Key Insights
Essential data points from our research
The revenue of the apparel market in the United States was estimated to be approximately 351 billion U.S. dollars in 2023
The New York City fashion industry accounts for approximately 5.5 percent of the city’s workforce
The United States fashion industry employs over 1.8 million people mainly in retail and wholesale
Nearly 47 percent of U.S. consumers prefer to shop for clothes in-store rather than online to try items on
The average American family spends approximately 1700 dollars on clothes per year
Gen Z consumers in the U.S. account for 40 percent of global luxury purchases when combined with Millennials
E-commerce fashion sales in the U.S. are expected to exceed 200 billion dollars by 2025
Amazon surpassed Walmart to become the top apparel retailer in the U.S. with over 15 percent market share
Mobile phones account for over 45 percent of all e-commerce fashion orders in the U.S.
The U.S. secondhand market is expected to reach 82 billion dollars by 2026
The resale market is growing 16 times faster than the broader retail clothing sector in the U.S.
11.3 million tons of textile waste end up in U.S. landfills annually
The U.S. athleisure market size was valued at over 105 billion dollars in 2020
Sneaker resale in North America is estimated to be a 2 billion dollar market
Sales of shapewear in the U.S. have grown by 34 percent due to trends like SKIMS
Consumer Behavior & Demographics
- Nearly 47 percent of U.S. consumers prefer to shop for clothes in-store rather than online to try items on
- The average American family spends approximately 1700 dollars on clothes per year
- Gen Z consumers in the U.S. account for 40 percent of global luxury purchases when combined with Millennials
- About 55 percent of American online fashion shoppers have returned a clothing item in the last year
- Over 70 percent of U.S. consumers check social media before buying a fashion item
- Women influence 80 to 85 percent of consumer spending in the fashion category in the U.S.
- Approximately 30 percent of U.S. shoppers say they would pay more for charitable or eco-friendly clothing brands
- Back-to-school spending on clothing affects 65 percent of American households annually
- Impulse buying accounts for nearly 20 percent of fashion purchases made by U.S. females
- 62 percent of Generation Z says they look to their favorite influencers for fashion inspiration
- Black Friday remains the busiest shopping day for fashion retail in the U.S.
- U.S. men are spending 20 percent more time shopping for clothes online than they did five years ago
- 34 percent of U.S. consumers have used 'Buy Now Pay Later' services for apparel purchases
- The average American throws away approximately 81 pounds of clothing each year
- Plus-size women represent 68 percent of shoppers but have limited high-end fashion options
- 43 percent of American shoppers browse for clothes on mobile devices while in a brick-and-mortar store
- Brand loyalty in U.S. fashion is declining with 36 percent of consumers willing to try new brands
- The average number of items a US consumer buys per year increased by 60 percent from 2000 to 2014
- 53 percent of U.S. consumers prioritize comfort over style post-pandemic
- Subscription box services for clothing are used by approximately 15 percent of U.S. online shoppers
Interpretation
America's fashion industry is a money machine fueled by social media and convenience—families spend about $1,700 a year and Gen Z together with Millennials drive 40 percent of global luxury purchases, yet high return rates, impulse buys, buy-now-pay-later use, mobile showrooming, and 81 pounds of clothing tossed per person reveal a business that profits from fast trends while plus-size shoppers remain underserved, a third of consumers would pay more for ethical brands, and a post-pandemic craving for comfort plus declining brand loyalty forces the industry to reckon with sustainability and inclusion.
E-commerce & Digital Innovation
- E-commerce fashion sales in the U.S. are expected to exceed 200 billion dollars by 2025
- Amazon surpassed Walmart to become the top apparel retailer in the U.S. with over 15 percent market share
- Mobile phones account for over 45 percent of all e-commerce fashion orders in the U.S.
- The use of Artificial Intelligence in U.S. fashion retail is expected to grow by 40 percent annually
- Virtual fitting room technology adoption in the U.S. is projected to reach a value of 10 billion dollars by 2027
- Social commerce sales in the U.S. fashion sector are valued at nearly 50 billion dollars
- Direct-to-Consumer (DTC) fashion brands have seen a 16 percent year-over-year growth in website traffic
- Personalized product recommendations increase U.S. fashion cart value by an average of 12 percent
- Returns cost U.S. fashion retailers an estimated 550 billion dollars in lost sales and logistics annually
- 25 percent of U.S. retailers engage in omnichannel strategies connecting app and store inventory
- The online share of total apparel sales in the U.S. is approximately 38 percent
- SHEIN became the most downloaded shopping app in the U.S. overtaking Amazon in 2021
- Livestream fashion shopping in the U.S. is projected to reach 35 billion dollars in sales by 2024
- Augmented Reality (AR) usage in fashion shopping converts at a 94 percent higher rate
- 73 percent of U.S. fashion brands provide free shipping to remain competitive
- Metaverse fashion events in the U.S. attracted over 100 million visitors in 2022 on Roblox
- Digital clothing and skins sales are a multi-billion dollar revenue stream for U.S. gaming and fashion collaborations
- Email marketing drives approximately 4 percent of fashion e-commerce transactions in the U.S.
