Manufacturing in Turkey: A Full Overview

Manufacturing in Turkey is a topic that deserves the attention of global investors who are looking for a reliable and competitive manufacturing partner.

Turkey is an ideal country for the manufacturing sector due to its numerous advantages. These include a robust and dynamic economy, a skilled and youthful workforce, a strategic geographical location, a well-developed infrastructure, and a business-friendly environment. Manufacturing in Turkey covers a wide range of industries and products, from motor vehicles to Turkish cymbals.

In this post, we will delve into the key industries for manufacturing in Turkey that exhibit significant potential for growth and profitability. We will also offer recommendations and suggestions for global investors who have an interest in manufacturing in Turkey.

Top 10 Industries Manufacturing in Turkey

At Pelotek, our team collaboratively gathers data for our sourcing reports. As a result, we possess extensive knowledge of manufacturing in Turkey and have utilized our data collection (source: Turkey’s export volume by industry in 2021-2022) and sourcing experience to identify the most profitable industries.

We have identified 10 industries in Turkey that are either currently strong or have significant potential for global investors who are interested in manufacturing in Turkey. Please take the time to read the details provided under each heading, as we have spent approximately a week working on this post. Here is our list of the top 10 manufacturing sectors in Turkey:

• Motor Vehicles and Auto Parts Manufacturing
• Basic Metals Manufacturing in Turkey
• Turkish Food Products
• Clothing and Textile Manufacturing in Turkey
• Turkish Chemical Products
• Turkish White Goods: Refrigerator and Small Appliances
• Turkish Handmade Rugs
• Glassware Manufacturing in Turkey
• Jewelry Manufacturing in Turkey
• Turkish IHA, Shotgun, and Pistols

Motor Vehicles and Auto Parts Manufacturing

Turkey is one of the leading countries in the world in terms of motor vehicle and auto parts manufacturing. The sector has a significant contribution to the Turkish economy, employment, and exports. According to the latest data (source: Presidency of the Republic of Turkey, Strategy and Budget Directorate, Basic Economic Indicators, Section 5, 16^th Report), Turkey exported motor vehicles and trailers with a volume of $28,048 billion in 2022. Of this volume, $26.8 billion belongs to the export of motor vehicles, tractors, bicycles, motorcycles, and other land vehicles, as well as their parts and accessories. As a part of this product group, it is worth mentioning the two main industries.

Automotive Industry in Turkey

Turkey is the 14^th largest vehicle manufacturer in the world, with a total production of approximately 1.3 million motor vehicles (excluding tractors) in 2021. The largest local manufacturer is Ford Otosan, followed by Oyak Renault, Toyota Turkey (a subsidiary of Japanese Toyota), Tofas, and Hyundai (South Korea). Investments related to automotive manufacturing in Turkey are constantly increasing (Source: Easy Export, Automotive Industry).

While there are more than 5,000 enterprises in motor vehicle manufacturing in Turkey, approximately 200,000 people are directly employed.

There are many OEMs (original equipment manufacturers) and parts manufacturers in the automotive industry, which is Turkey’s leading export business. Approximately 75% of Turkey’s vehicle production by volume is exported.

OEMs produce not only passenger vehicles but also commercial vehicles throughout Turkey. According to the statistics of the Automotive Industry Association, the largest share of automotive exports belongs to automobile manufacturers, with a rate of nearly 50%, followed by pickup truck, bus, spare parts, minibus, truck, tractor, and midibus manufacturers.

Auto Parts Manufacturing in Turkey

The auto parts manufacturing industry in Turkey is a major supplier to the domestic and international markets. It has a wide range of products, such as complete engine and engine parts, powertrains, brake systems and parts, hydraulic and pneumatic parts, and so on. Please note that the average annual production of Turkish auto parts manufacturers is 2.7 billion dollars. The industry employs about 150,000 people.

Global Trends in the Automotive Sector

Motor vehicle and auto parts manufacturing in Turkey is highly sensitive to global trends. As an investor, there are investment opportunities in electric vehicles and autonomous driving.

In addition, the automotive industry in Turkey receives substantial government support and incentives. The Turkish government has implemented policies aimed at promoting investment in the sector. These initiatives have been crucial in attracting both domestic and foreign investment while also promoting innovation and technological advancements in the manufacturing of motor vehicles and auto parts in Turkey.

