While the backdrop for the global fashion sector looks challenging at present as consumer spend softens on concern around the macroeconomic environment, new data from GlobalData offers an upbeat view, noting that growth will be seen in 2025 and beyond as inflation softens.

That said, volume growth will remain soft as tariffs lead to higher prices, especially in the US, which will influence trends in the apparel sector.

And consumers are also continuing to reduce apparel spend by shopping secondhand, trading down to cheaper brands, and focusing on capsule wardrobes.

Growth should, however, improve slightly in 2026 as the world adjusts to the new tariffs and economies recover. Out to 2029, the market is expected to grow at a CAGR of 3.0%, to reach $2,427.1bn.

What key trends can we expect to see in the apparel sector to 2029?

Womenswear to go from strength to strength

According to GlobalData, women’s clothing will have the strongest growth to 2029 driven by an increased interest in trends in emerging markets.

According to the report, in emerging markets, females are becoming more interested in trends, as well as entering and progressing more in the workforce. Growth in men’s clothing and footwear is slower, due to purchases being more needs-driven, while children’s categories will be held back by slowing birth rates.

Mass market to suffer as value wins out

The value apparel market is projected to strongly outperform in 2025, growing 6.7%, as many consumers are forced to trade down amid financial uncertainty, with Shein in particular driving this. This trend will continue, but soften, out to 2029, with a 2024-2029 CAGR of 5.5%, leading its share of the total market to increase 1.7ppts across the five years.

The premium segment will be the second strongest with its 2025 annual growth and 2024-2029 CAGR both at 3.5%. Consumers prioritising quality and investing in more expensive pieces that will last longer will result in 0.6ppts share growth between 2024 and 2029.

The mass market will be the most squeezed with soft 1.5% growth in 2025 and a 2024-2029 CAGR of 2.1% causing its share to fall 2.3ppts. This is due to shoppers preferring to trade up or down.

More interest in sport bodes well for sportswear

Though the sportswear market has slowed significantly after its pandemic highs, it still outperformed the total apparel market in 2024, growing 2.8% versus total apparel at 0.4%. This trend is expected to persist in 2025 with global sportswear sales rising 3.9%, outperforming the total apparel growth by 1.2ppts. This will be driven by consumers continuing to favour sportswear for its versatility and functionality, as well as increased uptake in sport, and the development of athleisure in emerging markets.

Premium lifestyle brands like Alo Yoga, Vuori, and Lululemon are anticipated to continue outperforming, as consumers seek to emulate the aspirational images these brands project, and running specialists such as On, Hoka and ASICS are also expected to remain star performers. Growth will increase in 2026 to 5.6% in line with the economic improvements the total apparel market will see, followed by a gradual softening each year, with a 2024-2029 CAGR of 4.5%.

Online versus offline?

The online channel returned to outperformance in 2024, with sales rising 3.5% to $573.3bn, versus a decline of 0.7% in the offline channel, to $1,524.0bn. During tough economic times, the online channel allows consumers to easily compare prices and products and seek out the best deals.

Online penetration is expected to rise from 27.3% to 27.7% with the channel growing 4.0% to $596.0bn during 2025.

However, the offline segment will return to growth, rising 2.2% to $1,557.8bn, as brands continue to create experiential locations that drive engagement.

By 2029, the online channel is forecast to account for almost 30% of apparel spend, reaching $723.4bn with a 2024- 2029 CAGR of 4.8% versus a softer offline CAGR of 2.3%.

Brands and retailers will invest further in technology like AI to enhance the user experience and internet penetration will continue rising in emerging markets.

By Just Style