Textile industry is one of the oldest industries that was introduced much before the industrial revolution that hit the world in the mid-eighteenth century. The apparel industry or clothing industry which it is mostly referred gained importance after the world war two and continues to be influenced greatly by the fashion industry till date. Though both of the industries appear to be similar, there is much difference between them. Textile industry deals with the manufacturing of yarns and fabrics whereas the apparel industry includes manufacturing of all the clothing types except leather goods and accessories.
What is market size?
Market size is the evaluation of all the individuals who are related to the market including the buyers, sellers, traders, brokers, etc. Therefore, before starting any business one must be aware of its market size as it directly influences the sales of products and services.
Market Size of Global textile industry 2015-2020:
The textile industry is expected to grow by more than 25 percent in 2020 as compared to 2015. The main reason for this is the growth in demand of different types of fabrics and yarns. The fabrics are more in demand as compared to the yarns as the ratio between both of them is 80:20 respectively. Textile industry is more pronounced in the Asia-Pacific belt and Europe follows after it. One of the reasons behind this is because the cost of labour and manufacturing is much lower in the developing countries as compared to the developed countries. As a result, Asia-Pacific belt constituted approximately 55 percent of the total global market value which was followed by Europe which accounted for 20 percent approximately. The global market value of the textile industry was estimated to be around $660 billion in 2015. It is expected to grow by another 25-26 percent in 2020 which reaches over $842 billion. This tells us that the annual growth per year would be around 4.9-5 percent.
Market Size of Global apparel industry 2015- 2020:
The market value of global apparel industry is much higher than the textile industry. It was totalled more than 840 billion dollar in 2016. The recorded growth was 5.5 percent from 2015. It is estimated to grow by 19 percent till 2020 which tells us that the growth percentage will be comparatively lower in the other four years of the lustrum. Therefore, the global apparel industry is estimated to reach over 1000 billion dollars by 2020.
Another part of the apparel industry in the apparel retail market. It includes different type of men, women and kids wear. It is a known fact the women’s apparels rule the apparel retail market by constituting more than 52 percent of the total market value. It is follower by men’s wear which roughly accounts up to 32 percent followed by kids wear which accounts up to 16 percent. The growth of the global apparel retail market was recorded to be around 4.8 percent from 2014 to 2015. This made the market value of global apparel industry to be more than 1250 billion dollars in 2015. Market analysis tells that it would grow by another 32 percent in 2020. This tells us that the global apparel retail market will grow by 5.7 percent each year in the period of 5 years. Here too, the Asia-Pacific belt rules the global market by contributing more than 36 percent to the global annual sales of the retail apparel market. It is followed once again by Europe which has contributed roughly around 28 percent. United States of America has accounted up to 24 percent which is a remarkable figure by itself considering its area and population. The global apparel retail market is expected to reach around 1652 billion dollar by 2020.
What do the above figures tell?
The above figures tell that the fashion industry plays a crucial role in the world economy.
The stronger economy of the developed countries increases the daily wages of their labourers.
The global economy is to benefit greatly from the textile and apparel market in the coming years.
The global apparels and textile industry have recovered from the recession and will continue to grow atleast till 2020.
There is huge scope of growth in the developing countries and that they can be a backbone of the world economy in the future.
Countries like India are relatively smaller as compared to the huge apparel markets of USA, China, etc. However, it also means that there is more scope of development in India and the other developing countries.
E-commerce is the main reason behind the growth of global textile and apparel market.
The skill development of students and workforce related to these two industries will play a crucial role in the overall growth of these markets.