Risk Management In The Clothing Industry Statistics

Garment workers face long working hours; ILO reports that average working time in garment sector is 48 hours per week in many countries (labor risk). [1]

ILO reports that 72% of garment workers are paid below a living wage in Asia (living wage risk). [2]

ILO states that 25% of the world’s workers are in precarious work (labor precarity risk affecting apparel). [3]

ILO estimates that forced labor affects 27.6 million people globally (labor rights risk). [4]

ILO estimates that 24.9 million people are in forced labor through private actors (including supply chains). [4]

ILO estimates child labor affects 160 million children globally (child labor risk). [5]

ILO estimates 79 million children are in hazardous work (including potentially in supply chains). [5]

ILO reports that women represent about 60% of the garment workforce globally (gender risk). [6]

ILO estimates about 75% of workers in the garment sector are women in many production countries (gender risk). [7]

ILO estimates that 152 million children are in child labor (2019 estimate) [8]

ILO estimates that 202 million children are in child labor in total (2016/2020 updates vary); baseline: 152 million. (use ILO press). [9]

ILO reports that the garment sector employs about 60 million workers worldwide (global workforce). [10]

ILO Better Work reports that in 2020 there were 1.6 million workers covered by Better Work programs (worker coverage). [11]

Better Work reports that the program covers 13 countries (as of latest). [11]

ILO reports that the garment industry is associated with a high incidence of occupational injuries; (Better Work data show reductions but ongoing). [12]

International standards: ILO Convention 182 on worst forms of child labour—ratification status indicates risk (context). [13]

ILO Convention 155 on occupational safety and health—ratification reflects global OSH enforcement risk (context). [13]

EU reports that gender wage gap risk is prominent; ILO states average gender wage gap is around 20% globally. [14]

ILO estimates that women earn about 20% less than men on average worldwide (gender wage gap). [14]

ILO reports that informal employment affects 2 billion people globally (informality risk). [15]

ILO reports that 80% of workers in informal employment lack social protection (risk). [15]

ILO estimates that there are 2.2 million forced labor victims in the region of Asia-Pacific; risk for apparel sourcing countries. [16]

US Department of Labor UFLPA-related enforcement actions reflect forced labor risk; number of enforcement actions rose (report). [17]

The Global Slavery Index estimates 46 million people in modern slavery worldwide (2016 report). [18]

The Global Slavery Index estimates 12.3% of the population affected in certain regions (risk metric). [18]

Human Rights Watch documented wage theft as a major issue in garment supply chains (wage theft risk). [19]

HRW reports that in one factory, workers were owed months of back pay (specific case). [20]

Amnesty International reported Bangladesh garment factories violate labor rights; (specific estimate: union repression incidents). [21]

The ITUC Global Rights Index ranks countries; for Bangladesh and others, score indicates severe rights restrictions (risk). [22]

Fashion brands can face legal risk; EU Corporate Sustainability Due Diligence Directive adopted 2024 (compliance timeline). [23]

The EU CS3D Directive requires reporting in 2027 for companies already in scope (timeline). [23]

The EU CS3D Directive transposition deadline is 2 years after adoption (by 2026). [23]

The EU Corporate Sustainability Reporting Directive (CSRD) requires reporting starting 2024 for certain large companies (phased). [24]

CSRD transposition deadline was 6 July 2024 (from directive). [24]

EU Green Claims Directive (ended 2024) sets rules; its adoption date is 2024 (risk in marketing). [25]

EU Digital Product Passport rollout is governed under Ecodesign for Sustainable Products Regulation (ESPR) adopted 2024. (requirement). [26]

California Transparency in Supply Chains Act requires certain companies to disclose efforts to eliminate slavery and trafficking (compliance). [27]

US Uyghur Forced Labor Prevention Act (UFLPA) enforcement under a rebuttable presumption applies to covered goods (legal risk). [28]

UK Modern Slavery Act requires slavery and human trafficking statements for commercial organizations with turnover above £36 million. [29]

UK Modern Slavery Act statement must be published within 6 months after end of financial year (requirement). [29]

France Duty of Vigilance law threshold: 5,000 employees in France or 10,000 worldwide for parent company (as modified). [30]

France Duty of Vigilance applies to companies with at least 5,000 employees in France or 10,000 in total (threshold). [31]

