Cashmere Clothing Market Size, Share & Industry Analysis, By Product (Sweaters and Coats, Bottom Wear, Shirts and T-shirts, and Others), By Demography (Men, Women, and Kids), By Distribution Channel (Online and Offline), and by Regional Forecast, 2024-2032

The global cashmere clothing market size was valued at USD 3.33 billion in 2023 and is projected to grow from USD 3.47 billion in 2024 to USD 4.93 billion by 2032, exhibiting a CAGR of 4.47% during the forecast period. Europe dominated the cashmere clothing market with a market share of 40.24% in 2023.

Cashmere belongs to the wool family and made from the hair of cashmere goats, hence the name. The goat is native to the Gobi Desert and Central Asia. Cashmere has been being said to be one of the most luxurious types of wool. Cashmere grows best during winter, and China and Mongolia are the main producers of this wool, having a combined share of up to 90%. As per FOUR PAWS International, a global animal welfare organization, around 90% of the approximately 20,000 tons of annual cashmere wool production comes from China, Mongolia, and Tibet. In addition, more than one hundred Billion goats are used in the process. The wool is used to make a variety of cashmere garments, such as sweaters, coats, trousers, joggers, shirts & t-shirts, and other cold-weather gear.

Since cashmere clothes are incredibly soft, insulating, and warm, they are a highly desirable fabric for winter wear clothing; thus, a higher range of winter wear can be found in the product portfolio of market players. Furthermore, clothing made from cashmere fiber is much warmer and lighter than those made from wool procured from sheep. Cashmere fibers are quite thin and fine, which helps them blend easily with other types of yarn, such as Marino wool, to add weight and durability while manufacturing garments.

As per Gobi Group Holding, China was one of the leading producers of cashmere cloths in 2021 and is expected to hold a leading share in the forecast period. Furthermore, governments of Canada, Italy, and other European countries, including the U.K., Germany, France, and Spain, have a majority share in Imports, followed by the U.S. with a higher and rising demand for cashmere clothing in this region. Furthermore, most luxury brands such as Loro Piana, LVMH, and others are found in countries with a higher market share.

The COVID-19 outbreak significantly impacted the global economy and industries. The spread of the virus also prompted governments to impose lockdowns and restrictions to control the spread of infection. These government restrictions and regulations caused the shutdown of manufacturing units and supply chain disruptions as borders were closed for travel and transportation, except for essential goods. The financial instability caused by the pandemic caused a shift in consumer demand from luxury products to essential commodities, from luxury products such as clothing made from cashmere wool resulting in a steep decline in the cashmere clothing market growth.

Cashmere Clothing Market Trends

Growing Consumer Preference for Eco-Conscious Garments to Fuel Market Growth

Eco-consciousness is one of the most significant trends in the consumer. In recent times sustainability has been altering consumer buying behavior. Eco-conscious has made consumers reconsider fashion choices as per the industry's impact on the planet. Eco-consciousness refers to the transparency of a company in the complete manufacturing process, including procurement of raw materials, processing, production, sales, and recycling. Consumers today are becoming personally invested in eco-conscious clothes when considering their fashion choices. This factor has compelled the industry players to come up with green alternatives to retain their customer base.

Eco-consciousness has increased customers’ interest in vintage, upcycled, and recycled clothing. Eco-fashion is not just about being environmentally conscious while producing and selling clothes, but it also includes all aspects of the production process, supply chain, and consumption right till the end of a garment’s life cycle. Thus, brands that deal in clothes made from cashmere wool have been launching products manufactured from recycled materials. These efforts will also fuel the market progress over the coming years. For instance, in November 2020, French designer Thomas Poli launched its Knitwear label Paradis Perdus, made entirely of recycled material.

Cashmere Clothing Market Growth Factors

Rising Inclination toward Casual Wear to Expand Cashmere Clothing Market Size

The demand for casual and formal wear in the fashion industry has seen steady growth rate in the past decade due to rapid urbanization. The rising urbanization has further contributed to the rapid adoption of casual wear. The popularity of casual wear has driven the demand for cashmere garments due to the material’s properties, such as lightweight, warm, fine, and smooth wool, making the clothes highly comfortable. Casualization has been one of the significant factors in changing consumer demand globally.

Furthermore, in the last year, the inclination toward the casualization of consumers has increased due to the COVID-19 pandemic. Owing to the restriction placed by the government, which restricted people in their homes, fashion senses started gravitating towards comfortable and presentable clothes that can easily transition from work to home to grocery runs and social-media appearances. Thus, demand for casual wear skyrocketed globally after the lockdown.

As per Scott Baxter, CEO of Kontoor Brand, the trend of global casualization is here to stay, with jeans and T-shirts becoming more acceptable as workwear. The pandemic has caused a tremendous change in how consumers dress for work, shifting workplace attire norms towards more casual. A survey conducted by the company reveals that 84% of people plan to upgrade their wardrobes and include more casual wear items.

