Outlook ’25: Denim Industry Braces for Tariffs, Green Legislation
Angela Velasquez
18 min read
The global denim industry will have to navigate the complexities of sustainability, innovation, and economic pressures in 2025. From the demand for more sustainable production practices to the rising influence of emerging markets, there are multiple forces at play that will redefine the denim landscape.
Rivet spoke to key players from across the denim supply chain—from manufacturers to trend forecasters—to get their take on what 2025 will bring. Some predict a major resurgence of denim as a global fashion staple, fueled by its versatility and sustainability potential. Others caution that the path forward will require navigating a volatile economic environment, rising material costs, and geopolitical uncertainties. Yet, one thing is clear: in 2025, the denim industry will have to evolve rapidly to remain relevant and resilient.
Dive into what’s next for one of the world’s most enduring fabrics.
Rivet: In terms of business, how do you think the denim industry will fare in 2025?
Haya Iqbal Ahmed, Artistic Fabric Mills director: The denim industry in 2025 will be shaped by sustainability, comfort, and digital innovation. Consumers will continue to demand eco-friendly practices, such as using organic cotton, recycled fibers, and circular business models like resale and repair services. Emerging markets in Asia and Latin America are most likely to drive growth, while mature markets in Europe and North America will prioritize premium, sustainable products. Issues like rising cotton prices, geopolitical tensions, and logistical challenges will pressure profit margins for both manufacturers and brands while inflation and fluctuating consumer spending may make the landscape harder to navigate. I believe strong storytelling and innovation will create the point of difference and help build loyalty and resilience. Overall, agility and a clear narrative will be essential for success in this evolving industry.
Beyza Baykan, founder and managing director of Baytech-HMS (Hand Made Stone): I believe 2025 will be a year of resurgence for the denim industry, following a period of stagnation. Denim is increasingly becoming an essential part of everyday wardrobes, transcending seasons and occasions. This growing demand will likely translate into increased orders from brands, benefiting manufacturers and raw material suppliers alike.
Steven Bethell, co-founder of Beyond Retro/Bank & Vogue: The denim industry is set for a major resurgence in 2025. Denim has been dominating global runways and fashion weeks, and at Beyond Retro, our trend forecasters are confident in its revival as a staple for the upcoming year. Over the past year, we’ve been preparing tirelessly for this anticipated “denim boom.” We’ve curated our largest-ever collection of vintage denim, offering every style, wash, size, and color imaginable. Sifting through an ocean of second-hand denim, we’ve hand-selected each piece for its trend relevance and enduring quality, ensuring our customers find pieces they’ll cherish year after year.
Alberto De Conti, head of Rudolf Hub1922: I don’t anticipate any significant deviations from 2024. Overall, global business has decreased by around 30 percent, and it appears to have stabilized at this level. While we may see fluctuations in specific markets due to local political factors, tariffs, duties and other regional complexities, the global outlook is expected to remain stable.
Paolo Gnutti, creative director of Isko Luxury by PG: The denim industry will be influenced by several strategic factors. Firstly, it is essential to consider the impact of U.S. customs duties policies. A significant increase of duties on imports from China could lead companies to rethink their sourcing strategies, potentially resulting in a reshoring of production to Europe.
Additionally, we are facing a situation of overproduction mainly coming from Southeast Asia, which continues to exert pressure on prices and sustainability. Companies will have to tackle the challenge of managing production surpluses, seeking to avoid excess inventory while more effectively meeting market demand. Therefore, developing more agile and flexible strategies that can quickly adapt to fluctuations in consumer demand will be crucial. The costs of raw materials and energy will also influence profit margins and material decisions, encouraging the use of sustainable resources.
Finally, the slow resurgence of denim on the runways is a positive sign. Companies that adopt a strategic and proactive approach will be more likely to thrive despite future uncertainties.
Adriano Goldschmied, founder of Genious Group and House of Gold: We are living in a very uncertain situation. Duties increases in U.S. would bring substantial price increases for denim products and possibly a decrease of business in term of consumption—the consequence of a slowdown of the global denim business. Instead planning growth, the denim industry should work on controlling costs and improving efficiency and try, when is possible, to vitalize the market and stimulate the local production.