- Cyber Monday fashion sales in the U.S. grew by 5.8 percent year over year recently
- Over 60 percent of major US fashion retailers now have a dedicated mobile app
Interpretation
Think of the U.S. fashion industry as sprinting down a digital runway: ecommerce is set to top $200 billion by 2025 and already represents about 38 percent of apparel sales, Amazon has leapfrogged Walmart to claim over 15 percent market share while SHEIN became the most downloaded shopping app, mobile phones and dedicated apps now account for more than 45 percent of orders with over 60 percent of major retailers offering apps and about 25 percent linking app and store inventory, AI adoption is growing roughly 40 percent annually and AR and virtual fitting rooms promise huge lifts with AR converting at 94 percent higher and virtual fitting room tech projected to reach $10 billion by 2027, livestreaming, social commerce and metaverse events are turning into major revenue streams with $35 billion in livestream sales expected and nearly $50 billion in social sales alongside 100 million metaverse visitors, DTC brands and personalized recommendations are driving traffic and cart values up by about 16 percent and 12 percent respectively even as returns and free shipping expectations reshape the economics with returns costing an estimated $550 billion annually and 73 percent of brands offering free shipping, and traditional levers like email and Cyber Monday still move the needle with email driving about 4 percent of transactions and Cyber Monday fashion sales up roughly 5.8 percent year over year.
Market Size & Economic Impact
- The revenue of the apparel market in the United States was estimated to be approximately 351 billion U.S. dollars in 2023
- The New York City fashion industry accounts for approximately 5.5 percent of the city’s workforce
- The United States fashion industry employs over 1.8 million people mainly in retail and wholesale
- Fashion Week in New York City generates close to 900 million dollars in economic impact annually
- The value of the U.S. luxury fashion market is projected to reach over 75 billion dollars by 2025
- U.S. consumers spend approximately 3 percent of their annual household expenditure on apparel and services
- The United States imports over 80 billion dollars worth of apparel annually
- California has the highest number of fashion designers employed in the country followed by New York
- The U.S. menswear market is valued at approximately 110 billion dollars
- The U.S. womenswear market is valued at approximately 165 billion dollars
- The annual payroll of the U.S. fashion industry exceeds 42 billion dollars
- Small businesses account for more than 90 percent of fashion companies in the United States
- The U.S. accounts for roughly 20 percent of the total global apparel market value
- Total U.S. footwear store sales amounted to approximately 38 billion dollars recently
- The U.S. textile mills subsector ships over 50 billion dollars worth of goods annually
- Apparel manufacturing in the U.S. has seen a decline of nearly 80 percent in employment since 1990
- New York City is home to more than 900 fashion companies headquarters
- The U.S. childrenswear market size is estimated at around 34 billion dollars
- The GDP contribution of the fashion industry to the U.S. economy is larger than the agriculture sector
- Exports of U.S. textiles and apparel were approximately 23 billion dollars in 2021
Interpretation
America's fashion industry is a $351 billion juggernaut stitched together by more than 1.8 million mostly retail and wholesale jobs, over $42 billion in payroll, and a landscape dominated by small businesses, even as the country imports over $80 billion in apparel, exports about $23 billion, and domestic garment employment has plunged nearly 80 percent since 1990; hubs like California and New York, home to more than 900 fashion headquarters and a Fashion Week that generates close to $900 million annually, power booming segments from womenswear at roughly $165 billion and menswear at $110 billion to a projected $75 billion luxury market by 2025, while textiles ship over $50 billion, footwear sales total about $38 billion, childrenswear comes in around $34 billion, and the industry still contributes more to U.S. GDP than agriculture and represents roughly 20 percent of global apparel value, making American fashion a cultural cash cow that depends on global supply chains and a shrinking domestic factory floor.
