The global apparel industry stands as a pivotal pillar of international commerce, encompassing a diverse spectrum of products ranging from garments and textiles to accessories. Over the recent years, this sector has exhibited robust growth, with projections indicating a rise from $655.7 billion in 2023 to $703.11 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.2 per cent. Looking further ahead, the market is anticipated to reach $918.71 billion by 2028, growing at a CAGR of 6.9 per cent.

This expansion is underpinned by various economic, technological, and social drivers. Strong economic momentum in emerging markets, augmented foreign direct investments, increasing demand for synthetic fibres, and advancements in technology have collectively propelled industry development. These factors have not only stimulated innovation but also broadened global market opportunities across regions.

Asia, notably China, Bangladesh, India, Vietnam, and Türkiye, alongside significant players from other continents like the US, Germany, and Italy, have emerged as key exporters in the global apparel landscape. Their competitive edge lies not only in manufacturing prowess but also in their ability to innovate and respond swiftly to evolving market demands.

As the industry contends with challenges such as inflationary pressures and evolving consumer spending patterns, the adoption of sustainable practices and technological innovations will be pivotal in fostering long-term resilience and sustainable growth.

Looking forward, the apparel industry is poised for transformative change driven by trends such as the proliferation of social media, the rapid growth of e-commerce platforms, escalating demand for sportswear and performance attire, and advancements in digital technologies like blockchain, artificial intelligence (AI), and augmented reality (AR). These trends are reshaping consumer behaviours, influencing market dynamics, and propelling industry practices towards sustainability, transparency in supply chains, and ethical production standards.

Top Apparel & Textile Exporting Countries

The export performance of key players in the global textile and apparel sector provides valuable insights into the industry’s recovery trajectory.

China

Performance Overview: China remains the world’s largest apparel exporter, with a significant lead over other countries in 2023. As per the data published by the General Administration of Customs, the total apparel export growth outpaced the growth rate of total goods trade from China in 2023. China’s textile and apparel exports surged, with $45.1 billion recorded in the first two months of 2024 alone, marking a 14.3 per cent year-over-year increase. The first quarter of 2024 saw apparel exports totalling $33.82 billion, up by 1.1 per cent.

Key Markets and Trends: China continues to dominate the EU market, with robust export growth attributed to the nation’s extensive manufacturing capabilities and cost efficiencies.

Bangladesh

Performance Overview: Bangladesh’s garment exports reached $46.99 billion in FY 2022-23, with a 10.27 per cent year-on-year growth. Apparel accounts for 84.58 per cent of the country’s total exports. The latest data by Export Promotion Bureau (EPB) highlights that total apparel exports reached $4.49 billion in February 2024, increasing by ≈14 per cent over a year ago period.

Key Markets and Trends: The country remains the top readymade garments (RMG) exporter by volume, with significant contributions from knitwear and woven garments. However, exports fell in April 2024 due to slowed shipments.

Vietnam

Performance Overview: Vietnam experienced a challenging 2023, with a 14.68 per cent decline in apparel exports to the EU. However, exports rebounded in 2024, increasing by 15 per cent in the first two months.

Key Markets and Trends: The resurgence is attributed to increased orders from key markets. Despite difficulties, Vietnam remains a significant player in the global apparel market.

Germany

Performance Overview: Renowned for high-quality craftsmanship and innovation in textiles, Germany’s textile exports in 2023 were approximately $27.44 billion, slightly down from the previous year. Exports account for about 49.4 per cent of the industry revenue.

Key Markets and Trends: The primary export markets include Poland, Austria, the Netherlands, France, and Switzerland. Despite a slight decrease in overall exports, Germany maintains a strong presence in the global textile market.

Italy

Performance Overview: Italy’s fashion industry shows growth in high-value exports despite economic challenges and reduced trade volumes. The country’s apparel industry saw a 3 per cent revenue increase in 2023, reaching $28 billion. Exports of non-knitted apparel totalled $16.2 billion, up 7.39 per cent from 2022.

