Corporate Fashion Market Size, Share & Industry Analysis, By Type (Apparel, Footwear, and Accessories), By End-User (Men and Women), By Distribution Channel (Offline Stores and Online Stores/E-commerce), and Regional Forecast, 2024-2032

The global corporate fashion market size was valued at USD 376.13 billion in 2023. The market is projected to grow from USD 395.95 billion in 2024 to USD 625.38 billion by 2032, exhibiting a CAGR of 5.88% over the forecast period.

Corporate fashion refers to clothing, footwear, and accessories specifically tailored for professional settings. The market includes a wide range of products, such as formal wear, business casual attire, uniforms, formal footwear, and accessories, such as ties and belts. Moreover, there are various prominent players operating in the market, including Aditya Birla Group, Apparel Group LLC, Kantoor Brands, VF Corporation, and Inditex.

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MARKET DYNAMICS

Market Drivers

Increasing Number of Working Professionals to Fuel Market Growth

The increasing number of working professionals worldwide is anticipated to fuel the market’s growth over the coming years. According to the World Bank Group, an international organization, the total number of employees globally increased from 3.55 billion in 2022 to 3.63 billion in 2023. Moreover, uniforms and standardized dress codes are still prevalent in various industries and companies. Dress code standards among these industries and companies will boost the demand for corporate fashion apparel.

Wide Availability of Products and Rising Disposable Income to Propel Market Growth

The wide availability of professional and formal products in various styles and designs catering to consumers’ various preferences and needs will propel the market growth. Moreover, the rising disposable income of individuals leading to higher consumer spending on apparel and footwear will also drive the market growth. Furthermore, the demand for luxury corporate fashion products is growing significantly owing to the increasing number of HNI (High Net Worth) individuals worldwide. For instance, according to Forbes, an American business magazine, the number of billionaires worldwide increased from 2,668 in 2021 to 2,781in 2024.

Market Restraints

Increasing Availability of Counterfeit Products to Limit Market Growth

The increasing availability of counterfeit products at lower prices can limit the demand for corporate fashion products. Moreover, these products make it difficult for consumers to distinguish between genuine and fake products. In addition, the demand for these products is rising among price-sensitive consumers. Governments across countries are launching various initiatives and operations to end the sale of counterfeit products. For instance, between March and December 2022, the EUROPOL, a European Union agency for law enforcement cooperation, launched Operation Fake Star to fight against the illegal trade of counterfeit apparel, footwear, and accessories. According to the agency, over 2 million counterfeit clothes, shoes, and garments worth around USD 98.67 million (EUR 87 million) were seized, and 258 brands were found to be infringed.

Market Opportunities

Rising Trend of Genderless and Unisex Apparel to Boost Product Demand

Gender-neutral fashion is one of the emerging trends in the market. This form of fashion ranges from unisex apparel to accessories. Society’s views on gender and identity are evolving rapidly, boosting the demand for gender-neutral apparel and accessories globally. Moreover, the cultural shift toward acceptance of the LGBTQ community and growing availability of gender-fluid corporate fashion clothing are expected to offer lucrative market growth opportunities.

Market Challenges

Fluctuating Raw Material Prices to Hinder Market Growth

Fluctuating prices of various raw materials, including cotton, wool, polyester, silk, and linen, affect the production cost, creating a challenge for manufacturers by impacting their profit margins. Moreover, the high cost of organic cotton and vegan leather increases the price of eco-friendly and vegan products. This affects the demand for corporate fashion products among budget-conscious consumers.

Corporate Fashion Market Trends

Growing Popularity of Eco-Friendly and Sustainable Products to Propel Market Growth

Sustainability is one of the most popular trends in the fashion industry. The popularity of eco-friendly and sustainable products is growing significantly owing to the rising environmental awareness among individuals worldwide. Eco-conscious consumers are highly concerned about their purchase decision's social and environmental impact, thereby boosting the demand for sustainable products. Moreover, several prominent market players are focusing on launching corporate fashion products made using various sustainable and eco-friendly materials, including organic cotton, vegan leather, recycled polyester, and biodegradable fabrics, to cater to the increasing demand for these products.

