The apparel industry is among the largest industries in the world. It is worth about 2.4 trillion USD globally. A lot of money is spent to buy clothes as both a basic need and as a luxury. The fashion industry provides jobs to millions of people the world over. This article will focus on money that is spent on apparel globally and then narrow it down to specific demographics such as adults, men, women, teens, and children. Read through this article to find out the apparel market trends that will shape the clothing industry. The following statistics represent the present global market of apparel and future projections of the market expansion.
- The fashion market declined by between 20% and 35% in 2020
- The recovery of the fashion market is projected at 38.21 billion USD by the end of 2023.
- The value of the clothes, accessories, and footwear market in the whole world in 2021 is 795.5 billion USD.
- The clothing industry holds the first position in e-commerce sales globally.
- Online fashion sales are expected to attain a 7.18 percent compound yearly rate of growth for the next five years thereby putting the industry at more than 1.0 trillion USD in digital sales by 2026.
- Active digital paying customers will increase from 46% in 2021 to 60.32 percent by 2024.
- The market for Footwear and clothing is projected at 3.3 trillion USD by the year 2030.
- In 2021 the market is expected to grow by more than 20%
- By the end of 2021, the market revenue is expected to reach 759 billion USD.
- Nigeria imports textiles and ready-made clothes worth 4 billion USD yearly.
- The apparel market in Canada sold clothing worth $28.04b in the year 2019.
- At the end of 2021 Philippines clothing market revenue is projected at $2.11b.
- In 2019 the global clothing market was boosted by sports clothing with sales of 265b USD.
(Source: McKinsey & Company)
Based on the data shown above, it is evident that the clothing industry had a general decrease in 2020, which was linked to the emergence of the Covid virus in that year. In the first quarter of 2020, the luxury sector, which includes the apparel business, saw a 25 percent drop. The pandemic resulted in an 8.5 percent decrease in the clothing market in Australia by the year 2020. Many businesses suffered significant losses as a result of the fact that clothing was the least important thing to many individuals who were more concerned with food and other necessities that they could not live without. Nike Inc., for example, had a revenue loss of about 790 million dollars that year.
The pandemic, on the other hand, led to the expansion of the online clothes industry, as a majority of customers chose to purchase garments via the internet. Those fashion businesses who switched to selling their goods on the internet have managed to remain afloat, and the trend of purchasing clothes online is anticipated to continue to expand in the next year. It is projected that fashion businesses who have been successful in establishing digital channels would earn income equal to 20 percent of their total sales by the end of the calendar year (2021).
Experts estimate that the fashion sector will rebound after 2021, with market growth continuing to accelerate until the end of 2030, when it is predicted to reach a total value of 3.3 trillion US dollars. Despite the fact that the fashion sector is anticipated to recover in the near future, this will be feasible between 2022 and 2023.
Immediately after the emergence of Covid-19, experts projected that fast fashion businesses such as Zara (Inditex), Uniqlo, and H&M Group would suffer a 12.3 percent drop in sales. Despite the downturn, the fast fashion industry is projected to rebound and reach 38.21 billion USD by the end of 2023, representing a cumulative annual growth rate of about 6.7 percent.
In Africa, Nigeria was one of the most important participants in the clothing sector throughout the 1970s and 1980s, with the industry accounting for more than a quarter of the labor force at the time. Nigeria continues to be a major participant in the African apparel sector, importing more than $4 billion USD in textiles and ready-made clothes each year.
A significant portion of the development in the apparel industry may be attributed to sports wear. In 2019, the sportswear market was valued at 265 billion USD, with Nike Company accounting for 39 billion USD in sales. Due to Covid-19’s limitation of mobility, which forced individuals to concentrate on physical activities that might keep them healthy when inside, the increased purchasing of sports apparel such as shirts and shoes in 2020 may be linked to the restriction of movement caused by Covid-19.
