Fashion to Become a Trillion-Dollar Industry by 2027

After seeing a massive $80 billion revenue drop in the past two years, driven by the inflation-caused cut in consumer spending, the global fashion industry has again picked up the pace of growth and is set to reach a new milestone in the following years.

According to data presented by Stocklytics.com, the global fashion market is expected to grow by almost 40% in the next three years and become a trillion-dollar industry.

People to Spend $90 Billion more on Fashion Each Year

For years, fashion has been one of the biggest industries in the world, driving a significant part of the global economy. Although consumers never stopped spending hundreds of billions of dollars on shopping apparel, footwear, and accessories, the entire market has undergone significant shifts over the past years.

Post-COVID-19 revenge 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. But what started as remarkable growth turned into a downfall, with market revenues plunging by almost $80 billion during 2022 and 2023 due to an inflation-caused drop in spending.

However, Statista data show optimistic market projections for the following years. By the end of 2024, shoppers worldwide will spend $770.9 billion on fashion, or $83 billion more than last year. Statista expects consumer spending in the fashion industry to continue growing by an average of $90 billion per year, helping the entire market reach a massive milestone and become 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.

In global comparison, China and the United States will remain the largest markets in the fashion industry, generating more than half the total revenue. According to a Statista survey, the revenue in the Chinese fashion industry will grow by nearly 40% and hit $323 billion in the next three years. The United States follows with a 34% growth in this period and $265 billion in revenue by 2027.

Better Online Shopping Experience and Social Commerce are the Biggest Market Drivers

The Statista survey also gave an interesting insight into what drives the fashion industry’s growth. According to the study, better online shopping experiences and the social commerce trend are the biggest contributors, followed by GDP growth and the increase in the number of internet users.

With online shopping being the key driver behind the fashion industry’s growth, it is not surprising that almost 35% of total revenue in 2027 will come from online sales, up from 27% this year.

The Statista survey also showed that the fashion industry will see considerable user growth in the following years. Thanks to ecommerce giants like Amazon, JD.com, and Taobao, and social media platforms that draw millions of new shoppers each year, the total number of users in the fashion industry is expected to jump by 400 million and hit 2.5 billion by 2027.

The full story and statistics can be found here: https://stocklytics.com/content/fashion-to-become-a-trillion-dollars-industry-by-2027/