The global apparel industry is thriving, with market size estimated at $1.36 trillion in 2024 as per Mordor Intelligence. This positive trend is expected to continue, with various reports projecting a healthy Compound Annual Growth Rate (CAGR) in coming years.
Various studies have estimated the market size at different levels. For example, Technavio estimated the global apparel market will to $582.93 billion from 2023 to 2027, at a CAGR of 6.65 per cent. Mordor Intelligence estimated the market will reach $1.78 trillion by 2029, at a CAGR of 4.63 per cent. On similar lines the Business Research Company estimated the market will reach $918.71 billion by 2028, at a CAGR of 6.9 per cent.
Share of various regions
While data on specific regions vary slightly between reports, a consistent trend emerges.
Asia-Pacific (APAC): Holds the largest market share, with estimates ranging from 39 per cent for Technavio to a significant portion not explicitly mentioned by Mordor Intelligence.
North America and Europe: Have established positions, but growth is expected to be slower compared to APAC.
South America and Middle East & Africa: Represent emerging markets with promising potential for future growth.
The Technavio report outlines various factors influencing the global apparel market. One major driver is shifting consumer preferences who demand comfort, sustainability, and ethically sourced clothing. Technological advancements is another growth dirver. Virtual try-ons, contactless shopping, and customization are shaping the industry. Evolving retail landscape is another factor. The rise of online platforms and omni-channel experiences is impacting consumer behavior.
What drives APAC market?
The Technavio report rightly identifies the APAC region as a major growth driver, contributing a projected 39 per cent to the global market expansion. Several factors have been catalyst for APAC's dominance.
Economic growth: Rising disposable incomes in countries like China, India, and Southeast Asia empower the middle class to spend more on apparel.
Youthful population: APAC boasts a young demographic with a strong interest in fashion trends, creating a vast consumer base.
Digital revolution: E-commerce giants like Amazon and Myntra are transforming the retail landscape, making apparel more accessible in APAC.
The global apparel market is poised for significant growth, with APAC leading the charge. A combination of economic factors, demographics, and technological advancements are shaping the market landscape across different regions. As sustainability concerns gain traction, the industry is likely to see further innovation in materials and production methods.
