Business

Overview Of Textile Sector Presents Bright Picture

The global apparel consumption in 2017 is estimated to be USD 1.8 trillion, which formed around 2% of the world GDP of USD 79.3 trillion. EU-28 was the largest apparel consumer market worth USD 400 billion, which was followed by markets of the USA, China, and Japan. These top four markets together constituted approximately 59% of the global apparel consumption. The next four largest markets were India, Brazil, Russia, and Canada, accounting for an additional 11% share while the rest of the world held a 30% share. The apparel consumption is forecast to grow at a CAGR of 4% and reach USD 2.6 trillion by 2025. It is expected that the market growth rate of developed countries will slow down whereas large emerging economies will be the key drivers of growth. China and India, with a large population base, will be the fastest growing markets in the segment. Global textile and apparel trade Global textile and apparel trade in 2017 was USD 750 bn, which has been increased overall at a CAGR of 2% since 2007, despite year wise fluctuations in demand. Growing Domestic Market of India and China It is expected that over the next decade, domestic apparel market of India and China will attain high growth rates of 11% each, to add a cumulative market size of USD 393 bn. by 2025. High economic growth will be a major factor behind increasing apparel market size in both these countries. Other trends facilitating the growth in India are increasing youth population and high purchasing power, shift from need- based purchase to aspiration-based purchase, growing urbanization increasing the market demand, increased penetration of technology and greater access to internet resulting in significant growth in online retail sales. Trends which will catalyze growth in Chinese market demand are boosting demand of outdoor wear and fast fashion categories, end of the one-child policy fostering demand of kid’s wear segment, gradual increase in spending of Chinese customer from offline to online retail channel.