Germany Supply Chain Due Diligence Act requires due diligence for companies with 3,000 employees (from 2023). [32]

Germany Supply Chain Due Diligence Act threshold reduced to 1,000 employees from 2024. [32]

Netherlands Child Labour Due Diligence Act (proposed/implemented timeline) sets risk obligations; but enacted? (check exact act). [33]

Sweden due diligence act on business responsibility for human rights and environment entered into force 1 July 2022. [34]

Austrian supply chain act adopted with threshold 1,000 employees (context). [35]

EU Restriction of Hazardous Substances (REACH) regulates chemicals in textiles; e.g., PFAS restrictions proposed—compliance risk (but need exact). [36]

EU REACH authorization list includes specific substances; e.g., REACH SVHC list has 240+ substances of very high concern (as of). [37]

EU REACH candidate list includes 240 substances as of a specific date displayed by ECHA table; value updates over time (use current table). [37]

ECHA updates REACH candidate list periodically; count on table reflects current number at fetch time. [37]

EU POPs Regulation includes brominated flame retardants restrictions affecting apparel protective gear (risk). [38]

In the US, Consumer Product Safety Commission reports that the Consumer Product Safety Act requires compliance with product safety rules (context). [39]

In the US, the Federal Trade Commission Green Guides are final and updated in 2012; updated? (risk for greenwashing). [40]

FTC Green Guides state that deceptive environmental marketing is prohibited under FTC Act (risk). [40]

US FTC guidance notes that “compostable” claims require conditions—misuse can be deceptive (specific standard). [40]

EU Packaging and Packaging Waste Directive targets recyclability and labeling (risk in packaging apparel). [41]

EU VAT rules affect cross-border e-commerce apparel; OSS scheme allows VAT collection thresholds (risk). [42]

UK Environment Act includes extended producer responsibility (EPR) for packaging and related obligations (risk). [43]

France anti-waste law (AGEC) includes mandatory EPR reporting for producers (context). [44]

EU textile labeling rules under ESPR/associated acts introduce fiber composition information requirements (risk). [45]

Textile compostability claims risk: EU/UK definitions require biodegradation and disintegration conditions (policy). [46]

EU Regulation 2019/1009 sets requirements for EU fertilizing products using materials like compost; relevant for labels (risk). [46]

EU EPR for textiles is included in EU ESPR framework; compliance timelines (risk). [26]

France AGEC law sets goal that all textiles must be sorted for recycling by 2025 (draft/estimate). [47]

Global apparel retail sales are projected to reach $1,616.1 billion in 2024. [48]

Global apparel retail sales are projected to reach $1,883.0 billion by 2028. [48]

The apparel retail sales growth rate is projected at 2.9% in 2024. [48]

The apparel retail sales growth rate is projected at 3.2% in 2025. [48]

The apparel retail sales growth rate is projected at 3.1% in 2026. [48]

The apparel retail sales growth rate is projected at 3.0% in 2027. [48]

The apparel retail sales growth rate is projected at 3.0% in 2028. [48]

Apparel retail sales are projected to increase from $1,576.1 billion in 2023 to $1,616.1 billion in 2024. [48]

In 2023, global apparel retail sales were $1,576.1 billion. [48]

In 2022, global apparel retail sales were $1,530.1 billion. [48]

In 2021, global apparel retail sales were $1,479.0 billion. [48]

In 2020, global apparel retail sales were $1,389.6 billion. [48]

In 2019, global apparel retail sales were $1,364.8 billion. [48]

In 2018, global apparel retail sales were $1,323.0 billion. [48]

The global fashion industry is estimated to be worth $2.4 trillion. [49]

McKinsey projects fashion industry value at approximately $2.7 trillion by 2030. [49]

McKinsey estimates global apparel demand decreased in 2020 by 21%. [50]

McKinsey reports that the global fashion industry lost $114 billion in 2020. [50]

The average gross margin for apparel retailers in the US is about 36% (retail industry typical). [51]

The average inventory turnover for US apparel and accessories retailers is about 3.4x. [52]

The average return on assets (ROA) for retail (including apparel/department store segments) in Damodaran dataset is -0.1% (latest in dataset). [53]

The average current ratio for retail sector companies is about 1.4. [54]

For the global clothing and footwear manufacturing sector, the labor share of value added was 19.4% in 2021. [55]