Related Posts to Automotive and OEM Manufacturing in Turkey

• Turkish Truck Manufacturing
• Turkish Auto Parts Manufacturing

Basic Metals Manufacturing in Turkey

Turkey has a long history in metalwork, and this sector plays a crucial role in the country’s economy. Turkey meets 3% of the global metal needs. Given the existing natural resources for metals, basic metals manufacturing in Turkey has growing and significant potential for global investors.

Turkey’s metal goods sector is estimated to be worth $79.5 billion in 2023. The sector is expected to develop nominally at a rate of more than 10% per year by 2030, reaching a size of around $230 billion within ten years.

The exchange rate effect and fluctuations in demand in home markets such as building, infrastructure, and automotive drive manufacturers to engage in foreign commerce. The United Arab Emirates, Germany, and Iraq are Turkey’s top metal export customers.

Iron and Steel Manufacturing in Turkey

Turkey’s sector size in iron and steel goods, which comprise the majority of the metal industry, was roughly 45.1 billion dollars in 2021. According to forecasts, Turkey’s economy would develop at a rate of about 7 percent per year by 2030, raising the sector’s size to more than $82.7 billion.

Turkey exported 21.2 million tons of steel in 2020, earning $14.7 billion in revenue. There were 35.8 million tons of liquid steel produced, with a capacity utilization rate of 67.2%. Turkey’s iron and steel business has a total capacity of 53.4 million tons for 2020, with 39.9 million tons in electric arc furnace plants and 13.5 million tons in basic oxygen furnace plants. The United States, Italy, Israel, and Romania lead Turkey’s iron and steel exports.

Aluminum Manufacturing in Turkey

Turkey is also a global leader in the manufacture of aluminum alloys. The Turkish aluminum sector has grown significantly, and the country is now an important seller of aluminum products. Aluminum alloy manufacturing in Turkey is driven by rising demand from a variety of industries, including automotive, construction, and packaging.

Turkish aluminum manufacturers had an export volume of $6.7 billion in 2022. This significant trade volume was in aluminum bars and profiles, as well as aluminum sheets, plates, and strips (source: TR Ministry of Industry and Technology, Aluminum Sector Report 2022). Please read our detailed report on “Turkish Aluminum Manufacturers.”

Copper Manufacturing in Turkey

The last basic metal that has a high investment potential is copper. According to the Copper Report of the Ministry of Energy and Natural Resources of the Republic of Turkey, total run-of-mine (ROM) copper ore production in 2022 was 5.2 million tons. Turkey’s copper ore and enriched copper ore exports reached 387,680 tons in 2022, an increase of 23% compared to the previous year, reaching the highest levels of the last 6 years.

Global Trends in the Basic Metals Sector

Energy efficiency, sustainability, and scrap-based production are the global trends in the basic metals sector. Energy savings in the production of metal products play an important role in ensuring the competitiveness of the industry and minimizing environmental impacts such as greenhouse gas emissions. One of the sectors with the highest global industrial energy consumption is the iron and steel industry. Energy efficiency practices can reduce energy consumption by up to 20%.

Turkish Food Products

Every year, Turkey is making significant progress in establishing itself as a more influential player in the global food and beverage market. Türkiye’s production power in the food industry is derived from its strong agricultural sector.

If you are considering investing in the Turkish rosehip, make sure to read this post before leaving the page. Should I invest in the Turkish rosehip?

Turkish Processed Agricultural Products

The food and beverage sector in Turkey consists of more than 46,000 businesses, which offer employment to over 489,000 individuals.

In 2021, Turkey’s exports of processed agricultural products surpassed 8 billion dollars. Turkey’s largest export market for processed agricultural products is Iraq, which accounts for 13% of Turkey’s exports. Germany is the second-largest market, representing 8%, followed by the USA at 6%. Turkey exports to over 170 countries in total (source: Processed Agricultural Products, official report in Turkish).

Turkish Agricultural Sector

Turkey is ranked 31^st globally in terms of agricultural area. Turkey is the leading country in Europe and one of the top ten countries globally in terms of agricultural output. In 2021, the volume of agricultural product exports experienced a significant growth of 22% compared to the previous year, amounting to nearly 30 billion dollars. The key markets comprise Iraq, Germany, Russia, and various European countries. Turkey is actively implementing various measures to enhance and advance its agricultural sector (Source: Agriculture and Livestock, official report in Turkish).

