Fashion doesn’t make itself.
The business of fashion involves designing, manufacturing, distributing, retailing, and marketing all kinds of fashion products including apparel, shoes, etc.
That said, how much is the fashion industry worth?
In terms of all forms of fashion markets such as luxury, haute couture, economy fashion, ready-to-wear, and fast fashion, the total fashion industry is estimated to be worth over $1.7 trillion (USD) as of 2023.
The whole fashion industry is a major contributor to the overall global economy.
In fact, the fashion industry alone contributes to roughly 2% of the global GDP.
This industry is also responsible for the creation of millions of jobs across the globe.
Moreover, fashion is a leading driver of innovation and is always evolving to meet the demands of modern consumers.
Today, we will be exploring the fashion industry, what it’s worth, its impact on the global economy, the effect it has on society, and the various segments of the industry.
We will also address the trends in fashion and the top players in the industry that continue to shape its future.
Let’s investigate the statistics and other data surrounding the global fashion industry.
- The global fashion industry is worth $1.7 trillion in 2023.
- Women’s apparel in the United States alone generates about $63 billion in revenue.
- The men’s global apparel market accounted for $100.5 billion in the U.S. and $92.85 billion in China.
- In 2022, the United States and China dominated revenues in the children’s apparel market.
- The total U.S. fashion sales in 2023 is expected to reach $494.89 billion.
- In the EU, it was reported that the average spend on clothing was 490 euros in 2020.
- More than 60 million people work in the fashion industry worldwide.
- The sports apparel fashion market is expected to achieve $208 billion (USD) by 2023.
- Shopping through mobile phone is expected to account for 73% of the whole eCommerce market.
- The global “fast fashion” segment is expected to reach $185 billion by 2027.
How Much is the Fashion Industry Worth in 2024?
1. The Global Fashion Industry Is Worth $1.7 Trillion in 2023.
The most recent statistics reveal that the total fashion industry is worth $1.7 trillion (USD) as of 2023.
Yes, that’s “trillion”, not billion.
For perspective, the fashion market was valued at $1.53 trillion (USD) in 2022.
Therefore, it’s one of the world’s largest industries in terms of value.
2. Women’s Apparel in The United States Alone Generates About $63 Billion in Revenue.
The women’s apparel market is significantly higher than that of the men’s or children’s fashion apparel markets.
In the United States alone, the women’s apparel market generates about $163 billion (USD).
This is more than both the children’s and men’s apparel markets.
3. The Men’s Global Apparel Market Accounted for $100.5 Billion in The U.S. and $92.85 Billion in China.
To follow up on data from the women’s apparel market, we will reveal the numbers for 2022 regarding the global men’s apparel market.
In 2022, the United States and China accounted for the most revenue.
The United States generated $100.5 billion (USD) in men’s apparel and China accounted for $92.85 billion (USD).
India came in third at $28.3 billion (USD) in 2022.
4. In 2022, the United States and China Dominated Revenues in The Children’s Apparel Market.
Just like the men’s apparel market, the United States and China were the major countries involved in revenue generation.
The United States lead the market by generating $48.46 billion (USD) in the children’s apparel market.
China ranked second at $38.9 billion (USD). At the lower end, Columbia generated $1.57 billion (USD) in 2022.
5. The Total U.S. Fashion Sales in 2023 Is Expected to Reach $494.89 Billion (USD).
In 2019, the total fashion retail sales in the United States accounted for $472.81 billion (USD).
By 2022, that figure jumped to $473.42 billion (USD) and is expected to reach $494.89 billion (USD) by the end of 2023.
This tells us that the fashion industry in the United States is massive.
6. In the EU, It Was Reported that The Average Spend on Clothing Was 490 Euros in 2020.
In the European Union (EU), consumers spent an average of 490 euros per capita.
Luxembourg spent the most at 1130 euros, followed by Austria at 810 euros.
The German population accounted for 640 euros in 2020 and Ireland 620 euros.
7. More than 60 Million People Work in The Fashion Industry Worldwide.
It’s estimated that over 60 million people work in the global fashion industry.