Money Spent on Clothing globally
A lot of money is spent on apparel in the world each year. Consumption of clothing differs from country to country depending on the scale of income of the citizens in those countries. Statistics in this section will highlight spending trends on clothing among key players in the Apparel market.
- It was predicted that China would spend 391.7 billion USD on clothing in 2020.
- In 2019 China’s clothing market was leading at a growth rate of slightly above 6%.
- In 2020 the sales for clothes in India were 53.7b USD.
- The 9th largest clothing market in the world is Russia with sales of about 30b USD annually.
- In 2019 Russia’s e-commerce sales increased by 26%.
- An average consumer spends 6 times in the UAE and 2 times in Saudi Arabia than an average Chinese consumer respectively.
The clothing business is dominated by the United States, Russia, and China. Other nations are developing that are expected to play a major role in the worldwide fashion industry rivalry in the near future. When it comes to spending on clothes, China is one of the top nations in the world. The United Arab Emirates and Saudi Arabia are two more developing markets that are expected to have an impact on expenditure in the apparel sector in the near future. Even if Russia grew its e-commerce sales by 26 percent in 2019, it has lagged behind the rest of the world in terms of clothing e-commerce sales.
Money spent on Clothing by Adults
How much money do adults spend on clothing every month? The fact that adults make more money means that they have more money to spend. The statistics in this section reveal how much cash adults spend in buying apparel.
- American adults aged between 25 and 34 years spend 161 USD a month on clothing.
- Adults who are between 35 and 44 years spend 209 USD a month on clothing. This is probably because people aged between 35 and 44 years earn 26% higher than those aged 25 to 34 years.
- According to a 2018 survey, 18 percent of UK adults indicated that they spend between 52 and 100 British pounds a year.
- Those who said that they spent above 3000 British pounds a year were about 1% of the UK adults surveyed.
According to the data, people between the ages of 35 and 44 years spend more money on clothes than those between the ages of 25 and 34 years. The income disparity between the two groups may be ascribed to the fact that individuals above the age of 35 earn more than those under the age of 35, which explains the disparity. According to the data, individuals spend more money on clothing the higher their level of income is. Female adults spend more on clothes than their male counterparts, according to the latest data.
Money spent on clothing among Teens
The statistics here show how teenagers spend their money on clothing and the favorite brands among them.
- A 2016 report said that teenagers spent 38% of their earnings on apparel.
- In 2020, teenagers spent an average of 507 USD on apparel. This represents a decline of 11% from the previous year.
- Teenage girls spent 160 USD more on apparel compared to boys.
- Teenagers spent an average of 275 USD on footwear in 2020 marking a decrease of 6% from 2019.
- Teenage boys from upper income spent 16% on clothing.
- Teenage girls from upper income spent 25% on clothing.
- Teenagers spent $270 on average to buy footwear in 2021 which is 5% down from 2020.
The following brands of apparel were favorites among the teenagers
- Nike took the first position for the tenth year with its casual sports clothing.
- The second favorite brand was American Eagle while Adidas was position three
- According to this survey, teenagers spent more on clothes than on shoes.
- Shein, a Chinese brand gained and became a top ten by being position eight.
- Thrift and Consignment stores scooped position 10 from position 23 the previous year indicating that teenagers had started to venture into secondhand marketplaces.
Millennials’ expenditure on clothing decreased in 2020 as a consequence of the Covid-19 pandemic, which caused people to shift their priorities and place more focus on food and other essentials in response to the emergence of the illnesses. When compared to other kinds of clothing, statistics indicate that adolescents spend a little amount of money on footwear. It is also clear that the income level of adolescents had an impact on how much money they spent on clothes, with those with higher income levels spending much more than those with lower income levels. Teenage females from higher-income families spent more money on clothing than their male counterparts, according to the study. Because of the fast changes in girls’ fashion trends as well as their sensitive nature when it comes to their physical appearance, this disparity has been linked to both of these factors.
Money spent on clothing among Children
The amount of money that a family spends on children’s clothing varies from income levels to the number of children in a family. This section highlights the global spending on children’s clothing.