Key Markets and Trends: Top destinations for Italian apparel include France, Germany, and the US. Despite economic challenges and reduced trade with non-EU countries, Italy’s high-end fashion sector remains resilient.

Türkiye

Performance Overview: Türkiye is known for its high-quality fabrics and craftsmanship. Its apparel exports faced a decline in 2023, with significant drops to the EU market. Total exports fell by 9.2 per cent to $19.3 billion due to inflation, reduced demand, and overvalued currency. Knitted and crocheted clothing exports fell by 8.9 per cent, while non-knitted apparel exports dropped by 13.7 per cent.

Key Markets and Trends: The EU remains a crucial market, although recent economic and geopolitical tensions have impacted trade. Higher production costs also pose a risk to Türkiye’s trade competitiveness at the global level.

India

Performance Overview: India’s textile exports declined to $34.4 billion in FY 2023-24, continuing a downward trend post-COVID-19. Readymade garments, which constitute 42 per cent of these exports, experienced a 10 per cent decline. However, after this sharp drop, India’s apparel exports may see a muted recovery in 2024-25 as the US and EU retailers are expected to restock inventories, according to the Investment Information and Credit Rating Agency of India (ICRA).

Key Markets and Trends: Despite the overall decline, there was an increase in exports of cotton yarn and handloom products. Geopolitical issues and high interest rates have hindered textile and apparels export growth.

United States

Performance Overview:  The US textile and apparel industry faced significant challenges in 2023 due to global supply chain disruptions, rising material costs, inflation, and fluctuating consumer demand. Initially strong consumer demand flattened in the second half of the year as inflation shifted the market from high demand and low supply to the opposite. Despite these hurdles, positive trends like softening inflation in the latter half of the year and increased onshoring and nearshoring investments helped mitigate some pressures. However, in the first five months of 2024, textile and apparel exports decreased by 2.59 per cent, with notable declines in key categories like fabric and yarn, according to data from the Office of Textiles and Apparel (OTEXA). Key categories such as fabric and yarn exports saw declines.

Key Markets and Trends: Apparel exports to Mexico and China increased, while those to Canada and the UK declined. The made-up articles category showed marginal growth. In recent years, US textile and apparel exports have consistently ranged between $22 billion and $25 billion annually.

Spain

Performance Overview: Spain’s apparel exports, particularly non-knitted garments, decreased by 8.5 per cent in 2023 to $7.99 billion. Economic challenges have led to reduced demand in key markets.

Key Markets and Trends: The primary export products include women’s suits, jackets, and overcoats. Women’s apparel constitutes a significant portion of the exports.

Cambodia

Performance Overview: As per the latest data of General Department of Customs and Excise (GDCE) under the Ministry of Economy and Finance, Cambodia’s textile and apparel exports surged by 18.50 per cent to $4.33 billion in the first half of 2024 after registering a drop by 13.3 per cent in 2023, when its exports fetched around $7.87 billion, largely due to reduced trade advantages with the EU and the US.

Key Markets and Trends: Despite rising labour costs, Cambodia remains competitive in the apparel sector. The withdrawal of preferential trade terms has negatively impacted export volumes. Cambodia’s exports of apparel and clothing accessories (knitted, HS 61) amounted to $1,626.432 million, representing an increase of 16.6 per cent compared to $1,394.829 million in the corresponding period of 2023.

Hong Kong

Performance Overview: Hong Kong’s apparel exports declined by 4 per cent in 2023, with a substantial 47 per cent drop compared to pre-pandemic levels. High inflation and inventory issues contributed to the weak performance.

