Market Overview:

Executive Summary

The global kidswear market size was projected to be US$ 198.80 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 207.29 billion. During the forecast period, the global market for kidswear market is expected to garner a 6.96 % CAGR and reach a size US$ 395.34 billion by 2034.

The world of children's fashion has seen a surge in popularity with companies introducing stylish clothing that reflects current fashion trends for kids. Children's clothing is primarily crafted from cotton due to its easy maintenance, resistance to shrinking, and ability to retain color. Demographic shifts play a crucial role in shaping the children's clothing industry. The rapid growth of urban areas has resulted in an increase in retail outlets, while the e-commerce industry is experiencing global expansion. Parents in urban areas have a strong inclination to purchase branded products for their children. The global kids apparel market growth may be influenced by factors such as increasing disposable income, media coverage, peer pressure, and growing awareness of kids clothing brands among parents.

In addition, the children's wear market is greatly influenced by the evolving fashion and style choices of parents and caregivers. Parents often seek clothing that aligns with current fashion trends and reflects their personal style, leading to a rise in the popularity of children's clothing. This shift can be attributed to evolving fashion trends, including a preference for unisex clothing and sustainable materials. Trends in children's fashion are disseminated rapidly due to the impact of celebrities, the media, and the prevalence of social media. There is a rising interest in sustainable children's clothing due to the increased awareness of environmental impact. Price is often a key consideration for parents and caregivers when purchasing children's clothing. Children tend to outgrow their clothing fast, making cost-effective options more appealing.

 Retailers are facing challenges in maintaining their profit margins while offering affordable options to customers. Especially in the realm of infant and toddler clothing, companies and retailers face limitations on their ability to set prices due to the market's price sensitivity. Children require various types of clothing, including playwear, school uniforms, and outfits for special events, which exacerbates the issue of price sensitivity. Consumers are increasingly opting for more affordable alternatives such as hand-me-downs and second-hand stores, leading to a decline in business for traditional retailers.

Children's clothing companies and retailers often focus on providing budget-friendly options, running promotions, and offering durable, versatile clothing to ensure customers get the most value for their money. However, these efforts can only go so far in driving market growth. Concerns about the fit and sizing pose a significant challenge in the children's clothing industry. It can be difficult for parents to predict their children's perfect size due to the rapid growth rate in kids. This often results in exchanges and returns, leading to extra costs for both retailers and customers. Parents often find it challenging to determine the correct size for their children's clothes due to how quickly they outgrow them, leading to frequent returns and exchanges. Dealing with inconsistent sizing guidelines across different companies and even within the same brand can be quite challenging.

The issue is exacerbated by the wide age range that children's clothing caters to, from newborns to teenagers, as these various developmental phases come with distinct clothing requirements and sizes. Several factors combine to present an exciting opportunity for the children's clothing industry to incorporate innovative materials.

These materials offer numerous advantages, such as hypoallergenic and high-performance textiles, along with eco-friendly and sustainable fabrics. They provide great value to parents by addressing the increasing demand for environmentally friendly clothing options and offering durable, high-quality solutions that are resistant to wear and tear. Embracing new materials can assist companies in showcasing a sustainable image, differentiating themselves in a competitive market, and attracting consumers seeking modern, diverse, and secure children's clothing. Furthermore, brands have the opportunity to meet sustainability goals and attract a savvy customer base who appreciate the benefits of innovative materials.

Definition

Children's clothing includes items worn by children up to the age of 12. Many children's clothing items are crafted from cotton to reduce the chances of dermatitis in kids. Moreover, safety, comfort, and convenience are key considerations when buying children's shoes and clothing. Children's clothing options range from wetsuits and leggings to pajamas.

 One-piece outfits are highly favoured for their convenience in putting on and taking off. They are categorized into Apparel and Footwear based on the product type. Consumers of kidswear include infants, toddlers, preschoolers, and grade-schoolers. They are accessible through both offline retail stores and online retail stores.

Market Dynamics:

Trend

Rising Disposable Incomes to Propel Growth

Two key factors driving market growth are the rising labor force and disposable income levels. The children's clothing market is experiencing growth due to increasing product customization, innovation, and affordable clothing and footwear options for kids.

During the forecasted timeframe, consumer spending on children's clothing is expected to be influenced by peer pressure and the suitability of products for babies' skin. There is a growing need for the children's clothing business to evolve in order to stay current with changing trends influenced by social media and celebrities among kids and their parents.

