Reshoring denim: Europe’s jeans production gains momentum

Learning from failure

In 2021, an ambitious project made headlines: C&A launched an automated, resource-efficient jeans production facility in Mönchengladbach, Germany. Around 420,000 pairs of jeans were to be manufactured annually using state-of-the-art machinery and short transport routes. The goal: to unite sustainability, innovation and European manufacturing in a model factory. But at the start of 2025, the operation was shut down¹. Demand had fallen short of expectations and the site was closed. The case illustrates how complex reshoring can be – especially when innovation, economic viability and consumer expectations collide. High energy costs, uncertain markets and insufficient production volumes made operations difficult. Despite the project's failure, it is seen as an important experiment, and the willingness to change remains: in Mönchengladbach, industry and academia are now working together on new technologies.

Why brands are turning to Europe

Despite setbacks, many denim brands continue to rely on local production – either out of conviction or strategic necessity. The company 1083, for example, has relocated all production steps – from weaving and dyeing to cutting and assembly – to France to preserve traditional craftsmanship and know-how. Dao Davy also weaves fabrics in France or sources them from European partners and produces jeans from locally grown linen – with a strong focus on environmental friendliness and traceability. Selfnation took a technological approach: the Swiss brand, now part of Tailor Store (Sweden), combined AI-generated patterns with automated manufacturing for custom-made jeans on demand – initially in Switzerland, later in Italy.

It’s no longer just about origin labels, but about planning reliability, speed of response and brand identity. “The past few years have shown just how fragile global supply chains can be. For us, this was further proof that local production is not only more sustainable but also more future-proof,” says Eveline Schönleber of MAC, whose trousers are produced in Germany, Italy, Spain, Portugal, Poland and countries bordering Europe. Geopolitical conflicts, tariffs and rising transport costs have made the benefits of short supply chains increasingly evident. Proximity to production sites allows for greater flexibility – a decisive advantage in a market driven by rapid trends.

ESG & customer expectations as drivers

New legal requirements – such as the EU Corporate Sustainability Due Diligence Directive (CSDDD) – are also pushing companies to make their value chains more transparent and fair. Brands like MAC are actively embracing this shift: “For us, ESG criteria are not a constraint, but a guideline. Today’s customers expect demonstrable responsibility – from materials to production and transport,” says Schönleber. Euratex, the European industry association representing the interests of the textile and clothing sector to the EU, also advocates reshoring or nearshoring textile production². Euratex justifies this stance by pointing to increased resilience, better control over environmental and social standards, and lower risk during global crises.

Opportunities and challenges

Choosing to manufacture in Europe offers many advantages – but also clear challenges. Key benefits include high quality, market proximity and rising demand. European manufacturers often have decades of expertise that’s reflected in workmanship and fit and are typically better equipped than their Asian competitors to handle smaller production runs. Short distances ensure faster delivery times, better planning, greater transparency and a significantly improved carbon footprint. Despite growing reports of sweatshops in Europe, local manufacturing is still seen by consumers seeking ethically made fashion as authentic, credible and sustainable.

However, challenges remain: higher production costs, and shortages of raw materials and skilled workers. Compared to Asia, European manufacturing is more expensive due to higher wages, stricter environmental regulations and smaller batch sizes. Cotton – the most important material for denim – is barely grown in Europe, making producers dependent on imports and vulnerable to price fluctuations. Moreover, many regions lack qualified specialists, as training pathways have been scaled back. Still, many companies see this as an opportunity for differentiation:

“The greatest opportunity lies in the growing appreciation for fair products. The challenge remains balancing price and sustainability – but we believe that quality and values make the difference,” says Schönleber.

A growing niche with a future

The reshoring of denim production to Europe appears to be a continuing trend. In Portugal, Italy, Turkey and the Balkans, ecosystems are emerging that combine artisanal quality, modern technology and sustainability. Brands such as Candiani Denim and Mud Jeans also demonstrate that European and nearshoring production can be successful. Industry analysts expect European production to grow moderately but steadily over the next five to ten years – driven by ESG regulations, rising consumer awareness and technological progress.

Denim made in Europe will not replace mass production in Asia – but it is playing an increasingly important role in the premium and sustainability segments. The Mönchengladbach case shows that pioneering projects can fail – but also that they are urgently needed to develop local solutions and to invest in transparency, quality and security. These are decisive values in an industry undergoing transformation.

¹ https://www1.wdr.de/nachrichten/rheinland/cunda-nachhaltige-jeans-moenchengladbach-produktion-eingestellt-100.html (German)
² https://www.texintel.com/press-room/euratex-call-for-nearshoring-of-european-textile-production