- The revenue generated from children’s clothing in 2021is 271051million USD. The cumulative annual growth rate is expected to be 6.96% annually from 2021 to 2025.
- Globally the USA generated 49418 million USD in 2021 which is the highest in the whole world.
- The average revenue gained from one child in 2021 is 35.94 USD per child.
- The volume of children’s clothing is expected to be 68085.65 million pieces by the end of 2025.
- The children’s apparel volume is expected to grow by 6.7% in 2022.
- In 2021 the average apparel is predicted to be 7.69 pieces.
From 2021 to 2025, sales and volume of children’s apparel are expected to increase at a steady pace, according to the data. In 2021, the United States will have produced more income from children’s apparel than any other nation on the continent. This year, the worldwide average number of items of clothing for each kid is close to eight pieces per child, according to the International Children’s Clothing Association. This implies that during the first quarter of the year in 2021, an average of 8 items of clothes were purchased for each kid in the country.
Money spent on Men’s clothing
How much money do men spend on clothing? The statistics below show the salient trends in men’s clothing and spending.
- On average, men who are above 16 years spend 323 USD on clothing annually.
- Men who are between 45 and 54 years spend 121 USD a year more than men who are between 35 and 44 years.
- The revenue from men’s clothing in 2021 is USD 557773 million.
- It is predicted that the men’s apparel market will have an annual growth of 7.29% from 2021 to 2025.
- China generated the most revenue from men’s clothing in 2021 equivalent to USD 104307 million.
- On average, the revenue of 73.96 USD is generated in 2021 per person.
- By 2025 the volume of men’s clothing is projected to be 41873.9 pieces.
- The segment for men’s apparel will have a 7.5% growth in 2022
- The clothing per one man in the segment for men’s apparel is predicted at 4.59 pieces per person in 2021.
(Source: Market Research)
When it comes to clothes, men’s spending habits get more sophisticated as they become older. Statistics show that males between the ages of 16 and 34 spend the least amount of money on clothes, while older men over 45 spend the most, with those aged over 44 spending 121 US dollars more on clothing than men between the ages of 35 and 44. Men’s clothes earned more than half a million dollars in sales in the first quarter of 2021, according to the company. In the first quarter of 2021, China earned the largest income from men’s clothes, amounting to more than 100000 million US dollars. One guy purchased about 5 items of clothes on average during the first quarter of 2021, according to the Bureau of Labor Statistics.
Money spent on Women Clothing
The following statistics show the spending trend of spending on women’s apparel.
- Women who are above 16 years spend 76% more on clothes than their male counterparts.
- Each woman spends about 571 USD on clothing each year.
- Women aged 45 to54 years spend about $793 annually.
- On average each woman owns clothes worth 1000 to 2500 USD.
- Nine percent of the women possess clothes whose worth is more than $10,000.
- 50% of the women don’t wear 25% of their apparel. This is equivalent to $600 wasted.
- Thirty-two percent of the women own 25 pairs of footwear.
- After three months seventy-three percent of the women purchase 25% of new clothing.
- More than fifteen percent of the women don’t have clothes above five years old.
- A-One Poll study revealed that fifty-two percent of the surveyed women possess shoes they don’t wear.
- On average, American women between 35 and 44 years old use 960 USD annually.
- Women wear between 20% and thirty percent of the apparel they own.
- By 2025 the women’s clothing industry will have a 4.7 percent cumulative rate of growth.
- The clothing industry for women is expected to be worth $165.4b by 2021.
- Revenue generated from women’s apparel decreased from 2019’s 187.8b USD to 133.6b USD by the end of 2020.
Clothing for women generates more income than any other sector in the world, excluding the food and beverage industry. The clothing sector has seen consistent growth over the years, with the exception of 2020, when revenue collected from the women’s apparel segment dropped as a consequence of the Covid-19 epidemic in the United States. The empowerment of women, the rise in the number of working women, and the fast changes in women’s clothing trends are all factors that are contributing to the development of the women’s clothing sector.
