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Special Report – Canada 🇨🇦
For the city of Montreal and the province of Quebec
The fashion industry represents a vibrant legacy for the Montreal metropolitan region and for Quebec.
Boasting an impressive concentration of businesses – including several global leaders – the Canadian fashion industry is betting on a culture of innovation and a skilled workforce to make a name for itself in both North America and abroad.
Montreal remains a key hub for fashion and apparel in Canada and North America.
The city is home to numerous fashion industry headquarters, including five companies that number among the world’s leaders in their respective fields: Peerless Clothing, Gildan Activewear, ALDO Group, Logistik Unicorp and the costume atelier of Cirque du Soleil.
Montreal and Quebec are also the location of major corporate headquarters in the fashion and apparel ecosystem, including Moose Knuckles, Mackage, Quartz Co., Want Les Essentiels, La Vie en Rose, Bikini Village, SHAN, Groupe Dynamite / Garage, Ssense, Frank & Oak, Ardène, Tristan, Aubainerie, Reitmans, Rudsak, Hoaka Swimwear, L’Intervalle, Sail, M0851, Matt & Nat, Boutique Marie-Claire, Browns, Gorski Group, Altitude Sports, Joseph Ribkoff, Frank Lyman and Groupe Lamour.
EMPLOYMENT IMPACTS
The fashion and apparel industry accounts for some 77,505 jobs in Quebec, with more than 50,000 of these based in Greater Montreal.
Quebec has more than 6,597 employer-companies in the fashion and apparel universe, 95% of which are smaller companies with 50 employees or less. Added to this number are 4,160 companies with no employees.
Over 20% of jobs in the Quebec fashion and apparel ecosystem are in one of the manufacturing sub-sectors.
After losing over 10,000 jobs during the COVID-19 pandemic, the industry began its recovery in 2022, adding more than 6,000 jobs between 2021 and 2022. With continued vigor and growth, the sector is expected to return to pre-pandemic employment levels in 2024.
ECONOMIC IMPACTS
The direct economic contribution of the fashion and apparel industry to Quebec’s GDP amounts to CAD $5.3 billion (EUR €3.5 billion / US $3.8 billion). Adding indirect economic benefits, the industry’s value-added contribution reaches CAD $7.9 billion (EUR €5.2 billion / USD $5.7 billion) as of 2022.
Comparing the significance of the fashion and apparel sub-sectors in terms of employment in Montreal with that of North America, we can see that the fashion and apparel industry occupies an important role in the city’s economy. The location quotient is over 1.5, reflecting the city’s significant specialization in the sector. Five of the six fashion and apparel sub-sectors have a specialization rating of 1.7 or higher.
The Canadian fashion ecosystem generates nearly CAD $1.5 billion (EUR €1 billion/US $1.1 billion) in annual tax revenues for both the Quebec and Canadian governments.
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.