Global Denim Jeans Market Overview, 2024-29

Market Dynamic

Market Drivers • Fashion Conscious Millennials and Gen Z: The fashion preferences of millennials and Generation Z play a pivotal role in driving the denim jeans market. These demographics, known for their strong influence on trends, seek clothing that reflects their individuality and values. Denim brands catering to the style preferences and ethical considerations of these generations are likely to experience heightened demand. • Global Urbanization and Casualization of Dress Codes: The increasing global urbanization and a shift towards more casual dress codes in workplaces contribute to the demand for denim jeans. Denim, once seen as casual wear, has become acceptable in various professional settings, adding to its versatility and expanding the potential consumer base. Market Challenges • Supply Chain Disruptions and Raw Material Costs: The denim jeans market is susceptible to supply chain disruptions, such as those seen during the COVID-19 pandemic. Disruptions in the supply chain, including raw material shortages and transportation challenges, can impact production timelines and increase costs. Fluctuations in the prices of raw materials, especially cotton, pose challenges for manufacturers in maintaining competitive pricing. • Changing Retail Landscape and Brick-and-Mortar Challenges: The evolving retail landscape, marked by the rise of e-commerce, presents challenges for traditional brick-and-mortar stores. Denim brands need to adapt to changing consumer shopping habits, explore omnichannel strategies, and enhance the in-store experience to remain competitive. Market Trends • Rise of Gender-Inclusive Collections: Gender-inclusive denim collections are gaining momentum as the fashion industry moves towards breaking traditional gender norms. Brands are increasingly offering styles and fits that cater to a diverse range of body types, reflecting a more inclusive and progressive approach to denim fashion. • Focus on Circular Fashion and Recycling: Circular fashion practices, including recycling and upcycling, are gaining prominence in the denim industry. Brands are exploring ways to extend the lifecycle of denim products through recycling initiatives, encouraging consumers to return old denim for repurposing. Circular fashion aligns with sustainability goals and addresses concerns about textile waste. Covid-19 Impacts The denim jeans market experienced disruptions in its supply chain due to factory closures, transportation restrictions, and lockdowns imposed to curb the spread of the virus. Manufacturing hubs, especially in countries like China and Bangladesh, faced significant challenges in production and shipping, leading to delays in the delivery of raw materials and finished products. The economic uncertainties brought about by the pandemic led to changes in consumer spending patterns. With priorities shifting towards essential goods, the demand for non-essential items, including fashion apparel like denim jeans, experienced a decline. Consumers focused more on comfort and essentials during periods of lockdown and uncertainty. The closure of brick-and-mortar stores and restrictions on in-person shopping accelerated the shift towards online retail. E-commerce platforms became crucial for denim brands to reach consumers during lockdowns. Companies that had robust online strategies and user-friendly websites were better positioned to navigate the challenges posed by physical store closures. With disrupted supply chains and shifts in consumer demand, many brands faced inventory challenges. This led to an increase in discounting and promotional activities to clear excess stock. While this allowed brands to manage inventory, it also impacted profit margins. The widespread adoption of remote work and the casualization of dress codes during lockdowns influenced denim trends. While there was a decline in the demand for formal and business attire, there was a simultaneous increase in the demand for comfortable and casual wear, including denim jeans suitable for home-office settings. The pandemic brought attention to sustainability and ethical practices in the fashion industry. Brands that incorporated ethical practices and transparency in their supply chains were better received by an increasingly environmentally conscious consumer base.

Key Development

• In April 2022, AG Adriano Goldschmied, Inc., premium denim and knitwear house partnered with Tulip, a global leader in cloud-based mobile solutions to provide retail technology solutions that break barriers and create authentic customer connections and create personalized shopping experiences for AG customers. • In March 2022, H&M Hennes & Mauritz AB developed a new denim line called the 'capsule collection,' which focuses on saving water throughout the manufacturing process by collaborating with suppliers who use recycling water systems. The pieces in the collection are inspired by late 1990s and Y2K vibes and include high-waist straight jeans, low-waist flares, dungarees, skinny jeans, mini-skirts, and denim shirts. • July 2022: Kontoor Brands' Wrangler, a United States-based jeans giant, expanded its retail network in India by adding the 39th store for denim in the country. The company's CEO announced that they plan to expand the offline retail footprint by adding 100 more stores of Lee & Wrangler in the current fiscal year. • March 2022: Gap Inc. opened its First Shop-In-Shop on oxford street, United Kingdom, through a joint venture agreement with NEXT PLC. The Gap store, which has over 4,000 square feet of retail space and is the largest brand shop inside the store, represents the brand's reimagined approach to retail in the United Kingdom with an open, modern, and basic design. • March 2022: M&S unveiled its first capsule collection for The Jeans Redesign project. The new range has been responsibly sourced to meet the project's guidelines set out by the Ellen MacArthur Foundation and co-developed with over 80 denim experts.