The global outlook for the apparel and footwear industry to 2030 remains cautious, with uneven prospects across markets and categories, shaped by volatile markets, AI disruption, the expansion of emerging markets, increased market polarisation and evolving regulatory frameworks. This report explores how fashion players can find pockets of growth and build resilience through diversification, keeping up with AI advances and making bold moves in emerging markets, resale and lifestyle innovation.
Delivery
This report comes in PPT.
Key findings
A cautious global outlook amid volatility.
In 2026, the outlook for fashion growth remains cautious, shaped by cost pressures and low consumer confidence, hence the prospects for fashion growth to 2030 remain moderate and uneven across markets and segments, with emerging markets presenting key opportunities, while more mature markets are set to grow slowly.
Income disparities drive market polarisation
Economic divides are widening in 2026, which is fuelling market polarisation in various parts of the world. On one hand, core luxury brands and investment pieces are benefiting from resilience among higher-wealth segments, while at the other end of the spectrum, mass-market brands are pivoting towards budget products, resonating with cohorts of financially sensitive consumers.
Growing influence of IPOs and M&As
M&A and IPO activity is gaining traction as it helps fashion companies mitigate tariff impacts, maintain competitiveness, and leverage synergies for resilience in a volatile world. Conglomerates are likely to seek to sell their portfolio outliers, and private equity (PE) players are ready to pounce.
Mainstream resale and sustainability reframed
Today, sustainability is less driven by government mandates and is becoming a strategic business imperative that aims to support high margins and drive cultural influence. The pre-loved culture has become mainstream in Europe and the US, and is gaining traction in other regions, which will force brands to develop their own resale strategies to drive both revenues and relevance.
AI and the shift to experientialism
Consumers are increasingly embracing AI, and go seamlessly online and offline for their purchases, while AI-powered searches and agentic AI have the potential to reshape the discovery and shopping journeys. Brands need to innovate to create more emotional connections and foster deeper loyalty. Community engagement is becoming a priority for fashion businesses.
Scope
Our expert’s view of apparel and footwear
Apparel and footwear snapshot
Key findings
Global sales experience subdued growth, amidst market uncertainty
Top five trends in apparel and footwear
Top five trends uncovered
Drivers of consumer markets and impact on apparel and footwear
Wellness, Gen AI and consumers’ interest in home decor drive fashion innovations
Global market poised for slow growth amid volatile market conditions
The UAE had the highest per capita spend in 2025
APAC, Latin America and Middle East and Africa will be key contributors to global growth
Emerging economies become focal points for international expansion and growth
H&M launches first store in Brazil with plans to open more and grow local production
Childrenswear and sportswear continue to outperform the wider industry
Nike widens its reach among young female consumers with Skims and Aritzia collabs
Demographic shifts and income disparities intensify the divide among consumers
Market polarisation accelerates with luxury resilience and strong demand for value
To survive, mid-market brands need to redefine their value proposition in US and Europe
Inditex leverages multi-brand portfolio strategy to weather market polarisation
2025 sees ranking movements among the top 10 companies in apparel and footwear
Shein is quickly diversifying its retail and manufacturing strategies
Fast Retailing announces ambitious expansion plans for Uniqlo in North America
Performance sportswear, core luxury and private label among fastest growing players
On and Hoka brands soar through performance-led and community-driven narratives
PE deals in M&As and IPOs to gain influence as uncertainty persists
Anta acquires 29% of Puma, to boost its global multi-brand expansion strategy
E-commerce increasingly saturated in mature markets, but still growing globally
E-commerce: D iverse and uneven growth opportunities across regions
Consumers increasingly turn to s-commerce for short, fun and personalised content
TikTok Shop has launched in Brazil and Japan, and is expanding actively in Europe
Physical stores remain paramount to build brand recognition and trust
Onitsuka Tiger taps into tourism-driven retail with new Omotesando flagship store
On AG opens its first store in Mexico City, in the upscale neighbourhood of Polanco
Better consumer segmentation will become critical to win across markets
NewMe grows rapidly in India with its value proposition targeting female Gen-Z
Chinese players elevate the “Made in China” label and accelerate global expansion
Urban Revivo has opened flagship stores in prime locations in London and New York
Gen AI-powered search and agentic AI: New gateways between shoppers and brands
Gen AI will generally reshape competitive advantage in the fashion industry
PayPal becomes the first digital wallet integrated into ChatGPT’s Instant Checkout
Sustainability as revenue opportunity and a strategy to drive innovation and efficiencies
Resale will become an integral part of the broader fashion ecosystem
With RE/Style, Vinted shifts from value-driven resale marketplace to fashion curator
Apparel and footwear industry: SWOT analysis
Opportunities for future growth in the apparel and footwear industry
Our expert’s view of apparel and footwear to 2030
Apparel and Footwear
Apparel is the aggregation of clothing and footwear. This dataset covers retail sales of apparel through both store-based retailers and non-store retailers. Excludes black market sales (i.e. untaxed, generated within informal retailing)and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded.
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