Demand for denim is declining in the US market.

Shoppers are opting for more formal attire and non-denim styles instead of more expensive jeans.While macro pressures have not impacted all apparel categories equally, denim has been a category feeling the brunt of a change in consumer spending patterns. US consumers are cutting back on non-essential purchases like clothing as a result of high inflation and an impending recession.

Despite 2021’s high demand, the denim industry is predicted to cool off. Although the market expanded by 12.5 per cent over the previous five years, it is expected to only have 3.8 per cent growth from 2022 to 2027. Consumers prefer more wide legged trouser-like silhouettes. Shoppers are buying more cargo pants and corduroys as they refresh their wardrobes with more non-denim bottoms.

For instance Levi Strauss’ gross margins are expected to come under pressure from higher inventory levels, increased promotions, and a stronger dollar, even as its jeans became more expensive. The company is expected to face a fall in quarterly sales for the first time in six quarters.

At the same time total US imports of denim apparel from the world in the first eleven months of 2022 increased by 17 per cent compared to the same period of 2021.