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Demand for fashion to expand global supply chain apparel production

By Don-Alvin Adegeest


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Image: Factory via Pixabay

A growing demand for fashion will boost the global apparel supply chain market at a CAGR of 3.8 percent until 2028.

The forecast growth is fuelled by the increase of e-commerce for the purpose of buying apparel, which in turn increases usage of the clothing supply chain for its pre-production segment, impacting the market growth.

Data from the Grand View Research report Apparel Supply Chain Market Size, Share & Trends Analysis shows that speedy urbanization and increasing population in developing countries including India, Vietnam and Bangladesh also escalated demand for apparel and contributed to the growth of the apparel supply chain market.

Lockdowns across the globe impacted the transport networks and imposed challenges for interconnected supply chains to outsource materials. The pandemic resulted in a short-lived decline in demand as has been observed by the transport services along with imbalance in cargo. The shortages of raw materials have also been observed in the manufacturing of apparel hence presenting an overall negative impact on the global apparel supply chain market.

Regional insights

Based on revenue, Asia Pacific accounted for the major market revenue share of more than r55.0 percent in 2021 and is estimated to increase by the fastest CAGR of 4.4 percent from 2022 to 2028. A rise in online shopping for fashion along with growing apparel sales is boosting the region's market growth.

Europe’s supply chain is forecast to expand at a CAGR of 3.9 percent until 2028, with growth boosted by favorable policies regarding trade. Increased demand for sportswear and home-furnishing textile products, is also expected to expand significantly during the forecast period.

When it comes to sustainability, there is much opportunity in the manufacturing sector of the supply chain. A study led by Simon-Kucher & Partner in 2021 showed consumers are demanding greener solutions. Alarmingly, data from McKinsey & Company and the World Economic Forum show the number of garments produced each year has at least doubled since 2000.

While companies continue to measure success by revenue and growth, one key way for fashion companies to become more sustainable and still meet consumer demand is to reduce overproduction. The opportunity for supply chains lies in embracing sustainability and transparency, but ultimately consumers have the power to curb demand.

For more information on the report visit www.grandviewresearch.com.

Supply Chain