New data highlights a nuanced outlook for New Zealand's fashion sector as we step into 2025. While the industry is expected to generate NZD $4.76 billion in revenue this year—with Women's Apparel leading the way at NZD $2.79 billion—recent spending patterns reveal underlying challenges.
According to Stats NZ, spending across the fashion industry fell by $13 million in December 2024 compared to December 2023. Over the entire year, fashion sales declined by 4.5 percent ($185 million) year-on-year, despite a 6.8 percent increase in the number of retail transactions. Core retail industries (excluding fuel and vehicles) also experienced a $6 million drop in spending, with total retail sales for 2024 down 2.2 percent from 2023.
On a brighter note, seasonally adjusted data reflects some recovery. Fashion sales increased by $1 million, while core retail sectors saw a $104 million lift, hinting at cautious optimism for the year ahead.
Looking forward, the apparel market is set to grow at an annual rate of 3.91 percent (CAGR 2025–2029), with market volume projected to reach 312 million pieces by 2029. Non-luxury items dominate the market, making up 87 percent of sales, while per capita revenue is forecasted at NZD $896.80 in 2025.
Sustainability remains a crucial focus for the sector. Manufacturers and retailers are increasingly adopting locally sourced materials and ethical production practices to meet evolving consumer demands.
The retail sector's performance at the close of 2024 underscores the pressures facing the industry. As economic headwinds persist and consumer behaviours continue to shift, resilience and innovation will be critical for navigating 2025 successfully. Despite the challenges, the sector's projected growth and sustainable initiatives offer a promising path forward.
