Key Insights
Essential data points from our research
The Australian fashion and textile industry contributes more than $27.2 billion to the national economy
The Australian fashion industry generates approximately $7.2 billion in export revenue annually
Revenue in the Australian Apparel market amounts to US$19.66 billion in 2024
The Australian fashion and textile industry employs more than 489000 people
Women make up approximately 77% of the industry’s workforce
There are over 37000 fashion and textile businesses operating in Australia
Online sales account for approximately 25% of total fashion retail spending in Australia
Fashion and Apparel is consistently the number one category for online shopping in Australia by volume
82% of Australian households shopped online in 2023 with fashion being a primary driver
Australians are the world's second-largest consumers of textiles purchasing 27kg of new clothing per person annually
The average Australian woman wears only 33% of her wardrobe
Approximately 66% of Australian consumers are willing to pay more for sustainable products
Every year Australians send an average of 23 kilograms of textiles to landfill per person
Approximately 227000 tonnes of discarded clothing end up in Australian landfills annually
Only 7% of textile waste in Australia is currently recycled
Consumption & Consumer Behavior
- Australians are the world's second-largest consumers of textiles purchasing 27kg of new clothing per person annually
- The average Australian woman wears only 33% of her wardrobe
- Approximately 66% of Australian consumers are willing to pay more for sustainable products
- 30% of Australians bought second-hand clothing in the last 12 months
- Generation Z spends the highest proportion of their income on fashion compared to other age groups
- Australian households spend an average of $2800 per year on clothing and footwear
- Trust in brand sustainability claims has dropped with 45% of Australians skeptical of "green" fashion marketing
- 57% of Australians prefer to shop from Australian-owned brands to support the local economy
- Impulse buying accounts for nearly 40% of fashion purchases among Australian millennials
- 1 in 3 Australians have discarded a garment after wearing it just once
- 62% of Australian consumers research a fashion item online before buying it in-store (ROPO effect)
- Brand loyalty is declining with 40% of consumers switching fashion brands due to price pressures
- The average lifespan of a garment in an Australian wardrobe is 2.2 years
- Victoria residents spend slightly more on fashion per capita than residents of Queensland
- 85% of Australians donate their unwanted clothes to charity shops
- Depop has over 1 million registered users in Australia indicating a shift toward peer-to-peer resale consumption
- Luxury fashion consumption grew by 12% in 2023 despite economic headwinds
- 58% of consumers say size and fit is the biggest barrier to purchasing fashion
- Australians purchase an average of 56 new items of clothing per year
- Discount and factory outlet shopping accounts for 15% of all fashion spend in Australia
Interpretation
Australia's love affair with fashion is gloriously contradictory: as the world's second‑largest textile consumers we buy around 27 kg (roughly 56 new items) per person and spend about $2,800 per household each year, yet garments last only 2.2 years, the average woman wears just a third of her wardrobe and one in three items is tossed after a single wear — even as nearly two‑thirds say they'd pay more for sustainability, 30 percent buy second hand, Depop tops one million Australian users and 85 percent donate unwanted clothes, while 58 percent cite size and fit as the biggest barrier, nearly 40 percent of millennials buy on impulse, 62 percent research online before buying in store, 40 percent switch brands over price, trust in green claims has slid to 45 percent skeptical, luxury grew 12 percent in 2023, Gen Z spends the biggest share of their income on fashion, Victorians spend slightly more than Queenslanders and 15 percent of fashion spend goes to discounts and outlets.
