AMITY SCHOOL OF FASHION TECHNOLOGY

AMITY UNIVERSITY

Module I

Program : [Link] Fashion Design

Course Title:Fashion material studies

Course Code: TEXT 306

By: Dr. Lekhani Tripathi

 Module I:Major Markets in the
Apparel Industry

Descriptors/Topics
• Characteristics of the major markets –US, EU, Asia,
Australia
• Sizing in the various markets
 An overview of the global apparel industry

Introduction:

❑ Initially clothing was used to shield the human body from

environmental conditions.
❑ Later on, as the wheels of time started spinning, new trends emerged,
and manufacturing of fashionable garments came into existence.
❑ Apparel industry produces finished clothing such as kids' garments,
men's and women's clothing, and other apparel.
❑ Manufacturing apparels is one of the most in-demand businesses today.
Fads come and go, particularly in the fashion world. In order to remain
competitive, apparel manufacturers seek to expand their business in
various ways. Factors such as short product life cycle, volatile
fashions, unpredictable market trends and impulse purchase nature of
the customer are to be given utmost importance by the manufacturers
so as to sustain themselves in the apparel segment.
 Growth of the Industry:
▪ Apparel industry plays a pivotal role in developing a country’s economy in terms of
revenue generation and creation of employment.
▪ The industry is undergoing a drastic change due to global sourcing and high level of
price competition.
▪ Favorable demographic factors, rise in disposable incomes, change in consumer
behavior and a substantial shift towards branded apparel has resulted in a positive
growth in the global apparel market.
▪ Global exports of apparel which was 108billion USD in 1990, increased drastically
to 453 billion USD in 2004, which isa positive of 138% increase during the last 14
years.
▪ Industry leaders contemplate an increase of 600 billion USD by 2014 which
promises a potential market for efficient producers. Asian countries contribute to a
50% of the total global apparel exports.

❑ Apparel industry is more labor intensive. So the countries endowed with abundant
labor power, has a promising future for its nourished growth.
❑ China has almost 50% of the market share of the total apparel manufacturing in a
global perspective followed by India, Hong Kong Mexico, Philippines,
Indonesia, Bangladesh and Srilanka.
 Apparel Market Analysis

❖ The Apparel Market size is estimated at USD 1.36 trillion in 2024, and is
expected to reach USD 1.78 trillion by 2029, growing at a CAGR of
4.63% during the forecast period (2024-2029).
❖ In the apparel market, growth is expected to be aided by increased online
shopping.
❖ Manufacturers can now sell their products across a much larger platform
than before, which means they can expand their customer base
geographically.
❖ This will boost the growth of the apparel industry. E-commerce portals
increased sales of traditional garments in a few countries by providing
greater exposure to producers who were previously restricted to one
geographic area.
❖ For instance, in 2022, Amazon launched its luxury offering to Europe,
which was earlier restricted within the borders of North America. The
expansion of the high-end fashion range to Europe consists of collections
from luxury brands made available to purchase via Amazon in the United
Kingdom, France, Italy, Spain, and Germany.
Source: [Link]
 Apparel Market Analysis
❖ The rising per capita income and the shift in preference for branded products
are projected to drive the demand for luxury wear.
❖ Additionally, the women's apparel segment shows a rapid growth trend,
strongly driven by the increasing number of working-class women.
❖ Despite being a mature market, the changing fashion trends and the evolving
retail landscape across brands have been critical factors for the booming
apparel market.
❖ Therefore, competition is steep, so apparel companies often create alliances
to present a stronger front. Successful advertising strategies and concentration
on specialized needs help apparel companies generate increased revenue.

