DownloadSwedish Fashion 2025: An Industry in Transition – Yet Still a Driver of Growth and Exports
The Swedish fashion industry plays a central role in Sweden’s economy, both as a creative force and as an export-driven billion-dollar industry. According to the report Swedish Fashion 2025, the industry’s turnover in 2023 amounted to SEK 178 billion, while generating SEK 22 billion in tax revenue, equivalent to one out of every hundred tax kronor in Sweden.
Swedish fashion continues to strengthen its global impact. In just a few years, fashion exports have doubled and now total around SEK 41 billion per year, creating over 12,000 jobs in Sweden.
– Swedish fashion’s significance to the national economy remains substantial. The industry generates SEK 178 billion in turnover and accounts for 0.7 percent of GDP. It contributes SEK 22 billion in tax revenue, benefiting public welfare. Swedish fashion creates jobs, strengthens exports, and drives innovation. We should be proud of an industry that combines global brands with local companies and is a central part of Swedish trade, says Sofia Larsen, CEO of Svensk Handel.
At the same time, the industry is undergoing a significant transformation. Since 2019, 1,400 fashion companies have disappeared from the market, and 1,670 clothing and shoe stores have closed since 2017 due to squeezed profitability and high rental costs—especially in major cities, where rent can represent 24% of turnover.
Increasing competition from Chinese low-cost platforms such as Shein and Temu has further pressured the industry, as they take market share under uneven conditions and do not always comply with EU regulations.
Despite these challenges, there is strong optimism for the future. The second-hand market is growing rapidly, with fashion already accounting for 28 percent of total second-hand trade. Within ten years, second-hand fashion is expected to reach SEK 20 billion in turnover, driven by increased climate awareness, economic incentives, and new digital platforms.
– Swedish fashion is in one of its most dynamic phases. While the industry is transforming, we are seeing a new generation of talents, companies, and consumers driving responsibility, innovation, and global relevance. This is a force that will shape a new era for the fashion industry, says Jennie Rosén, CEO of the Swedish Fashion Council.
Technological development also opens new growth opportunities. Digitalization, automation, and new AI solutions increase efficiency in both retail and e-commerce, strengthening the industry’s competitiveness.
– Sweden is at the forefront of technological innovation in the fashion industry. AI solutions, digitalization, and automation drive efficiency and competitiveness. At the same time, industry developments show that physical meeting places and networks for knowledge exchange continue to play a central role—to gather strength, create new business opportunities, and strengthen Sweden’s position as a global leader. The way forward lies in acting as a strong, unified industry, where players collaborate to meet future challenges together, says Helena Waker, CEO of Trade Partners Sweden and Stockholm Fashion District.
Swedish Fashion is a recurring report series that monitors developments in one of Sweden’s most significant and change-driven industries. The report is jointly produced by Svensk Handel, the Swedish Fashion Council, and Stockholm Fashion District.
Mentioned in this press release
Stockholm Fashion District
https://www.stockholmfashiondistrict.se/
Svensk Handel
https://www.svenskhandel.se
Swedish Fashion Council
https://www.swedishfashioncouncil.se/
Press Contact
Malin Wasström, Head of Communications & Marketing, Stockholm Fashion District
+46 (0)76 518 90 17, malin@tradepartners.se
Report Download (in Swedish)
Download the Swedish Fashion 2025 report here.
Press Images
