The global fashion logistics industry has undergone significant and rapid change over the last few years – the restructuring of the industry due to geopolitical events and a shift in trade patterns has impacted both the fashion supply chain and the retail customer interface. Now President Trump is planning to redraw fashion’s global sourcing map – which is likely to have far reaching effects.
Ti forecasts that the global fashion logistics market spend will reach €327,945.5m in 2025, growing by 3.1% year-on-year. Forecasting out to 2029, the global fashion logistics market spend is expected to reach €369,318.9m, growing at a 5-year CAGR of 3% between 2024 and 2029.
The biggest market size increase is in the Asia Pacific, with the fashion logistics market spend increasing from €142,445.6m in 2023 to €147,491m in 2024. Ti forecasts that this will jump to €153,005.4m in 2025 and €175,777.9m in 2029, with a 2024-2029 CAGR of 3.6%. China has been the largest producer of fashion by volume and value for years, but now Western economies are looking outside China, with retailers diversifying their sourcing. There is significant growth in Bangladesh and Vietnam and India also has opportunities, absorbing orders from Bangladesh and rapidly developing its logistics infrastructure. However, in non-western economies, China’s exports have increased, as has domestic consumption. China is recalculating its economic strategy since Trump came into the Whitehouse, so the fashion supply chain will be undergoing even more drastic changes in the coming years.
The North American total fashion logistics market spend for 2024 is forecast to be €765,22.4m, 2.3% up year-on-year and €852,08m in 2029, with a CAGR of 2.2%. It’s estimated that only 3% of clothes today are made in America. But according to the United States International Trade Commission, America is the largest, single country apparel importer in the world. One in five pieces of clothing in the world are exported to the US, the majority of materials coming from Asia, mostly China and Vietnam. South America has the second highest forecast growth year-on-year of 3.1% and a 24-29 CAGR of 3.2%, mainly driven by the decoupling of the US from China and the opportunities this has created.
The Middle East fashion logistics market sizing reflects the boom in luxury apparel, with Saudi Arabia being the lead individual market – growth was 7.4% from 2022 to 2023 with a total market size of €9467.5m. This is slowing to a forecast 2.6% in 2025 and the 5-year CAGR is 2.9%.
Sub-Saharan Africa has the lowest fashion logistics market spend, but it grew substantially from 2020-2024 with an increase of 18% and the projected 5-year CAGR is 7.1%, the highest globally. This is partly due to the presence of US fashion companies, such as Wrangler and Levi – the company United Aryan in Nairobi ships up to eight million pairs of jeans to the US yearly, and millions more shirts and other items. The SSA region has shorter shipping distances to US ports compared to most of Asia, as well as relatively low labour costs. In addition, the African Growth and Opportunity Act (AGOA) enacted in 2000, allowed eligible apparel exports from SSA countries to enter the United States import duty-free, creating substantial financial incentives for US fashion companies to source from the SSA region. Congress supports an extension of AGOA in September when it expires, but uncertainty looms as the decision rests with President Donald Trump, whose trade scepticism could push buyers towards cheaper Asian alternatives.
Europe has a forecast total fashion logistics market spend of €50,457m for 2024 and €55,845m for 2029 with a 2024-2029 CAGR of 2%, the lowest of all regions. Fashion and lifestyle brands are increasingly looking for fulfilment centres in the heart of Europe. In addition, Europe is stepping up scrutiny on ultra-cheap fashion imports, with Chinese e-commerce players Shein and Temu in the spotlight. The European Commission has announced new guidelines that will hold online marketplaces liable for unsafe or non-compliant products sold on their platforms, so fast-fashion firms could face penalties if items like clothing or electronics shipped to the EU fail to meet safety standards. Brussels is also coordinating a joint investigation into Shein on suspicions of violating consumer protection rules.
Authors: Julia Swales
Source: Ti Insight
Supply chain strategists can use GSCi – Ti’s online data platform – to identify opportunities for growth, support strategic decisions, help them stay abreast of industry trends and development, as well as understand future impacts on the industry.
Visit GSCI subscription to sign up today or contact Michael Clover for a free demonstration: [email protected] | +44 (0) 1666 519907
For your logistics and transportation management needs
Providing high frequency logistics and supply chain data and analysis for all those invested in the industry.