28 Dazzling Fashion Industry Statistics [2023]: How Much Is The Fashion Industry Worth

Fashion industry research summary: It’s dizzying to imagine this seemingly endless array of apparel items that exist in closets around the world, which is why the fashion industry is such an extensive, profitable and unique business. Though lucrative and massive, the apparel market has historically been environmentally damaging.

To find out more about the global fashion industry, and the fashion industry in the US, we’ve gathered all of the most interesting facts and trends. According to our research:

• The global fashion industry is valued at $1.7 trillion as of 2023.

• The fashion market had a growth rate of 5.46% in 2017 and was projected to hit 6.2% by 2020.

• The United States fashion industry is valued at approximately $343.70 billion.

• The fashion market in the United States is forecasted to grow annually by 1.96% through 2027.

• The fashion industry accounts for 2% of the global Gross Domestic Product (GDP).

For further analysis, we broke down the data in the following ways:
Industry | Sectors | Trends and Predictions | Environmental Impact

Global fashion industry statistics

The fashion industry impacts the world on a global scale. From million-dollar high fashion to the fast-fashion that only costs a few cents, here are examples of how the fashion industry impacts the world:

• The global retail sales of apparel and footwear reached $1.9 trillion annually in 2019.

  The number of retail sales in the fashion industry is expected to grow to three trillion U.S. dollars by 2030. This represents an estimated annual growth rate of 5.8%.

• Out of the global workforce of 3.4 billion people, approximately 430 million work in fashion, clothing, and textile production.

  This means that about 12.6% of people working around the globe are contributing to making the world’s clothes, shoes and accessories. A large majority of the people who work in fashion and textile production are based in Asia.

• The #1 fashion company in the world by revenue is LVMH Moët Hennessy Louis Vuitton, with global revenue of €44.2 billion ($51.1 billion) in the first nine months of 2021.

  The Christian Dior Group is also a tight competitor with recorded worldwide revenue of €44.2 billion thus far in 2021. The shoe brand Nike follows close behind with a total revenue worldwide of $44.5 billion, representing a growth of 19%.

• According to per capita spending, the country that consumes the most fashion products globally is the United States, where the average amount that individual household members spend on clothing and shoes is $819.

  In 2019, the United States purchased approximately 17 billion apparel units. Another huge fashion consumer is China, where approximately 40 billion apparel units were purchased in 2017. However, China’s per capita clothing spending is about 1,645 yuan or $257.

US fashion industry statistics

The fashion industry in the US is huge, and worth hundreds of billions of dollars. To find out more about the fashion industry in the largest economy on earth, here are some key facts:

• The United States fashion industry is valued at approximately $343.70 billion.

• In 2019, United States clothing store sales totaled $195.85 billion.

• The U.S. fashion industry is expected to reach retail sales of $494.89 billion by the end of 2023.

• As of 2020, approximately 90,500 employees are working in the apparel manufacturing industry in the United States.

• There are currently over 4,397 fashion designers employed in the United States.

• The apparel market in the United States is expected to grow by 2.82% annually.

• The largest segment of the US fashion market in 2021 is women’s clothing.

Fashion industry sectors statistics

The fashion industry has many different sectors which are all popular with particular demographics. From menswear and womenswear to athletic and streetwear, here are some interesting statistics about fashion industry sectors:

• The women’s apparel segment of the fashion industry has an estimated revenue of $804 billion.

  The women’s clothing market is expected to grow by 4.81% annually. Since 2015, the women’s clothing market has been positively influenced by the rise of e-commerce platforms that conveniently provide products.

• The men’s apparel segment of the global fashion market has an estimated value of $483 million as of 2018.

  The value of the menswear sector of the fashion world is expected to rise to $740.8 by 2025.

• The value of the children’s wear fashion market totaled $169 billion in 2018.

  The children’s clothing market is predicted to reach a value of $239 billion by 2023.

• The bridal gown market is valued at approximately $32.5 billion.

  The industry for bridal attire is expected to grow to $43.5 billion by 2022.

Top 10 biggest fashion companies by market cap

Company	Country	Mcap (in Billions Usd)
Inditex	Spain	$117.17
Nike	United States	$92.89
LVMH	France	$84.81
TJX	United States	$49.13
Hennes & Mauritz	Sweden	$44.47
Hermes	France	$42.70
Rolex SA	Switzerland	$37.00
Fast Retailing	Japan	$36.33
Adidas	Germany	$34.98
Chanel	France	$32.67

Fashion industry trends and predictions

The fashion industry will continue to be relevant so long as people are in need of clothing. With that in mind, here are some trends that show the industry’s potential growth and evolution over time:

• The mass production of clothing began in the mid-nineteenth century when garment manufacturers began deciding that pieces could be made without fittings.

• The first fashion designer in the world was believed to be Charles Fredrick Worth, from 1826 to 1895.

• The global fashion market is anticipated to have a Compound Annual Growth Rate (CAGR) of 5.5% between 2020 and 2025.



• In comparison, the automobile manufacturing industry recorded a Compound Annual Growth Rate (CAGR) of 4.5% between 2021 and 2028, and the big data technology industry is expected to demonstrate a CAGR of 14% until 2027.

Fashion industry’s environmental impact statistics

The fashion industry has just as much of a negative environmental impact as many other massive industries. Here are some facts about that impact that might just convince you that fashion needs to change:

• The fashion industry accounts for approximately 10% of humanity’s carbon emissions.