Tuncay Kiliçkan, head of global business development for denim at Lenzing: Nobody will be surprised if I say another challenging year is around the corner. There are always things happening in the world. While some topics such as inventories, raw material price volatility and high inflation are moving off our agenda, we will be working on new ones like geopolitical issues, political unrest in sourcing regions and trade wars. However, consumer demand seems to be holding steady much like it did in 2024. I see 2024 as relatively decent year for end-user denim demand, and I see no reason this to change in 2025.
Omer Mert, CEO and Partner at Strom: The denim industry in 2025 will likely see steady growth, driven by sustainability initiatives and increasing demand for premium and personalized products.
Shannon Reddy, Denim Dudes trend forecaster: The denim industry has strong growth potential, driven by sustainability, e-commerce, and innovative design. But it’s not without challenges—rising raw material costs, tariff implications, knockoff competition, and shifting consumer habits are all in play. A key trend is the rise of “degrowth” and conscious consumption, with consumers embracing these ideas faster than many brands can adapt. Those that can pivot quickly, prioritize eco-friendly and ethical practices, and lean into craftsmanship, innovation, and authentic storytelling to connect with their audience will be the ones to come out on top.
Daniel Rüfenacht, Bluesign CEO: In 2025, sustainability will be a key driver with consumers increasingly demanding eco-friendly, ethically manufactured products as well as due to the sustainability-related legislation that is kicking in, in the EU. We will possibly see more innovations and initiatives in textile-to-textile recycling, since having recycled content will be mandatory as part of the eco-design for Sustainable Products Regulation, increasing the demand for recycled materials. Commercial production of next-gen materials and scaling up of the recycling innovations will also shape the market, making these sustainable options available to the brands at a more affordable cost. Brand commitments to these materials and technologies will play a key role in their successful adoption.
Alice Tonello, R&D and marketing director of Tonello: 2025 will be a turning point for the denim industry. It’s no longer enough to talk about sustainability; it’s about delivering real, measurable results. Companies that create value beyond the product itself, by adopting circular approaches, embracing traceability, and minimizing waste, will take the lead. Meanwhile, those who fail to embrace transparency or address overproduction will struggle. At Tonello, we’re already helping brands rethink what’s possible with smarter processes and authentic data.
Vivian Wang, Kingpins managing director and head of global sales: The denim business has been building back progressively since the pandemic, although I think some of the uncertainty leading up to the U.S. election probably slowed some of that regrowth. And now, we continue to wait to see how the new administration’s policies will affect global business overall. But there is a lot to be optimistic about. We continue to see a shift in jeans silhouettes, as well as continued enthusiasm for denim across the retail spectrum from mass-market brands all the way up to designer labels. I am optimistic that will help drive business next year.
Rivet: What will be the denim industry’s biggest challenge in 2025?
H.A.: For denim manufacturers, the biggest challenge in 2025 will be adapting to the growing demand for sustainable production while managing escalating costs and supply chain complexities. Brands and consumers are increasingly pushing for eco-friendly practices, including waterless dyeing, chemical-free treatments, and the use of organic, regenerative or recycled fibers. While these practices are necessary for staying competitive, they often require significant investment in new machinery, trainings, skill acquisition, processes, and certifications. At the same time, rising raw material costs such as cotton and energy prices add further financial strain. Manufacturers will also need to contend with supply chain volatility caused by geopolitical tensions and shifting global trade dynamics.
While I think it will be an important year for denim companies in Pakistan, the challenge will lie in balancing these pressures while maintaining competitive pricing and production timelines. I think success will be based on prioritizing innovation in cost-effective sustainable practices, fostering stronger partnerships with brands, and investing in digital tools like AI-driven production optimization to improve efficiency.
B.B.: 2025 will test the industry’s integrity rather than just posing operational challenges. The key dilemma will be whether to prioritize short-term gains by cutting corners on workers’ rights, garment quality, and business ethics, or to have the courage to invest in quality, legitimacy, and professionalism. While we hear a lot of positive talk about sustainability and innovation, hesitation to commit to real, tangible actions often lingers. Breaking free from that inertia will be the industry’s true challenge.
S.B.: I think everyone is probably thinking the same—to not talk about tariffs. The denim industry’s true challenge is how to be sustainable and profitable. It’s about balancing environmental responsibility with the realities of business—making meaningful changes at scale while staying competitive in a fast-paced market.
A.D.: The primary challenge will be managing a global demand that has contracted. With less overall space for all players in the market, differentiation and collaboration will be key to growth—or, in some cases, simply to survival.
