Australia Clothing Market Size, Share Analysis and Forecast Report (2025-2034)

Australia Clothing Market Trends

The Australia clothing market benefits from diverse consumer preferences, catering to both casual and high-fashion styles. E-commerce has enhanced convenience, making fashion more accessible online, while rising disposable incomes encourage spending on premium and luxury items. Growing demand for eco-friendly options reflects sustainability trends, and Australians’ keen interest in fashion keeps the market vibrant. In October 2023, Cotton On launched a new collection blending vintage Australian fashion with modern cuts, offering trendy, affordable clothing while promoting sustainable production.

The growth of the Australia clothing market is further fuelled by a youthful population driving the demand for fast fashion. Retail expansion in urban and regional areas increases access to fashion, while high living standards drive a desire for quality. Customisation trends are growing, and the country’s varied climate ensures year-round demand for diverse clothing. In December 2023, Nike launched its "Move to Zero" collection, featuring sportswear made from sustainable materials like recycled polyester and cotton, supporting its goal of zero carbon and waste.

Australia Clothing Market Growth

The athleisure segment is a significant trend of Australia clothing market, driven by a growing interest in fitness and wellness, which is boosting demand for comfortable, stylish activewear. The market benefits from strong export growth, particularly to Asia-Pacific, European, and US regions. Consumer loyalty towards trusted brands is high, and retailers are incorporating technology like virtual try-ons to improve the shopping experience. Expanding retail networks into regional areas increases accessibility to fashion. In March 2024, David Jones launched a luxury collection of Australian-designed clothing, featuring high-quality fabrics and local craftsmanship, including Australian merino wool and leather, to cater to rising demand for locally-made fashion.

Local clothing manufacturers are capitalising on new opportunities in the Australia clothing market by meeting the growing demand for ethically produced, high-quality garments. The influence of global fashion trends keeps the market vibrant and competitive, while Australia's multicultural society fosters a diverse array of clothing styles. Seasonal sales events like Boxing Day and Black Friday generate spikes in demand, and the growing affluence of Australian consumers is expanding the luxury fashion segment. In March 2023, Country Road launched a new "Responsible Wool" collection, made from sustainably sourced wool, responding to the rising demand for ethical fashion and supporting responsible farming practices in the Australian wool industry.

Australia Clothing Market Insights

• According to the most recent data from the Department of Climate Change, Energy, the Environment, and Water, Australians purchased 383,000 tonnes of new clothing in 2022-23, averaging around 56 items per person.
• The latest figures from the Department of Climate Change, Energy, the Environment, and Water show that Australians donated or reused 210,000 tonnes of clothing in 2023.
• In 2021, Australia’s clothing, textile, and footwear manufacturing sector contributed USD 1.2 billion to the economy, demonstrating a decline in local production but still playing a vital role in employment, according to the Australian Bureau of Statistics.
• The clothing market share in Western Australia is projected to grow significantly, with a forecasted CAGR of 15.9% from 2024 to 2032.
• The Australian Capital Territory is expected to grow at a CAGR of 4.6% from 2024 to 2032.

Industry New

August 2023

Australian fashion brand Bonds introduced its "Recycled Basics" collection. Crafted from 100% recycled cotton and polyester, the range features everyday essentials such as t-shirts, socks, and underwear, responding to increasing consumer demand for sustainable and eco-conscious clothing.

March 2023

ASOS launched an exclusive collection in Australia, focusing on body positivity and inclusivity. The collection offers extended sizes and features trendy, affordable clothing suitable for all body types, including a mix of casual wear and smart office attire.

Australia Clothing Market Drivers

Growth of E-commerce and Online Shopping

The Australia clothing market revenue is being increasingly driven by e-commerce, with more consumers choosing online shopping for its convenience, greater variety of products, and home delivery options. The growth of digital platforms and mobile shopping apps has allowed brands to extend their reach, including to regional areas. Enhanced online payment systems, virtual try-on features, and faster shipping have further accelerated online clothing sales. E-commerce now plays a pivotal role in shaping consumer purchasing habits and fashion trends, especially in the post-pandemic era, where digital interactions dominate retail. In July 2023, UniQlo launched a new collection of Ultra Light Down jackets for Australia's transitional weather, available online and in-store. Made from sustainable materials, the jackets target eco-conscious shoppers.