Casual apparel manufacturing companies are using new strategies to expand their product portfolio. For example, Levi’s recently announced plans to acquire yoga apparel brand Beyond Yoga. The company expected that the decision would generate more than $100 Billion in total sales revenue for the 2022 fiscal year.

Beyond T-shirts, jeans, and yoga pants, companies that made formal wear mandatory in offices now plan to allow polo shirts, half-zip fleece jackets, or short-sleeve button-ups. These aspects will fuel the usage of cashmere wool, further enhancing the market outlook.

RESTRAINING FACTORS

Limited Supply of Raw Materials and Costly Production Processes May Restrain Market Development

The raw material requirement is too high for making a single cashmere apparel product. Furthermore, acquiring the raw material, cashmere wool is complicated and requires a lot of human resources. Like sheep's cashmere, goats are not trimmed. Still, they are combed by a person to gather the soft undercoat, which is further processed to manufacture yarns that are knitted by hand to manufacturing cashmere clothing, according to Om Cashmeres, a leading manufacturer of clothing made from cashmere wool based in Nepal for making a single scarf it takes around 3 to 4 goats to fulfill the hair requirements. Thus, it may require four years for a person with one cashmere goad to gather the hair needed for manufacturing a scarf. In addition, the fibre can be obtained from the goats in a specific season, and once the combing is done, a herder must wait for the next season to gather the next lot.

The supply chain of cashmere lacks the standardization in developing countries, hence, mills, retailers, and consumers cannot trace the source of raw material. Furthermore, the non-standardization of supply chain impacts the price paid to farmers and cruel treatment to animals. Thus, the challenges in supply chain affect the supply of cashmere fiber and this in turn leads to unavailability of cashmere as a raw material.

According to data from the United Nations and Mongolian Government, cashmere wool is considered a expensive fiber, and the population of cashmere goats is quite scarce. In fact, cashmere wool represents only 0.5% of global wool production. This factor, along with the heavy cost of producing cashmere yarns will restrict the market progress during the forecast period. The regions where cashmere wool can be acquired include China, Mongolia, Iran, and a few others, from which China and Mongolia hold a significant share of around 90%. For instance, as per Gobi Joint Stock company’s annual report, the company has a 69% share in the magnolia cashmere products market, and in 2021 Mongolia and China alone produced 90% of cashmere wool.

Cashmere Clothing Market Segmentation Analysis

By Product Analysis

Rising Demand for Sweaters & Coats to Fuel Market Growth

Based on product, the market is divided into sweaters & coats, bottom wear, shirts & t-shirts, and others. Cashmere sweaters & coats held the largest market share and will register a steady CAGR during the forecast period. Cashmere fiber is soft, thin, and delicate. This makes it convenient to knit the wool into different types of clothing, such as sweaters, coats, and cardigans. Cashmere sweaters are the most preferred thermal wear, specifically in Europe and North America, due to extremely cold weather, thereby helping the market share grow. For instance, in September 2020, Edinburgh cashmere, a well-known cashmere products manufacturer, launched its flagship store in Edinburgh, London, Milan & Los Angeles.

The availability of a wide variety of sweaters and coats by market players has made the market highly competitive and contributed to rising sales. In addition, designers of cashmere sweaters and coats are launching new product lines of more formal and casual office wear to fulfil the growing demand from working professionals. For instance, in October 2022, Extreme Cashmere, a brand known for its all-season cashmere apparel collections, launched its new exhibition, “Extreme cashmere edition 21”, made for easy movement and comfort. Such product launches will expand the market size.

The other segment has a variety of accessories, such as gloves, socks, and hosiery which have a significant demand in the market owing to the comfort soft cashmere fiber provide. For instance, in December 2021, sustainability-focused ethical fashion brand Le Cashmere launched its 100% cashmere scarf and cashmere-padded shawl through its new “Kickstarter” product line. Such developments will boost the market share.

By Demography Analysis

Rising Demand for Women's Cashmere Clothing to Fuel the Market Growth

Based on demography, the industry is segmented into men, women, and kids' cashmere clothing. The women segment has the highest market share as market players are offering a wide variety of cashmere products for women. The kids segments will also showcase a CAGR higher than other segments during the forecast period due to new product launches. For instance, in September 2021, luxury fashion brand The Row launched its first-ever kid's collection. The product range included pants, crewnecks, belted cardigans, and beanies.

The women segment has a variety of designs available in sweaters & coats, bottom wear, and cashmere accessories, such as gloves. Market players are launching new products to fulfil the rising dsemand for cashmere clothing in colder regions. For instance, in December 2021, Carmen Sol launched its new cashmere collection, which includes button-downs, pullovers, turtlenecks, and scarves.

