According to Future Markets Insights, the kids apparel market holds lucrative growth opportunities for manufacturing companies as demand surges.
In 2022, the market generated a total of 187 billion USD and is predicted to reach 386 billion USD by 2023.
The expected growth is attributed to the following factors:
- Growing demand for cotton-fibre kids clothing among parents, due to their easy washability, reduced shrinkage and reduced colour fade.
- Robust urbanisation, which is contributing to the expansion of retail more generally, particularly in the e-commerce sector.
- Increasing brand awareness for children's clothing.
- Rising proclivity for branded products among parents living in urban cities.
- Rising media coverage of kids apparel.
- Surging parental disposable income.
- Rising product customisation, affordable pricing and availability of innovative kids apparel.
Markets in countries like China and India with a growing infant population and inflating disposable incomes are projected to be profitable avenues.
Markets in Middle Eastern nations, particularly Qatar, Saudi Arabia and the United Arab Emirates, are also expected to be profitable areas for growth, particularly luxury childrenswear, due to the increasing number of high net-worth individuals and urbanisation in these countries.
Online childrenswear retailers are projected to witness robust growth in the coming years. Promotions on e-commerce sites like Amazon and Alibaba and the significant discounts offered on online platforms to induce immediate and increased sales, has allowed online shopping to be more convenient for parents across the world. Online retail provides new companies access to a reliable platform to enter the market and promote their products widely, targeting consumers from across the globe.
However, volatility in the prices of raw materials like cotton, and oscillating yarn prices, may reduce growth as these factors can make kids apparel more expensive.
The report also identified the major trends shaping the kids apparel market, which includes gender-neutral clothing and apparel influenced by celebrity parents, due to the high social media exposure the clothing garners.
