Apparel Supply Chain Market Size, Share & Trends Analysis Report By Process (Pre-Production, Trade Logistics), By Region, And Segment Forecasts, 2022 - 2028

Report Overview

The global apparel supply chain market size was valued at USD 863.75 billion in 2021 and is expected to expand at a CAGR of 3.8% from 2022 to 2028. The rising demand for apparel from the fashion sector and the expansion of online retail channels is expected to drive the global apparel supply chain market during the forecast period. 

The apparel supply chain offers companies with control over the aspects of whole process that are included in the apparel supply chain enabling them to quickly pick up the trend in the industry and produce collections for the same. This is expected to create new business opportunities for key players and fuel the apparel supply chain market in the coming years. 

COVID-19 outbreak had a negative impact on the apparel supply chain market. Lockdowns across the globe impacted the transport networks and imposed challenges for interconnected supply chains to outsource materials across the globe. Due to COVID-19, a decline in demand has been observed by the transport services along with imbalance in cargo. The shortages of raw materials have also been observed in the manufacturing of apparel hence presenting an overall negative impact on the global apparel supply chain market. 

Integration of advanced technologies in the apparel supply chain to collect accurate data in right time, in order to ensure its validity, will create lucrative opportunities for the market. Moreover, integration or incorporation of initiatives for the sustainability in any apparel supply chain has become the utmost necessity to reduce or minimize the carbon emission in the environment and will become an important trend.

The global apparel supply chain encloses the labor and human rights abuse and deficient transparency in the whole supply chain process as well as apparel production, which is a key restraining factor to hamper the market growth during the forecast timeline. Moreover, the significant growth in the apparel industry in emerging economies such as India, China and others further projected to provide ample opportunity to the market growth. 

The method of outlining every step included in the procedure of apparel manufacturing, to the step where it reaches the end-user, is known as the apparel supply chain. The process of apparel supply chain initiates with raw material to the final apparel delivery to the consumer. The activities that fall under the apparel supply chain are sourcing raw materials, converting the raw materials into yarns, conversion of raw materials into fabric, manufacturing apparel from fabric, and finally distributing them to end-users.

Supply chain management enables the organizations and enterprises to easily and effectively manage the data generated in the business and enhance the operations of supply chain, along with enabling them to work deliberately hence promoting the adoption of such software and services among them.

Additionally, several advancements are occurring in information technology as well, as they are highly and rapidly being adopted. Integration or incorporation of such advanced technology in supply chains by users supports the overall supply chain along with improving it and taking better decisions, which is propelling the global market forward. 

Process Insights

The pre-production segment dominated the market and contributed a revenue share of more than 80.0% in 2021. It is expected to expand at the fastest CAGR of 3.9% from 2022 to 2028. The rising demand for apparel from the fashion industry along with increasing usage of e-commerce for the purpose of buying apparel had increased the usage of the apparel supply chain for pre-production segment, which is contributing to the market growth.

Additionally, the speedy urbanization and increasing population in developing countries including India, Vietnam, Bangladesh, and others resulted in escalated demand for the apparel and contributing to the growth of the apparel supply chain market. The above-mentioned factors lead to high adoption of the apparel supply chain in the pre-production segment, hence driving the market growth. 

The trade logistics segment is expected to expand at significant CAGR of 3.2% during the forecast period. Trade logistics provides a company with flexibility and allows them to control their operations in a better and enhanced way along with saving costs. It also helps them increase overall transparency of the supply chain and aids in better understanding of the cost, operations, inventory management, plus others, which in turn is increasing its usage in the apparel industry, thus driving the market growth. 

Regional Insights

Based on the revenue, Asia Pacific accounted for the major market revenue share of more than r55.0% in 2021 and is estimated to increase by the fastest CAGR of 4.4%from 2022 to 2028. The rising usage of e-commerce platforms for buying products coupled with growing sales of apparel in the region are the actors expected to contribute to the market growth.

Moreover, the easy availability of raw materials at a comparatively lower price along with being the leading manufacturers of apparel is also expected to fuel the market expansion. The above-mentioned factors are driving the growth of the Asia Pacific apparel supply chain.

The apparel supply chain market in Europe is likely to expand at a considerable CAGR of 3.9% during the forecast period. This growth is attributed to the presence of favorable policies regarding trade, imposed by the government. Additionally, due to the increased demand for sports & clothing and home-furnishing textile products, the demand for textile is expected to expand significantly during the forecast period.

The presence of major key players operating in the region is another important factor adding to the market growth. Therefore, due to the above-mentioned factors the usage of the apparel supply chain solutions in Europe is high and contributes more to revenue generation. 

Key Companies & Market Share Insights

The apparel supply chain market is characterized by the presence of established as well as new players. Most of the key players working in the apparel supply chain market are adopting various strategies such as alliances, partnerships, and mergers to gain maximum share in the market. For instance, in December 2021, Li & Fung Limited formed a strategic partnership and announced to acquire LF Logistics by Maersk in order to simplify and connect supply chains for the customers. Some of the prominent players in the global apparel supply chain market:

• BSL Ltd.

• INVISTA Equities, LLC (Koch Industries, Inc.)

• Luthai Group

• Paulo de Oliveira company

• China Textiles (Shenzhen) Co., Ltd.

• Paramount Textile Mills (P) Ltd.

• Successori Reda SpA

• Mayur Fabrics

• Rhodia SA (Solvay Group)

• Li & Fung Limited
  

Apparel Supply Chain Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segment from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global Apparel Supply Chain Market based on the process, and region: 

• Process Outlook (Revenue, USD Million, 2017 - 2028)

  • Pre-Production

  • Trade Logistics

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • Italy

    • Spain

    • France

  • Asia Pacific

    • China

    • Bangladesh

    • Vietnam

    • India

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Turkey