Fashion a trillion dollar industry by 2027
The global fashion industry is predicted to grow by almost 40% in the next three years.
After seeing a massive $80 billion revenue drop in the past two years, driven by the inflation-caused cut in consumer spending, British-based analysts Stocklytics says it will become an international trillion-dollar industry by 2027.
Recent data shows people globally will spend $90 billion more on fashion each year. Fashion has been one of the biggest industries in the world for years, although its market has undergone significant shifts during the last five years.
Post-Covid-19 shopping helped the fashion industry skyrocket, with shoppers worldwide spending $766.2 billion on fashion in 2021, the highest figure in the market’s history. What started as remarkable growth then turned into a downfall, with market revenues plunging by almost $80 billion during 2022 and 2023, due to an inflation-caused drop in spending.
APPAREL SALES ON THE RISE
That’s changing again with optimistic market projections for the coming years. By the end of 2024, shoppers worldwide are predicted to spend $770.9 billion on fashion, or $83 billion more than last year, to boost fashion to a trillion-dollar industry by 2027. Almost 60% of that value will come from apparel sales, the market’s largest and highest-grossing segment. Revenue in the apparel market is forecasted to grow by 38% and hit $631 billion by 2027. The accessories market will see practically identical growth, with revenues reaching $255 billion in the next three years. Global footwear sales will generate $170 billion by 2027, or 32% more than this year.
New Zealand fashion figures
New Zealand’s fashion, clothing and textile industry is huge, adding $7.8 billion to the economy in 2023, and accounting for 1.9% of GDP. As it continues to grow, forecasts are for an annual projected growth of 4.07% by 2028.
Global data and business intelligence platform Statista lists revenue in 2024 in the apparel market here as having a value of $7.55 billion. The largest segment within this market is women’s apparel, with a market volume of $4.38 billion in 2024.
Looking ahead, the volume in the apparel market is expected to reach 307.4 million pieces by 2028, including an anticipated volume growth of 1.6% in 2025. The average volume per person in the apparel market is projected to be 54.8 pieces in 2024, with non-luxury items accounting for 92% of sales. Of note is that New Zealand’s apparel market is embracing sustainable fashion, with a focus on locally sourced materials and ethical production practices.
The fashion, clothing, and textile industry in New Zealand employed 76,011 workers in 2023; 78% of them women. Wages in 2023 amounted to $4.4 billion.
