Growing middle class, GDP, and urbanization are set to drive the apparel sales in India to return to 2019 levels in 2022. The sales is expected to reach INR5.8 trillion ($75.2bn) in 2022 and advance further up to INR7.6 trillion (US$91.1bn) in 2025, forecasts GlobalData, a leading data and analytics company.

GlobalData’s report, ‘India Apparel Market Size and Trend Analysis by Category (Clothing, Footwear, Accessories), Retail Channel, Supply Chain, Consumer Attitudes and Themes, Key Brands and Forecast, 2020-2025’, reveals that the apparel market in India grew to INR4.9 trillion ($64.8bn) in 2021, supported by the easing of restrictions, the reopening of retail stores, and the return of social gatherings as pent-up demand was released, but sales remained 6.2% below 2019 levels.

Suresh Sunkara, Retail Analyst at GlobalData, comments: ‘‘India’s growing middle class, with higher disposable income, will bolster the growth of the apparel market, especially benefitting Western brands, as these consumers increasingly interact with social media with greater exposure to global fashion trends.”

The demand for comfortable apparel, which increased during the COVID-19 pandemic, is expected to continue positioning leggings, knitwear & sweatshirts, and trainers as winning categories during the forecast period. Categories such as jeans and tops & t-shirts will also surpass their pre-pandemic sales faster, driven by casualization.

Sunkara continues: “The popularity of remote working beyond the pandemic will cause categories such as suits, shirts, and dresses to have slower growth in the forecast period. However, unlike in numerous Western countries, these categories will surpass pre-pandemic levels due to the strong growth in the overall market, supported by urbanization and the growing middle class.

“Additionally, rapid urbanization is leading to a shift in consumers’ lifestyles, increasing the demand for products such as formalwear and sportswear, and urban consumers have greater access to apparel brands, both instore and online. These changing consumer habits will support the demand for more trend-led items, particularly among younger consumers, who represent a large proportion of the Indian population.”

The pandemic has accelerated the adoption of online shopping due to temporary store closures, with online penetration increasing from 10.3% in 2019 to 18.4% in 2021.

Sunkara concludes: “India’s rapid urbanization, which is a key contributor to its growing smartphone and internet penetration, is presenting a significant opportunity for brands online. Many major brands have implemented significant digital initiatives, such as launching transactional websites and improving delivery options, while smaller players have benefitted from being present on online platforms like Flipkart and Amazon, making their products available to a wider range of shoppers.

“As retailers continue to improve their digital propositions and consumer habits shift, the online channel will grow at a CAGR of 30.3% between 2019-2025 and online penetration is set to rise to 26.5% in 2025.”