IMPACT OF COVID-19 AND WAR

The COVID-19 pandemic had a negative impact on the market owing to the closure of all offices and workspaces due to lockdowns announced by governments worldwide. Moreover, in 2020, the COVID-19 crisis resulted in supply chain bottlenecks and raw material shortages, forcing fashion houses across the world to shut their stores and manufacturing centers. This scenario affected the corporate fashion market growth.

Wars and riots across countries also have a severe impact on the market. Wars can lead to significant disruptions in product manufacturing, shortages in the supply of raw materials, and disturbances in the country’s imports & exports. For instance, Bangladesh is one of the leading textile and garment-producing countries. In July 2024, the riots in Bangladesh led to the shutting down of manufacturing facilities, raw material & labor shortages, and export delays. For instance, in August 2024, according to the Bangladesh Textile Mills Association (BTMA), a national trade association, the country is expected to incur a loss of over USD 58 million owing to ongoing riots and floods in the country.

SEGMENTATION ANALYSIS

By Type Analysis

Increasing Demand for Formal Wear & Business Casual Wear Propelled Apparel Segment Growth

The global market is segmented into apparel, footwear, and accessories based on type. The apparel segment held a major corporate fashion market share in 2023 owing to the increasing demand for formal wear and business casual wear among working professionals worldwide. Moreover, the wide availability of professional apparel and the company’s dress code culture will also propel the segment’s growth.

The footwear segment is expected to grow steadily throughout the forecast period owing to the rising demand for formal footwear among working individuals in corporate and formal sectors to maintain dress code standards.

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By End-User Analysis

Growing Consciousness about Appearance Fueled Product Demand among Men

Based on end-user, the global market is bifurcated into men and women. The men segment dominated the market in 2023 owing to the presence of working men, wide availability of men’s products, and higher disposable incomes. In addition, the growing consciousness about appearance and maintaining dress code among men is expected to fuel the segment’s growth in the coming years.

The women segment is expected to grow significantly over the forecast period owing to the rising number of working women worldwide and growing awareness regarding financial & social independence among women. Several market players are focusing on launching stores offering corporate fashion products only for women. For instance, in March 2024, Van Heusen, a brand of Aditya Birla Group, launched its new womenswear store in Kochi, India. According to the company, the store offers office wear, including slacks, blazers, button-down shirts, and smart dresses.

By Distribution Channel Analysis

Rising Number of Retail Stores to Favor Market Expansion

The market is bifurcated into offline stores and online stores/e-commerce based on distribution channel. The offline stores segment held a major market share in 2023 owing to a strong presence of retail stores and wide product availability with personalized recommendations by sales executives based on individual preferences. Furthermore, several prominent players are introducing new stores to strengthen their presence and expand their reach worldwide. For instance, in August 2023, Apparel Group LLC, a UAE-based fashion & retail company, launched over 21 retail stores of its various brands, including R&B, Steve Madden, Birkenstock, and Beverly Hills Polo Club across India and the Middle East.

In August 2022, Louis Philippe, a brand of Aditya Birla Group, launched its new 2,600 sq. ft. store in Gujrat, India. According to the company, the new store offers a wide range of menswear, including shirts, trousers, and blazers.

The online stores segment is expected to grow significantly throughout the forecast period owing to the convenience offered by online channels. Customers can shop for their favorite products 24x7 using online shopping. Moreover, the growing preference for online shopping among millennials and Gen Z, coupled with attractive offers and discounts, is expected to drive the segment’s growth.

