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Growth of internet retail, rising disposable incomes and greater fashion consciousness is spurring the growth of lingerie market in India. As per a report by the IMARC Group, from $4.9 billion in 2023 the market is expected to reach $10.9 billion by 2032, growing at a CAGR of 9.32 per cent during 2024-2032.
Driven by the changing trends in consumer behavior and preferences, the Indian lingerie market is undergoing a significant transformation. There is a growing demand for personalised lingerie in the country with consumers demanding unique shapes and sizes.
The rise of virtual fitting rooms and AI recommendations is also boosting consumer engagement with women preferring lingerie combining style with support.
Opting for modern designs incorporating traditional elements, women are seeking stylish, comfortable, and practical lingerie. There is a growing focus on personal style and self-expression, especially in cities. The rise of e-commerce has made it easier to access various brands and styles from home.
Boosting demand for trendy and high-quality lingerie, influencers and celebrities are promoting brands and styles to their followers. More brands are investing in digital marketing to reach their audiences with equally more consumers choosing lingerie brands that focus on sustainability and ethics.
Driven by a growing environmental awareness, brands are using organic cotton and recycled materials to reduce waste. Consumers’ demands to know the social impact of their products is pushing brands to be more transparent.
Replacing nearly 31 per cent of workers, automation has significantly reduced the demand for human labor in Bangladesh's garment sector, says a new report titled, ‘Assessment of Technological Transition in the Apparel Sector of Bangladesh and Its Impact on Workers.’
Jointly conducted by Solidaridad Network Asia, Bangladesh Labor Foundation, and BRAC University, the report shows, labor requirement in Bangladesh’s sweater factories have reduced by almost 37 per cent per production line. On the other hand, labor demand in woven factories has declined by 27 per cent. The highest reduction of 48 per cent is witnessed during the cutting process followed by 26.57 per cent during the sewing operations.
Shahidur Rahman, Professor - Economics and Social Sciences Department, BRAC University, notes, while beneficial in some respects, automation poses significant challenges for workers—particularly women, those with low literacy, unskilled laborers, and older employees.
The industry’s shift to automation has created an urgent need to address workers' adaptability and security in this changing landscape, emphasises Rahman.
Sultan Uddin Ahmed, Chairman, Labor Reform Commission, highlights, there is a need for a clear plan to determine the number of workers that can be retained in the sector and ways to utilise the existing workforce.
He urges the entrepreneurs, government, and trade unions to collaborate in order to ensure a balanced approach between automation and workforce needs. He also emphasises on the need for an investment in research to maximise the potential of Bangladesh’s workforce.
Miran Ali, Member-Support Committee, BGMEA, notes, the sector should address external inefficiencies, such as power shortages and road congestion that impact worker productivity.
High input costs, such as utilities and logistics, prevent the sector from raising labor wages, he points out. To enhance the sector’s overall efficiency, the government needs to increase automation within its own departments, he adds
AHM Shafiquzzaman, Secretary, Ministry of Labor and Employment, opines, automation is required in the sector for it to survive and grow. He urges workers to remain informed about technological advancements besides announcing plans to establish an ‘Employment Department’to address fluctuations in labor market demand and supply.
A new analysis of EU garment import data from the International Trade Commission reveals a shift in sourcing patterns. While overall imports have stabilized, with a minor 2 per cent dip year-to-date (YTD) September 2024 compared to the same period in 2023, a notable trend is the reversal of consolidation.
In 2019, top garment exporting countries held a commanding 98.1 per cent share of the EU market. However, this dominance has weakened, with the figure dropping to 93.9 per cent YTD September 2024. This suggests a growing diversification in the EU's sourcing strategy, potentially driven by factors such as rising costs in traditional production hubs, geopolitical considerations, and a desire for greater supply chain resilience.
Analysis reveals winners and losers
David Birnbaum, a leading expert in textile and apparel trade, has categorized the key exporting countries into four tiers to better understand the evolving dynamics:
Tier 1: EU and China
This tier, representing the largest suppliers, has seen internal shifts. While the combined market share of the EU and China remained relatively stable between 2019 and YTD September 2024 (55.4 per cent to 56.1 per cent), the EU's internal sourcing has surged from 33.3 per cent to 40 per cent. Conversely, China's share has declined from 22.1 per cent to 16.1 per cent. This could indicate a ‘nearshoring’ trend, with EU manufacturers favoring production closer to home.