Segments & Trends
- The U.S. athleisure market size was valued at over 105 billion dollars in 2020
- Sneaker resale in North America is estimated to be a 2 billion dollar market
- Sales of shapewear in the U.S. have grown by 34 percent due to trends like SKIMS
- The bridal wear market in the U.S. is estimated to be worth 27 billion dollars
- Streetwear accounts for about 10 percent of the entire global apparel and footwear market much driven by U.S. culture
- The U.S. swimwear market is projected to reach 6.7 billion dollars by 2025
- Nike remains the favorite footwear brand among U.S. teens with 60 percent market share
- U.S. sales of gender-fluid or unisex clothing have risen by 25 percent in niche markets
- The adaptive clothing market for people with disabilities in the U.S. will reach 50 million dollars by 2026
- Denim jeans sales in the U.S. amount to approximately 17 billion dollars annually
- The sleepwear and loungewear market in the U.S. spiked 150 percent during the initial pandemic era
- Fast fashion brands account for nearly 20 percent of U.S. apparel sales volume
- The U.S. handbag market is valued at approximately 9 billion dollars
- Workwear brands like Carhartt saw a 30 percent increase in popularity among non-labor demographics in the U.S.
- The minimalist wardrobe trend led to a 10 percent dip in seasonal trend purchasing for millennials
- Custom t-shirt printing market in the U.S. is valued at 3.64 billion dollars
- The U.S. maternity wear market is projected to exceed 3 billion dollars by 2026
- Crocs sales in the U.S. grew nearly 70 percent in a single year making it a top trending footwear item
- Jewelry and watch sales in the U.S. constitute roughly 16 percent of the total luxury market
- The outdoor apparel market in the U.S. generates over 15 billion dollars in annual revenue
Interpretation
America's fashion market reads like a study in contradictions: a $105 billion athleisure boom rubbing shoulders with a $27 billion bridal industry, a $2 billion sneaker resale market and a $3.64 billion custom T-shirt niche, runaway pandemic spikes in sleepwear and Crocs, Nike's 60 percent hold on teens, 34 percent shapewear growth, rising gender-fluid, adaptive and maternity segments, and the steady pull of denim, handbags, jewelry and outdoor gear, all while fast fashion captures roughly one fifth of sales and millennial minimalism trims seasonal buying, proving that style is simultaneously more casual, more specialized, and more lucrative than ever.
Sustainability & Ethics
- The U.S. secondhand market is expected to reach 82 billion dollars by 2026
- The resale market is growing 16 times faster than the broader retail clothing sector in the U.S.
- 11.3 million tons of textile waste end up in U.S. landfills annually
- Only 15 percent of used textiles in the United States are recycled or donated
- Nearly 60 percent of U.S. consumers are willing to change their shopping habits to reduce environmental impact
- Rental apparel market in the U.S. is projected to reach 4.4 billion dollars by 2028
- Patagonia’s Worn Wear program repaired over 100000 garments in a single year to promote longevity in the U.S.
- 42 percent of U.S. consumers are confused by what makes a clothing item sustainable due to greenwashing
- The RealReal has sold over 25 million items extending the life of luxury goods in the U.S.
- Americans purchase 5 times more clothing than they did in 1980 creating a sustainability crisis
- 40 percent of Gen Z customers in the U.S. browse second-hand sites before buying new
- The U.S. sustainable footwear market is expected to grow at a CAGR of 6 percent through 2025
- Less than 1 percent of clothing material in the U.S. is recycled into new clothing
- Goodwill Industries diverts over 4 billion pounds of clothing from landfills annually in the U.S.
- 55 percent of U.S. fashion executives cite sustainability as a top challenge for growth
- Water usage for making one pair of jeans in the U.S. is approximately 1800 gallons
- Rent the Runway reportedly saved 1.3 million pounds of waste through garment reuse in the U.S.
- The organic cotton market in the U.S. accounts for less than 2 percent of total cotton production
- 88 percent of U.S. consumers want brands to help them be more environmentally friendly
- U.S. spending on ethical fashion is growing at roughly 10 percent per year
Interpretation
Despite Americans buying five times more clothing than in 1980 and over 11 million tons of textiles clogging landfills each year, the runaway growth of resale, rental and repair—embraced by Gen Z and nearly 60 percent of shoppers—exposes a huge, profitable shift toward reuse even as recycling is almost nonexistent, greenwashing muddles choices, and brands face an urgent choice to scale transparent circular solutions or lose out.
References
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