REGIONAL INSIGHTS

Geographically, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific dominated the corporate fashion market in 2023 owing to the increasing number of working professionals across India, China, and Japan and expansion of multinational companies across the region. According to the International Economic Association, a non-profit organization by the United Nations Educational, Scientific and Cultural Organization (UNESCO), in 2021, there were over 747.9 million individuals who were employed or looking for employment in China. Furthermore, increasing urbanization has shifted more focus on modern offices, boosting the product demand across the region.

North America is expected to grow significantly throughout the forecast period owing to the wide presence of multinational companies and a strong emphasis on corporate culture. Moreover, the changing perceptions of professionalism and an increasing number of full-time workers in the U.S. are expected to boost product demand in the coming years. According to the U.S. Bureau of Statistics, a government agency, in 2022, over 169.8 million individuals were working full-time across the U.S., an increase of over 2.9 million individuals from the previous year.

Europe is also expected to grow considerably throughout the forecast period owing to the presence of employed individuals and increasing number of business events, meetings, and professional engagements. According to Eurostat, in 2023, the number of employed individuals aged 20-64 years in the EU was 195.7 million. Moreover, there is a significant shift toward sustainable products in the region owing to increasing environmental awareness among consumers and rising government support.

Product demand across South America, the Middle East & Africa is forecast to witness positive growth in the future. The rising number of business travelers owing to increasing trade exhibitions and business conferences will propel the market growth. According to the Dubai World Trade Center (DWTC), a Dubai-based convention and exhibition center, it hosted over 301 Meetings, Incentives, Conferences and Exhibitions (MICE) and business & consumer events, with 2.47 million participants in 2023.

KEY INDUSTRY PLAYERS

Prominent Players to Focus on Sustainability to Reduce Their Environmental Impact

Intense competitive rivalry characterizes this market. Internationally renowned market players leverage their strong brand loyalty and presence to be abreast of the competition. Moreover, several key industry players are focusing on sustainability to reduce their environmental impact to attract eco-conscious consumers from across the world. For instance, in April 2023, Kantoor Brands, a U.S.-based clothing company, introduced a new global design standard to reduce the social and environmental impact of its two apparel brands: Lee & Wrangler. According to the company, the products that meet the standards will have a WeCare Wrangler badge for identification.

Some of the Key Companies Profiled in the Report:

• Aditya Birla Group (India)


• Apparel Group LLC (UAE)


• Kantoor Brands (U.S.)


• H & M (Sweden)


• Giorgio Armani S.p.A. (Italy)


• Inditex (Spain)


• Louis Vuitton Moët Hennessy (France)


• Landau (U.S.)


• Mango (Spain)


• Brooks Brother (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2024: H&M, a Sweden-based fashion and design company, launched its new store in Mumbai. According to the company, the new store offers a diverse range of clothing and accessories for men, women, and children.


• March 2024: Louis Philippe and Van Heusen, clothing brands of Aditya Birla Group, launched their new retail stores in the Mall of Qatar. According to the company, the new stores will help these brands expand their international presence.


• March 2024: H&M collaborated with Rok Hwang, a popular Korean fashion designer, to launch a new professional wear collection for men and women, rokh H&M. According to the company, the collection features various products, including double-layer trench coats, detachable-hem dresses, corset tops, reworked trousers and denim.


• March 2024: Pantaloons, a fashion brand of Aditya Birla Group, launched its new women's workwear campaign and exclusive collection, Workdrobe. According to the company, the new collection features various products, including printed, coordinated sets, contemporary kurta sets, tailored classic pieces, shoes, and easy-to-carry dresses.


• February 2024: Carhartt, a U.S.-based workwear company, launched its new line of workwear for women, Women's Spring 2024 collection. According to the company, the new collection features sweatshirts & t-shirts with TENCEL branded fibers in both Jersey and French Terry.

REPORT COVERAGE

The report analyzes the market in depth and highlights crucial aspects, such as prominent companies, types, end users, and distribution channels. Besides this, it provides insights into the global market trends and highlights significant industry developments. In addition, the report covers the market’s growth and offers various key insights into the market.

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Report Scope & Segmentation