Global Apparel Market & Ethiopia’s share

All sorts of clothes, from sporting to office attire, from everyday wear to standout luxury pieces, are included in the garment market. Global demand for clothing and shoes is anticipated to increase once more in 2020, following challenges brought on by the coronavirus pandemic, which negatively impacted the apparel industry’s sales. In terms of revenue, the global apparel market is predicted to bring in about 1.5 trillion US dollars in 2021 and close to 2 trillion by 2026. The majority of this garment demand is being met by China and the United States, both of which are producing far more money than any other nation. The fact that the same two nations are significant participants in global trade may not come as a surprise. The nation having the largest export value of clothing is China. In terms of the value of apparel imports, the United States ranks second only to the European Union.

In ascending order, the top ten apparel retail markets in the world (by retail sales value in 2022)

China, USA, Germany, United Kingdom, Japan, India, France, Italy, Russia, Canada (Source Euromonitor)

In ascending order, apparel retail sales by region (in 2022)

Asia Pacific (39.3%), North America (23.3%), Western Europe(20.4%), Rest of the world
(16.9%).(Source Euromonitor)

According to industry estimates, the global apparel retail market will grow by 7.6-8.6 percent between 2021 and 2022. The annual growth rate, however, will slow to 4.0-5.7 percent in 2022-2024 and then to 3.8-4.6 percent in 2025-2026. Asia-Pacific, North America, and Western Europe will continue to be the world’s largest apparel consumption markets, accounting for more than 80% of retail sales. However, the Middle East and Africa, as well as Latin America, will be key emerging markets to monitor.

China and the United States will continue to be the world’s two largest apparel retail markets, with no immediate competitors. China and the United States are major players in international trade. China is the world’s largest clothing exporter, and the United States is the world’s second largest importer.

“Fashion is one of the world’s most important industries, driving a significant portion of the global economy. It is a key value-creating industry for the global economy. If the global fashion industry were ranked alongside individual countries’ GDP, it would be the world’s seventh-largest economy.” According to Euromonitor and McKinsey research reports published prior to the Covid-19 pandemic, the global revenue of the fashion industry was estimated to be between $1.7 trillion and $2.5 trillion.

Ethiopia Global Share in apparel industry

Ethiopia has long been regarded as one of Africa’s economic powerhouses. Until recently, it gained great political stability in comparison to other African countries. With an average GDP growth rate of 10% over the last decade and a government that implemented foreign investor-friendly policies, the country was able to attract South and East Asian clothing manufacturers. These are sold to international retailers such as Decathlon and H&M. Although Ethiopia’s textile and apparel sector is currently small its export share is less than 10% of all exports, and its output only accounts for 0.6% of the country’s GDP—it was predicted that over the following several years, the industry would expand by over 40% annually.

Despite these obstacles, the Ethiopian government’s efforts to make the nation a major sourcing hub and one of the most desirable destinations for global textile and apparel investments have not gone unnoticed. Heavy-hitting retailers like Gap, H&M, Tesco, Belk, and Walmart have factories in Ethiopia or obtain their clothing goods from there.

Global Apparel Market Drivers

Wireless Technology Advancement and the Growing Need for Connectivity

The growing popularity of online shopping is most likely driving the textile manufacturing industry. Manufacturers’ ability to sell their goods in a larger market than previously will widen their geographic customer base and fuel the growth of the textile manufacturing industry. E-commerce platforms, for example, have increased traditional clothing sales in countries such as India by increasing producers’ geographic exposure.

Increasing Clothing Demand from the Fashion Sector

The fashion business has a significant economic influence. Fashion firms are a multibillion-dollar industry. As a result, rising fashion clothes demand has a significant impact on the economy. It is responsible for both the recent and future expansion of the apparel industry.

Global Apparel Market Constraint

Coronavirus Pandemic

The outbreak of Coronavirus disease (COVID-19) has acted as a significant restraint on the textile manufacturing market in 2021, as supply chains have been disrupted due to trade restrictions and Consumption has decreased because of whole world government lockdowns

Growing Industrial Waste

The amount of waste in the manufacturing of apparel is very significant, which has led to an increase in both pre- and post-production waste. Many clothing cutouts and post-production garment wastes are dumped in landfills every day. If these things aren’t successfully handled, they have an impact on the environment.