The global apparel supply chain market size is estimated to reach USD 1,119.69 billion by 2028, registering a CAGR of 3.8% during the forecast period from 2022 to 2028, according to a new report by Grand View Research, Inc. The growing attractiveness of apparel supply chains in developing countries with a mounting level of outsourcing is one of the key factors that drive the growth of the apparel supply chain market.
Abuse against rights of human and labor is present in the apparel supply chain and also lacks transparency regarding the company's business practices. Thus, the impact of these practices on communities and workers of the particular company is a major factor restraining the market growth.
Moreover, the demand forecast and inventory management in the apparel industry is difficult as well as challenging, which is expected to act as a barrier for the market and thus hindering the market growth. Most of the key players, operating in the apparel supply chain market, are adopting various strategies to hold maximum industry share, globally.
The COVID-19 pandemic has negatively impacted the apparel supply chain market. It witnessed a decrease due to the global lockdown as the major activities of supply chain were disrupted across, the globe. A shortage of raw materials has also been observed due to the COVID-19 and projecting a negative impact on the market.
The pre-production segment contributed to the global market revenue share of more than 80.0% in 2021 and is expected to growth at the fastest CAGR of 3.9% during the forecast period. The increasing demand for the products coupled with the rising use of e-commerce for the determination of purchasing apparels are the factors increasing the usage of the apparel supply chain for the pre-production segment. Thus, its demand is high and contributes more to the market revenue.
Asia Pacific accounted for the largest market revenue share of more than 55.0% in 2021 and is expected to expand at the highest CAGR of 4.4% during the forecast period. The increasing usage of e-commerce platforms for purchasing apparel along with rising trades of apparel in the region is expected to contribute to the market growth. Moreover, the easy availability of raw materials at a reasonably lower price coupled with being the chief manufacturers of apparel are also adding to the market growth. Thus, it contributes to more revenue generation in Asia Pacific.
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Europe is forecast to expand at a considerable CAGR of 3.9% from 2022 to 2028. This growth is attributed to the availability of advantageous guidelines concerning trade agreements enforced by the government
The trade logistics segment is expected to grow with a significant CAGR of 3.2% during the forecast period. Trade logistics offers company with elasticity and permits them to regulate their procedures in an improved and enriched manner along with saving costs
The trade logistics assists them to intensify the overall clearness of the supply chain and supports in well understanding of cost, operations, inventory management, and others which is increasing its usage in the apparel industry, thus driving the market growth
Grand View Research has segmented the global apparel supply chain market based on the process, and region:
Apparel Supply Chain Process Outlook (Revenue, USD Million, 2017 - 2028)
Pre-Production
Trade Logistics
Apparel Supply Chain 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
List of Key Players in 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
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