US Fashion Industry Growth Rate: Trends, Forecasts & Market 2026

TL/DR summary

The market rebounded after 2020 and is on a steady climb through 2024, with non‑luxury segments leading and online gaining share. Use McKinsey for the historical context and Statista for current figures and projections.

Key pointers:

• Recent revenue growth shows normalization with healthier margins.

• Fashion ecommerce keeps rising; basics skew online while tailoring stays store‑led.

• Sustainability and transparency influence consumer behaviors and repeat purchases.

• Plan inventory and pricing with disciplined demand sensing to protect cash flow.

The US Fashion Industry Growth Rate is a steady, manageable climb. You can optimize it for profitable units, not just top‑line volume.

Introduction

Fashion in the United States is both a cultural infrastructure and a large commercial engine. To decode performance, we look at market size, channel mix, and the demand-side factors that shape margins. The fashion industry spans mass and premium labels, fashion retail in physical stores and online channels, and a deep supplier base across textile production.

This article uses historical patterns highlighted by McKinsey and Statista’s most recent figures (for current readings and projections) to explain where growth is coming from, what the rate implies for planning, and how teams can align assortments, pricing, and go‑to‑market decisions.

Market size, trajectory, and rate of change

We start with the last seven years to ground the trendline. McKinsey’s commentary on the pandemic dip and rebound aligns with the Statista revenue series below.

Global fashion industry revenue

Note: The Implied Compound Annual Growth Rate (CAGR) for the entire 2018–2024 period is a modest 1.79%, reflecting the market's successful recovery from the 2020 contraction.

The data clearly illustrates the resilience of the US fashion industry. The market cruised with modest 1.75% growth in 2019 before the sharp contraction of -7.50% in 2020. It was due to the pandemic's impact on retail and consumer behavior.

The subsequent +7.15% rebound in 2021 and the powerful +10.18% surge in 2023 demonstrate strong consumer "catch-up" demand and the effectiveness of brand strategies. Notably, the mild -1.76% contraction in 2022 suggests a healthy normalization phase. It aligns with tighter inventory management and improved promotional discipline mentioned in the original commentary.

The return to a positive, albeit lower, growth rate of +2.11% in 2024 indicates that the market is stabilizing its unit economics. Brands are prioritizing smarter unit economics (achieving growth through more targeted promotions and efficient inventory turns) rather than chasing aggressive top-line expansion at all costs. This focus on discipline is crucial for stabilizing cash flow and building a more sustainable industry foundation post-disruption.

The apparel market is growing again, but with smarter unit economics. Promotions are more targeted, and inventory turns are improving. That is stabilizing cash flow even with slower top‑line growth.

US fashion industry growth rate projections

The projected growth of the U.S. apparel market (approximately 2.11%) from 2025 to 2028 aligns closely with the stabilizing trend observed in the previous analysis of the global fashion industry.

What the market comprises

The U.S. apparel industry spans design to distribution. On the demand side, the typical household spends about $162 per month on clothing. The United States apparel market comprises three pillars: women's apparel, men's apparel, and children’s apparel. In 2025, Statista places the apparel market at $365.70 Bn, with Women’s leading by volume.

Structure and segments:

• Women’s Apparel (largest share): dresses, tops, denim, occasionwear, and athleisure.

• Men’s Apparel: tailoring recovery, polos, tees, outerwear; steady basics.

• Children’s: school wear, athleisure, and value multipacks.

The fashion sector touches fashion and textile production, sourcing, cutting, finishing, logistics, and fashion retail across brick-and-mortar stores and marketplaces. Globally, 430 million of the 3.62 billion workforce work in fashion and textile production.

Channels and the online inflection

The U.S. now blends in-store shopping with e-commerce habits. During and after the pandemic, online shopping pulled forward adoption and set new buyer expectations.

• Fashion ecommerce revenue and online sales continue to climb as online fashion shopping and online portals improve discovery and fit guidance.

• Direct-to-consumer strategies by fashion brands compress the path to purchase.

• The online and offline share mix varies by subcategory; basics skew heavier online, while tailored items keep fitting‑room relevance.

Allocation decisions should reflect actual, digitally influenced demand: stores offer experience and service, while online offers selection and convenience.

Drivers of growth in 2024–2025

Several forces explain current industry growth.

• Consumer spending recovery at mainstream price points is lifting the apparel market. Non‑luxury lines command volume.

• Technological advancements in demand forecasting reduce stockouts and aged inventory.

• Fast fashion and mid‑market value players capture growing consumer demand for trend‑right, affordable pieces; selected fast fashion brands accelerate speed‑to‑rack.

• Sustainable materials and transparent supply chains help brands convert eco-conscious consumers without losing price competitiveness.

• Supply‑chain re‑balancing and near‑shoring in parts of North America steady lead times.

U.S. in the global context

The U.S. sits inside a broad global apparel market and global fashion ecosystem.

• The global apparel market size and the global apparel industry keep expanding at a steady clip (about 4.1% CAGR to 2030), even amid pockets of economic uncertainty.

• Within this global market, the U.S. is a scale anchor, while emerging economies in other Asian markets and Latin America are driving faster percentage growth.

• The U.S. remains a top destination for cross‑border sellers due to basket value and a mature returns infrastructure.

Execution strategies for brands

Translating growth into profit requires precision.

• Assortment: Hold depth in replenishment basics; pace trend drops to manage markdown exposure.

• Pricing: Tie promos to unit economics; avoid broad discounting that erodes brand equity and market size contribution.

• Experience: Fit, fabric, and delivery certainty drive consumer preferences and repeat rate; get the exchange workflow right.

• Sustainability: Publish industry statistics that matter (water, energy, circularity) to meet buyer expectations and reduce environmental impact.

Data recap

Closing remarks: Turning growth into durable value

The U.S. apparel and fashion industry is not racing; it is compounding. The numbers suggest a steady engine powered by disciplined inventories, sharper pricing, and better online discovery. For operators, the opportunity is to use data to balance breadth with focus, to let stores do service while digital scales selection, and to match values with materials and labor. That is how brands in the world’s most competitive market turn scale into staying power.