The kids apparel market generated a total revenue of US$ 187.29 billion in 2022. The industry is predicted to register a healthy CAGR of 6.8% over the forecast period to attain a revenue of US$ 386.19 billion by 2033. The kids apparel industry holds lucrative growth opportunities for manufacturing companies as demand for kids’ apparel is surging.
Various market dynamics affecting the kids apparel market:
· Growing demand for cotton-fiber kids’ apparel among parents due to their easy washability, less shrinkage, and color fade.
· Robust urbanization, which is contributing to the expansion of the retail sector, is pushing the sales of kid’s apparel. Additionally, skyrocketing e-commerce sector is also supporting the kids apparel industry.
· A rising proclivity for branded products among parents residing in big cities is propelling the demand for kids’ apparel.
· Increasing brand awareness about children’s clothes line is also augmenting product sales.
· A few common factors, such as rising media coverage, surging disposable income of parents, and peer pressure, further support market expansion.
· The rising product customization, affordable pricing, and availability of innovative kids’ apparel augment product sales further.
Market Restrainers Limiting the Growth Potential
· Volatility in raw materials prices, including cotton, can hamper product sales.
· Oscillating yarn prices are projected to continue as demand for cotton is increasing in the global market. This affects the final product price. The high cost of kids’ apparel, which is caused by increased yarn prices, may dissuade parents from making such purchases.
Key Trends Shaping the Kids Apparel Industry
· Gender-neutral clothing is currently in trend. To profit from this ongoing trend, manufacturers are introducing gender-neutral apparel to boost their product sales.
· Influenced by celebrity parents like Beyoncé and Kim Kardashian, parents are embracing age-appropriate and miniature versions of adult clothing thanks to social media penetration.
Lucrative Opportunities for Kids Apparel Businesses:
· The growing infant population, particularly in developing countries such as China and India, along with inflating disposable incomes, is projected to open up profitable avenues in the Asia Pacific region.
· Surging high-net-worth individuals, as well as urbanization in the nations of the Middle East, particularly Qatar, Saudi Arabia, and the United Arab Emirates, are unlocking massive opportunities for luxury kid’s apparel brands to pave their way into the apparel market.
2017 to 2022) Demand Outlook for Kids Apparel Market Compared to Forecast Period (2023 to 2033)
The kids apparel market attained a market revenue of US$ 187.29 billion in 2022. From 2017 to 2022, the market has been influenced by various factors, including a huge consumer base for kids’ apparel. In addition, driven by strong economic growth, developing countries like India and China are witnessing expanding the market. This is further supported by the growing expenditure by working parents on their child’s convenience and comfort.
· According to Future Market Insights (FMI) analysis, the kids apparel industry is anticipated to exceed US$ 386.19 billion by the end of 2033, registering a CAGR of 6.8%.
· Short Term (2023 to 2026): The kids apparel industry is expected to be stimulated by the surge in spending on kids-wear by parents. The rising trend of nuclear families consisting of working parents willing to spend on kids’ comfort and convenience is predicted to push market growth over the short term.
· Medium Term (2026 to 2029): High exposure to social media, due to deep internet penetration, is boosting brand awareness among kids and parents. As a result, kids are also expected to actively participate in their purchase decisions. This is projected to expand the market growth over the forecast period.
· Long Term (2029 to 2033): The long-term market growth is projected to profit from the rising organized retailers and investors in the market, investing in new brands to target parents and children alike. Innovative strategies, including the right product assortment, better visual merchandising, focused advertising, and promotional strategies, are projected to augment market development.
Category-wise Insights
Boys Segment to Account as a Significant End User Owing to Rising Birth Rate of Newborn Boys
Based on end-user, the kids apparel industry is projected to witness a high percentage share held by the boys’ segment. As per World Bank statistics, the global sex ratio at birth was 100 female births per male births in 2021. Additionally, manufacturers are introducing new products to enhance their boy’s clothing sales. For instance, in July 2022, Airwalk set out to venture into the boys clothing section by introducing a new wide range of boys’ apparel at JCPenney.
