Special Report – Canada

Between 2010 and 2019, retail sales in the fashion sector grew at a relatively stable and constant annual average of 1.7%. By comparison, inflation averaged 1.8% over the same period. In 2019, fashion industry retail sales reached a record CAD $9 billion (EUR €6 billion / USD $6.5 billion.

The economic fabric of the fashion industry is not highly concentrated. The vast number of small and medium-sized companies offer a wide diversity of expertise, specialties and creativity. The mission of the Grappe mmode in Montreal is all the more central and important in bringing together the knowledge and innovation of many thousands of companies.

The US is Quebec’s main export market, and has been for many years. On average, between 2011 and 2020, 79% of fashion and apparel-related exports went to the United States. The U.S. market is a key and privileged market for Canadian, Quebec and Montreal fashion manufacturers, whether in terms of textiles, apparel, footwear and other leather products, all of which deliver between 68% and 82% of their exports to the U.S.

Montreal ranks third in North America for apparel manufacturing, following New York and Los Angeles.

For Canada as a country

Globally, Canada ranks 12th in apparel sector revenues, following South Korea, France and Brazil. In 2019, US $35 billion in revenues were generated in Canada, placing it among the countries with a significant fashion sector. Topping the rankings are the United States, with revenues of US $360 billion, and China, with US $325 billion.

Canada ranks 11th for the highest spending on clothing and footwear in the world. Per capita, consumers spend an average of US $953 per year. The United States, meanwhile, has a spending budget for this product group of US $1,182.

Clothing retailing employs the largest number of workers in the wholesale and retail sector. In 2025, it is estimated that 184,882 people will work in a clothing store in Canada.

Retail businesses employing the most workers are family clothing stores.

These are establishments whose principle business is selling a range of ready-to-wear clothing for people of all genders and ages. Specialized women’s clothing stores employ 19% of apparel retail workers.

The Importance of Free Trade Agreements

The successor to NAFTA, the USMCA (known in Canada as CUSMA), signed in 2018, continues to facilitate free trade across North America. Given that 79% of fashion exports go to the US, where tariffs typically range from 5% to 32%, this agreement is crucial for sustaining demand.

In 2017, Canada also signed a trade agreement with the European Union (EU), the CETA. The EU’s 500 million inhabitants represent a strategic export market, with consumers sensitive to fashion trends and above-average purchasing power. In addition, Italy is a key player in the supply of textiles and leather to Quebec, so free trade with the EU ensures the sustainability of this supplier.

Following the UK’s exit from the EU in 2020, a trade continuity agreement has been reached to maintain the benefits agreed under CETA.

In terms of clothing alone, 53% of goods imported into Canada between 2011 and 2020 came from China. Bangladesh, the United States, and India are also major suppliers of clothing for Quebec. Due to Canada signing new trade agreements, the share of imports from China is expected to decrease in the coming years. This decline is likely to benefit countries that currently play a smaller role in imports, such as Vietnam. Italy, with its high-quality fabrics and leathers, ranks as the third most important supplier of fashion-related imports to Quebec. While a decrease in imports from China is anticipated, the country remains a key partner for performance and sportswear products.