This decade could be the decisive one for fast fashion. In 2030, the sector could reach a total business of more than 200 billion dollars, driven in particular by the boost of the next five years. The forecast comes from the report ‘Fast fashion global market opportunities and strategies to 2030: Covid-19 growth and change’ by Research and markets in which the research company highlighted that in 2020 the global fast fashion market reached a value of approximately 68.6 billion dollars and, despite the decrease in the annual growth rate (CAGR) of 3% since 2015, the sector recovered in 2020. Fast fashion will grow to reach 163.4 billion in five years with a constant increase of 19% and then reach 211.9 billion dollars (188.8 billion euros) in 2030 (with a 5-year annual growth rate of 5.3%),
Also according to the report, the positive trend highlighted is the result of an increase in foreign direct investments, the growth of emerging markets, the ever stronger development of the media and, more generally, technology. On the other hand, the factors that negatively impacted the sector were the lack of resources, the reduction of free trade and the increase in stock levels. In the future, the growing demand for sportswear and affordable clothing from the youth population coupled with the increase in social media penetration will push fast fashion beyond 200 billion.
The segment is quite fragmented, with a large number of small actors playing alongside the big players; in 2020 the top ten companies in the sector represented 29.13% of the total business. Among the major names in the industry are Inditex, H&M Group, Fast Retailing (Uniqlo), Gap, Forever 21, Mango, Esprit, Primark e New Look.
Analyzing performance by gender, womenswear has driven the turnover to date, accounting for 60.3% of total turnover in 2020. In the future, the women’s segment is expected to be the fastest growing segment in the fast fashion, with a CAGR of 20.3% in the period 2020-2025. On the other hand, taking into consideration the proposals by age, adult clothing has been confirmed to date as the main business of affordable fashion but the time would be ripe for a change. According to the report, a change in trend is expected in the coming years because teenswear, or clothing for teenagers, will be the fastest growing segment (23.6% in the 2020-2025 period).
Finally, geographically, the Asia Pacific region wins the first step of the podium with a share of 29.7% in 2020, followed by North America and Western Europe. In the next few years, the fastest growing regions will be South America and the Middle East, where the increase will be 32.4% and 28.9% respectively. These will be followed by Africa and Eastern Europe, where markets are expected to grow by 25.2 percent and 23.0 percent.