Baby girls’ clothing is projected to witness a hike due to the availability of a wide range of baby girl clothes, such as skirts, dresses, and tops, to cater to the increased demand for baby girls’ clothes.
· In February 2022, Maurices, an apparel retailer, stretched its capacity to enter women’s fashion and introduced Evise, a tween girl’s (8-12 age group) brand.
· In December 2021, Myntra introduced Justice, exclusively a girls’ tween fashion brand in India.
Highly Sought After Stylish and Trendy Apparel for Kids Between 10-12 years Age Group to Drive up the Segment Growth
Based on age group, the 10-12 years segment is projected to hold a significant market share over the forecast period. Elevating demand for stylish and trendy apparel is bolstering market development during the forecast period. The 1-5 years segment is predicted to witness robust growth over the forecast period. The segment growth can be attributed to the rising preference for branded clothes and the emerging trend of parents and kids to adorn identical clothes. Furthermore, the growing popularity of gender-neutral baby clothes is gaining significance, and key players are launching a unisex section to enhance their categories. Additionally, key market participants are introducing products to serve the segment’s rising demand for baby apparel.
· In April 2022, H&M introduced a new line of baby apparel, with a recyclable 12-piece cotton collection for newborns.
· In September 2022, PatPat, a baby and toddler clothing brand, introduced Go-Near Techwear as its first baby techwear range for toddlers and babies. This new addition is more convenient and stain-resistant.
Key Insights for Distribution Channel Segment
Offline Segment to Hold Massive Share over the Forecast Period
The offline sales segment is projected to hold a prominent market share over the forecast period. High revenue generated from the offline segment can be credited to the robust expansion of retail stores, including children’s clothing retailers, to cater to the ever-increasing demand for baby clothes. Furthermore, manufacturers focus on spreading their distribution channel system and product portfolio. For instance, in November 2021, Peter England introduced a clothing line, Peter England Boys and Girls, in the kidswear segment, exclusively in Vellore, Tamil Nadu.
Online Channel to Observe Significant Growth Rate
Online channels of sale are projected to witness robust growth during the upcoming years. Surging internet penetration and ceaseless promotions via e-commerce sites, such as Flipkart, Amazon, and Alibaba, in addition to the significant discounts offered by such sites to induce immediate and increased sales, has made online shopping more convenient among parents across the globe. Apart from this, this distribution channel allows new entrants a reliable platform to enter the market by selling and promoting their products on a large scale. They can target consumers from across the globe, and traverse geographical boundaries, for their market expansion. A few instances of online channel strategic growth are given below:
· In June 2021, Brave Kid, which is a part of OTB Group, set up a direct multi-brand store and included new brands as licensed, such as the addition of the MM6 Maison Margiela line in its portfolio.
· In 2020, Nykaa Fashion introduced kids’ clothing on its official app and website, introducing 30+ Indian as well as international kid’s apparel brands.
Country-wise Analysis
China to Hold Significant Share in the Kids Apparel Industry
China kids apparel industry is projected to hold a significant market share over the next ten years. A robustly growing infant population and inflating disposable incomes in the country are contributing to market expansion. Furthermore, the improved childcare facilities in urban and rural areas in China are also projected to influence the overall market in China positively.
Due to vigorous economic growth and rising household incomes, consumer spending on kids’ wear is increasing. Many players are introducing their stores and launching their offerings on e-commerce sites for heightened visibility and sales over the upcoming years. As a result, the market is set to witness strong growth in the next ten years.
Rising Working-class Parents in the United States to Support Market Growth
The United States kids apparel market is projected to witness a healthy growth rate over the forecast period. The market growth can be attributed to the soaring working-class parents in the country who are becoming more conscious about the health and safety of their infants.
The cold winter temperature in the country prompts parents to buy high-quality woolen baby clothes that offer greater comfort. Additionally, the sales of kids’ apparel are positively influenced by the increase in shopping witnessed during events and festivals when the participation rate of children increases in programs like cosplay, Halloween, and school talent shows. The aforementioned factors are projected to contribute toward market expansion.