Source: [Link]
 Apparel Market Trends

E-Commerce Driving the Apparel Business

❑ Innovative designs, fast fashion trends, and creative marketing
strategies are key factors for the apparel industry's growth.
❑ The increased exposure to the internet and e-commerce among
consumers has improved the fashion consciousness and availability
of high-end brands and limited edition products.
❑ Using influencers has impacted how fashion companies market their
products and look to increase sales.
❑ For instance, in November 2022, Steve Madden announced its first-
ever African collaboration with South African media personality
Bonang Matheba. The apparel, footwear, and accessory brand stated
that this collaboration is part of their 10-year celebration in Africa.
 Apparel Market Trends
❑ Additionally, local startups with sustainable approaches are gaining
customers' interest worldwide.
❑ These startups offer different styles, such as formal, casual, and
traditional wear, with unique designs and concepts that attract
customers. In addition, online apparel sales have seen a boom over
recent years as consumers have gradually become more comfortable
making wardrobe purchases from their computers and handheld devices.
❑ For instance, according to the International Trade Administration US
Department of Commerce, 55% of Canadians performed online retail
purchases via their mobile devices as of January 2022, and this tendency
is increasing.
❑ Customers in the millennial generation (those between the ages of 18
and 34) are leading the trend, with 47% of them making at least one
weekly purchase online.
❑ These factors help in boosting e-commerce sales in the apparel market.
The growth in online apparel sales is mainly attributed to web-only
startups.
Apparel Market
 Asia-Pacific Is the Fastest Growing
Market
❖ The Asia-Pacific region is expected to hold a prominent share of the global apparel
market due to various government initiatives in the textile industry. For instance, the
CNTAC, the governing body of China's textile and apparel industry, released its 14th
five-year plan, detailing the development objectives, growth strategies, and priority
tasks for China's textile and apparel sector for 2021-2025. China is also one of the
major exporters of garments worldwide.
❖ For instance, according to the data released by the General Administration of
Customs, China (GACC), China exported USD 170.26 billion of garments and
accessories in 2021. Moreover, major companies are planning their expansion to
Asian countries to gain a broader consumer base. For instance, in November 2022,
American menswear brand Joseph Abboud announced its expansion plans in China
by partnering with Shanghai Youxiang, China's leading luxury fashion retail group.
 Asia-Pacific is the Fastest
Growing Market
Furthermore, India's rising population, growth in disposable income,
and evolving fashion trends are anticipated to boost the country's
apparel market. India is also a significant exporter of textiles,
promoting the apparel market growth.

Various government initiatives are further fueling the development

of the textile and garment industry. For instance, government
initiatives such as the Amended Technology Upgradation Fund
Scheme and the Advance Authorization Scheme are focused on
strengthening and increasing the production of textile and apparel
products in the country.

The Government of India has also approved the continuation of the

project for rebate of state and central taxes and levies on the
export of garments and made-ups (RoSCTL scheme) up to March
2024 to boost the export competitiveness of the Indian apparel
market.
 Asia-Pacific is the Fastest Growing
Market
While Greater China almost overtakes the U.S. as largest fashion
market in the world, key economic indicators create a more cautious
mood for the global fashion industry potentially slowing down by
2020.

For companies it is crucial to prepare plans to address a possible

transformation of global value chains emerging by new opportunities
from global consumer spending shifting towards emerging economies
as well as trade tensions and uncertainties.

A leverage point could be to take a strong position on social and

environmental issues, as this is very much demanded by the younger
generation.
Major markets in the global apparel industry
for 2025