Key Markets and Trends: Major markets like Macao, ASEAN, and South Korea showed growth, while exports to China, the US, and the EU declined. Woven wear, especially for women, remains the dominant export category.  As per the Hong Kong Trade Development Council (HKTDC) Export Index survey’s findings, a significant portion of respondents in the Q4 2023 expressed concerns over potential economic downturns and the effects of geopolitical tensions, pointing towards a cautious and moderate outlook for apparel sector. The growth of apparel sector is based on the backdrop of creation of values for enterprises and manufacturers in cross-border business by focusing on providing efficient trade, expertise, logistics as well as other added value services.

Key Insights on Major Apparel Exporting Countries (2023-24)

Figure 1 highlights the percentage share of total exports for top apparel-exporting countries, providing a clear picture of their contributions to the global apparel market.

China dominates the global apparel market with a commanding 40 per cent share, reflecting its unmatched manufacturing capabilities. Germany and Italy each hold a 7 per cent share, highlighting their strengths in high-quality craftsmanship and innovative textile products. Türkiye, India, and Spain, despite contributing significantly to global exports, face economic and geopolitical challenges that impact their competitiveness. Cambodia and Hong Kong, with smaller shares of 2 per cent each, remain competitive yet constrained by rising labour costs and changing trade advantages. Bangladesh and Vietnam are notable players with 12 per cent and 10 per cent shares, respectively, driven by cost efficiencies and resilient manufacturing sectors. The United States maintains a 7 per cent share but faces mixed export trends across different markets. Overall, the apparel industry is shaped by technological advancements, sustainability trends, and economic conditions, requiring continuous adaptation and strategic planning to sustain growth. Free Trade Agreements (FTAs) play a crucial role in enhancing export potential, particularly for countries like India, which currently faces limitations due to a lack of strategic trade agreements.

Key Takeaways

China and Bangladesh continue to dominate the global apparel market, with China maintaining its leadership and Bangladesh showing significant growth.

European countries like Germany, Italy, and Spain face mixed trends but remain crucial players with strong markets within the EU.

Resilience and Recovery in Emerging markets: Despite challenges, emerging markets such as Cambodia and Vietnam exhibit resilience and growth potential despite economic challenges.

The United States shows mixed export trends with increases in some markets and decreases in others, highlighting the variability in global trade dynamics.

India and Türkiye face declining exports, emphasising the need to address economic and geopolitical challenges to regain competitiveness.

Economic Challenges: Global economic conditions, including inflation and geopolitical tensions, impact apparel export performance across regions.

The overall global apparel market is influenced by technological advancements, sustainability trends, and shifting economic conditions, requiring continuous adaptation and innovation to sustain growth.

Conclusion and Way Forward

The post-COVID period has marked a transformative phase for the global textile and apparel industry, influenced by a complex interplay of economic conditions, geopolitical tensions, and evolving consumer preferences. With the global apparel market poised to reach $918.71 billion by 2028 (Statista), driven by advancements in technology, sustainability initiatives, and shifting consumer behaviours, the industry faces both opportunities and challenges.

China maintains its dominant position in apparel exports due to its robust manufacturing capabilities yet faces increasing competition from emerging players like Bangladesh and Vietnam, leveraging cost advantages and resilience in challenging market environments. Germany and Italy continue to thrive through their commitment to quality and innovation, despite economic headwinds affecting global trade dynamics.

Inflation, geopolitical instability, and evolving trade policies pose significant challenges across these markets, necessitating strategic agility and proactive planning. Embracing innovation, expanding market reach, and adopting sustainable practices emerge as critical strategies for sustained growth.

Looking ahead, the future outlook for the apparel industry remains promising, particularly in Southeast Asia and South Asia, driven by demographic shifts and rising disposable incomes. To capitalise on these opportunities, industry stakeholders must prioritise technological integration, enhance sustainability efforts, and navigate economic complexities with resilience and foresight.

The way forward involves a balanced approach of leveraging digital transformation, promoting collaborative efforts across global supply chains, and advocating for supportive policies that foster innovation and market competitiveness. By embracing these strategies, apparel exporters can not only sustain but also accelerate their growth trajectory, contributing to broader economic development and resilience in a dynamic global marketplace.