Three stories broke this week that will reshape knitwear sourcing for the next 12 to 24 months. Lenzing AG is closing two European plants, Bangladesh is under a sourcing reassessment, and Turkey is emerging as a serious near-shore alternative. If you’re a brand owner or buyer planning Fall/Winter 2026 production, here’s what you need to know.
1. Lenzing closes plants, resets fibre strategy
Lenzing AG, the Austrian company behind TENCEL and LENZING ECOVERO, announced on July 29 that it will close its Grimsby (UK) and Heiligenkreuz (Austria) production sites. The company is shifting strategic focus to nonwovens and scaling back its conventional textile fibre operations.
This isn’t a small adjustment. Lenzing is the world’s largest producer of wood-based cellulosic fibres. They make roughly 1 million tonnes per year. Closing two major plants means less lyocell and modal in the pipeline — and likely price increases for brands that built their knitwear collections around TENCEL blends.
why lenzing is doing this
what this means for your knitwear sourcing
If you’re specifying TENCEL or ECOVERO in your sweater or cardigan tech packs:
The takeaway: sustainable knits aren’t going anywhere, but the supply chain just got tighter. Brands that lock in fibre pricing for SS27 before September will have an advantage.
2. Bangladesh under reassessment — Turkey picks up pace
Knitting Industry reported on July 29 that brands are actively reconsidering their Bangladesh exposure. The reasons are layered — political instability, rising minimum wages, and uncertainty around EU GSP+ trade preferences.
At the same time, Turkey’s textile industry is surging. Turkish mills are investing heavily in automated knitting capacity, positioning themselves as a near-shore alternative for European and UK brands that can’t afford 45-day ocean freight from Asia.
How the major knitwear producers compare right now:
| Country | Sweater export trend (2026) | Key advantage |
|---|---|---|
| Bangladesh | Flattening | Established mass-production capacity |
| Vietnam | Growing ~8% | Stable policy, diversifying supply chain |
| Turkey | Growing ~11% | Near-shore EU, faster turnaround |
| China (Guangdong) | Steady ~5% | Full-package, highest automation level |
the guangdong factor
China’s “sweater capital” — the Dongguan/Dalang region — isn’t sitting still. Automated Cixing knitting machines now handle over 70% of basic-knit production in the area, with AI-driven pattern programming cutting sample turnaround from 14 days to 4-5 days.
For brands, this means one thing: if you need complex jacquard, intarsia, or full-fashioned knitting with consistent quality at a 100-piece MOQ, Guangdong is still the most efficient option. The automation gap between China and other producer countries is widening, not shrinking.
3. Knitwear market headed to $1.255 trillion by 2035
Market Research Future published an updated forecast on July 29 projecting the global knitwear market to reach US$1.255 trillion by 2035, growing at 5.8% CAGR from 2025.
The growth isn’t driven by basics. The report breaks expansion into three main drivers:
consumer fiber preferences are shifting
Cotton Incorporated’s CottonWorks platform released its 2028 trend map on July 28, confirming what many brands already suspected: consumers increasingly choose cotton and wool over synthetics when they have the information.
The overlap between the market forecast and consumer data is clear: the fastest-growing knitwear segments all lean toward natural fibres, transparent supply chains, and garments that don’t shed microplastics. For knitwear manufacturers, this favors cotton, merino, cashmere, and lyocell blends — and penalizes 100% acrylic construction in the mid-to-premium tier.
4. What brands should do right now
Don’t panic-buy lyocell, but do lock in pricing. With Lenzing restructuring, TENCEL prices will drift up through Q4. If you’ve got a TENCEL-cotton cardigan collection planned for FW26, get yarn orders confirmed before September.
Diversify sourcing geography. Bangladesh-only strategies carry more risk in 2026 than they did in 2023. Having a Guangdong-based backup for knitwear, or a Turkish option if you’re shipping to Europe, is now baseline risk management.
Lean into natural fibres. Every major trend report points the same way: consumers choose cotton and wool when they know what their clothes are made of. Your 2027/2028 knitwear line should lead with fiber transparency as a selling point.
Automation is the tiebreaker. The factories winning orders in 2026 aren’t the cheapest — they’re the ones that can turn a tech pack into a finished sample in under 7 days. In Guangdong, that’s becoming standard. Elsewhere, it’s still aspirational.
Frequently Asked Questions
Will TENCEL prices go up because of the Lenzing plant closures?
Yes, most analysts expect 8-15% increases on TENCEL and ECOVERO yarns by Q4 2026. The supply reduction from closing two European plants won’t be fully offset by Lenzing’s Asian production in the short term. Brands should confirm pricing with their manufacturers now rather than waiting.
Is Bangladesh still a viable option for sweater manufacturing?
It depends on your risk tolerance and order profile. For high-volume basic knits with flexible timelines, Bangladesh still works. For mid-volume orders with tight deadlines or complex constructions, China (Guangdong) and Turkey are increasingly preferred. Diversifying across 2-3 countries is becoming standard practice in 2026.
What’s the best alternative to TENCEL for sustainable knitwear?
Birla’s Livaeco and Sateri’s EcoCosy are the two closest alternatives in terms of handfeel and sustainability certifications. Both are viscose-based with FSC-certified wood sourcing. For brands working with Guangdong manufacturers, these are increasingly available in regional yarn supply chains without significant lead time penalties.
How long does it take to get samples from a Guangdong knitwear factory in 2026?
With automated Cixing knitting machines and AI-driven pattern programming, standard-gauge samples in Guangdong now take 4-7 days. Complex jacquard or intarsia samples may take 7-10 days. This is roughly 30-40% faster than two years ago, driven primarily by automation investment in the Dalang region.