The US fashion, apparel, and textile market is undergoing a significant change, driven by evolving consumer behavior, economic fluctuations, and technological advancements. This market, valued at $368.8 billion in 2023, is projected to reach $514.9 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 6.91 per cent during the forecast period.

The change drivers

Several factors are contributing to the reshaping of the US fashion market. Growing disposable income is a major one. Rising incomes is empowering consumers to spend more on discretionary items like fashion and apparel. This coupled with growing population, particularly among millennials and Gen Z, is pushing up demand for trendy and affordable clothing.

Then there is the e-commerce boom. The proliferation of online shopping platforms has revolutionized the way consumers purchase fashion, offering convenience and a wider selection. Moreover, growing awareness about environmental and social issues is prompting consumers to seek out sustainable and ethically produced fashion. And innovations like 3D printing and virtual reality are transforming the design, production, and retail experience in the fashion industry.

Meanwhile consumer behavior is evolving in response to these market drivers and certain clear trends are evolving.

• Value-consciousness: While consumers are willing to spend on fashion, they are increasingly seeking value for their money, looking for quality products at affordable prices.

• Personalization: Consumers are demanding personalized shopping experiences and products that cater to their individual styles and preferences.

• Experiential retail: The rise of online shopping has led to a decline in traditional brick-and-mortar stores. To stay relevant, retailers are focusing on creating immersive and experiential shopping environments.

• Social media influence: Social media platforms play a significant role in shaping consumer preferences and driving trends in the fashion industry.

• Sustainability focus: Consumers are increasingly conscious of the environmental and social impact of their fashion choices, seeking out sustainable and ethically produced brands.

• Rapid consumption: The fast fashion trend has led to a rise in clothing consumption, with Americans buying a new piece of clothing every five days on average. This highlights a shift towards quantity over quality, contributing to environmental concerns and the need for sustainable practices in the industry.

Table: Market Size and Per Capita Consumption

Shifting purchase channels

The way consumers purchase fashion is also undergoing a change. Post-pandemic, online shopping has become the preferred channel for many consumers, offering convenience, a wider selection, and competitive prices. With the increasing use of smartphones, mobile commerce is rapidly gaining traction, allowing consumers to shop anytime, anywhere.

And to cater to the evolving consumer, retailers are adopting an omnichannel approach, integrating online and offline channels to provide a seamless shopping experience. Social media platforms are increasingly being used for product discovery and purchase, blurring the lines between social networking and e-commerce.

The moot point is that the US fashion, apparel, and textile market is in a state of flux, due to a number of factors that are reshaping consumer behavior and purchase patterns. The trend of rapid consumption, with Americans buying a new piece of clothing every five days, underscores the influence of fast fashion and highlights the need for sustainable practices within the industry. To thrive in this dynamic landscape, businesses must adapt to the changing demands of the market, embrace technological advancements, and prioritize sustainability. The future of fashion good with continued growth and innovation expected to drive the market.