Most of these workers endure overtime and some level of challenge in their work environments.
Roughly 80% of the 60 million workers in this industry are women, who seldom get paid equal wages compared to their male counterparts.
(EnterpriseAppsToday, Fashion Checker)
8. The Sports Apparel Fashion Market Is Expected to Achieve $208 Billion (USD) by 2023.
In 2022, the global sports fashion apparel market was worth $199.50 billion (USD).
By calculating at a CAGR of 4.24%, it’s expected to reach $203.26 billion (USD) by the end of 2023.
Moreover, the global sports apparel sector is expected to reach $271.77 billion (USD) by 2030 based on the 4.24% CAGR.
9. Shopping Through Mobile Phone Is Expected to Account for 73% of The Whole eCommerce Market.
One of the trends coming for the fashion industry is shopping through mobile phones, which is expected to see more growth in the coming years.
In fact, 73% of the total e-Commerce market is expected to for 2023 and beyond.
Fashion retailers need to take note of this trend.
10. The Global “Fast Fashion” Segment Is Expected to Reach $185 Billion by 2027.
In 2023, the “fast fashion” market is expected to reach $122.98 billion (USD) despite the controversies that surround the sector.
In 2022, the fast fashion market was estimated at $106 billion (USD). This sector’s annual growth rate is 15.6%, which is how these figures are calculated.
Recent data reveals that Nike owns the largest share of the fashion market at 2.8%.
Nike also has a global revenue of $44.5 billion (USD).
Moet Hennessy Louis Vuitton revealed global revenue of $51.1 billion (USD) in 2021.
Likewise Christian Dior generated $51.1 billion in revenues over 2021.
These are the top-most profitable and publicly traded brands of 2023:
• Louis Vuitton
• Christian Dior
• TJX Companies (TJMaxx, Marshalls, HomeGoods, etc.)
• Ross Stores
• Fast Retailing
Where Is the Most Money Spent on Fashion?
People in Australia rank first in money spent on fashion apparel at an average yearly spending of $1,050 (USD).
Canada comes in second at $831 (USD) in annual spending and Japan’s annual spending is $814 (USD) per year.
In terms of overall spending across fashion products, the United States spends the most per capita.
In fact, the average American spends $819 (USD) annually on all types of fashion, including apparel.
While China buys the most apparel units (around $40 billion (USD) in 2017), their per capita spending accounts for around and average of $257 each year.
What are the Four Sectors of Fashion?
• Raw Materials: Raw materials include yarn production, fabric finishing, fiber processing, and fabric production.
• Apparel: Manufacturers and designers collaborate by using raw materials to generate fashion products. This process includes elements like the product concept, developing samples, production planning, and the production, finishing and distribution of products.
• Retail: The third step in the fashion industry is to distribute products to retail stores across the world where they are sold to consumers.
• Media Consultancy: Finally, advertising and marketing get the word out about new fashion products and brands through influencers, television advertising, blogs, and other forms of media.
Now we know that the global fashion industry is massive and continually growing.
It’s worth trillions as of 2023 and is expected to continue to enjoy this kind of growth in the coming years.
One of the biggest differences in the industry will be how we shop, which is expected to be by mobile phone, which is believed to include three-quarters of global consumers.
Additionally, developing countries are entering the fashion industry, which is also expected to see significant growth.
While the fashion industry is worth trillions, this growth usually comes at a price.
It has some negative effects on society and some on the environment.
Making fashionable products uses up a lot of water and energy resources, while also generating a significant amount of waste.
The fashion industry flourishes on the backs of some fashion workers who are paid subpar wages, work long hours, and some even endure abuse and work in unsafe environments.
Despite all this, the fashion industry does improve the overall global economy.
Hopefully we’ll see some ethical and sustainable changes trending in the next few years in this industry.
We know there are some fashion companies, brands, and retailers working towards that effort.
We hope we have enlightened you about the world of fashion in this article.
Mostly, we hope we have answered the question, how much is the fashion industry worth, to your satisfaction.