Sustainability and Ethical Fashion

The growth of the Australia clothing market is increasingly driven by consumer demand for sustainable fashion. As awareness of environmental issues such as textile waste and carbon emissions rise, shoppers are favouring brands that prioritise sustainability, use recycled materials, and support fair trade practices. Consequently, more Australian brands are offering organic cotton, recycled polyester, and ethically produced garments. This trend mirrors a global shift towards eco-conscious purchasing decisions. In October 2023, Cotton On Group launched a new sustainable clothing line, using eco-friendly materials like organic cotton and recycled fabrics, appealing to consumers seeking both style and environmental responsibility.

Opportunities in the Australia Clothing Market

Growth of Athleisure and Activewear

Athleisure and activewear have become key trends in the Australia clothing market, driven by the growing interest in health, fitness, and overall wellness. As more Australians adopt active lifestyles, the demand for versatile clothing that transitions easily from the gym to casual wear continues to rise. Brands are responding by offering stylish yet performance-driven athleisure that blends comfort with functionality. The trend is further fuelled by fitness influencers and wellness-focused social media campaigns. Athleisure’s expanding presence in both men’s and women’s fashion has made it a significant category. In June 2024, Lorna Jane launched an eco-friendly activewear collection in Australia, featuring sustainable materials like recycled polyester and organic cotton.

Market Restraints

The Australia clothing market faces several challenges, including high production costs due to labour and environmental regulations, making locally-produced garments more expensive. The market’s heavy reliance on imports exposes it to global trade fluctuations. Additionally, growing sustainability demands put pressure on sourcing eco-friendly materials, and supply chain disruptions, lead to delays and increased costs.

The highly competitive nature of the market, shifting consumer preferences, and the rise of online shopping have caused retail store closures. Economic uncertainty and import tariffs further constrain the market, while Australia’s cultural diversity requires brands to cater to a broad range of consumer tastes, adding complexity for fashion retailers.

Australia Clothing Market Share

By Category Insights

According to the Australia clothing market analysis, the mass segment occupies significant market share as it offers affordable, trendy clothing for daily wear. It benefits from high sales volume, cost efficiency, and widespread distribution, catering to price-conscious consumers. Brands prioritise accessibility, ensuring a broad appeal across various demographics. In November 2023, Big W launched its "Everyday Essentials" collection, featuring casual and loungewear at budget-friendly prices, designed for style and comfort. This collection is available both online and in-store across Australia.

The premium segment of the Australia clothing market caters to affluent consumers looking for luxurious, high-quality apparel. The premium segment is expected to grow at a CAGR of 5.4% from 2024 to 2032. It benefits from higher profit margins, brand loyalty, and growing demand for exclusive, stylish, and ethically made items. The segment also thrives on the rising interest in sustainable and bespoke fashion. In March 2024, David Jones introduced a luxury collection made from Australian merino wool and silk. Focusing on sustainable materials and craftsmanship, the collection appeals to consumers seeking exclusivity, quality, and ethically produced clothing for any occasion.

By End User Analysis

According to the Australia clothing market report, men occupy a significant share, fueled by a rising demand for both stylish and practical clothing. As interest in athleisure, formal wear, and casual styles rises, brands can cater to a wide variety of tastes. This growth is also supported by a more fashion-aware male demographic. In October 2023, Just Jeans launched its "Modern Men" collection, which focuses on versatile, stylish everyday wear, including comfortable chinos, shirts, and outerwear for the modern Australian man. The collection is available both online and in stores, appealing to those seeking affordable yet fashionable options.

The Australia clothing market is flourishing, propelled by a wide range of fashion preferences among women, spanning from casual wear to high-end styles. The segment is expected to grow at a CAGR of 4.5% from 2024 to 2032. There is strong demand across various segments such as workwear, activewear, and evening wear, further boosted by a growing focus on inclusivity and sustainable fashion. In January 2024, Witchery launched its "Timeless Essentials" collection, offering elegant work and casual wear pieces made from sustainable materials like organic cotton. This collection caters to women who are looking for stylish, eco-conscious fashion.