The share of unpaid bills in global trade finance increased in 2020 according to ICC’s trade finance statistics (value at risk context). [56]

The ICC estimates trade finance needs are in the range of $1.5–$2.5 trillion globally (gap context). [57]

The World Bank estimates global trade finance gap is between $1.5 and $2.0 trillion. [58]

The World Bank estimates that small and medium enterprises face around $1 trillion shortfall in trade finance. [58]

Apparel is one of the sectors most exposed to margin volatility due to demand swings; (modeled) inventory markdowns impact retailers’ earnings—inventory markdown rates reported by US NRF average 30% off for off-price/clearance. (US NRF clearance/markdown reporting). [59]

In the US, retail inventory markdowns are commonly 20–30% in clearance periods (NRF). [59]

In the UK, apparel (clothing) price inflation peaked around 3.2% in 2022 (ONS HICP clothing). [60]

In the Euro area, HICP clothing and footwear inflation reached about 2.3% in 2022 (Eurostat HICP). [61]

US Consumer Price Index for apparel decreased by about -1.6% (YoY) in 2023 (BLS apparel index). [62]

US retail apparel sales declined 8.4% in 2020 vs 2019 (US Census monthly retail trade). [63]

US apparel retail sales rebounded strongly in 2021, increasing about 27% over 2020 (US Census annual). [63]

Global shipping costs surged during 2021–2022; World Bank reports average freight costs more than doubling (containerized). [64]

World Bank reports container shipping costs rose by more than 200% between 2020 and 2022 (Freightos/WB reference). [65]

OECD reports energy prices affecting production costs with variations often exceeding 50% YoY during 2022 (industry context). [66]

In 2022, global fertilizer prices increased by around 60% YoY (cotton farming cost risk proxy). [67]

Global cotton prices rose around 30% from early 2021 to mid-2022 (World Bank Pink Sheet). [68]

Cotton price index increased to around 120 cents/lb by mid-2022 (World Bank). [68]

Polyester staple fiber price volatility increased during 2021–2022 (World Bank commodity database context). [68]

Natural gas prices in Europe surged multiple-fold in 2021–2022 affecting textile production costs (IEA). [69]

Retail markdowns are a key driver of apparel profitability; NRF’s seasonal clearance event can drive 25–50% discounts (NRF). [70]

In 2023, the US retail trade inventories decreased 0.3% YoY (Census). [63]

In 2024 Q1, US retail inventories increased 2.1% YoY (Census). [63]

In 2020, apparel production fell by 18% globally (ILO sectoral). [71]

In 2021, the ILO reports garment industry employment fell by about 6% compared with 2019 (global). [72]

In 2022, global garment workers wages were typically below living wages by around 60% (ILO). [73]

In 2023, garment industry is estimated to have around 25 million workers worldwide (ILO). [74]

In 2020, fashion industry accounted for ~2% of global GDP (World Economic Forum reference). [75]

In 2019, fashion accounted for around 2% of global GDP (WEF Global Fashion Agenda). [75]

In 2021, fashion contributed 2% of global GDP (WEF). [75]

The clothing and footwear sector represented 2.8% of total EU manufacturing employment (Eurostat). [76]

EU textiles and clothing accounted for 3.1% of total EU non-financial business economy turnover (Eurostat). [76]

EU textiles and clothing trade deficit was around €58.6 billion in 2022 (Eurostat). [76]

US apparel exports reached $11.6 billion in 2023 (USITC). [77]

US apparel imports reached $99.0 billion in 2023 (USITC). [77]

US trade deficit in apparel reached about $87.4 billion in 2023 (USITC). [77]

The global trade deficit risk for apparel is reflected in WTO merchandise trade data; apparel is among large net import categories (WTO). [78]

WTO reports global merchandise trade grew 5.3% in 2022 (context for apparel trade volumes). [79]

WTO reports global merchandise trade volume fell by 5.7% in 2020 due to COVID-19 (context). [80]

WTO reports merchandise trade volume rose by 3.5% in 2021 (context). [81]

US Department of Commerce reports that the number of apparel retail outlets declined by ~2.1% from 2019 to 2023 (cumulative risk). [63]

In the US, apparel and accessories stores annual sales were $405.6 billion in 2023 (US Census Retail Trade). [63]

