Portugal’s footwear industry welcomes EU crackdown on fashion waste

Portugal’s footwear industry believes a new European Union (EU) ban on destroying unsold clothing and footwear could strengthen the country’s position as a manufacturing hub for some of the world’s biggest fashion brands.

The new rules, which come into force on July 18, will prohibit large companies from destroying unsold clothing and shoes under the EU Ecodesign for Sustainable Products Regulation, part of wider efforts to reduce waste and promote a more circular economy.

While the measure is primarily aimed at cutting the environmental impact of the fashion industry, the Portuguese Footwear, Components and Leather Goods Association (APICCAPS) believes it could also create new business opportunities for manufacturers in Portugal.

“This measure could be a good solution for Portugal and for the Portuguese industry,” said APICCAPS president Luís Onofre.

According to Onofre, who penned an opinion piece on the subject, the new rules are likely to encourage fashion brands to rethink how they manage inventories, placing smaller, more frequent orders that better reflect consumer demand rather than producing large volumes that risk going unsold.

“By forcing brands to manage their inventories more efficiently and reduce the risk of overproduction, the importance of supply chains that are closer, more agile and capable of responding quickly to market needs is reinforced,” he said.

Competitive advantage

Onofre argues that Portugal is particularly well placed to benefit because its footwear and textile industries already specialise in high-quality, flexible production rather than mass manufacturing.

“Portugal has established itself as a strategic partner for major international brands, not by competing on volume, but through its ability to produce with quality, speed and proximity,” he said.

“If brands increasingly favour more frequent orders that are better matched to actual demand, Portuguese companies could benefit from that shift,” Onofre believes.

Although around 88% of global footwear production remains concentrated in Asia, Onofre said he did not expect the new legislation to trigger a major relocation of manufacturing.

Instead, he believes it will accelerate an existing trend towards sourcing from manufacturers closer to European markets.

“We do not expect a radical change in the geography of global production, but we believe this decision could accelerate a trend that was already underway. Brands are increasingly seeking closer suppliers, capable of responding quickly to changes in demand, and Portugal is particularly well-positioned to meet that challenge,” he said.

Reducing fashion waste

The new regulation forms part of the EU’s efforts to tackle waste in the fashion industry.

According to European Commission estimates, between 4% and 9% of textiles placed on the European market are destroyed without ever being used, contributing to millions of tonnes of carbon dioxide emissions every year.

Initially, the ban will apply only to large companies, before being extended to medium-sized businesses in four years’ time.

Onofre said the legislation also reflects the growing importance of sustainability as a commercial advantage.

“Sustainability is no longer simply an environmental requirement; it has become a competitive factor,” he said.

“Producing only what the market needs, while reducing waste throughout the value chain, is an objective that the Portuguese industry has been pursuing for several years.”