By Distribution Channel Analysis

Changing Consumer Preference towards Online Distribution Channels will Fuel Online Segment Growth

In terms of distribution channel, the market is divided into online and offline. As cashmere clothing is considered luxury consumers tends to have physical experience of product thus the offline segment has a larger market share. The offline distribution channels, includes luxury brand stores, supermarket/hypermarket, and retail stores, which provides convenience in verifying product quality and authenticity. The availability of low-quality clothing made from low quality cashmere wool further contributes to the rising demand for the offline distribution channel segment. For instance, as per the Blekinge Institute of Technology arlskrona, Sweden, in 2017, owing to the fast fashion trend, the cashmere clothing industry has been flooded with low-quality cashmere due to its limited raw material production process, thus now affordable, low-quality, everyday cashmere products are part of the mass fast fashion market.

In recent times the preference for online distribution channels has increased post-pandemic due to the convenience they offer in terms of delivery and discounts. Rapid growth in digitization and smartphone sales along with the rising penetration of the internet has caused a massive surge in e-commerce platforms. It has prompted market players to launch their own e-commerce platforms to fulfil the growing demand. For instance, in November 2020, Loro Piana, a cashmere clothing brand owned by LVMH, launched its new e-commerce platform for Saudi Arabia. This rising internet penetration and e-commerce launch will further boost the growth of online distribution channels at a higher CAGR in the forecast period.

REGIONAL ANALYSIS

The market is divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Europe has a dominant share in market followed by North America and are expected to grow in the forecast period. Germany, France, and Italy are one of the biggest consumers of cashmere clothing in Europe. As climate change leads to growing unpredictable weather patterns, there is an increasing demand for trans-seasonal and seasonless clothing such as cashmere. The demand for cashmere clothing is growing in the region owing to its lightweight and insulating properties.

The North America market is expected to grow at a significant CAGR owing to the rise in online retail and digital innovation, which had a crucial impact on the cashmere clothing market. Brands are increasingly using digital technology to increase consumer footfall on the e-commerce platform by offering virtual try-on tools, personalized styling advice, and augmented reality features. Thus, a rise in digital innovation in the region, along with growing consumer footfall on e-commerce platforms, will boost cashmere clothing product demand.

The high product demand in countries, such as Australia, India, the UAE, and China for cashmere clothing including coats and jackets shall further boost the product demand in Asia Pacific and the Middle East & Africa. Furthermore, the rising prevalence of cashmere bottom wear in the South American region will fuel the market growth during the forecast period.

List of Key Companies in Cashmere Clothing Market

Key players in this market are focusing on innovations in their products and regional expansion. Manufacturers are launching different stores to cater to the growing demand. For instance, in September 2022, Naadam opened its new store in Georgetown with a product lineup consisting of sweaters, hoodies, sleepwear, outerwear, and other accessories. Furthermore, new technological innovations, such as texture blocking and layering styles. For instance, Loro Piana, in July 2019, introduced its new texture-blocking technology combined with its new layering style to manufacture products with better quality.

LIST OF KEY COMPANIES PROFILED

• Burberry Group plc. (U.K.)


• Brunello Cucinelli S.p.A. (Italy)


• Ermenegildo Zegna Holditalia S.p.A. (Italy)


• Herms International S.A. (France)


• LVMH Moet Hennessy Louis Vuitton SE (France)


• White + Warren (U.S.)


• NakedCashmere (U.S.)


• Autumn Cashmere Inc. (U.S.)


• Huzhou Zhenbei Cashmere Products Co. Ltd. (China)


• Kering S.A. (France)

KEY INDUSTRY DEVELOPMENTS

• In September 2022, UNIQLO cashmere, a well-known cashmere product brand, launched its new 3D cashmere knits: made from pure cashmere and crafted using WHOLEGARMENT® Japanese knitting technology to create a seamless garment to further full the growing demand by women.


• In February 2022, Italy’s Nuova Accademia di Belle Arti (NABA) launched its new eco-cashmere sweater conceived by BA Fashion Design student Marta Reparaz Lipperheide owing to the higher demand for cashmere sweaters in the region.


• In October 2020, COS Limited, a cashmere clothing brand, announced its new sustainable cashmere apparel collection in partnership with the Aid by Trade Foundation. To fulfill the demand for sustainable apparel by consumers.


• In September 2019, Reformation launched its new casualwear cashmere collection made from recycled cashmere as the demand for recycled cashmere has been rising. Thus this new launch will further assist the brand in fulfilling consumers' growing demand.


• In May 2020, Naked Cashmere, a well-known fashion brand based in U.S., announced the launch of its new First-Ever Recycled Cashmere Collection to further cater to the growing demand.

REPORT COVERAGE

The global market report makes an in-depth analysis of the market and highlights crucial aspects, such as prominent companies, competitive landscape, different cashmere clothing products, demographics, and distribution channels. Besides this, the research reports provide insights into the recent cashmere clothing market trends, highlighting significant industry developments. In addition, to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth.

Report Scope & Segmentation