Today, geopolitical tensions, disruption in the Strait of Hormuz, challenging macroeconomic conditions, climate change and persistent uncertainty continue to cloud the outlook. Apparel and footwear is particularly exposed: its sourcing base remains concentrated in Asia and heavily reliant on imports, while consumers are reassessing discretionary spending and adopting more value-conscious, selective shopping habits.
Global growth remains subdued
Global apparel and footwear sales are expected to grow by 5% in current prices and year-on-year US dollar exchange rates in 2026, equivalent to just 0.1% growth in constant terms. The outlook to 2031 is similarly cautious.
Global apparel and footwear sales have a projected value CAGR over 2026-2031 of 3.2% in current prices - or 0.7% in constant terms - and volume CAGR of only 1% between 2026 and 2031.
Source: Euromonitor International
In this environment, companies will need to win market share and identify new geographic growth pockets. Prospects are uneven: Asia Pacific is forecast to contribute 33% of absolute global growth to 2031, while Latin America and Australasia should remain dynamic. North America and EMEA are expected to grow more slowly but will continue to make important value contributions.
Consumers and categories offer targeted opportunities
Brands and retailers must tailor their strategies to increasingly discerning consumer groups. Gen Z is a priority across mature and emerging markets, prompting investment in engaging physical concepts that appeal to digitally savvy, experience-led shoppers.
Sportswear continues to outperform the wider industry. It is expected to grow by 6.6% in current prices in 2026, equivalent to 1.7% in constant terms, followed by a projected CAGR of 4.2% in current prices and 1.7% in constant prices. Growth is supported by demographic trends in Asia Pacific and Latin America, sports leisure dress codes, high-profile collaborations and consumers’ willingness to invest in health and technical products - from running and tennis to padel, football and Hyrox.
Experiences and generative AI reshape retail
E-commerce continues to outperform other channels and is approaching 34% of total apparel and footwear sales in 2026. Online growth is pressuring department stores and specialist retailers, although high-end destinations that attract international shoppers are following a more resilient path.
Sports goods stores are also expanding across regions. Leading chains are combining product innovation with expertise and experiences - including gait analysis, bike servicing and community events - to increase footfall and build loyalty.
Generative AI will further change how people shop. As AI systems increasingly mediate search, comparison and recommendations, product data will become a critical visibility mechanism. Brands will need to structure pricing, product and availability information so AI agents can accurately surface and process it.
Global rankings reveal increasing polarisation
Nike remains the world’s leading apparel and footwear company and the largest sportswear player, although its share continues to erode. Sales are stabilising following changes to wholesale distribution and continued investment in key markets and sponsorships. adidas Group remains second, supported by localised strategies, product launches and athlete programmes.
Anta Sports ranks eighth and is among the most dynamic top-10 companies. Faster growth is also coming from outside the top 10, including Amer Sports, Authentic Brands Group, New Balance, On and Asics, as performance-led premium sportswear and acquisitive groups gain momentum.
Beyond sportswear, Inditex ranks third in global apparel and footwear, benefitting from Oysho, Bershka and Lefties expansion, while Zara continues to premiumise. Fast Retailing rises to fourth, supported by perceptions of Japanese quality and designer collaborations. Competition is intensifying at the value end, where H&M is refining its proposition against rivals ranging from Vinted to Mango while Primark announced the launch of home delivery services in response to Lefties’ entry into the UK market. Shein falls from fourth to fifth largest apparel and footwear player after reporting flat global growth, as tariff changes, ESG scrutiny and competition from Temu, Amazon Haul, off-price retailers and resale platforms weigh on its performance.
Further insight is available in Chinese Brands in Latin America and the on-demand Euromonitor and Bloomberg webinar on global sportswear.