US Fashion Industry Growth Rate (2019–2023)
As one of the top online shopping categories among consumers, it should come as no surprise that the US fashion industry size is huge. In fact, it’s currently valued at hundreds of billions of dollars.
Recent estimates show that total sales figures for 2023 are forecast at $494.89 billion. This represents a fashion industry growth rate of 4.5% from 2022’s sales numbers.
The US fashion industry’s growth rate this year marks a slowdown from the previous years. In 2022, the industry grew at 8.3%, while the previous year saw growth hit 18.4%, the fastest US fashion industry growth rate between 2019 and 2023.
The surge in growth came after the steep fall in the US fashion industry sales in 2020, during which sales tumbled 21.9% and marked a more than $100 billion loss from 2019.
This plunge is the result of the coronavirus pandemic, which has affected both the US fashion industry growth rate and sales figures. The closure of brick-and-mortar fashion retailers in compliance with local coronavirus regulations meant a fall in visitors and, subsequently, sales.
Cutbacks by consumers on inessential items and an increased focus on household essentials also contributed to the negative US fashion industry growth rate in 2020. The US fashion industry sales have since rebounded, bringing annual sales of over $400 billion since 2021.
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US ecommerce fashion industry growth rate
In terms of ecommerce sales, the US fashion industry’s growth rate in 2023 is expected at 8.5%, the smallest increase in the forecast period of 2023 to 2026. This makes it the fourth-fastest growing ecommerce category in terms of sales, after food and beverage, health, personal care, and beauty, and office equipment and supplies.
The online fashion industry’s growth rate is set to accelerate in the following years. In 2024, it’s expected to increase to 11.1%. This will make it the third-fastest growing ecommerce category for the year, surpassing office equipment and supplies. It is predicted to rise further to 11.7% in 2025. In 2026, analysts expect the online fashion industry’s growth rate to hit 12.5%, the fastest in at least four years.
From 2023 to 2026, the online fashion industry size is forecast to grow at an average annual growth rate of 11%.