A.G.: The biggest challenge for the industry will be to continue in the sustainable and innovation strategy. It’s clear that president-elect Donald Trump is pushing the fossil industry with no attention at all to sustainability. This will have global consequences on industrial strategies and financial investments that are the engine of innovation and progress. I hope our industry leaders will continue to work in this difficult scenario with the same commitment to sustainability that they had until now, and [reenergize] all the plans for re-use, upcycling, recycling and circular economy.
P.G.: In my opinion, a major challenge will be the recovery of retail after the turbulence caused by the pandemic. Companies will need to adapt to a new consumption model where customer experience and needs become fundamental. Additionally, uncertainties regarding sustainability policies, heightened by the European Green Deal, will require companies to innovate and invest in traceable and transparent eco-friendly practices. Finally, the increasing consumer demand for sustainable and high-quality products will lead to greater competition in the sector. Addressing these challenges simultaneously will be crucial in ensuring a sustainable and profitable future for the denim industry.
O.M.: Balancing the cost of sustainable production with competitive pricing will remain the biggest challenge for the denim industry.
S.R.: The denim industry’s biggest challenge in 2025 will be balancing sustainability, quality, and affordability. Consumers want eco-conscious, durable denim—think organic and regenerative fibers, sustainable and fair labor practices—but delivering all that at a competitive price is tough, especially in certain markets.
Then there’s the fashion side of things, as the cultural pendulum continues to swing, being too concerned with chasing trends to increase market share or maintain cultural relevance can lead brands down a path of inauthenticity and lost brand identity. Staying true to a brands aesthetic, mission and core values that align with their consumer will be key in maintaining brand positioning and consumer trust.
D.R.: Biggest challenges would be economic volatility and geopolitical uncertainties that could impact the overall growth of the industry. Consumer confidence in spending, especially in Europe, is also affected by these uncertainties which in turn impacts the brand sales, which leads to reduction in fabric and material orders. To navigate these challenges, companies will need to focus on innovation and sustainability to achieve market growth.
A.T.: Credibility. The biggest challenge won’t be just doing the right thing; it’ll be proving it. Brands will need to back up their sustainability claims with true data, which means tools like Metro are going to be game changers. On top of that, a shift from overproduction to demand-driven production will necessary.
V.W.: The deadline for the United Nation’s Sustainable Development Goals (SDGs) is practically around the corner. Many denim companies set very ambitious goals, which is something we love to see and encourage but we recognize that meeting those goals requires a lot of time, work and investment. We believe these efforts are worthy, not just for the health of our planet, but also, we think the denim companies doing the hard work of sustainability and circularity are setting real standards for our industry. Brands are not easily fooled by greenwashing. They require hard data to back up sustainability claims. Companies that are following the SDG guidelines and keeping track of their progress will be in a much stronger position in the coming years.
On the other hand, I’ve been reflecting on my recent visit to Japan and have some concerns about the future of smaller factories, especially those working with multiple small weavers or those focused on high-quality, low-volume production. These businesses may struggle to meet international standards, particularly as global markets continue to evolve.
Given that the deadline for the SDGs is 2030, I’m wondering: How can we ensure these smaller factories can survive and thrive while maintaining their heritage? More importantly, how can we help them align with sustainability goals, which are becoming increasingly important on the global stage? I believe that if we support these companies with the right strategies—whether through collaboration, sustainability initiatives, or by helping them scale responsibly—we can help preserve their unique craftsmanship while making them competitive in a globalized market.
Rivet: What are you looking forward to in 2025?
H.A.: In the new year, we’re looking forward to strengthening partnerships with brands to navigate industry challenges together. Collaboration will be key in addressing the ever-increasing cost pressures, from raw materials to sustainable innovations. We also aim to support brands in making informed investments that align with evolving consumer demands, ensuring maximum impact and return on investment. By working closely with our partners, we hope to create solutions that drive mutual success in a rapidly changing market.
B.B.: 2025 holds so much promise for us at Baytech-HMS. We’re excited to scale up operations, establish our new office in London, and welcome customers and partners to this space. Additionally, we are thrilled about the mentorship opportunities from The Mills Fabrica and Pangaia, which will undoubtedly play a pivotal role in driving our growth and innovation.
S.B.: Beyond Retro will dive deeper into the world of recycled denim with a series of activations focused on denim styling, upcycling, and sustainable practices. These initiatives aim to give denim the spotlight it deserves, making it a central theme in both fashion and sustainability. Through workshops, events, pop-ups and community engagements, we’re crafting a platform where customers can explore innovative ways to wear, repurpose, and appreciate this versatile fabric. Its longevity and adaptability make it a timeless fabric and a perfect avenue for sustainability.
