its natural look over time. 

Concerning the new PFAS action plan, Cecilie Friis, chief consultant at DM&T, said: "From DM&T's side, we still completely agree that PFAS must be phased out from ordinary clothing for consumers, but at the same time it is important that this is done based on the reality experienced by the business world. That's why we also want to encourage the industry's companies to share their views." 

The Danish government is now working on a national plan to ban these substances and will further push the EU to adopt similar policies. In this regard, Cecilie Friis declared: "We are happy that there will be Danish pressure for a total PFAS ban. It has a greater effect for the citizens and creates a uniform framework for the companies." She later added: "It is also gratifying that there is a focus on enforcement and control, and we are always happy when you choose to enter into a close dialogue with business because it is absolutely crucial if we want to phase out PFAS as quickly and most effective way," (May, 2024).

In addition, as a member of the EU, the Danish textile industry has to follow a wide array of guidelines to limit emissions and waste while promoting the circular economy and green forms of energy. For instance, in May 2024, the European Parliament and the Commission approved the so-called Ecodesign regulation.

This new regulation will affect many products, including textiles and clothing. It will implement strict requirements concerning durability and reusability, as well as upgrade and repair options, all set to improve the EU's circular economy practices. The Ecodesign regulation will also introduce new laws to boost energy and resource efficiency and recycling practices while limiting CO2 emissions. Last but not least, the new regulation will ban the common practice of destroying clothes and textiles that have not been sold. 

Talking about this new initiative, Pierre-Yves Dermagne, Belgium's Deputy Prime Minister and Minister of Economy and Labour, commented:  "With the regulation on environmentally friendly design, we are giving the industry the right incentives to think circularly, right from the design of the products they plan to produce and sell in the EU," (DM&T, 2024).

Danish Textile Industry Through History

But how did it all start? In pre-industrial Denmark, domestic textile manufacturing was the norm, with coarse wool fabric used for common clothes and most valuable materials, such as linen, used for bedclothes and undergarments. The first modern industries in the country were established only between 1840 and 1865, with power looms slowly taking over handlooms for maximum efficiency. 

In mid-1890, the Danish textile industry entered a new phase. During this new period, the mechanisation processes continued. While some small businesses were forced to shut down, large companies kept expanding. Between 1897 and 1914, machine power more than tripled throughout the country, even though the number of employees working in the industry grew only by 16%, causing a boost in productivity. But things were about to get worse. 

In the 1960s, the local textile industry registered a gradual decline, and in the 1970s, it experienced a massive crisis due to the economic recession and growing competition from other countries. Luckily, the Danish textile industry rose again, becoming one of the country's most lucrative sectors (Christensen, 2010). 

While still not comparable to countries such as Italy, known for producing up to 40% of EU apparel, Denmark remains a good contributor to the global textile sector, setting a positive example for other countries, especially thanks to its constant innovation in sustainability practices.