Drivers

Growing Demand for Branded Apparel to Fuel Market Progress

There has been a recent surge in the demand for children's clothing, driven by fast-evolving consumer lifestyles and a growing preference for branded apparel. Consumers are constantly open to trying out new products and brands in order to enhance their overall satisfaction with the products they use. This has led clothing brands to make strategic decisions about product pricing. These factors are poised to impact the demand for children's clothing and drive the worldwide market in the coming forecast period. For example, in November 2021, Poppabum, a sustainable premium clothing brand, introduced a distinctively designed and colorful collection of jumpsuits and pinafores for children in the Indian market

Restraints

Volatility in Prices of Raw Materials to Hamper Product Sales

Changes in the cost of raw materials, like cotton, used in making children's clothes, may impede market expansion. Expect ongoing fluctuations in yarn prices due to the rising global demand for cotton.

Ever since the pandemic began, the yarn industry has faced a major challenge with price increases, causing disruptions in the textile value chain and affecting the final prices of apparel products.

Opportunities

E-Commerce Boom

The E-Commerce Boom offers a significant opportunity for the kidswear market, fueled by the ever-changing world of online shopping. The rise of e-commerce platforms has transformed the process through which parents find, explore, and buy children's clothing. Online shopping has become increasingly convenient for parents, allowing them to browse a wide range of options from home and avoid the limitations of visiting physical stores.

This digital transformation not only improves accessibility but also creates a fertile environment for businesses to introduce creative marketing tactics. Online platforms facilitate precise advertising, enabling kidswear brands to connect with particular demographics through customized promotional strategies. Integrating social media enhances brand visibility, establishing a direct link with parents and caregivers.

In addition, the surge in e-commerce enables tailored shopping experiences that meet the unique preferences and requirements of customers. Utilizing cutting-edge algorithms and data analytics enables platforms to provide tailored recommendations, helping parents discover children's clothing that matches their preferences and needs. Options for customization, like size guides, style quizzes, and virtual try-ons, elevate the shopping experience, promoting customer satisfaction and loyalty.

Challenges

Supply Chain Disruptions

The children's clothing market faces significant obstacles due to supply chain disruptions, which have been worsened by various global occurrences. Challenges such as natural disasters, geopolitical tensions, and the ongoing impact of the COVID-19 pandemic can disrupt the production and distribution of children's clothing.

Global events, especially natural disasters like earthquakes, hurricanes, or floods, can disrupt manufacturing facilities and hinder the transportation of goods. Such interruptions may result in production timeline delays, impacting kidswear manufacturers' ability to promptly meet consumer demand. Furthermore, geopolitical tensions and trade uncertainties may lead to disruptions in the supply chain, impacting the sourcing of raw materials and components crucial for kidswear manufacturing.

Disruptions in the supply chain can trigger a chain reaction, resulting in shortages of essential raw materials and components needed for kidswear manufacturing. Challenges related to logistics, such as delays in transportation and rising costs, add to the problem, impacting the cost structure and profitability of businesses specializing in kidswear.

Impact of COVID-19

In 2020, lockdowns and travel restrictions were implemented by governments worldwide to reduce the spread of coronavirus. The market growth was significantly affected by the COVID-19 pandemic. Lockdowns implemented globally led manufacturers to shut down their facilities because of decreased demand for clothing and significant labor shortages. Moreover, lockdowns had a detrimental effect on the sales of children's clothing as specialty stores, fashion stores, and hypermarkets were forced to close. Furthermore, the trade tensions and precautions implemented at the international level among China, Australia, the U.S., and other key trading partners have impacted the short-term sales of consumer goods. Lately, numerous individuals have been working on different approaches to reduce the operational effects of COVID-19 on the markets.

Some effective brand recovery strategies involve expanding product lines, adjusting prices, tailoring marketing efforts, and adopting innovative technologies. The COVID-19 pandemic has opened up profitable business prospects for both local and international companies to capitalize on significant supply chain interruptions. Brick-and-mortar sales suffered, but e-commerce sales stayed strong throughout this challenging period. After the COVID-19 pandemic, DTC services could see advantages from customer relationships.

