Canada’s apparel market is heavily import-dependent, with annual imports totaling around $12 billion, primarily sourced from China, Bangladesh, Cambodia, and Vietnam. Sourcing from the EU is gradually increasing, supported by the EU-Canada Free Trade Agreement (CETA). Domestic production, valued at approximately $2.4 billion, has declined over time and now focuses on high-value segments

Sources: Explore Canada’s Apparel Sourcing Patterns, Apparel Industry Profile

The industry is highly dependent on textile imports, with synthetic and artificial yarns and fabrics being the largest imported categories. Canada is also a net importer of cotton (HS2 52). The domestic market shows strong demand for both synthetic fibres, such as polyester and nylon, and natural fibres, including cotton and wool, for textile production.

Canadian textile industry is SME driven. While domestic manufacturers are losing market share to foreign competitors, Canadian apparel producers have pivoted towards high-end, value-added designer and handcrafted fashion. Many have relocated production to low-cost countries, while retaining key activities such as research, design, merchandising, and marketing within Canada.

Sources: Apparel and Textiles, Our Industry

In 2020, Canadians discarded huge amount of synthetic textiles, making textiles the fifth-largest category of plastic waste by volume. Only a small fraction is recycled, with the majority ending up in landfills or being exported. Most recycling currently involves downcycling into rags or insulation, while fiber-to-fiber recycling remains limited due to technical and infrastructural challenges

Sources: Government of Canada, A Feasibility Study of Textile Recycling in Canada

This federal-provincial initiative sets out a framework for shifting the responsibility of managing products at end-of-life from municipalities to producers. It encompasses several product categories, and under Phase 2, textiles and carpets are identified for inclusion. However, as of now, no active nationwide EPR program for textiles exists.

The Canadian government launched consultations to create a national roadmap addressing plastic and textile waste. The plan emphasizes redesign, reduction, reuse, repair, and recycling, aiming to accelerate the shift toward a circular textile economy.