Is the Fashion Industry Growing? Trends and Statistics

The fashion industry sits at the intersection of culture, commerce, and innovation, and it’s undergoing massive transformation in 2025.

From the explosive growth of fashion e-commerce to the rise of resale platforms and fast fashion juggernauts like Shein, fashion is not only thriving but diversifying at a rapid pace. At the same time, it's facing growing pressure to become more sustainable as its environmental impact comes under global scrutiny.

Whether you're a designer, retailer, or just curious about how big the fashion industry really is, here’s a look at where things stand in 2025, and where the numbers say it’s going next.

Highlights

• Global fashion revenue is expected to hit $770.9 billion in 2024, on its way to $1 trillion by 2029

• The fashion industry is growing at a projected 8.94% CAGR through 2029

• U.S. apparel sales are projected at $365.7 billion in 2025

• 48% of fashion retail sales happen online, with e-commerce revenue nearing $975 billion

• Resale fashion is booming, projected to make up 10% of global apparel sales by 2025

• The global fashion workforce includes 430 million people, or about 12–13% of the global labor force

• Fashion accounts for 2–8% of global greenhouse gas emissions and is responsible for ~20% of industrial wastewater

How Big Is the Fashion Industry in 2025?

Right now, the global fashion market is estimated at a whopping $1.84 trillion, which makes up about 1.6% of global GDP. That includes everything from runway fashion houses to mall retailers and fast fashion brands.

Growth forecasts vary, but most put the industry at a 2.8–4.1% CAGR through the next few years, with digital shopping habits and global demand doing much of the heavy lifting.

What Are Americans Spending on Clothes?

In the U.S., the fashion engine is still running hot. Apparel sales are expected to reach $365.7 billion in 2025, with American households spending about $162 per month on clothing on average. While inflation and changing work patterns have shifted priorities, fashion is still a regular line item in the monthly budget.

E-commerce in Fashion: Is Online Shopping Still Booming?

It absolutely is. Online fashion sales are projected to hit between $883 and $975 billion in 2025. That’s almost half of all fashion retail sales.

Whether it’s a TikTok haul, a DTC streetwear label, or luxury goods online, digital-first shopping is here to stay. Mobile browsing, influencer marketing, and smart personalization tools are keeping the momentum going.

Why the Resale Fashion Market Keeps Growing

Secondhand isn’t second-rate anymore. Resale platforms like ThredUp and Poshmark have helped fuel an 18% growth spike in 2023, and by 2025 resale is expected to make up 10% of all global apparel sales. That’s no small change.

Circular fashion has real staying power, especially among Gen Z and sustainability-focused shoppers. By 2028, resale fashion could be a $350 billion market on its own.

Fast Fashion Industry Growth and Market Share

Say what you want about fast fashion, it’s still exploding. In 2020 the market sat at $25 billion. By 2030, it’s projected to hit $192 billion.

Players like Shein, which now control over 1.5% of the global fashion market, are doing it by using ultra-fast logistics and social-first marketing to move at internet speed.

Global Employment in the Fashion and Apparel Industry

Fashion isn’t just style—it’s also jobs. Globally, around 430 million people work across fashion and textiles. That’s about 12 to 13% of the global workforce.

On the production side, we’re churning out 100 billion garments per year. That level of output raises some tough questions about sustainability and overproduction.

Fashion’s Environmental Footprint

Let’s not gloss over it—fashion has a major impact on the planet. It contributes 2–8% of total global greenhouse gas emissions, and is the second-largest industrial water polluter, responsible for nearly 20% of wastewater.

The industry uses 93 billion cubic meters of water annually, and issues like microfiber pollution and textile waste are becoming impossible to ignore.

Summary Table

Fashion Industry Outlook for 2025

So, what does it all mean? Even with economic uncertainty and shifting consumer priorities, the fashion industry is expected to grow steadily through the end of the decade.

A recent McKinsey and Business of Fashion report found that only 20% of fashion execs expect improved consumer sentiment in 2025. That reflects challenges like inflation, soft luxury demand in China, and shifting buyer behavior.

Still, new tools, smarter supply chains, and a generation of consumers who care about sustainability and expression mean fashion isn’t going anywhere.

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