We’re also thrilled to continue our collaborations with other fashion brands on upcycled collections. Over the past year, we’ve partnered with incredible names like Coach, Wrangler, Converse, and YMC on sustainable designs. While I can’t reveal too much just yet, we have a lineup of exciting new projects in development for 2025 that we can’t wait for the world to see.
A.D.: I look forward to engaging in meaningful discussions with industry players who are genuinely interested in exploring new avenues that lead to more responsible practices, higher quality, and, ultimately, better products. I look forward to sharing a willingness to adopt a different mindset—one that may involve some struggles, but I believe is the only way forward in overcoming the current dangerous commodification of the denim industry.
A.G.: I will try to promote and work on lowering the impact of what we design in collaboration with the best partners in our industry. It will be a difficult year, but we can never give up on the path of a better industry. For sure difficulties are making us stronger.
T.K.: Change. Although jean silhouettes have recently shifted from tight to loose, the long-lasting authentic trend remains dominant. I believe some change in this regard is needed. It would be exciting to see more slub effects, cast variations, wash diversity, as well as color and finish coatings. These elements were prevalent in the past thus collections were more diverse across brands.
O.M.: I’m excited to innovate further in sustainable manufacturing and strengthen relationships with brands prioritizing eco-consciousness.
S.R.: 2025 is poised to bring some of the most innovative new technologies into the industry. One that I am really looking forward to seeing come to market and be implemented on mass scale in the future is Lab Denim developed by Dr. Mickael Mheidle. A bio-derived ink and print technology that has the potential to forever change the way denim is designed, produced and manufactured. We at Denim Dudes were absolutely blown away to learn about how this technology works and were equally stunned to see the finished product that it can create. It will dramatically shift traditional supply chains and design calendars as well as cut costs, but most importantly will dramatically reduce the amount of waste, harmful chemicals and pollution that the denim industry creates while enabling increased garment durability and enhanced customization. This sort of innovation that combines sustainability, efficiency and authenticity will set a new benchmark for the industry. We all better get used to hearing and using the terms ‘indigo-free fabric’ and ‘digital ring dying’ in the near future!
D.R.: First and foremost, I am looking forward to a peaceful year for everyone. Secondly, next year is important to us as a company since we will be celebrating Bluesign’s 25th anniversary. We are proud to be contributing to impact reduction in the textile industry since 2000, and we are looking forward to continuing our work for the next 25 years in connecting chemical suppliers, textile manufacturers, and brands for a more sustainable textile industry with reduced impact on people and the planet.
A.T.: 2025 is going to be a year of acceleration. I’m excited to collaborate with brands and designers who are as passionate about pushing boundaries and creating products with real value as we are. But most of all, I can’t wait to see the industry wake up to the power of honesty: honest data, honest design, and honest collaborations. This isn’t just about making better jeans; it’s about rewriting the rules of what denim stands for.
V.W.: We spent 2024, which our big anniversary year, looking at our past, how we started, what has changed and what stayed constant. We are proud of what we’ve accomplished, but now, we are focused on the future. Going forward, we want to look at how to improve our shows and how to make them even more impactful for our exhibitors and for the retailers and brands who visit, as well as expand our reach to those companies who haven’t been regular visitors to our shows. We know what works with Kingpins Shows and we want to make certain we retain the aspects of the shows that everyone loves and looks forward to. But we’re also looking at new ideas that remain authentic to Kingpins. Some of that is helping our community reach their goals and address challenges.
In recent years, we’ve experimented with new ideas, like the Pop-Up show in Hong Kong and the meet-and-greet event we held in Colombia. I want to continue connecting the international denim community. That means more travel for me, certainly, to make connections with denim makers around the world, as well as companies throughout the entire denim supply chain—from fiber makers to finishing suppliers and all points in between.
We’re also looking to expand our outreach throughout the denim supply chain. In Hong Kong and China, we expanded our B2B concept to include B2C and we will continue to explore how to incorporate consumer-facing activities in shows. We are all denim lovers, and the trade side of the business can benefit from connecting with the consumer side. Similarly, I am passionate about bringing to our shows more young denim designers and people who are new to the denim business. We have a lot of industry knowledge and experience to share, and we can also benefit from seeing where denim is heading through the eyes of the next generation.