Report: Fast fashion to be worth over 200 billion dollars by 2030
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Demand for fast fashion around the globe is reaching unprecedented heights. By 2030 the sector will surpass 200 billion dollars, driven by a significant boost over the next five years.
The forecast comes from the report ‘Fast fashion global market opportunities and strategies to 2030: Covid-19 Growth and Change’ by Research and Markets in which the research company highlighted how in 2020 the global fast fashion market reached a value of 68.6 bn dollars, despite the decrease in the annual growth rate (CAGR) of 3 percent since 2015.
Fast fashion is expected to grow to reach 163.4 bn dollars over the next five years with an increase constant of 19 percent to then reach 211.9 billion dollars (188.8 billion euros) in 2030, an annual growth rate of 5.3 percent over five years.
The adult market was the largest segment of the fast fashion market segmented by age, accounting for 85.9 percent of the total in 2020. Going forward, the teens wear segment is expected to be the fastest-growing segment in the fast fashion market, at a CAGR of 23.6 percent during 2020-2025.
The fast fashion market is also segmented by type into pants, shirts, dresses & skirts, coats, and other apparel. The other apparel market was the largest segment of the fast fashion market segmented by type, accounting for 33.9 percent of the total in 2020. Going forward, the dresses & skirts segment is expected to be the fastest growing segment in the fast fashion market, at a CAGR of 23.8 percent during 2020-2025.
The Asia Pacific was the largest region in the global fast fashion market, accounting for 29.7 percent of the total in 2020. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the fast fashion market will be South America, and the Middle East, where growth will be at CAGRs of 32.4 percent and 28.9 percent respectively. These will be followed by Africa, and Eastern Europe where the markets are expected to grow at CAGRs of 25.2 percent and 23.0 percent respectively.
The global fast fashion market is fairly fragmented, with large number of small players in the market. The top ten competitors in the market made up 29.13 percent of the total market in 2020. Major players in the market include Inditex (Zara SA), H&M Group, Fast Retailing (Uniqlo), The Gap, Inc., and ASOS Plc.
The top opportunities in the fast fashion market segmented by gender will arise in the female market segment, which will gain 63 billion dollars of global annual sales by 2025. The top opportunities in the fast fashion market segmented by age will arise in the adult wear segment, which will gain 77,7 billion dollars of global annual sales by 2025.
Increase demand for man-made fibres
Market-trend-based strategies for the fast fashion market include using virtual reality and augmented reality (VR/AR), use of blockchain technology in the market, artificial intelligence in designing clothing, using the internet of things (IoT), new ownership models, 3D printing, and increased demand for man-made fibers.
To take advantage of the opportunities, the report recommends the fast fashion companies to enhance their business presence in the e-commerce sector through investments and initiatives taken towards the development of advanced technological solutions to integrate physical stores and the online marketplace or platform, focus on the development and launch of webstores to increase the accessibility and convenience towards the customer, focus on expanding its business and operational presence through strategic agreements and plans to expand and establish stores and manufacturing facilities in developing regions, and companies can also focus on growth via strategic acquisitions.
