The fashion industry today is a huge leap from the 19th century when almost all clothes were made by hand. Technology and globalization have had a major impact on all aspects fo the fashion industry.
The modern fashion industry includes the extraction and production of raw materials, making the products, selling in retail or online stores and marketing products.
Although the market is global, New York City is still the global center of fashion.
Global Fashion Industry Facts
- Worldwide the fashion industry is valued at an estimated $2.4 trillion (McKinsey)The luxury apparel market is worth $69 billion (Grand View Research)
- The fashion industry employees more than 1.8 million people in the world (Bureau of Labor Statistics)
- On the other hand, the fake luxury market is growing at about 45% annually (Assocham)
- The global apparel market is worth $1.3 trillion in 2019 and expected to grow to $1.5 trillion in 2020 (Bureau of Labor Statistics) .
- The global clothing and apparel market reached a value of nearly $758.4 billion in 2018 (Research and Markets)
- About 4.2 million people are employed in the fashion industry in the world (Global Fashion Agenda)
- Worldwide China is the largest consumer of apparel and footwear, spending $380 billion (McKinsey).
- The US is the second-largest consumer of apparel, spending $370 billion (Bureau of Labor Statistics)
- India has increased to $71 billion dollars becoming the fifth largest fashion consumer (McKinsey)
- Sports footwear market alone is valued at $130.5 billion (Statista)
- Just 20 percent of the fashion industry companies earn 97% of all the profits in the industry (McKinsey)
- Dresses & skirts were the largest segments of the women’s wear market in 2018 at 23.3%. (Research and Markets)
American Fashion Industry Statistics
- The US is the second-largest consumer of apparel, spending $380 billion (Bureau of Economic Analysis)
- The annual revenue of the fashion industry in the US was $341 Billion in 2018 (Statisa)
- In 2025 the US apparel makes is projected to be %390 billion (Statista)
- The US market is about 20 percent of the global apparel Market (Statista)
- American consumers purchased more than $136.8 billion in apparel from abroad (JEC)
- Nike’s North American revenue from apparel is 5.3 billion (Statista)
- The apparel manufacturing industry employs nearly 123,000 workers in the United States.(Bureau of Labor Statistics)
- New York City’s fashion industry generated more than $11.3 billion in wages and $3.2 billion in tax revenue (JEC)
- New York Fashion Week generates $600million, almost twice as much as the Super Bowl’s $347 million (JEC)
- Fashion e-commerce (buying and selling online) accounted for about 20.5 % of the total fashion revenue for US (Shopify)
Fashion Industry Pollution and Sustainability Facts
- In a Lifestyle Survey, 54%of people believed that ethical purchase decisions would make a difference (Euromonitor)
- Fashion is the third largest pollution generating industry in the world and accounts for 8% of the world’s greenhouse gas emissions (Quantis)
- In China alone, the textile industry pumps out 2.5 billion tons of wastewater every year. (Bossier)
- An unbelievable 3/5 of clothing is thrown in the trash after just one year of being produced (McKinsey)
- More than 2,000 different chemicals (from formaldehyde to heavy metals) are used in creating textiles (Bossier)
- A cotton shirt could take as much as 2,600 to 5,500 gallons of water to produce (WRAP)
Fashion Outlook and Trends:
The fashion apparel industry is expected to continue to grow at 4 to 5% per year into the future. Online platforms, specifically Amazon, are expected to grow by 5 times over the next year. Western Europe and China will continue to supply up to 2/3 of the global market. With China, US, and India consuming the largest share of the market.
Fashion is a quickly evolving industry that will continue to change rapidly over time. Companies must be able to adapt and shift quickly with the trends.
- McKinsey & Company (2019) “The State of Fashion 2019” (November 29, 2018) https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20influence%20of%20woke%20consumers%20on%20fashion/The-State-of-Fashion-2019.ashx
- Grand View Research (2019) Luxury Apparel Market Size, Share & Trends Analysis Report By End User (Men, Women), By Distribution Channel (Offline Retail, Online Retail), By Region, And Segment Forecasts, 2019 – 2025
- Bureau of Labor Statistics (2019) Fashion
- Research and Markets (2019) The Business Research Company, Clothing And Apparel Global Market Opportunities And Strategies To 2022 https://www.researchandmarkets.com/reports/4848769/clothing-and-apparel-global-market-opportunities
- Global Fashion Agenda (2017) Pulse of the Fashion Industry https://globalfashionagenda.com/initiatives/pulse/
- Statista Research Department (2019) Apparel Market WorldWide https://www.statista.com/topics/5091/apparel-market-worldwide
- Bureau of Economic Analysis, “Table 2.4.5 Personal Consumption Expenditures by Type of Product,” line 30 (last revised July 31, 2018); for the purposes of this calculation, fashion is defined as apparel (clothing) and footwear products.
- Economic Impact of the Fashion Industry https://www.jec.senate.gov/public/index.cfm/democrats/2019/2/the-economic-impact-of-the-fashion-industry
- Euomonitor (2019) 3 Ways Apparel Retail is Emphasizing Sustainability. https://blog.euromonitor.com/3-ways-apparel-retail-is-emphasizing-sustainability/
- Quanits (2018) Environmental Impact of the Global Apparel and Footwear Industries Study. https://quantis-intl.com/wp-content/uploads/2018/03/measuringfashion_globalimpactstudy_full-report_quantis_cwf_2018a.pdf
- JEC (2019) Economic Impact of the Fashion Industry. https://www.jec.senate.gov/public/_cache/files/39201d61-aec8-4458-80e8-2fe26ee8a31e/economic-impact-of-the-fashion-industry.pdf
- Bossier Mag (2017) Clean Green Cute. Why Sustainable Fashion is the Future – http://www.bossiermag.com/blog/2017/11/26/clean-green-cute-why-sustainable-fashion-is-the-future
- WRAP (2019) Valuing Our Clothes- http://www.wrap.org.uk/sites/files/wrap/valuing-our-clothes-the-cost-of-uk-fashion_WRAP.pdf