Denim is a key driver of the market today. This includes the increase in spending power and denim consumption per capita, awareness of the clothing that suits different body types, and the acceptance of casual attire in offices. The increasing penetration of social media and fashion influencers also boosts the denim market.
The fabric denim is made from cotton and was initially used for working clothes. Later, it was also used to create other garments, such as shirts, jackets, and jeans. The denim market grew as product innovations in terms of designs, patterns, and colors, along with the rise in fashion sense, helped it grow. This feature highlights one of the most innovative products in fashion and leaders in this segment.
The global denim jeans market will reach 3.5 billion units by 2026. This is expected to grow at a CAGR of 3.7%. According to a Fibre2Fashion report, the Asia Pacific region will have the highest CAGR at 4.3%. In comparison, North America is expected to grow by 3.3% CAGR up to 2026, representing about 28.7% of the total market. The Denim jeans market is estimated to reach 2.5 billion units in 2020.
Jeans Snapshot
A 2020 report on denim trends shows that jeans with a regular fit are the most popular. They’re worn mostly by men and women of average body shape. According to the price positioning, jeans with a low cost are most popular in countries that have a low denim consumption per capita. Women’s jeans are gaining popularity in developing countries such as Brazil, China, and India, where office-going women are on the rise. Hypermarkets and supermarkets are the most popular retail channels for jeans sales. This is due to factors like the availability of a large collection in one place, competitive prices, urbanization, and an increase in the working-class population. North America is the leading region in the jeans market. This trend is expected to continue.
Market Trends
Denim’s key drivers are the increase in denim consumption per capita, the awareness of the right clothes for different body types, and the acceptance of casual clothing in the workplace. The increasing social media penetration and fashion influencers also boost the denim market.
The recent popularity of colored denim and the constant launch of newer designs have contributed to expanding denim demand. The consumption of jeans has increased exponentially since they have become versatile or, better yet, all-purpose clothing. Denim sales were affected by the pandemic lockdowns, but their use and share of wardrobes did not decrease because they were available as part of the pre-COVID collections. Sales of jeans have been reported to be resuming in August 2021 in most markets around the world, as lockdowns are temporary. Retailers and manufacturers began to offer higher discounts on alternate products, like sweatpants and casual pants, as a result of lockdowns. Consumers who have experienced the comfort of these products at home now want similar features on their denim. Skinny jeans are still a popular choice, but younger consumers prefer straighter, baggy styles. Retailers also make strides in prioritizing recycled, responsible, and regenerated denim. According to estimates, 39 percent of denim collections have undergone a sustainable transformation. This is up from 16 percent in 2019. Only 9 percent of plus-size denim jeans are currently available that use an alternative to conventional cotton. Three percent of styles are classified as “recycled,” directing retailers towards innovative plant-based dyes and resource-saving options. Denim jeans dominated SS21 collections, accounting for 48 percent of bottoms in youth-oriented stores.
Denim has evolved as well. The ability to test new styles on the market and manufacture them is now much easier than it was in the past. This is the entire business model of several retailers. Shein, a fast-fashion label popular among Gen Z, says it adds 1,000 products every day to its website, with peaks of 6,600 women’s denim styles on some days. A ‘personal style’ is also popular today, as opposed to a trend-based approach.
The denim market is undergoing rapid changes. A look at the top five denim manufacturers will shed some light on recent trends and developments.