Apparel Market Report 2026

The apparel market size has grown strongly in recent years. It will grow from $736.58 billion in 2025 to $783.07 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to expansion of global textile manufacturing, rising disposable income levels, growth of organized retail apparel, increasing urbanization trends, availability of low-cost manufacturing hubs.

The apparel market size is expected to see strong growth in the next few years. It will grow to $1.02 trillion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to growing demand for eco-friendly clothing, expansion of digital fashion platforms, rising use of data-driven design processes, increasing adoption of direct-to-consumer models, growing influence of social commerce. Major trends in the forecast period include growing demand for sustainable apparel materials, rising adoption of fast fashion production models, expansion of online apparel sales channels, increasing focus on customization and fit innovation, enhanced emphasis on brand-led collections.

The increasing disposable income is anticipated to drive the expansion of the apparel sector in the coming years. Disposable income refers to the portion of money households have available for spending and saving after deducting income taxes. The rise in disposable income is fueled by economic recovery and steady wage growth, as improvements in the labor market and declining inflation rates have allowed households to maintain greater purchasing power. Greater disposable income allows consumers to spend more on non-essential items such as clothing and fashion products. For example, in October 2024, the U.S. Bureau of Economic Analysis, a government agency in the United States, reported that personal income increased by $71.6 billion, or 0.3 percent, in September. Disposable personal income (DPI), which is personal income minus current personal taxes, rose by $57.4 billion (0.3 percent). Personal consumption expenditures (PCE) grew by $105.8 billion, representing a 0.5 percent increase. Consequently, the growth in disposable income is supporting the expansion of the apparel sector.

E-commerce expansion is expected to drive the growth of the apparel manufacturing industry in the coming years. E-commerce, or electronic commerce, refers to the buying and selling of goods and services through the Internet. It involves exchanging data or money to complete a transaction and can be conducted via computers, tablets, smartphones, and other smart devices. With the increasing popularity of e-commerce, consumers are increasingly choosing online platforms for purchasing clothing and fashion products. This change in consumer behavior has resulted in a rise in online apparel sales. For example, in February 2024, according to the United States Census Bureau, a federal statistical agency, total e-commerce sales in 2023 were estimated at $1.11 trillion, reflecting a 7.6 percent (±1.2%) increase compared to 2022. During the same period, overall retail sales grew by 2.1 percent (±0.4%) from the previous year. E-commerce represented 15.4 percent of total retail sales in 2023, up from 14.7 percent in 2022. Consequently, the increasing adoption of e-commerce is contributing to the expansion of the apparel manufacturing industry.

Major companies in the apparel industry are emphasizing technological innovations, such as sensor-embedded smart fabrics for real-time physiological and thermal monitoring, to address the increasing demand for health-conscious performance wear, adaptive comfort, and wearable technology that combines fashion with functionality. Smart fabric monitoring involves textile materials woven or knitted with integrated sensors and conductive threads that continuously measure physiological or environmental parameters, eliminating the need for separate wearables or static fabrics. For example, in March 2025, VOORMI, a US-based outdoor apparel brand, introduced the Mij smart T-shirt, a washable biometric garment developed with Mij sensor-embedded textile technology that detects body thermal load in real time and maps thermal stress across the entire body. The Mij shirt embeds wireless sensors directly into the fabric, enabling it to monitor the wearer’s response to heat and activity; it can warn users of thermal stress before it becomes harmful, assist athletes, first responders, and outdoor workers, and provide actionable insights through a companion app - all while maintaining the look and feel of a standard performance T-shirt. This development illustrates how the apparel sector is moving beyond basic comfort or style, adopting intelligent, health- and performance-focused clothing to meet the rising demand for adaptive wearables and data-driven personal wellness.

Major companies operating in the apparel market are NIKE Inc, Adidas AG, PVH Corp, Christian Dior SE, Hanesbrands Inc, VF Corporation, Levi Strauss & Co, Kering SA, Ralph Lauren Corporation, Samsung C&T Corporation, Aditya Birla Fashion and Retail Limited, Shanshan Group Co, United Arrows, Matsuoka Corp, Heilan Group, Youngor Group, Bosideng Corporation, Fujian Septwolves Industry Co Ltd, Shimamura, Uniqlo, Nishimatsuya, Allen Solly, Louis Philippe, Peter England, Van Heusen, Fabindia, Decathlon, Under Armour, H&M, Zara, Primark, Marks & Spencer, Next, Lee, Diesel, Wrangler, Guess, Tommy Hilfiger, Calvin Klein, Brooks Brothers, American Eagle Outfitters, Abercrombie & Fitch, Old Navy, Gap, Michael Kors, Coach, Gildan Activewear, Chanel, Urban Outfitters, MANGO, Truworths Group.

Western Europe was the largest region in the apparel market in 2025. Asia-Pacific was the second-largest region in the apparel market. The regions covered in the apparel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the apparel market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The apparel market consists of sales of formal wear, casual wear, sportswear, plant-based fiber and synthetic fiber, and others. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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