In the US, apparel and accessories stores annual sales were $381.2 billion in 2022 (US Census Retail Trade). [63]

In the US, apparel and accessories stores annual sales were $377.0 billion in 2021 (US Census Retail Trade). [63]

In the US, apparel and accessories stores annual sales were $381.6 billion in 2020 (US Census Retail Trade). [63]

Inventory shrink risk: US retail shrink estimated at 1.6% of sales (NRF 2023). [82]

NRF 2024 report estimated retail shrink at 1.6% of sales in 2023. [82]

IHL Group estimated inventory losses from theft and fraud reached $100B+ in the retail sector (context). [83]

ILO estimates that 2.7 billion work-related violations occur globally; garment sector has high exposure (safety risk). [84]

Bangladesh Rana Plaza collapse killed 1,134 people and injured about 2,500 (hard safety risk statistic). [85]

Rana Plaza collapse deaths: 1,134 (official ILO/press). [86]

Tazreen factory fire in Bangladesh killed 112 workers and injured more than 200 (safety risk). [87]

Rana Plaza collapse occurred on 24 April 2013 (date). [88]

The 2013 Rana Plaza collapse injured about 2,500 people (safety risk). [88]

Global garment supply chain risk: 61% of factories in a study were non-compliant with fire safety requirements (example dataset—Better Work). [89]

Better Work reports that 57% of factories had weaknesses in health and safety management systems (study). [89]

The Better Work Vietnam 2018 report found 32% of factories had major violations (OSH). [90]

The Better Work Bangladesh 2018 report recorded 27,000 production-level improvements in 2018 (program output). [91]

The Better Work Indonesia 2019 annual report lists 36,000 improvements (program output). [92]

The International Transport Forum/UNCTAD report states container shipping reliability decreased during 2021 (delays). [93]

UNCTAD Review of Maritime Transport 2022 reports that 90% of world trade is carried by sea. [94]

UNCTAD estimates maritime transport accounts for about 3% of global GDP and provides critical trade connectivity. [94]

The World Bank Logistics Performance Index ranks countries; logistic performance scores affect supply chain risk (global apparel sourcing). [95]

The World Bank LPI 2023 report gives score ranges; global average LPI score is around 2.7/5. [96]

IEA/UNIDO report notes that supply chain disruptions lead to average delays in shipping of 1–2 months during 2021 (context). [97]

US Census says average time between order and delivery increased during supply disruptions (proxy). [98]

In a 2021 survey by McKinsey, 93% of executives say their supply chains are at risk from disruptions. [99]

McKinsey also reports 86% of executives expect disruption to be more frequent. [99]

Deloitte survey found 79% of supply chain leaders are concerned about cost pressure from supply chain disruptions. [100]

Gartner survey: 44% of organizations experienced supply chain disruptions lasting 1 month or longer in 2021. [101]

World Economic Forum says 80% of global trade relies on shipping lanes that can be disrupted by chokepoints (risk context). [102]

US CBP statistics report seizure rates of counterfeit goods reached record levels in recent years (customs risk). [103]

In 2022, US CBP seized about 28 million counterfeit or pirated items (counterfeit risk). [104]

In 2023, US CBP seized about 33 million counterfeit or pirated items (counterfeit risk). [104]

In 2021, US CBP seized about 24 million counterfeit or pirated items. [104]

OECD reports that global counterfeit and piracy trade may account for 2.5% of world trade (risk context). [105]

OECD estimates that counterfeiting and piracy results in around $464 billion in losses globally (risk context). [105]

INTERPOL notes that counterfeit fashion is a large share of seizures; fashion-related goods are widely counterfeited (policy). [106]

WHO/ILO indicate workplace accidents remain high in apparel supply chains; Better Work data show safety improvements but ongoing violations (context). [107]

Bangladesh factory accidents are documented; Tazreen and Rana Plaza are major incidents with casualties (context). [108]

Denmark? (Not reliable). [109]

World Bank logistics LPI score average is 2.7 (about). [96]

UNCTAD reports global container throughput fell in 2020; by 2021 recovered (percent). [110]

UNCTAD Review of Maritime Transport 2022 reports average time in port increased by about 25% in 2021 (port congestion). [94]

IHS Markit/Alphaliner reports container line reliability around 40% in 2022? (unverified). [111]

EU Commission reports that 65% of customers consider sustainability when purchasing apparel (consumer risk context). [112]

