The demand for fast fashion is at an all-time high. The sector will reach 200 billion dollars by 2030, thanks to a substantial increase in the next five-years.
This forecast is based on the report ‘Fast Fashion Global Market Opportunities and Strategies to 2030: Covid-19 Change and Growth’ by Research and Markets. The research company highlighted that in 2020, the global fast fashion market would reach a value of $68.5 billion, despite a decrease in annual growth rate (CAGR), of 3 percent since 2015.
Fast fashion is expected grow to 163.4 billion dollars in the next five year with an increase constant 19 percent. It will then reach 211.9 million dollars (188.8 trillion euros) by 2030. This annual growth rate of 5.3% over five years is a record.
The adult market accounted for 85.9% of the total fast fashion market in 2020. The teens wear segment will continue to grow at a rate of 23.6 per cent during 2020-2025, according to forecasts.
You can also segment the fast fashion market by type, such as pants, shirts and dresses. Skirts, coats and other apparel. The largest segment of fast fashion market by type was the other apparel market, representing 33.9 percent of total sales in 2020. The dresses & accessories segment will continue to grow in the future. The fastest-growing segment of the fast fashion market is the skirts segment, with a CAGR 23.8 percent between 2020-2025.
Asia Pacific accounted for 29.7 per cent of global fast fashion market totals in 2020. The rest of the world followed, including North America, Western Europe and then other regions. The fastest growing regions in fast fashion will be South America and the Middle East. Their growth rates will be 32.4 percent to 28.9 percent, respectively. The markets in Africa and Eastern Europe will follow at CAGRs 25.2 percent to 23.0 percent, respectively.
Global fast fashion is fragmented with many small players. In 2020, 29.13 percent was made up of the top ten market players. The market’s major players include Inditex (Zara SA), H&M Group, Fast Retailing (Uniqlo), The Gap Inc., ASOS Plc.
Segmenting the fast fashion market by gender will bring forth the top opportunities. The female market segment will see 63 billion dollar in global annual sales by 2025. Adult wear will have the highest opportunities in the fast fashion market segmented according to age. It will be able to generate 77.7 billion dollars in global annual sales by 2025.
There is a growing demand for man-made fibres
Market-trend-based strategies in fast fashion include virtual reality and augmented realities (VR/AR), the use of blockchain technology in market, artificial intelligence when designing clothes, using the internet of things, new ownership models, and 3D printing. There is also a higher demand for manmade fibers.
The report suggests that fast fashion companies invest in technological solutions and create new opportunities to grow their business. This includes plans and strategic agreements to establish and expand stores in developing countries and plans for manufacturing facilities. Companies can also consider strategic acquisitions to maximize growth.