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Textile and Footwear Sector Poised for Recovery by 2027
Consumer Non-Durables · Apparel/Footwear · economic_daily · 2026-09-04
1477, 6768, 9802
Despite short-term headwinds from inflation and geopolitical tensions, analysts expect the textile and footwear sector to see double-digit growth by 2027.
What Happened
Short-term Headwinds: The textile and footwear industry is currently facing challenges from geopolitical conflicts, high oil prices, and inflationary pressures, leading brands to adopt a conservative ordering strategy. Analysts expect only single-digit growth for the Q4 holiday season, with consumer spending shifting toward mid-to-low-priced channels and promotional items.
Long-term Outlook: Despite limited growth in the near term, Taiwanese manufacturers maintain a competitive edge due to their highly diversified global production footprints. With major brands planning significant product expansions by 2027, local firms are well-positioned to leverage their R&D and capacity improvements to drive future growth.
Growth Projections: Analysts anticipate that the industry will return to double-digit growth next year, fueled by the expansion of new product lines. Current valuations for Taiwanese firms remain at low levels, offering attractive entry points for investors, particularly for those seeking dividend yield protection.
Investment Focus: Market experts continue to favor companies like F-鈺齊 (9802) for their dividend yield and Makalot (1477) for its focus on the mid-to-low-priced sportswear market. These companies demonstrate resilience and competitive strength even amidst shifting consumer spending patterns.