After two difficult Covid years of dressing down days, the fashion resilience of denim is being felt once agin. Every year, over two billion jeans are sold globally and apparel manufacturers are now focussed on cashing onto this lucrative segment in post-pandemic days.
It is expected by 2023, the size of the market for denim jeans fabrics will reach a stupendous 4,541 million meters as demand sores globally. In the five years between 2018-23 the market is expanding at 4.89 per cent annually from 3,576 million meters in 2018. Denim is an apparel segment that shows its true potential when it comes to export diversification with other apparel.
Analysts say, Christmas and New Year holiday season has seen a major revival of fashion resilience in the US markets, which will improve the entire global denim market. Global jeans market is expected to have a CAGR of 6.7 per cent during the forecast period from 2020 to 2025.
Focus on new business strategies and markets
Rome was not built in a day and thus the bigger denim manufacturers will need to adapt new business strategies, such as geographical and capacity expansion, M&A, and R&D, to boost sales. They need to strategically focus on establishing new market opportunities by entering newer and niche markets in the garment industry that are still in their developmental phase.
As per an Apparel Resources report, Indian domestic market for denim has been maintaining an average CAGR of 8-9 per cent for few years and is expected to reach the $12.27 billion by 2028. Unlike Europe, the US and other western countries where consumption per person average jeans is very high, in India it is far lesser with consumption of around 0.5 jeans per person as traditional dressing is more popular in most geographical segments.
To even reach the potential of one pair of jeans per person will require another 700 million pairs of jeans to be sold annually and this showcases the massive growth opportunities in the country. No wonder, global brands are rapidly increasing their presence in metros and small cities.
US leads the way
The US is currently the largest market, with India likely to experience the most growth, followed by China and Latin America. It is expected the US market will be around 4,313.56 million meters in 2022 and 4,541.05 million meters in 2023 as between 2018 and 2023, the average annual growth is expected to be 4.89 per cent. India is striding ahead as despite being smaller than China, Latin America and the US its market is expected to grow at a fast rate arriving at 419.26 million meters in 2023 from 228.39 million meters in 2016.
In the global denim market China, Bangladesh, Pakistan and India are key denim-producing countries. In denim export segment in 2021-22, Bangladesh with over 40 mills producing 80 million yards of denim fabrics remains at the top position in the US markets. This was followed by Mexico and Pakistan as the third largest supplier. Vietnam was in fourth position after it shipped denim items worth $348.64 million, up 25.12 per cent year-on-year.
Denim today has come a long way in the fashion segment as they appeal to everyone with different varieties of stretch to bio-polished, innovative colours from vegetable-based, indigo to sulphur dyed, fibre blends with the most recent being softer, lighter, comfortable silk denim for all seasons and a variety of textures, drapes and styles focussed on the athleisure and wellness current trend. Denim is not just a fashion apparel, it’s an everyday symbol of style and a daily essential and a must-have for almost everyone.