Hat & Cap Stores in the US - Industry Market Research Report

Moving ahead: Rebounding economic conditions will boost industry revenue growth

Like many retail industries that sell discretionary products, revenue for the industry has had mixed performance over the five years to 2023. For the majority of the five-year period, stores have benefited from rising disposable income, which has revived spending on hats and caps. These small-ticket items are favored by millennial shoppers, which typically include those born in the 1980s and 1990s. Ultimately, this demographic group has spurred revenue growth for the industry in recent years. As the demographic increasingly enters the workforce and its purchasing power increases, demand for industry products is expected to continue growing. However, the outbreak of COVID-19 in late 2019 significantly limited revenue growth in 2020 as many operators were forced to temporarily close down locations and demand for discretionary products decreased in line with skyrocketing unemployment and rapidly declining consumer confidence. This also led to an overall decline in industry profit that hasn't fully rebounded. Consequently, industry revenue has decreased at a CAGR of 4.4% to $1.6 billion entering 2023, including an estimated decline of 2.5% in 2023.

This industry consists of stores that retail a wide range of hats and caps. Many retailers also undertake sales and administrative activities such as customer service, advertising and cash handling. This industry excludes apparel and sporting goods retailers that generate a lesser portion of revenue from selling hats and caps.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.