Tier 2: Bangladesh, Türkiye, Vietnam, India
This tier shows mixed results. Bangladesh, Vietnam, and India have all registered gains in the most recent data, signalling their growing competitiveness in the EU market. However, Türkiye appears to be facing headwinds.
Tier 3: Cambodia, Morocco, Pakistan
All three countries in this tier are emerging as ‘winners’, with their market share increasing according to the latest data. This suggests that they are successfully capitalizing on the diversification trend and offering competitive advantages to EU buyers.
Tier 4: Myanmar, Tunisia, Indonesia, UK
These countries seem to be experiencing a long-term decline in their EU market share. This could be attributed to various factors, including political instability, rising labor costs, or challenges in meeting sustainability standards.
Table: EU garment imports market share (%)
|
Country/Region |
2019 |
2020 |
2021 |
2022 |
YTD 09-23 |
YTD 09-24 |
|
EU |
33.3 |
32.9 |
33.5 |
29.9 |
35.3 |
40 |
|
China |
22.1 |
22.2 |
21 |
21.5 |
18.7 |
16.1 |
|
Bangladesh |
13.6 |
13.6 |
14.7 |
16.7 |
14.8 |
13.1 |
|
Türkiye |
7.7 |
8.3 |
8.8 |
8.5 |
8.3 |
6.6 |
|
Vietnam |
3.2 |
3.3 |
3.2 |
3.7 |
3.7 |
3.1 |
|
India |
3.7 |
3.3 |
3.3 |
3.5 |
3.3 |
3.2 |
|
Cambodia |
3.2 |
3 |
2.8 |
3.1 |
3.1 |
2.9 |
|
Morocco |
2.4 |
2.2 |
2.5 |
2.3 |
2.4 |
2.1 |
|
Pakistan |
2.3 |
2.4 |
2.7 |
2.4 |
2.7 |
2.4 |
|
Myanmar |
2 |
2.3 |
1.9 |
2.4 |
2.1 |
1.4 |
|
Tunisia |
1.7 |
1.6 |
1.5 |
1.5 |
1.8 |
1.4 |
|
Indonesia |
1.1 |
1.1 |
1.1 |
1.2 |
0.9 |
0.8 |
|
UK |
2 |
2 |
1.3 |
0.9 |
0.9 |
0.7 |
Looking ahead
This early analysis of EU garment import data reveals a market in flux. The ongoing diversification trend presents both challenges and opportunities for garment-exporting countries. As the EU continues to re-evaluate its sourcing strategies, agility and adaptability will be key for suppliers to maintain and grow their market share. Factors such as sustainability, speed-to-market, and cost-efficiency will likely play a crucial role in shaping the future landscape of EU garment imports.
The Production-Linked Incentive (PLI) scheme, designed to boost Indian manufacturing, is facing headwinds, particularly in the textile and apparel sector. A recent Mint report reveals that planned expansions of the scheme have been suspended, and disbursements have slowed to a trickle. This setback raises concerns about India's ability to capitalize on the shifting dynamics of the global textile industry.
Missed targets and stalled expansion
Under the PLI scheme for textiles, companies are required to invest Rs 300 crore and achieve a minimum turnover of Rs 600 crore by 2024-25 to receive incentives. However, many companies are struggling to meet these targets. As a result, the Ministry of Textiles has put on hold its plan to extend the scheme to t-shirts and innerwear.
The slowdown is particularly disappointing given the immense potential of India's textile industry. A World Bank report highlighted that while India's share of global apparel, leather, textiles, and footwear (ALTF) exports rose from 0.9 per cent in 2002 to 4.5 per cent in 2013, it has since fallen to 3.5 per cent in 2022. This decline occurred despite China's waning dominance in the sector, with countries like Bangladesh and Vietnam reaping the benefits instead of India.
The importance of scale
The World Bank report emphasizes the crucial role of labor-intensive sectors like textiles in generating employment.
Table: Manufacturing and formal sector job share
|
Sector |
Share of manufacturing value-added |
Share of formal sector manufacturing jobs |
|
Capital-Intensive |
70 per cent |
50 per cent |
|
Labor-Intensive |
20 per cent |
40 per cent |
Source: World Bank
While sectors like automobiles and electronics have seen significant growth in India, they are less effective in creating jobs, especially for women. In contrast, the apparel and textile sectors have a higher proportion of female workers (33 per cent) compared to other manufacturing sectors (15 per cent).
Why is India falling behind?
