The French Revolutionary and Napoleonic Wars seriously affected European trade and by 1816 the industry was depressed. Foreign markets contracted sharply in the 1820s and 30s. The industry could not easily take advantage of many of the technical innovations which allowed power spinning and weaving elsewhere. There was little manufacturers could do to compete with cheaper worsteds and cottons being produced in the north of England. A few manufacturers experimented with various types of cottons and fustians. The majority turned to a restricted range of more specialist fabrics: shawls, mourning goods and horse-hairs.

From the 1780s certain manufacturers experimented to produce the soft, high quality equivalent of the expensive and fashionable Kashmir shawls. Shawls became the essential women's top garment for most of the 19th century. Norwich, together with Paisley and Edinburgh became the main centres of production. So manufacturers who made the change could look forward to another 80 years of prosperity as shawl design and fashion evolved. Norwich textile manufacturers took full advantage of the respite. Early shawls were long and light with borders embroidered by experienced young girls. Next, woven borders were introduced, followed by draw-loom designs, and finally the magnificent Jacquard designs of the 1850s and 1860s. Norwich continued as a centre of expertise in dyeing with the famed ‘Norwich red’ much in favour. Shawls were printed to a very high standard as well as woven.

Bombazine sold steadily until the 1880s and Norwich crape was a particular success. A new type of very fine, twisted and crimped silk gauze designed specifically for mourning was introduced by Joseph Grout in 1822. Thanks to the Victorian fascination with mourning, Norwich crapes remained buoyant until the 1890s. Horse-hair weaving to provide a range of stiff fabrics suitable for crinolines and furnishings also proved to be lucrative.

The fashions for shawls fell out of favour in the 1870s and the Norwich manufacturers were unable to come up with a textile to replace it. Other industries took over as the success stories, particularly boot and shoe-making; brewing, banking and insurance, food production and iron-founding.