Apparel Market Analysis - Industry Report - Trends, Size and Share (2023)

FAQs

What is the market size for the apparel industry? ›

Revenue in the Apparel market amounts to US$96.47bn in 2023. The market is expected to grow annually by 3.34% (CAGR 2023-2027). The market's largest segment is the segment Women's Apparel with a market volume of US$43.65bn in 2023.

Trend Forecasting is a type of Fashion Research that analyzes market trends and buying habits to make educated decisions on how to move forward on designing a new collection. Trend forecasting focuses on telling a story through trends in silhouettes, design details, colors, fabrics, and trims.

Revenue in the Apparel market amounts to US$343.70bn in 2023. The market is expected to grow annually by 1.96% (CAGR 2023-2027).

That is, how big is the potential market for your company. The relevant market size equals a company's sales if it were to capture 100% of its specific niche of the market. It is calculated by multiplying the number of prospective customers by the amount they could realistically spend on your product/service each year.

There are three types of trend analysis methods – geographic, temporal and intuitive.

Examples of Trend Analysis

Examining sales patterns to see if sales are declining because of specific customers or products or sales regions; Examining expenses report claims for proof of fraudulent claims. Examining expense line items to find out if there are any unusual expenditures in a reporting period.

Market trend analysis looks at how your industry started in the market, how it has grown, and where it is expected to go. For example, how cell phones first come about, how their popularity changed, and how manufacturers and retailers expect the market to change.

The adoption of a luxury lifestyle among consumers has influenced millennials' purchasing power to opt for luxury wear. Despite being a mature market, the changing fashion trends and the evolving retail landscape across brands have been the key factor for the booming apparel market.

What is apparel industry structure? ›

The fashion industry consists of four levels: the production of raw materials, principally fibres and textiles but also leather and fur; the production of fashion goods by designers, manufacturers, contractors, and others; retail sales; and various forms of advertising and promotion.

The global apparel market is expected to grow from $551.36 billion in 2021 to $605.4 billion in 2022 at a compound annual growth rate (CAGR) of 9.8%.

The five levels of fashion segmentation are Haute Couture, Ready-to-Wear (RTW), Diffusion, Bridge and Mass Market.

College age consumers that are looking for trendy clothing at an affordable price. Young professionals in search of trendy clothing at an affordable price for themselves and their children.

For example, imagine that your organization markets learning resources to schools. Your research shows that there are 6,000 relevant schools in your country. You know that the average sale per school is around $50,000, which means that your market size is $300 million.

What is market size? Market size refers to the total number of potential buyers for your product. Alexa defines market size as “the number of individuals in a certain market segment who are potential buyers.”

By looking at a firm's market share, we try to understand how much of a particular industry (or market) is 'owned' or dominated by that one specific firm. It is measured by dividing the firm's total sales by the market's total sales. Market size measures the total sales generated by selling a product.

Size of the market: Different than the size of your industry, the size of the market is how many potential customers you could have. You'll want to consider everything from your total addressable market (TAM) to your share of the market (SOM).

Entrepreneurs should observe at least four types of trends—economic, social, technological and regulatory—to identify business opportunities and grow their startups. By paying close attention to economic trends, they can identify areas that are ripe for new ideas.

What are some examples of a trend? ›

Streaking (running naked) on college campuses, the widespread use of cocaine in the 1980s, and playing hacky sack all qualify as crazes. Finally, fads that pertain to styles of dress or manners are generally termed fashion trends.

The three main types of trends are uptrends, downtrends and horizontal trends.

The apparel industry is currently experiencing a shift towards digital-first brands. These brands prioritize online sales and digital marketing over traditional brick-and-mortar retail and are utilizing technology to create a seamless and personalized shopping experience for consumers.

The manufacture of textiles provides an economic boost to many countries in the world. Economies can be made or broken with the addition or loss of a textile industry, which in turn can affect the ability of people to support their families and provide them with the basic necessities of life.

What makes an apparel brand successful? ›

Arguably, the key to their success has been having a clear brand identity that resonates with their target customers, staying authentic to that identity, and knowing how to communicate it to the desired audience. So, take the time to think – really think – about your brand from the start.

Furnishing –This includes shirts, neckwear, sweaters, knit tops, underwear, socks, robes and pajamas. Heavy outerwear – This includes jackets, snowsuits, ski jackets, parkas, and related items. Work cloths – This includes work shirts, work pants, overalls and related items.

Included in the apparel industries are three types of establishments: (1) the regular or inside factories; (2) contract factories; and (3) apparel jobbers.

Structure/Formation

There are many advantages and disadvantages to each method either knit, woven or non-woven, all of which affect their end use. Weaving and knitting are the most common fabric construction methods.

A good current ratio is typically considered to be anywhere between 1.5 and 3.

In general, an average net profit is around 10%, while a high margin is 20%, and a low margin is 5%. If you want to open online apparel, here's an article exploring how to start your own clothing store with no money that can give you a good start.

Revenue in the Apparel segment is projected to reach US$118.90bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.24%, resulting in a projected market volume of US$169.30bn by 2027.

In addition to typical girth measurements clothing is also marked to identify which of 5 height bands: X-Short, Short, Medium, Tall, X-Tall, and body types: Slim, Normal, or Full, it is designed to fit.

A size chart is a document that reflects the measurements for your size range within your brand. Typically, your public size chart is characterized by 4 main measurements, bust, waist, hip, and height.

American women have long been told that the average size is 14. Wrong! It's actually a size 16, reveals a study in the International Journal of Fashion Design, Technology and Education that sheds a major light on how retailers view the term "average.

What is the size of the apparel industry? ›

The cost of production rose, and consumer confidence fell. The revenue of the global apparel market was calculated to amount to 1.53 trillion U.S. dollars in 2022, a slight decrease on the previous year. However, revenue was forecast to increase in 2023, to more than 1.7 trillion dollars.

The global apparel market grew from $610.12 billion in 2022 to $652.94 billion in 2023 at a compound annual growth rate (CAGR) of 7.0%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.

In the retail industry, a buyer is an individual who selects what items are stocked and their key responsibility is dealing with all the products that come into the store.

The answer: Walmart and Amazon.

Walmart claims 8.1% of the US apparel market, followed by Amazon with a 7.4% share and Target with a 4.3% share, according to Morgan Stanley research.

The market size, measured by revenue, of the Fast Fashion industry is $2.3bn in 2023. What is the growth rate of the Fast Fashion industry in Australia in 2023? The market size of the Fast Fashion industry is expected to increase 1.9% in 2023.

Today's luxury brand target audience is 25 to 44 years old. They comprise 64 percent of this overall audience. Don't sleep on the younger generation between 16 and 24 years old, also known as Generation Z. They're another big chunk of your target market.

Revenue in the Women's Apparel segment amounts to US$179.70bn in 2023. The market is expected to grow annually by 2.00% (CAGR 2023-2027). In global comparison, most revenue is generated in the United States (US$179.70bn in 2023).

How much of the apparel industry is fast fashion? ›

Of the $551.4 billion global apparel industry, approximately 18% is fast fashion, according to market research firm Business Research Company.

Its goal is to quickly produce cost-efficient articles of clothing in response to (or anticipation of) fast-shifting consumer demands. The assumption is that consumers want high fashion at a low cost. While the garments are often carelessly made, they're not intended to be worn for years or even multiple times.

Fashion Industry Segments

The textile industry is the largest segment of the primary market.