A new report by GlobalData suggests apparel brands will encounter reduced demand, as Germany's society ages and birth rates decline.

According to GlobalData’s ‘The Apparel Market in Germany to 2028‘ report, Germany’s population is expected to experience slight growth until 2026, before contracting in 2027 and 2028 due to falling birth rates. Its population is anticipated to reach 85.9m by 2028.

As a result, GlobalData says Germany’s population will continue to age, with the proportion of those aged 65 and over expected to increase by 1.9ppts to 24.4% between 2023 and 2028.

GlobalData believes this demographic trend will present a major challenge for the apparel market, as older consumers typically spend less on apparel, and the childrenswear market in particular will suffer from fewer babies being born.

However, the data and analytics company has outlined three key drivers disrupting the German apparel market:

• Outperformance of the online channel: GlobalData projects the online channel to outperform again from 2025, with penetration growing from 32.1% in 2023 to 32.6% by 2028. Consumers are expected to remain drawn to online shopping due to its convenience, extensive product offerings, and access to diverse brands. To capitalise on this, brands will improve delivery services by adopting automated logistics and expanding local warehouse networks, while also incorporating technologies like AR and AI to enhance the online shopping experience and minimise returns. Additionally, social media shopping is set to grow, with the likes of Inditex‘s Zara and e-tailer ASOS launching on TikTok shop in the last year.
• Gen Z shoppers: GlobalData has identified Gen Z as the most engaged demographic when it comes to following the latest fashion trends, driven by their desire to keep up with peers. This generation’s appetite for fashion has seemingly been perpetuated by the rise of influencer culture and social media platforms like TikTok and Instagram, which constantly generate new micro-trends. As a result, ultra-fast fashion brands like Shein and Cider have experienced astronomical growth by catering to Gen Z’s demand for the latest styles at affordable prices.
• Prioritising value for money: GlobalData projects the German apparel market will become increasingly polarised over the next few years, with the value and premium segments expected to grow their shares by 1.5ppts and 0.7ppts, respectively, between 2023 and 2028. As economic pressures persist, many consumers are likely to shift towards cheaper brands, fueling significant growth for brands such as Shein. Meanwhile, shoppers that can afford to will trade up from mass-market brands to premium options in pursuit of higher quality, more versatile items that last longer. In response, mass-market players including H&M are focusing on expanding their premium offerings to remain competitive.

Recently, GlobalData shared that the German fashion market grew 4.1% and returned to pre-pandemic levels in 2023 with fashion retail giants Zara and Shein dominating market share.

By Just Style