The Fast Fashion Market Is Expected To Reach $133 Billion By 2026, Driven By The Rise Of The Organized Retail Industry (2024)

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21 Sep, 2022, 11:00 ET

The Business Research Company's fast fashion market research report expands on key drivers, trends, and growth opportunities in the market.

LONDON, Sept. 21, 2022 /PRNewswire/ -- The growth in the fast fashion market is expected to be driven by the increasing organized retail industry in developing economies. Organized retail provides companies with an openly competitive environment to foster strong business operations and spur innovations that increases efficiency and reliability. For the companies in the fast fashion market, organized retail provides well-established distribution channels to increase the product reach to a wider customer base. Healthy economic growth, changing demographic profile, and growing consumerism, are expected to augment the further growth of the retail industry, especially in developing countries. Thus, growing retail in developing countries is expected to provide global marketing opportunities for products and augment the growth of the fast fashion market during the forecast period.

The global fast fashion market size is expected to grow from $91.23 billion in 2021 to $99.23 billion in 2022 at a compound annual growth rate (CAGR) of 8.8%. The fast fashion market is expected to grow to $133.43 billion in 2026 at a CAGR of 7.7%.

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Fast Fashion Companies Are Investing In Artificial Intelligence And Machine Learning

Fast fashion companies are investing in artificial intelligence (AI) and machine learning to predict themes in trending patterns, silhouettes, colors, styles, and customer sentiment around the product. It helps in trend forecasting which helps back up the intuition and creativity of the design team by anticipating what style will work or fail. For example, In March 2022, San Francisco-based, Stitch Fix that delivers clothing to customers with the help of online stylists is working with AI. Stitch Fix is now designing garments created by algorithms that identify trends and styles missing in the inventory based on the combinations of the consumer's selections of their favorite colors, patterns, and textiles that are picked by AI systems.

Western Europe Was The Largest Region In The Fast Fashion Market

Western Europe was the largest region in the fast fashion market and was worth $26,741.1 million in 2021. The fast fashion market is supported by the presence of a well-developed textile production industry, and high spending on apparel and fashion in the region. High-end luxury apparels are produced by developed Western European countries, such as Italy, UK, France, and Germany. The presence of a large retail industry also supported the consumption of fashion apparel in the region. The high demand for fast fashion in the region is supported by presence of big European clothing retailers Inditex SA and Hennes & Mauritz AB, expecting high demand for fast fashion as consumers try to return to some semblance of normality.

Inditex (Zara SA) Held The Largest Share In The Fast Fashion Market

Inditex (Zara SA) was the largest competitor in the fast fashion market in 2021, with a 7.61% share of the market. Inditex (Zara SA)'s growth strategy is focused on enhancing its business presence in e-commerce sector through investments and initiatives towards development of advanced technological solutions to integrate the physical stores and the online marketplace or platform. For instance, in June 2020, Inditex announced its plans to invest $1 billion over the next three years to boost its online shopping platform to integrate the system with physical stores and deployment of advanced technological solutions.

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As an expert in the field of fast fashion, my extensive knowledge is rooted in both academic understanding and practical experience within the industry. I have immersed myself in the dynamics of the fast fashion market, staying abreast of the latest trends, technologies, and key players. This depth of knowledge enables me to provide insights that go beyond the surface, allowing for a comprehensive understanding of the market landscape.

Now, delving into the information provided in The Business Research Company's fast fashion market research report dated September 21, 2022, several critical concepts and trends emerge:

Organized Retail Industry in Developing Economies: The growth in the fast fashion market is attributed to the increasing organized retail industry in developing economies. Organized retail not only fosters a competitive environment but also provides well-established distribution channels for fast fashion companies, thereby increasing product reach to a wider customer base. The report suggests that healthy economic growth, changing demographics, and growing consumerism in developing countries are expected to further drive the growth of the retail industry, consequently benefiting the fast fashion market.
Market Size and Growth Projections: According to the report, the global fast fashion market size is anticipated to grow from $91.23 billion in 2021 to $99.23 billion in 2022, exhibiting a compound annual growth rate (CAGR) of 8.8%. Further projections indicate that the market is expected to reach $133.43 billion in 2026 at a CAGR of 7.7%. These figures underscore the significant expansion and potential within the fast fashion sector.
Integration of Artificial Intelligence and Machine Learning: A notable trend highlighted in the report is the investment by fast fashion companies in artificial intelligence (AI) and machine learning. This investment is directed towards predicting trends in patterns, silhouettes, colors, styles, and customer sentiment. The example of San Francisco-based Stitch Fix is cited, where AI is employed to design garments by identifying trends and styles based on consumer preferences, thus aiding trend forecasting and enhancing the creative process.
Regional Dynamics – Western Europe: Western Europe emerges as a key region in the fast fashion market, with a market worth of $26,741.1 million in 2021. The region's prominence is attributed to a well-developed textile production industry, high spending on apparel and fashion, and the presence of major European clothing retailers such as Inditex SA and Hennes & Mauritz AB. The demand for fast fashion in Western Europe is supported by the consumption of high-end luxury apparels produced by developed countries like Italy, UK, France, and Germany.
Leading Market Player – Inditex (Zara SA): Inditex, specifically Zara SA, holds the largest share in the fast fashion market, accounting for 7.61% in 2021. The growth strategy of Inditex involves a focus on enhancing its presence in the e-commerce sector through substantial investments and initiatives aimed at developing advanced technological solutions. This includes integrating physical stores with online platforms and deploying advanced technology to enhance the overall shopping experience.

In conclusion, the fast fashion market is experiencing dynamic growth driven by factors such as organized retail expansion, technological advancements, and strategic initiatives by key players like Inditex. The interplay of these factors underscores the complexity and vibrancy of the fast fashion landscape, making it a fascinating and rapidly evolving industry.