Apparel, Footwear and Accessories

The apparel, footwear, and accessories sector is facing intricate market trends marked by economic volatility and changing consumer behavior. Uncertainty in the sector mirrors the general economic landscape, with strain on household incomes likely to suppress apparel demand and trigger trading down across categories.

Whereas luxury drove value creation over the last few years, non-luxury will be responsible for all the increase in economic profit for the first time since 2010. In 2025, 80% of CEOs anticipate no enhancement in the world's fashion industry, with sustainability dropping off the agenda to only 18% of fashion CEOs naming it as a top-three threat for growth in 2025, compared to 29% in 2024.

Apparel is the primary segment that shows mixed performance at varying market levels. The global outdoor apparel and accessories market volume was USD 37.1 billion in 2024 and is forecast to grow at a CAGR of 6.9% through 2034, led by the growing popularity of outdoor activities. Fashion accessories complement the larger apparel ecosystem with niche growth opportunities fueled by consumer demand for personalization and brand distinction.

The sports and activewear segments are proving to be uniquely strong and promising amid large industry headwinds. The Europe sportswear market value was estimated at USD 89.88 billion in 2024 and is expected to grow at a CAGR of 6.2% during the 2025–2034 period. Exercise and fitness equipment is tied to health awareness and personal lifestyle changes, whereas footwear stems from both fashion and performance perspectives. In 2023, the market size for power sports accessories surpassed USD 5.8 billion and is anticipated to grow at an approximate CAGR of 9.5% from 2024 to 2032, driven partly by growth in tourism and adventure travel.

Sustainability initiatives remain crucial despite decreasing executive focus, as brands concentrate on carbon neutrality pledges and renewable energy incorporation within supply chains.