One factor contributing to the underperformance of the Indian textile sector is the prevalence of small-scale manufacturers. As the table below shows, larger manufacturers benefit from economies of scale, enabling them to reduce costs and compete more effectively in international markets. However, in India, the growth of unit size has been limited.
Country ALTF sector employment (2019) % of Workers in firms with 300+ employees Bangladesh 2.45 million 66% India - 50.50% The Mint analysis revealed, the divergent ALTF trends in computers/electronics sectors highlight the impact of firm size on competitiveness. While electronics firms, particularly those exporting, have grown significantly, textile firms have struggled to scale up. This difference is partly attributed to the export orientation of the electronics industry, which provides access to larger markets and incentivize growth.
Experts point out factors beyond labor laws, such as the "uncertain political environment" and limited access to capital, may be hindering the growth of textile firms. To revitalize the sector and leverage the PLI scheme effectively, policymakers need to address these challenges and create a more conducive environment for businesses to scale up and compete globally.
The failure of the PLI scheme to catalyze growth in the textile sector is a wake-up call. India must act decisively to support the growth of larger, more competitive textile firms if it wants to tap into the immense potential of this labor-intensive industry and create much-needed jobs.
From $2.5 billion in 2024, the global e-textile market is poised to grow to $6.8 billion by 2030, according to the latest report from HTF MI. From its original value of $1.1 billion in 2019, the market is expected to expand at a CAGR of 19 per cent from 2019-2030, as per the report.
As per the report, this growth will be driven by a rising demand for e-textiles from industries such as healthcare, sportswear, and consumer electronics. These smart textiles offer innovative solutions ranging from health monitoring to interactive wearable devices, fueling demand and driving market expansion.
Leading players such as Adidas, DuPont, Smart Fabric, Google, Microsoft, Nike, and Samsung are expected to drive this market growth. The report deeply analyses the operations of these company alongwith their financial performance, SWOT analyses and their role in advancing the e-textile market.
Emphasising on the transformative potential of wearable technology and smart fabric solutions, the report positions the e-textile industry as a hotspot for innovation and investment in the coming years. The sector is will redefine traditional textiles in future and expand its footprint across global markets.
Azerbaijan’s cotton fiber exports increased to 113,981 tons worth $169.965 million during the period spanning January-November 2024.
As per a report by ABC.AZ, the value of these exports increased by 52.6 per cent or $58.612 million in value during this period.
As against the corresponding period last year, the total volume of Azerbaijan’s cotton fibers exports rose by 81 per cent Y-o-Y or 51,530 tons
However, the average export price of 1 kg of cotton fiber exported by Azerbaijan declined by 15.7 per cent or 0.47 manats to 2.53 manats during the period spanning January-November 2024 as against 3 manats in January-November 2023.
This year, cotton fiber made up 0.70 per cent of Azerbaijan’s total exports, 5.50 per cent of its non-oil exports.
From April-November 2024, India’s technical textile exports increased by 6.2 per cent as against the corresponding period last year. As per Ashok Kumar Malhotra, Mission Director, National Technical Textiles Mission (NTTM), India exported technical textiles worth $342 million during the period as against $275 million worth of technical textiles exports during April-November 2023.
Demand for technical textiles in India continues to rise in lieu with the rising consumption, says Malhotra. The country needs to promote domestic production to prevent imports from rising, he opines. Currently, India is focusing on expanding its exports, particularly for goods like sanitary napkins and nappies, he adds.
According to Malhotra, packing technology and geotextiles are two technical textile domains that are expanding quickly. The NTTM mission has already consumed over half of the $174 million capital allocated to it, It has been further earmarked with an additional capital of $58.81 million to establish the ecosystem through the proper training of the workers, he adds.
Made from jute, ramie, wool and silk, technical textiles can also be manufactured using banana silk, says Malhotra. The mission will assist consumers who wish to participate in the project, he adds.
Silk is being used to manufacture medical textiles, while jute is being used to make geotextiles. Fabrics used by the military at high elevations, railroad fire-resistant fabrics, movie theatre upholstery, civil aviation materials, etc are in high demand currently, adds Malhotra.
Ahmet Oksuz, Chairman of the Istanbul Textile and Raw Materials Exporters Association (ITHIB), has proposed relocating Turkish textile production facilities to Syria, citing lower costs and strategic advantages. In an interview with Anadolu Agency, Oksuz emphasized Syria's potential as a promising investment destination, especially in the textile sector.