  The fashion industry is currently responsible for more carbon emissions than that of international flights, and maritime shipping put together. The garment and textile market is also the second-biggest consumer of the global water supply.

• 85% of all textiles end up in the dump every year.

  57% of all discarded clothes eventually make their way to a landfill. The equivalent of one garbage truck filled with clothes is either dumped in a landfill or burned every second.

• Synthetic materials in clothing are responsible for 35% of all plastic microfibers in the ocean.

  While these types of synthetic materials lower the overall cost to increase profits for clothing manufacturers, they also produce more carbon emissions than materials like cotton and take a long time to break down. If these microplastics eventually break down in the ocean, it acts as a toxic substance that harms the aquatic ecosystem.

• It takes 3,781 liters of water to make a pair of jeans from start to finish.

  The process of making a single pair of jeans will emit around 33.4 kilograms of carbon equivalent. Through processes like this, the fashion industry uses approximately 93 billion cubic meters of water every year.

Fashion industry statistics FAQ

1. Is the fashion industry growing?

   Yes, the fashion industry is undoubtedly growing at a positive rate of 5.46% since 2017. However, there are projections for higher rates of growth between 2020-2022.

2. How much is the fashion industry worth?

   The global fashion market was valued at a massive $1.7 trillion in 2023. Likewise, the United States apparel industry accounts for $343.70 billion and is expected to reach $494.89 billion by 2023.

3. Is the fashion industry dying?

   The fashion industry across the globe isn’t dying, but it’s going through some changes.

   COVID-19 did negatively impact the success of the clothing market. It was one of the most brutally hit industries during the pandemic, with retail sales in clothing and fashion stores declining by 28.5% — one of the steepest drops in the retail industry to date.

   However, e-commerce has inspired hope within the fashion world. Over the past decade or more, e-commerce has grown enormously in popularity, and it’s changed the way that consumers shop. In many ways, this has breathed new life into the fashion and apparel industry, especially after the major decline of in-person shoppers.

   Additionally, some of the environmentally unsustainable ways of the fashion industry may be starting to die out, which wouldn’t be the worst thing in the world. The production of apparel takes a huge toll on the world’s water supply, and every second, there is the equivalent of a garbage truck filled with clothes burned or dumped in landfills.

   As the public’s tolerance for these types of atrocities wears thin, companies within the clothing market have started to move towards developing a more environmentally-conscious production process.

4. What companies hold the largest share of the fashion industry?

   Nike has the largest market share in the fashion industry, at 2.8%. Overall, Nike has total revenue worldwide of $44.5 billion, representing a growth of 19%.

   Other fashion companies with large market shares include LVMH Moët Hennessy Louis Vuitton, with a 2021 global revenue of €44.2 billion ($51.1 billion), and the Christian Dior Group, with a revenue of €44.2 billion.

5. What country spends the most on fashion?

   Australians spend the most on apparel, with average annual spending of $1,050. In second and third place are Canada and Japan, with average spending of $831 and $814 respectively.

   However, when it comes to spending the most on fashion products, the United States takes the prize. Per capita, the average U.S. household spends $819 on these products each year. In 2019 alone, the United States purchased approximately 17 billion apparel units.

   Further, China is buying the largest number of apparel units, with approximately 40 billion apparel units purchased in 2017. However, China’s annual per capita clothing spending is about 1,645 yuan or $257.

6. What are the four levels of the fashion industry?

   The four levels of the fashion industry are Raw Materials Producers, Apparel Manufacturers, Retail, Media/Consultants/Etc.
   Here are the levels in more detail:

   • Raw Materials Producers: This level generally entails fiber processing, yarn production, fabric production, and fabric finishing. Without these raw materials and their sometimes lengthy processing times, the other levels in the fashion industry would exist.

   • Apparel Manufacturers: This is where the magic happens. Designers and manufacturers use raw materials to produce fashion products. This level can have many steps, such as creating a concept, sample development, production planning, production, finishing, and distribution.

   • Retail: After fashion products are manufactured, they’re then sent to retail establishments all across the country to be sold.

   • Media/Consultants/Etc.The fashion industry’s final level includes those who advertise and provide fashion-related services outside of producing the clothing. This can include writing blogs, creating TV advertisements, and more.

Conclusion

The fashion industry has been extremely impactful in creating clothing for the masses and more for nearly two centuries. As a market that’s valued at well over a trillion dollars and accounts for 2% of the global GDP, the power that fashion holds is clear.

Around 430 million people have built their careers in apparel, from working in production to being fashion designers. However, only 90,500 of these employees of the fashion industry work in the United States.

In addition to the general industry of fashion, the market has several large segments of targetted demographics. The largest sector of the apparel industry is womenswear, with an approximate annual revenue of $804 billion. In comparison, the next-biggest sector of the fashion industry is menswear, which brings in a little more than half that at $483 million.

It’s undeniable that the global fashion market is very profitable and employs many people around the globe, but the industry isn’t accomplishing these tasks in the most environmentally-friendly way.

In fact, the fashion industry is one of the biggest producers of carbon emissions and one of the heaviest consumers of the global water supply during their production process. After the clothing is produced and sold, around 57% of these clothing items that are eventually discarded will end up in a landfill.

While the fashion industry is influential and brings in massive revenue, the wastefulness within the fashion industry is an aspect that should be addressed and improved.

References

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Author

Sky Ariella

Sky Ariella is a professional freelance writer, originally from New York. She has been featured on websites and online magazines covering topics in career, travel, and lifestyle. She received her BA in psychology from Hunter College.