Global Trends in the Turkish Food Sector

The demand for market-brand products and halal products in the processed agricultural products sector is steadily increasing. In addition, online shopping has expanded to include grocery shopping in numerous countries. Global trends guiding the agricultural industry are the increasing use of technology in agriculture (for example, drones for agriculture), smart irrigation techniques, and climate change.

Clothing and Textile Manufacturing in Turkey

Clothing manufacturing in Turkey has been one of the strongest industries for local and international investors. There are 39,973 businesses, and approximately 677,395 people are employed in the Turkish clothing sector (2021). Related to the clothing manufacturing in Turkey, you can visit “Turkish Clothing Manufacturers.”

Turkey has a strong presence in the textile industry. However, we believe that the Turkish textile sector may not be as profitable as the clothing industry due to Turkey’s reliance on imports in this sector. The country is home to several high-quality yarn factories. However, as we explained in our article “Turkish Cotton Manufacturers,” Turkey primarily imports cotton and excels in the production of organic cotton. Another factor to consider is that the earthquake disaster in 2023 affected the organic cotton fields in Turkey.

Hence, it is important to distinguish the Turkish clothing sector from the Turkish textile sector.

Clothing Manufacturing in Turkey

In 2021, Turkey’s ready-to-wear and apparel exports amounted to 21.5 billion dollars, an increase of 21.3% compared to 2020. The share of ready-to-wear and apparel exports in Turkey’s total exports is 9.5%. Of this export volume, around 57% were exported to EU countries. At the top of the countries with the most exports are Germany, Spain, the UK, the Netherlands, France, the USA, and Italy, respectively. In 2020, Turkey became the 6th country with the highest exports in the world in the clothing sector. The capacity utilization rate in clothing manufacturing in Turkey saw a significant increase from 69.91% in December 2020 to 83.75% in December 2021, marking a growth of 19.8% (source: Ready-to-Wear, official report in Turkish).

Textile Manufacturing in Turkey

Türkiye produces fashion-oriented, brand-oriented, and high-value textile products. Turkey is the 5^th largest exporter in the country-based ranking, with a share of 3.4% in world textile exports in 2020. The total value of exported goods is over 12 billion dollars. While there were a total of 19,256 businesses in the textile sector in 2021, these businesses provided employment to over 460,000 people. Please note that these statistics cover the Turkish textile, carpet, and home textile industries (Source: Textile, official report in Turkish).

Global Trends in Clothing and Textile Industries

There are several global trends that have a significant impact on the Turkish clothing industry. These include the digitalization of retailing, the growing emphasis on sustainability in clothing manufacturing, and the rise of fast fashion. On the other hand, the development of offshore production facilities, the rise of seasonless fashion, and the increasing demand for natural fibers globally are all having an impact on the textile manufacturing in Turkey.

Turkish Chemical Products

In 2021, Turkey’s chemical industry had a total trade volume of 67 billion dollars. Chemical sector exports climbed by 32% in 2021 compared to the previous year, reaching 24 billion dollars. Similarly, Turkey’s imports climbed by 42% in 2020, reaching 49 billion dollars. In 2022, the industry ranked first in Turkey’s sector exports, with approximately 20,000 enterprises and 370,000 employees (source: Pharmaceuticals and Chemistry, official report in Turkish).

For further information on the Turkish pharmaceutical production ecosystem, please see “Turkish pharmaceutical manufacturers.”

Global trends shaping chemical manufacturing in Turkey are the rise of specialty chemicals, reducing the dependence on petrochemicals and turning to bio-based or renewable materials, carbon neutrality, and the demand for genetically modified organisms, industrial biotechnology, personalized medicines, digitalization in agriculture, and low-weight vehicles.

Turkish White Goods: Refrigerator and Small Appliances

Device manufacturing in Turkey is evaluated within the scope of the electrical and electronic products sector, according to the Turkish occupational classifications. The white goods sector is home to the most well-known Turkish appliance manufacturers with the biggest export value. This industry is sometimes known as “home appliances” or “kitchen appliances.”

