The global ethnic wear market is expected to reach $177.2 billion by 2031, growing at a CAGR of 7.2 per cent from 2022 to 2031, according to a new report published by Allied Market Research.
The report cites increasing demand for fusion wear globally, the emergence of mix-and-match styles, the availability of high-end brands, and the rising number of fashion influencers as prime determinants of growth.
Fusion wear and women’s ethnic wear hold the major share
While the traditional wear segment held the highest market share in 2021, accounting for more than three-fifths of the global ethnic wear market, the fusion wear segment is projected to manifest the highest CAGR of 7.8 per cent from 2022 to 2031. The women's segment is estimated to maintain its leadership status throughout the forecast period, accounting for more than half of the global ethnic wear market, while the kids segment is projected to manifest the highest CAGR of 8.0 per cent from 2022 to 2031.
Online growing faster than offline
The offline segment is projected to maintain its lead position during the forecast period, contributing to more than three-fifths of the global ethnic wear market, while the online segment is expected to portray the largest CAGR of 7.7 per cent from 2022 to 2031. However, the shift in consumer preferences towards online purchasing venues helped the market for ethnic wear grow and meet consumer demand during the pandemic.
Asia and within Asia, India highest contributor to ethnic market
Asia-Pacific held the highest market share in terms of revenue in 2021, accounting for nearly three-fifths of the global ethnic wear market, and is likely to dominate the market during the forecast period. India, which offers a vast variety of ethnic clothes, is one of the main contributors to the regional ethnic wear market. However, the LAMEA region is expected to witness the fastest CAGR of 8.5% from 2022 to 2031.
The global ethnic wear market presents new opportunities for growth in the coming years, driven by innovative designs and digital marketing, as well as the increasing popularity of traditional and fusion wear across the world.