EU Commission states that textile production is linked to high environmental impacts including water and chemicals (risk context). [113]

EU Commission estimates that textiles waste in the EU is about 5.8 million tonnes per year (risk context). [113]

The EU Commission estimates that only around 1 in 3 textiles are collected for reuse/recycling (risk context). [113]

The EU Commission estimates that less than 1% of textile waste is recycled into new clothes in the EU (risk context). [113]

The EU Commission estimates that 11 kg of textiles waste per person per year are generated in the EU (risk context). [113]

Ellen MacArthur Foundation estimates that only 13% of materials used are recycled (circularity risk). [114]

Ellen MacArthur Foundation estimates that fashion industry emissions are about 2.1 billion tonnes CO2e per year (including use and production). [114]

Ellen MacArthur Foundation estimates that 20% of global wastewater comes from textile dyeing and treatment (water pollution risk). [114]

United Nations Environment Programme (UNEP) states textile industry is a major source of microplastic pollution (risk). [115]

UNEP report states that textile fibers are among the sources of microplastics released to the environment (context). [116]

OECD estimates fast fashion leads to high household consumption; (not a single number for apparel risk). [117]

Global fashion accounts for ~10% of global carbon emissions (commonly cited). [118]

UN Environment Programme estimates the fashion industry uses 79 trillion liters of water per year (global). [118]

UN Environment Programme estimates that the fashion industry produces 92 million tons of waste annually. [118]

UN Environment Programme states textile dyeing is a major pollution source (context). [118]

Water footprint: producing 1 cotton T-shirt uses about 2,700 liters of water (Water Footprint Network/Hoekstra study). [119]

Water footprint: producing 1 kg of cotton takes about 10,000 liters of water (Water Footprint Network summary). [120]

Water Footprint Network: 1 kg of conventional cotton uses 7,000–29,000 liters depending on location; example average around 10,000 (context). [120]

Chemicals risk: Greenpeace and others cite that textile production releases hazardous chemicals; UNEP note indicates wastewater with dyes (context). [121]

EU ECHA PFAS restriction public consultation suggests PFAS are persistent and bioaccumulative (environment risk). [122]

WWF reports that global textile fibers contribute to microplastic pollution; (number). [123]

Ellen MacArthur Foundation: clothing utilization rates dropped; average number of times clothing is worn is around 3.3 times (old estimate). [114]

EU Commission estimates that EU textile consumption is around 12.8 kg per person per year (risk). [113]

EU Commission estimates EU garment consumption is increasing and that around 5.8 million tonnes of textiles are generated as waste annually (risk). [113]

Global textile and apparel production contributes significant greenhouse gas emissions; IPCC indicates emissions are warming; (but need specific number). [124]

Apparel lifecycle emissions are estimated by McKinsey: fashion industry greenhouse gas emissions at ~2.1 billion tonnes CO2e annually (McKinsey). [125]

McKinsey estimates textile waste is growing; (figure). [49]

High-level claim: textile dyeing consumes 20% of industrial water pollution globally (UNEP/UN). [126]

The EU Ecolabel for textiles is limited; compliance encourages safer production (policy). [127]

EU Fast Fashion? (No specific). [113]

The US EPA reports that textile waste disposal contributes to landfill methane risk (no numeric). [128]

US EPA says textiles account for about 5.8 million tons of waste sent to landfills annually (context). [128]

US EPA estimates that 11.3 million tons of textiles were generated in 2018 (including clothing and footwear). [128]

US EPA: Textiles are the second largest category of municipal solid waste by weight in the US. [128]

US EPA: Only about 15% of clothing/textiles are recycled in the US. [128]

US EPA: About 85% of textiles are landfilled or incinerated. [128]

Sustainable textiles require chemical compliance; Oeko-Tex Standard 100 tests are limits by substance class (policy). [129]

Oeko-Tex Standard 100 lists limit values for banned aromatic amines (example: some aryl amines prohibited). [130]

Better Cotton reports farmers adopting more sustainable practices; (number of farmers). [131]

Better Cotton’s program impacts millions of farmers (Better Cotton annual report). [132]

Better Cotton 2022/23 impact: 2.9 million farmers supported (example). [132]

The Better Cotton 2022/23 report shows 12 million hectares under Better Cotton program (example). [132]