Turkey’s Electrical and Electronic Products Industry

The electrical and electronic products industry offers a wide range of manufactured goods. Within this sector, various sub-sectors produce a diverse array of products. These include white goods, consumer electronics, telecommunication devices, computers, professional and industrial devices, as well as defense electronics. The rapid pace of technological development and progress is expanding the range of products produced by the sector almost on a daily basis.

Despite the recent decline in domestic demand, electrical and electronic product manufacturing in Turkey is experiencing continuous growth, primarily driven by its focus on exports. The size of the consumer electronics sector in Turkey is approximately 7.4 billion dollars. In 2020, around 75% of the sector’s production was exported. Turkey’s top five export destinations are the United Kingdom, Germany, the United States, France, and Spain. The sector consists of a total of 12,490 workplaces, employing approximately 205,000 individuals.

Turkey holds a prominent position in the white goods sector, which falls under the broader category of electrical and electronics manufacturing. Turkey holds the top position in Europe and ranks third globally, boasting a production capacity of around 29 million units.

Global Trends in the Electrical and Electronic Products Industry

Increasing consumer awareness and the rise of e-commerce have been the most effective global trends in electrical and electronic products’ manufacturing in Turkey. Furthermore, smart products and connections to the internet via products are still shaping the industry.

Turkish Handmade Rugs

In carpet manufacturing, Turkey was the second-largest exporting country in the world in 2020, following China, which is the export leader. Turkish handmade rugs should be considered a subsector of the Turkish textile industry as well as the Turkish carpet industry (Carpet, official report in Turkish). However, for global investors interested in Turkey, we can recommend the trade of Turkish handmade rugs due to their high-quality and traditional designs.

The manufacturing process of Turkish handmade rugs is a true art form. Skilled artisans meticulously hand-weave each rug, paying close attention to detail and ensuring that every stitch is perfect. Natural materials such as wool and cotton are used, ensuring that the rugs are not only beautiful but also eco-friendly. The use of high-quality materials combined with expert craftsmanship results in rugs that can last for generations, making them a worthwhile investment.

Below, you can see examples of Turkish-made Turkmen rugs. We will explore Turkish handmade rugs in another post.

Glassware Manufacturing in Turkey

On our website, we have published an article titled “Turkish Glassware Manufacturers” where we provide a detailed analysis of the glassware sector. This sector falls under the Turkish Soil, Glass, and Ceramics sector group (Soil, Glass, and Ceramics, official report in Turkish).

The global trend that is effective in glassware manufacturing in Turkey is smart glass technology. Smart glass refers to a type of glass that is made with specific materials and incorporates electronic films to control the level of light transmission.

Jewelry Manufacturing in Turkey

We have recently published an article on our website titled “Turkish Jewelry Manufacturers.” This article offers a comprehensive analysis of jewelry manufacturing in Turkey, providing detailed insights and information. Please note that we also published two case studies on this topic. Pelotek is highly experienced in Turkey jewelry industry.

Turkey is among the top 10 countries in world gold jewelry production. There are more than 50 large enterprises operating in the jewelry manufacturing in Turkey. The precious metals and jewelry sector, one of the largest sectors within the Turkish manufacturing industry, provides direct employment opportunities for approximately 250,000 people.

Turkey’s export volume of jewelry and precious stones in 2021 is close to 11 billion dollars. The largest export market in this product group is the United Arab Emirates. It is followed by Iraq, the USA, the UK, and Hong Kong (source: Jewelry and Precious Stones, official report in Turkish).

Global trends affecting the Turkish jewelry sector include the increase in women’s employment and income. Women tend to buy cheaper jewelry for themselves and like to present jewelry to others. Therefore, metal jewelry manufacturing in Turkey (please see our case study: Sourcing Turkish Zamak Jewelry for $160) is on the rise.

Turkish IHA, Shotgun, and Pistols

We have recently published three articles that provide detailed explanations about the size, current situation, and manufacturers within these manufacturing fields. Please review the reports provided below and share your thoughts in the comments section.

• Turkish drone manufacturers
• Turkish shotgun manufacturers
• Turkish pistol manufacturers

Last Words

This post introduces the strongest manufacturing industries in Turkey. If you require a more comprehensive analysis or a secondary market report, please do not hesitate to reach out to us. If you are looking for objective and transparent price quotes, we invite you to explore our sourcing services.

Our post “Profitable Sectors for Private Label Production in Turkey” may be helpful if you’re looking to invest in Turkey.