Ahmet Oksuz noted that many Syrians who settled in Turkiye have contributed to various industries and suggested that establishing production facilities in Syria as they return home could be advantageous for both countries. He pointed out that Turkiye is facing increasing labor costs and shortages in labor-intensive sectors, making Syria a more cost-effective option for production.
Currently, many Turkish textile firms are investing in Egypt, but Oksuz suggested that shifting focus to Syria would provide greater strategic benefits, particularly in regions close to Turkiye. He added that such investments could enhance Turkiye's production capacity while creating employment opportunities for Syrians.
Sinan Oncel, president of the United Brands Association (BMD), acknowledged the gradual pace of normalization in Syria but expressed optimism about future opportunities for Turkish retail expansion, including franchising.
As Syria’s reconstruction progresses following the collapse of its Baath regime, Turkiye’s textile and retail sectors are poised to play a pivotal role in boosting employment and rebuilding efforts in the region.
The inaugural Shift menswear platform has seen a resounding success, selling out its debut edition in just four weeks. Featuring renowned brands like Michael Kors and Fratelli Rossetti, the Yada Hall in Amsterdam was filled to capacity.
However, due to overwhelming demand and the availability of additional space at the venue, Shift is expanding. The Glass House, a 500m² light-filled space, will be incorporated, allowing for more brands and a more diverse showcase.
Shift's international growth is driven by collaborations with experienced representatives in Belgium, Germany, and Italy. These industry experts leverage their networks to attract leading menswear brands, enhancing the platform's global reach and the quality of its offerings, community, and events.
Preparations for the summer edition are underway, with early registrations already received. The exact dates for the summer edition will be announced in January 2025. Shift will take place on January 26th and 27th, 2025, at Taets Art and Event Park, Zaandam.
The global apparel market is on a growth path and projected to reach a $2.97 trillion by 2033, says a report by Straits Research. The sector is moving ahead at CAGR of 8.02 per cent, with several factors like rising affluence in developing economies, expanding influence of e-commerce, and a growing demand for sustainable and ethical fashion catalyzing growth.
Market drivers
One major factor boosting growth in this sector is rising affluence. Increasing disposable incomes, particularly in emerging markets, are driving greater consumer spending on apparel. This trend is particularly noticeable in countries like China and India, where a burgeoning middle class is eager to embrace fashion as a means of self-expression and status.
The rise of online retail too has revolutionized the apparel industry, offering consumers unparalleled convenience and access to a wider range of brands and styles. Digital innovations, such as augmented reality (AR) and virtual fitting rooms, are further enhancing the online shopping experience, making it more interactive and personalized. And consumers are increasingly prioritizing environmental and social responsibility in their purchasing decisions. This has led to an increase in demand for sustainable and ethical fashion, with brands responding by incorporating eco-friendly materials, reducing carbon emissions, and promoting fair labor practices.
Regional insights
Asia-Pacific: This region is expected to maintain its dominance in the global apparel market, driven by its large population, growing disposable incomes, and significant manufacturing capacity.
Europe: The second-largest regional player, Europe is renowned for its high-quality apparel production, luxury fashion houses, and strong consumer demand for sustainable and eco-friendly fashion.
|
Metric |
Value |
|
Market Size in 2024 |
$1.67 trillion |
|
Projected Market Size in 2033 |
$2.97 trillion |
|
CAGR (2025-2033) |
8.02% |
|
Largest Market |
Asia-Pacific |
|
Fastest Growing Market |
Europe |
Growth opportunities
Even as the market grows there are several areas of growth. For example, sustainability, the growing demand for sustainable and eco-friendly practices presents a significant opportunity for apparel brands to differentiate themselves and capture market share. However, continued investment in digital technologies, such as AI-driven personalization and enhanced online shopping experiences, will be crucial for brands to engage consumers and drive sales.
The sector also faces several bug bears on its growth path. Rising of raw materials, labor, and compliance with environmental regulations are putting pressure on apparel brands' profitability. Supply chain disruption is another issue; global supply chain disruptions, due to COVID-19 pandemic, can impact the timely delivery of products and increase costs.
The Straits Research report aligns with similar industry analyses in highlighting the significant growth potential of the global apparel market, particularly in emerging economies and the e-commerce sector. However, it differentiates itself by providing a more detailed analysis of the factors driving growth, including a look into the rising demand for sustainable and ethical fashion. Additionally, this report offers a more detailed examination of the regional dynamics of the apparel market, highlighting the unique opportunities and challenges present in different parts of the world.