The apparel industry in 2025 is shaped by regional

dynamics, consumer trends, and economic factors
1. United States
• Market Size: The U.S. apparel market is the largest globally, valued at
approximately $366 billion in 2025.
• Key Drivers:
– Consumer Spending: The average U.S. household spends about $1,945
annually on apparel, with a significant portion driven by e-commerce and
in-store purchases (58% prefer in-store shopping).
– Sustainability and Athleisure: Demand for sustainable clothing and
athleisure is growing, with brands like Lululemon expanding their presence.
– Tourism Impact: International tourism influences sales, particularly for
retailers like Macy’s and Nordstrom, though recovery remains below pre-
pandemic levels due to economic and geopolitical factors.
– Challenges: U.S. department stores like Kohl’s and Macy’s face
challenges from rising tariffs on imported goods, while discount retailers
like TJX benefit from lower prices.
2. Asia Pacific
• Market Size: The Asia Pacific region dominates the global apparel industry, holding a
40.5% revenue share in 2024, with a projected CAGR of 4.87% from 2025 to 2030.
• Key Countries:
– China: Valued at $313.82 billion in 2023, China remains a major market despite
economic slowdowns. Demand for luxury brands is strong, but growth is tempered
by macroeconomic challenges.
– India: Growth is fueled by rising disposable incomes, a young population, and
trade agreements like the India-UK free trade agreement (May 2025), which
removes tariffs on textile imports. Indian exporters like Reliance and Aditya Birla
benefit from cost-effective production.
– Japan and South Korea: These markets are seeing growth in luxury and high-
street fashion, driven by tourism and domestic spending.
• Key Trends:
– Fast fashion and e-commerce are booming, with platforms like Amazon and
Myntra reshaping consumer [Link]
– Localized designs and regional manufacturing networks cater to diverse
preferences and reduce dependency on single markets.
3. Europe
• Market Size: Europe is a key market, driven by major fashion hubs like Paris,
London, Berlin, Milan, and Munich. Exact market size varies, but it remains a
significant contributor to the global $1.84 trillion apparel market in
[Link]
• Key Drivers:
– Sustainability: European Consumers, especially Millennials and Gen Z,
demand eco-friendly and ethical fashion, pushing brands like H&M and
Levi’s toward recycling programs and circular
– E-commerce and Brick-and-Mortar: The expansion of e-commerce and
new store openings by brands like Lululemon (e.g., an 8,923 sq ft store in
London) boost market [Link]
– Tourism and Inflation: Falling inflation and increased tourism are
expected to drive fashion spending in 2025.
• Challenges: High return rates and elevated transport costs impact online
retailers’ margins.
4. Other Notable Markets
• Africa: Emerging as a growth market due to rising disposable
incomes and internet access, which fuel e-commerce and
demand for affordable, trendy [Link]
• Latin America: Increasing consumer spending and e-
commerce penetration contribute to market growth, though
specific data for 2025 is limited.
 Key Market Segments and
Trends
• Women’s Apparel: Holds the largest share globally, with a 52% market share
in 2024 and a projected CAGR of 3.6% from 2025 to 2034. Eco-conscious
clothing drives growth.
• Men’s Apparel: Growing through direct-to-consumer models and adaptive
clothing for inclusivity.
• Children’s Apparel: Expected to grow at a 3.23% CAGR (2025–2030), driven
by demand for sustainable materials like organic cotton.
• Mass Apparel: Dominates with a 68% share in 2024, fueled by fast fashion’s
affordability and trendy designs.
• Luxury Apparel: Fastest-growing segment, driven by high-net-worth
individuals and online availability.
• Secondhand Apparel: Valued at $260.24 billion in 2025, with a CAGR of
15.07% to 2030, especially among younger consumers (18–34).
 Global Market Overview
• Total Market Size: The global apparel market is valued at
approximately $1.84 trillion in 2025, with a projected CAGR of
2.61% to 4.2% through 2030.
• Materials: Cotton holds a 41.44% share, while polyester grows
fastest at 3.65% CAGR due to recycled variants.
• Distribution Channels: Offline channels lead, but e-commerce is
growing at 21.5% by 2025, driven by platforms like Instagram and
TikTok.
• Sustainability: A major focus, with brands like Nike and PVH
committing to recycled materials and reduced emissions.
• Technology: AI-powered personalization, virtual fitting rooms, and
smart fabrics (e.g., graphene-infused textiles) enhance consumer
engagement and functionality.
 Challenges
• Economic Uncertainty: Inflation, geopolitical tensions,
and trade wars (e.g., U.S.-China tariffs) create
unpredictability.
• Supply Chain Issues: Rising raw material costs (e.g.,
cotton) and transport expenses challenge profitability.
• Consumer Behavior: Price sensitivity and demand for
sustainability limit fast fashion’s growth, while 61% of
consumers research online before purchasing.
 CONCLUSION

The U.S., Asia Pacific, and Europe are the dominant

apparel markets in 2025, driven by e-commerce,
sustainability, and regional consumer preferences. Fast
fashion, athleisure, and second hand clothing are key
growth segments, while technology and ethical practices
shape the industry’s future.