E-commerce & Digital Trends
- Online sales account for approximately 25% of total fashion retail spending in Australia
- Fashion and Apparel is consistently the number one category for online shopping in Australia by volume
- 82% of Australian households shopped online in 2023 with fashion being a primary driver
- Provide Now Pay Later (BNPL) services like Afterpay are used in over 25% of online fashion transactions
- Mobile commerce accounts for over 56% of online fashion sales in Australia
- Click and Collect adoption in fashion retail grew by 18% in the last year
- The return rate for online fashion purchases in Australia is estimated at 23%
- THE ICONIC receives over 10 million visits per month making it Australia's leading pure-play online fashion retailer
- 44% of Australians follow a brand on social media to stay updated on fashion trends
- Online fashion revenue is projected to grow annually by 8.7% through 2027
- 65% of Generation Z Australians have bought fashion items through social media platforms (Social Commerce)
- Subscription box services for fashion have seen a 12% growth rate in niche Australian markets
- Cross-border shopping accounts for 40% of online fashion spend meaning Aussies buy heavily from overseas sites
- Search volume for "Indigenous Fashion" online increased by 100% year-on-year in 2023
- Virtual try-on technology adoption by Australian retailers increased by 15% in 2023
- Email marketing drives approximately 18% of online fashion revenue for Australian brands
- The average conversion rate for Australian fashion e-commerce sites is 2.1%
- Cyber Week and Black Friday account for the highest volume of online fashion sales in the calendar year
- 32% of Australian online fashion shoppers are willing to pay extra for carbon-neutral delivery
- 70% of carts on Australian fashion sites are abandoned before purchase
Interpretation
Australia's fashion market has become a fast-moving digital juggernaut, with one in four dollars now spent online, mobile and social channels driving the lion's share of purchases and BNPL smoothing checkouts, cross-border sites capturing 40 percent of spend while THE ICONIC attracts over ten million visits a month, click and collect, virtual try-on and subscription services gaining traction and interest in Indigenous fashion surging, yet retailers face a meager 2.1 percent conversion rate alongside 70 percent cart abandonment and a 23 percent return rate, so turning high traffic into loyal, sustainable buyers during Cyber Week and beyond will demand smarter omnichannel and environmentally minded strategies.
Economic Contribution & Market Size
- The Australian fashion and textile industry contributes more than $27.2 billion to the national economy
- The Australian fashion industry generates approximately $7.2 billion in export revenue annually
- Revenue in the Australian Apparel market amounts to US$19.66 billion in 2024
- The market is expected to grow annually by 2.66% (CAGR 2024-2028)
- The Women's Apparel segment is the largest in the market with a volume of US$10.45 billion in 2024
- Australia represents approximately 1.1% of the global apparel market revenue
- Luxury fashion revenue in Australia is projected to reach US$2.8 billion in 2024
- The industry adds over $1.7 billion in investment annually to the Australian economy
- Clothing retailing revenue in Australia was estimated at $22.6 billion for the 2023 financial year
- The Australian footwear market revenue is projected to be US$3.8 billion in 2024
- Cotton growing in Australia generates approximately $2 billion annually in export value contributing to the raw material supply chain
- The profit margin for Clothing Retailing in Australia is typically around 4.8%
- Menswear market volume is projected to reach US$5.3 billion in 2024
- The Accessories market in Australia is expected to generate US$2.9 billion in 2024
- Australian wool exports were valued at approximately $3.5 billion in 2022-23 serving the global high-end fashion market
- The sportswear and activewear market in Australia is valued at over $2 billion annually
- Department stores which rely heavily on fashion sales generated $18.5 billion in revenue in 2023
- The average volume per person in the Apparel market is expected to amount to 26.6 pieces in 2024
- In global comparison most revenue is generated in the United States while Australia ranks in the top 15
- Sales of babies’ clothing and accessories contribute over $900 million to the industry annually
Interpretation
Australia's fashion industry punches above its weight, contributing more than $27.2 billion to the economy and about $7.2 billion in exports while domestic apparel revenue nears US$19.7 billion with steady 2.66 percent growth, driven by a US$10.45 billion women's segment and strong luxury, footwear, menswear, accessories and sportswear niches backed by robust cotton and wool exports and over $1.7 billion in annual investment, even as retailers operate on slim roughly 4.8 percent margins and Australians average 26.6 garments each year.
