India apparel retail market is on track for a strong expansion over the next five years, with the industry projected to reach nearly ₹16 lakh crore by FY 2029–30, driven by rising disposable incomes, rapid digitalisation, and accelerating demand for value fashion and e-commerce, according to a report by CareEdge Ratings.

The apparel market, estimated at ₹9.30 lakh crore in FY 2024–25, has recorded a compound annual growth rate (CAGR) of around 7% since FY 2017–18, reflecting steady consumer demand and structural improvements across the retail ecosystem.

Organised Retail to Outpace Overall Market Growth

Organised apparel retail currently accounts for approximately 41% of the total market and is expected to grow at a faster pace of 10–13%, supported by increasing consumer preference for branded apparel, the entry of international brands, and the continued expansion of structured retail formats such as malls and large-format stores.

Value Fashion Emerges as a Key Growth Driver

The report highlights the value fashion segment as a major catalyst for growth, benefiting from rising brand awareness alongside heightened price sensitivity among consumers. Estimated at ₹3.5 lakh crore in FY 2023–24, the value fashion market is projected to grow at a CAGR of 7%, reaching ₹5.0 lakh crore by FY 2029–30.

Retailers including Zudio, Max Fashion, and Reliance’s Yousta are aggressively expanding their store footprints, particularly across Tier-2 and Tier-3 cities, which are rapidly emerging as significant consumption hubs.

E-commerce and Omnichannel Retail Gain Momentum

E-commerce continues to be another strong growth engine for the sector. Online channels currently account for around 22% of organised apparel retail and are expected to increase their share to nearly 25% by FY 2029–30, translating into a market size of approximately ₹5.0 lakh crore.

According to CareEdge Ratings, rising internet penetration, growing smartphone adoption, and the increasing influence of Gen-Z consumers on fashion trends are accelerating the shift towards digital-first and omnichannel retail strategies, reshaping how apparel is marketed and sold across India.

Overall, the Indian apparel retail sector is entering a phase of sustained growth, underpinned by favourable demographics, evolving consumer behaviour, and a stronger organised and digital retail ecosystem.

Source: The Economic Times

(Rewritten & adapted by Indian-Apparel.com News Desk)

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