ANALYSIS OF THE EUROPEAN LIGHT INDUSTRY MARKET: GROWTH PROSPECTS AND DEVELOPMENT BARRIERS

Abstract

INTRODUCTION. The European light industry is an important component of the EU economy, contributing to significant exports, employment and production. However, recent years have been marked by serious challenges related to the energy crisis, inflation, global market instability and geopolitical tensions.

RESEARCH HYPOTHESIS. The European light industry market is undergoing a deep structural transformation under the influence of macroeconomic and geopolitical factors, but its adaptability and development potential can be maintained and enhanced.

THE AIM. The article is aimed at highlighting the peculiarities of the development of the European light industry market in the context of transformation.

METHODS: general, scientific, economic methods of researching economic phenomena and processes: comparison method, method of analysis and synthesis, graphical and tabular method, method of structuring and grouping.

FINDINGS. The article analyses the current state of the European Union's light industry, which is an important component of the economy and makes a significant contribution to the global textile and clothing market. It is found that the development of this sector is hampered by barriers, among which the high energy costs, which are kept at an elevated level, persistent inflation, and geopolitical tensions are particularly pronounced. These barriers have a negative impact on production and employment, which is manifested in a decline in production and sales in the main subsectors of the textile industry. It is noted that, despite the EU's stable position as one of the world's leading textile exporters, the market has shown irregular development, in particular with a noticeable drop in turnover in the apparel segment, which decreased by more than 40%, while the textile segment showed positive growth of 41%. The study also found that the high concentration of small and micro enterprises in the industry increases its flexibility, but also creates challenges for large-scale investment and innovation. It identifies the need to adapt to the new economic environment through innovative solutions, support for small businesses, and a review of regulatory strategies to ensure long-term sustainability and restore the positive dynamics of the industry

CONCLUSION. The research has shown that the future of the European light industry market promises growth through technological innovation, sustainable development and product personalisation. The study found that the integration of new markets and a global supply chain will open up new opportunities for European manufacturers to expand and modernise. The study found that the European Union's light industry market is undergoing significant transformations, in particular due to technological changes and new requirements for environmental standards.

KEYWORDS: textile industry; clothing production; textile exports; innovative technologies; sustainable development; environmental requirements.