Employment & Industry Structure
- The Australian fashion and textile industry employs more than 489000 people
- Women make up approximately 77% of the industry’s workforce
- There are over 37000 fashion and textile businesses operating in Australia
- The manufacturing sector of the industry specifically employs around 35000 people
- Approximately 89% of Australian fashion businesses are small to medium enterprises (SMEs)
- Victoria has the highest concentration of fashion manufacturing businesses in Australia
- The number of Clothing Retailing businesses in Australia is 16258 as of 2023
- Fashion designers in Australia have an average weekly pay of $1450
- 54% of fashion designers in Australia are self-employed
- The average age of a worker in the clothing retailing sector is 28 years
- New South Wales accounts for approximately 34% of fashion retail employment
- Only 3% of clothes sold in Australia are manufactured locally according to AFC estimates
- The Clothing Retailing industry is ranked 9th for employment numbers out of all retail industries
- Textile Product Manufacturing employs significantly fewer people than it did in 2000 representing a structural decline
- Over 50% of the fashion workforce is employed on a casual or part-time basis
- Australia has over 30 fashion design schools producing graduates for the industry
- Melbourne and Sydney account for over 60% of all fashion headquarters in the country
- The indigenous fashion sector is growing with First Nations designers represented in increasing numbers at Australian Fashion Week
- Creative directors in Australian fashion earn an average salary of $110000
- The industry supports a diverse supply chain including logistics marketing and tech support roles beyond just retail and design
Interpretation
Glamorous on the runway but pragmatic behind the seams, Australia's fashion industry is a predominantly female, SME-driven sector employing nearly 489,000 people across more than 37,000 businesses with roughly 89% classed as small to medium enterprises, where designers earn about $1,450 a week, creative directors average $110,000 a year and 54% of designers are self-employed, yet only 3% of clothes sold are made locally and textile product manufacturing has contracted sharply since 2000 to roughly 35,000 jobs largely concentrated in Victoria, over half the workforce is casual or part time, clothing retailers number 16,258 and the retail arm is ranked ninth by employment with an average worker age of 28 and New South Wales accounting for about 34% of retail employment while Melbourne and Sydney host over 60% of fashion headquarters, more than 30 design schools feed the talent pipeline and First Nations designers are increasingly visible at Australian Fashion Week, all supported by a broad supply chain spanning logistics, marketing and tech.
Sustainability & Ethics
- Every year Australians send an average of 23 kilograms of textiles to landfill per person
- Approximately 227000 tonnes of discarded clothing end up in Australian landfills annually
- Only 7% of textile waste in Australia is currently recycled
- The Australian government has set a goal to phase out fashion waste by 2030
- The National Clothing Product Stewardship Scheme aims to charge a levy of 4 cents per garment to fund recycling
- Less than 1% of the material used to produce clothing is recycled into new clothing globally a stat that holds true for Australia
- Charitable recycling organisations spend $13 million annually sending unusable donations to landfill
- The ethical clothing market in Australia grew by 32% over the last five years
- 60% of major Australian fashion brands have not published a decarbonisation target
- Synthetic fibres (plastics) make up 60% of the material input for Australian fashion increasing microplastic pollution
- The secondhand clothing economy in Australia is valued at $600 million
- 87% of Australian fashion companies do not pay a living wage at any stage of their supply chain
- Australia recycles less than 12% of commercial textile waste (uniforms and workwear)
- Rental fashion platforms in Australia have saved an estimated 40 tonnes of textile waste in 2023
- Water usage for cotton consumption in Australia is approximately 2700 litres per cotton shirt produced
- 15% of Australian fashion brands now have a dedicated 'take-back' scheme for old garments
- Modern slavery risks have been identified in 71% of Australian fashion supply chains
- Australia imports 1.4 billion units of new clothing every year
- The circular fashion opportunity in Australia is estimated to be worth $4.6 billion by 2030
- Sales of "vegan leather" products in Australia have increased by 20% year-on-year
Interpretation
Australia's fashion industry is simultaneously booming and bankrupting the planet: while ethical fashion has grown 32 percent, secondhand sales top $600 million and rental platforms saved about 40 tonnes of waste last year, Australians still send an average of 23 kilograms of textiles each (about 227,000 tonnes) to landfill annually, only around 7 percent of textile waste is recycled and less than 1 percent of clothing is remade into new garments, 60 percent of inputs are synthetic plastics that add microplastic pollution, charities pay $13 million to cart unusable donations to landfill, 87 percent of companies do not pay a living wage and 71 percent of supply chains show modern slavery risk, even as a 2030 phase-out goal, a proposed four-cent garment levy, more take-back schemes and a $4.6 billion circular opportunity promise a way out if brands finally set decarbonisation targets and stop importing 1.4 billion new items a year that waste resources like the roughly 2,700 litres of water used for a single cotton shirt.
References
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