Denim Market to Witness 5.8% CAGR

The global denim market is predicted to generate a revenue of $79.2 billion in 2023, increasing from $56.1 billion in 2017, progressing at a 5.8% CAGR during the forecast period (2018–2023), as per a research conducted by P&S Intelligence. The worldwide growth in the e-commerce industry and transformation of the Asian retail clothing industry are the major driving factors of the market. In terms of segment, the market is divided into premium, standard, and mass market.

Among all these, the premium division is expected to register the highest CAGR during the forecast period, owing to rapid westernization, increasing number of high-net-worth individuals, and growing upper-middle-class population around the world. On the basis of consumer type, the market is classified into children, men, and women, out of which, the men classification dominated the market in 2017. Men are creating increasing demand for casual and rugged-material clothing. They wear denim clothing for several purposes, including everyday life, parties, and work.

When distribution channel is taken into consideration, the denim market is categorized into exclusive stores, specialty stores, hypermarkets and supermarkets, online, and department stores. Specialty stores accounted for the major share of the market in the past, as several brands are offered under one roof in these stores. The online category is predicted to grow at the fastest pace during the forecast period, owing to the rapidly expanding e-commerce industry. Moreover, people these days are widely demanding convenient on-demand shopping platforms.

Geographically, the denim market was dominated by North America during the historical period (2013–2017). The increasing disposable income, rising demand for superior-quality clothing, and growing promotion of denimwear by celebrities are the major factors driving the growth of the regional domain. The Asia-Pacific region is expected to register the highest CAGR during the forecast period, because of urbanization, rising disposable income, enhancements in the manufacturing process, improving living standards, and growing population of working class in the region.

The improvement in organized retail and the introduction of advanced solutions that are driving the denim market. The price of denim products differ on the basis of comfort, texture, wash, and style. The denim industry has paid attention to diverse needs ad budgets of consumers, which is why, products ranging from cheap to luxury are available in the market. In addition to this, the industry is widely introducing new designs, cuts, and washes for keeping consumers interested.

The shifting inclination of consumers toward distressed, cropped, and patched jeans is a key trend in the market. People across the globe are increasingly focusing on trending jeans, including those with cropped hems, as well as boyfriend jeans, two-tone jeans, and skinny jeans. These styles are gaining huge momentum among consumers, especially the younger population, owing to their casual look and promotions through media. Additionally, decorative denims with details such as patches, laces, and embroidery are also being rapidly sold in the denim market.

Proper disposal of used clothes and plastics is becoming a major concern for global environmentalists. The use of large quantities of hazardous chemicals and high emissions of greenhouse gases during the production of denim have been creating a negative impact on the climate. Owing to this, denim manufacturers are now concentrating on effectively controlling the consumption of chemicals, to reduce the degrading environmental effects, by adopting sustainable practices, which is raising the demand for denim recycling across the globe. The concept of sustainable denim clothing is not only gaining popularity in developed nations, such as the U.S. and Germany, but also in developing countries, including China and India. Hence, the growing production of denim from plastic and other recyclable materials is a major opportunity for the denim market players.

A major trend being witnessed in the denim market is the shifting focus of consumers towards cropped, distressed, and patched jeans. People around the world are increasingly demanding trending jeans, such as jeans with cropped hems, two-tone jeans, boyfriend jeans, and skinny jeans. The popularity these products is majorly increasing among the younger generation, which can be ascribed to their inclination towards casual look. Moreover, the demand for decorative denims that have details including laces, patches, and embroidery is also expected to result in the growth of the market.

In conclusion, the market is growing due to the improvements in organized retail and introduction of innovative solutions.