Segmentation Analysis:

Segmentations

By Product Type

The classification of clothing by product type is a common practice in the fashion industry, allowing retailers and consumers to easily identify and categorize different styles. Three primary product types include formal, casual, and semi-formal attire. Formal clothing typically refers to garments suitable for special occasions such as weddings, parties, or formal gatherings. Casual wear is characterized by comfort and everyday use, suitable for informal settings. Semi-formal attire falls in between, providing a balance of sophistication and relaxed style, often suitable for events that require a polished look without the strict formality of formal wear.       

• Formal
• Casual
• Semi-formal

By Age Group 

Age group segmentation further refines the target audience. Clothing is categorized based on the age range it is designed for, catering to specific developmental and size-related needs. Age groups commonly include 0-12 months, 1-5 years, 5-10 years, and 10-12 years, acknowledging the diverse requirements of children at different stages of growth and maturity.

• 0-12 Months
• 1-5 Years
• 5-10 Years
• 10-12 Years

By Distribution Channel

Distribution channels play a crucial role in the accessibility of clothing to consumers. The two primary channels are offline and online. Offline distribution involves physical retail outlets such as brick-and-mortar stores, department stores, and boutiques. Online distribution, on the other hand, refers to the digital marketplace where consumers can browse and purchase clothing through websites and e-commerce platforms.

The choice of distribution channel often depends on consumer preferences, convenience, and the overall shopping experience desired by the target audience. This diverse classification system allows the fashion industry to effectively organize and market clothing, catering to the varied preferences and needs of consumers.     

• Offline
• Online

By End User   

Another way to categorize clothing is by the end user, with distinctions made between boys and girls. This classification helps tailor designs and styles to the preferences and needs of each gender, ensuring that clothing meets the expectations of both boys and girls in terms of aesthetics and functionality.

• Boys
• Girls

Regional Insights:

Geography Chapter

North America Dominates the Kidswear Market

In 2022, North America stood out as a dominant force in the market, with an impressive 40% share. The strong market presence is a result of various key factors working together to maintain its dominance.

The market landscape was significantly influenced by the United States, especially as working-class parents became more proactive about infant safety and hygiene. Parents are increasingly recognizing the significance of high-quality products, leading to a rise in the popularity of child-focused offerings.

An important driver for market expansion in North America is the increase in dual-income households. With a growing working population, these households are experiencing a boost in purchasing power, making it easier to buy high-quality and creative child safety and hygiene products.

Festivals and events are key drivers of increased product demand in the area. Events such as Halloween, cosplay, and school talent shows lead to an increased demand for products suitable for children. Children's involvement in various programs boosts market demand during festive periods.

Children's participation in cultural and educational programs continues to drive market growth in North America. Children's involvement in various events like Halloween celebrations and school talent shows leads to a rise in the need for safety and hygiene products, as parents strive to safeguard their well-being during these occasions.

Together, these elements contribute to a positive setting for market expansion in North America. This region not only dominates in market share but also presents a vibrant mix of cultural events, parental awareness, and economic factors, positioning it as a crucial factor for the continuous growth of the child safety and hygiene product market.

Expected Expansion in Asia Pacific

With the changing global market landscape, Asia Pacific is set to emerge as a key driver of growth, expected to maintain a substantial Compound Annual Growth Rate (CAGR) of 8.3% over the forecast period. Several important factors highlight the region's potential for continuous market growth.

The rising prevalence of dual-income households in the Asia Pacific region is a key driver fueling market expansion. With the rise in disposable income among families, parents are showing a growing interest in a variety of children's clothing choices. This increase in demand reflects a cultural shift towards emphasizing quality and variety in children's clothing.

The continuous urbanization in the region significantly influences consumer preferences. With the expansion of urban areas and changing lifestyles, parents are becoming increasingly selective when it comes to choosing children's clothing. The city environment provides a range of choices that are easily accessible, leading to an increase in consumer behaviour.

In the Asia Pacific region, India and China are the main forces behind market expansion, together dominating the market share. The increased birth rate in these countries is a significant factor, driven by enhanced childcare services in rural and urban areas. India and China are crucial markets in the region due to their demographic dynamism.

The rise in birth rates in India and China is linked to a proactive strategy to improve childcare facilities. Improvements in healthcare infrastructure have positively impacted birth rates in both rural and urban areas. As a result, the increased demand for children's clothing is fostering a favorable market environment for growth.

Considering these significant factors, the Asia Pacific region is expected to witness strong market growth during the forecast period. With increasing income levels, urbanization trends, and high birth rates, the region is poised to significantly impact the children's clothing market in the future.