Because women have a greater capacity to purchase more clothing than men, there has been a rise in the manufacturing of women’s apparel relative to men’s apparel. Women are also more self-conscious about their appearance than males, which leads to the introduction of new fashion trends for women being introduced quicker than new fashion trends for men. Women are also always on the lookout for the latest fashion trends, which leads them to purchase the most current products that have been launched onto the market. Furthermore, women are more sensitive to problems of dressing than men, and they can seldom wear the same garment more than once, as is the case with males, necessitating the need for a sufficient amount of clothes in their closets. Because of this, clothing for women is manufactured in huge numbers to satisfy the need of this market segment.
Money Spent on Family Clothing
This last section will focus on money spent on clothing by an average family.
- An average family uses about 388 USD on footwear annually.
- An average family also spends about 3.8 percent of their total income on apparel.
- Households that earn 64175 USD annually use about 2440 USD in buying clothing every year.
- Surveys also reveal that an average person purchases 7.8 pairs of footwear annually. This translates to 31.2 pairs of footwear annually.
The amount of money spent on clothing by a family is determined by the gender and age of the individuals that comprise it. An adult family’s clothing budget is dominated by members between the ages of 35 and 44, with the youngest member being under the age of five. When compared to adolescents, little children are the least expensive to clothe. Teenage females have higher clothing costs than teenage guys, therefore they need greater sums of money to fulfill their needs. A family’s yearly wages account for about 4 percent of their total expenditure on clothing, according to statistics.
The emergence of Covid-19 in 2020 caused a slowdown in the development of the global apparel sector as a whole. However, the sector has begun to open up as of 2021, and it is expected that the clothing industry would see consistent development from 2021 through 2030, according to projections. Depending on their economic level, their age, and their gender, individuals spend a different amount of money on clothes. The feminine gender outspends the male gender in terms of apparel spending across all age groups. Women spend on clothes on average 8 percent more than men, according to the National Retail Federation. This implies that the sector of female apparel is more profitable than the section of male clothing. As a consequence of the Covid-19 pandemic’s limitations on mobility, the majority of customers resorted to internet shopping to purchase clothes. This resulted in an increase in e-commerce sales, and many industry experts believe that this is a positive trend in the apparel sector in which firms should invest.
Q: What is the projected global apparel market growth by 2025?
Answer: It is predicted that the apparel market will grow to close to $2.5 trillion by 2025 which means that there is an increase in the demand for footwear and clothing globally.
Q: How much does an average family spend on clothing annually?
Answer: An average family of four people uses 1800 USD to buy clothes annually. Of this amount, 38 USD is spent on footwear.
Q: Which gender spends more money on apparel?
When comparing men and women, the answer is that women spend more money on clothing each year. Women spend an average of 1140 USD per year, while males spend an average of 813 USD per year. Conversely, both the male and female genders spend about the same amount of money on shoes each year. It is estimated that both males and females spend 190 USD on footwear per year.
Q: Which age bracket spends more money on clothing than others?
Answer: Those between the ages of 35 and 44 years spend more money on clothes than adults in other age groups. It is projected that individuals between the ages of 35 and 44 spend 209 USD on clothing each month, compared to 161 USD spent by those between the ages of 25 and 34.
Q: How did Covid-19 impact the clothing industry globally?
COVID is the correct answer. The epidemic that occurred on January 19 had a major effect on clothing manufacturing throughout the world. It also had a negative effect on the supply chains in the apparel sector. Because of the limitations imposed by the governments on mobility and social gatherings, international merchants of various brands canceled orders that they had previously placed. This resulted in the stoppage of garment sector output, which in turn resulted in the dismissal or suspension of workers. According to the available statistics, more over a million individuals were either temporarily or permanently out of work.
The Business of Fashion and McKinsey & Company
Grand View Research