By Distribution Channel Insights

The growth of the Australia clothing market is supported by supermarkets and hypermarkets, offering affordable clothing to a wide consumer base. These stores provide convenience, competitive prices, and frequent sales, with a focus on basic apparel and essentials. Woolworths expanded its collection in September 2023, introducing stylish, budget-friendly garments including casual wear, activewear, and home essentials, meeting the demand for affordable fashion in hypermarkets.

The demand of Australia clothing market is driven by clothing stores that cater to a wide range of consumers, offering variety, high quality, and trendsetting designs. These stores offer collections from casual to high-end fashion, often with personalised shopping experiences. H&M launched a sustainable clothing line in June 2023, featuring eco-friendly fabrics like organic cotton and recycled polyester, aligning with their global commitment to sustainability.

Australia Clothing Market Regional Insights

New South Wales Clothing Market Overview

New South Wales (NSW) has a dynamic clothing market, driven by a demand for both luxury and budget-friendly fashion. The rise of e-commerce has enhanced accessibility and convenience, particularly in urban and regional areas. According to the Australian Bureau of Statistics (ABS), NSW saw a 12% increase in e-commerce clothing sales in 2023, reflecting the state's growing preference for online shopping.

Queensland Clothing Market Trends

As per the Australia clothing industry analysis, Queensland's clothing market is witnessing a shift towards sustainable fashion, with more consumers opting for eco-friendly and ethically produced clothing. E-commerce is expanding quickly, catering to both urban and regional areas. According to the Queensland Government, retail clothing sales in the state grew by 8% in 2023, with e-commerce playing a key role.

Western Australia Clothing Market Dynamics

Western Australia is expected to grow at a CAGR of 4.4% from 2024 to 2032. Western Australia's clothing market is driven by fashion-conscious consumers who prioritise versatile, functional wear, especially for outdoor activities. E-commerce continues to grow, expanding reach across regional areas. The Western Australian government reports a 10% increase in retail clothing sales through e-commerce in 2023, with significant demand from rural and regional regions.

Competitive Landscape

The Australia clothing market key players specialise in the design, production, and supply of high-quality fabrics for various industries, including hospitality, healthcare, corporate, and residential sectors. These companies are renowned for their broad selection of commercial and upholstery fabrics, prioritising durability, style, and innovation. They are also dedicated to sustainability, ensuring many of their products are eco-friendly and made using environmentally responsible methods. Furthermore, they are known for offering bespoke solutions to meet specific client requirements, working closely with interior designers, architects, and fabric wholesalers to deliver high-performance textiles for diverse applications, both within Australia and globally.

Key Industry Players

Bruck Textiles: Established in 1972 and headquartered in Melbourne, Australia, is a leading manufacturer of textiles for various industries, including fashion, homewares, and hospitality. The company is known for its high-quality fabric production and commitment to innovation, offering a wide range of textile solutions for diverse applications.

Sphinx Australia Pty Ltd: Founded in 1986 and based in Melbourne, is a renowned Australian manufacturer and supplier of premium textiles. Specialising in home furnishings and commercial interiors, Sphinx offers a wide range of high-quality fabrics, combining contemporary designs with durable materials for both residential and business environments.

KJ Production House: Established in 2015 and located in Sydney, Australia, is a creative production agency specialising in apparel manufacturing. The company focuses on producing high-quality fashion garments, offering end-to-end services from design to final product, catering to emerging fashion brands and established retailers.

DRM: Founded in 2001 and headquartered in Sydney, is an Australian textile company specialising in custom fabric solutions. The company provides a broad range of textile products, from fashion fabrics to technical materials, and is known for its innovation in textile design and commitment to sustainable production practices.

Other key players in the Australia clothing market report are Visionise Pty Ltd., Thread Group and LP Garments, among others.

Recent Developments

January 2024

Witchery unveiled its "Timeless Essentials" collection for women, featuring elegant designs suitable for both work and casual wear. The range includes versatile blouses, skirts, and trousers made from sustainable fabrics such as organic cotton. This launch targets fashion-conscious women looking for stylish and eco-friendly choices.

April 2023

Saba introduced its new women's spring/summer collection, blending modern cuts with vibrant colours and sustainable materials. The line includes dresses, blazers, and separates, designed for both professional and social events. Saba’s focus on chic, versatile pieces appeals to contemporary Australian women seeking style and comfort.