Company Landscape  

The kidswear market is a vibrant and dynamic sector, witnessing robust growth and evolving trends. Several key players dominate the landscape, each contributing to the industry's diversity and competitiveness. Among these, multinational giants such as Gap Inc., H&M, and Zara play pivotal roles with their extensive global presence and diverse product offerings. These companies leverage their established supply chains and brand recognition to cater to a wide range of customer preferences and demographics.

Additionally, regional players also play a significant role, providing a more localized and culturally attuned approach to kidswear. Brands like Mini Boden in the UK, Catimini in France, and Gingersnaps in the Philippines exemplify this trend, tailoring their designs to suit specific regional tastes while maintaining international standards of quality. These regional players often capture niche markets with unique styles and cultural relevance, giving them a competitive edge in specific regions.

Recent Market Developments

• October 2022: H&M launched its new collection “Imagine That”, the first independent kidswear range from its innovation stories initiative. The new collection is produced from recycled bottles and a cactus-derived leather alternative
• July 2022: Abercrombie Kids, an Abercrombie & Fitch Co. division, launched its new denim collection 2022 for kids with brand new options for fit and sizing.
• January 2022: Michael Kors, in partnership with Children Worldwide Fashion (CWF) announced the launch of children’s apparel and accessories for boys and girls.

Company Profile

Carter’s, Inc. is the leading marketer in the United States and Canada of apparel and related products designed for babies and young children.  The company possesses the Carter’s and OshKosh B’gosh brands, which are highly recognized in the marketplace.  These brands are available in top department stores, national chains, and specialty retailers both in the US and around the world. 

They are also available for purchase at almost 1,000 Company-operated stores in the United States and Canada, as well as online at www.carters.com, www.oshkosh.com, and www.cartersoshkosh.ca.  Just One You, Precious Firsts, and Genuine Kids brands can be found at Target, while the Child of Mine brand is sold at Walmart, and the Simple Joys brand is offered on Amazon.com.  In addition, the company also possesses Skip Hop, a worldwide lifestyle brand catering to families with young children.  Carter’s is based in Atlanta, Georgia.  If you aspire to work with creative colleagues who provide support and motivation, you can rely on Carter's.

Conclusion

The kidswear market has witnessed significant evolution and growth in recent years, reflecting changing consumer preferences, lifestyle trends, and increased awareness of children's fashion. The market has become increasingly diverse, offering a wide range of clothing options for different age groups, from infants to teenagers. The emphasis on comfort, durability, and functionality has gained prominence, with parents seeking both stylish and practical clothing for their children.

Brands and retailers have recognized the importance of sustainability in the kidswear market, leading to a rise in eco-friendly and ethically produced clothing options. This shift reflects a broader global trend towards more responsible and conscious consumerism. Additionally, technology has played a role in shaping the kidswear market, with online platforms making it easier for parents to access a vast array of choices and make informed purchasing decisions.

Some commercial adaptations in the Kidswear Market:

• In April 2022, Michael Kors introduced a children’s clothing line of sport-chic variants.
• In November 2021, Poppabum, a sustainable premium clothing brand, provided a distinctly designed, vibrant range of pinafores and jumpsuits for children in the Indian market.
• In June 2021, PacSun introduced Pacsun Kids, a new category of kids’ line, on their website and unique pop-up shops. This new category featured a gender-neutral wardrobe choice for kids between the ages of 4 and 14.

Despite economic challenges, the kidswear market remains resilient, driven by the constant need for clothing as children grow and the desire for parents to provide the best for their kids. The market is likely to continue evolving, with innovation in design, materials, and marketing strategies. As society becomes more attuned to the needs and preferences of the younger generation, the kidswear market is positioned for sustained growth and continued adaptation to changing dynamics in fashion and consumer behaviour


Scope of the report:

By Product Type         

• Formal
• Casual
• Semi-formal

By Age Group 

• 0-12 Months
• 1-5 Years
• 5-10 Years
• 10-12 Years

By Distribution Channel         

• Offline
• Online

By End User   

• Boys
• Girls

By Key Players

• Carter’s, Inc.
• The Children's Place, Inc.
• Nike, Inc.
• Gianni Versace S.r.l.
• Industria de Diseño Textil, S.A.
• Hennes & Mauritz AB
• Mothercare plc
• Cotton On Group
• Burberry
• Gerber Childrenswear LLC