The Fashion Industry in Australia: Key Stats Every Brand Should Know

Australian fashion is characterized by a unique blend of traditional craftsmanship and cutting-edge innovation, helping it carve out a distinct identity on the global stage. The Aussie fashion sector reflects the nation’s cultural diversity, environmental consciousness, and innovative flair. 

With an increasing focus on sustainability, the rise of Indigenous designers, and the adoption of digital technologies, the industry is at an exciting turning point. Both established brands and independent labels are making significant strides, domestically and internationally.  

Australian consumers are prioritizing eco-friendly products, and brands are responding with more sustainable materials and transparent supply chains. This shift is also accompanied by a rise in e-commerce, making technology a crucial component in scaling and sustaining growth. 

This blog provides a concise overview of the Australian fashion industry, highlighting key statistics and insights that are most relevant to brands and stakeholders. 

The Australian fashion industry is growing steadily, driven by changing consumer trends and an increasing focus on sustainability. It is also defined by a vibrant mix of established brands and emerging designers who are innovating with both style and substance. 

• The Australian fashion market was valued at approximately AUD 31.93 billion in 2023. 

• Expected growth at a CAGR of 3%, reaching AUD 41.66 billion by 2032. 

• Womenswear is the largest segment of the clothing market, reflecting a significant portion of overall consumer spending. 

• Key players include Cotton On, Cue, and Rip Curl as well as international brands like H&M and Nike, alongside a growing number of independent labels and sustainable fashion brands. 

• Drivers of growth include sustainable fashion, e-commerce, increasing focus on ethical production, and changing consumer preferences. 

Australian consumers are increasingly seeking products that reflect their values, with a particular emphasis on sustainability, transparency, and ethical production. The modern consumer is informed, socially aware, and eager to support brands that align with their ideals. 

• 46% of apparel sales are projected to come from online channels by 2026, highlighting the importance of a strong digital presence. 

• Social media, especially Instagram and TikTok, significantly influences consumer behavior and trends, shaping preferences and purchase decisions. 

• Consumers are demanding mass customization and personalization, seeking unique, tailored products that cater to their individuality. 

• A growing number of consumers value transparency regarding sourcing, production processes, and the environmental impact of products. 

• There is a shift towards supporting local and small-scale designers who emphasize sustainable and ethical production practices. 

• Younger consumers, in particular, are leading the demand for brands that actively contribute to positive social and environmental change

The fashion and textile industry significantly contributes to Australia’s economy by providing numerous employment opportunities and supporting related sectors. It is a critical employer, offering roles that span from manufacturing and design to retail and digital marketing. 

• Directly employs 489,000 workers, 77% of whom are women, making the industry an essential contributor to female workforce participation. 

• Contributes approximately AUD 27.2 billion to the national economy, including both direct and indirect impacts across multiple sectors. 

• The industry is also a significant supporter of regional economies, with manufacturing hubs providing jobs in areas outside major urban centers. 

• Fashion-related tourism, including events like Australian Fashion Week, contributes additional economic value through travel, accommodation, and event participation. 

• The rise of e-commerce has also created numerous opportunities in logistics, warehousing, and digital services linked to fashion retail. 

E-commerce is playing a crucial role in transforming the Australian fashion industry, allowing brands to connect with consumers more effectively. The rapid growth of online shopping has made the fashion sector more accessible, competitive, and tech-driven. 

• 46% of apparel sales are expected to come from online channels by 2026, emphasizing the importance of digital transformation for brands. 

• Technologies like augmented reality (AR) and virtual try-ons enhance the online shopping experience, bridging the gap between in-store and digital experiences. 

• PLM (Product Lifecycle Management) and DAM (Digital Asset Management) software improve efficiency in production, inventory management, and marketing. 

• Smaller brands are leveraging social media marketing to reach a wider audience without the high costs of traditional advertising. 

• Consumer expectations for fast delivery are reshaping logistics, pushing brands to streamline supply chain operations to meet demands. 

• E-commerce platforms are becoming more integrated with AI-powered recommendation systems to create personalized shopping experiences, enhancing customer satisfaction. 

Sustainability is central to the Australian fashion industry’s growth, driven by consumer demand and evolving regulations. Brands are increasingly adopting practices that minimize environmental impact while ensuring ethical production. 

• Australia disposes of 800,000 tones of textile waste annually, prompting the industry to adopt more sustainable practices to mitigate this issue. 

• Brands like Spell & The Gypsy Collective and Outland Denim are adopting organic fabrics, fair-trade practices, and ethical sourcing to lead the sustainability movement. 

• Government initiatives like the National Clothing Product Stewardship Scheme aim to reduce textile waste and promote circularity, with an emphasis on recycling and reusing materials. 

• Consumers are increasingly willing to pay more for sustainable products, seeing value in environmentally friendly and ethically produced goods. 

• The adoption of circular fashion models is growing, with brands focusing on design strategies that ensure clothes can be reused, repurposed, or recycled. 

• New technologies, such as biodegradable fabrics and zero-waste pattern cutting, are being embraced to minimize the ecological footprint of fashion production. 

Technology has become instrumental in scaling Australian fashion brands and overcoming geographic challenges. It has allowed brands to compete on a global scale while catering to the specific needs of local consumers. 

• Augmented reality (AR) and artificial intelligence (AI) are being used for personalized shopping experiences, allowing consumers to visualize products before purchasing. 

• Platforms like The Iconic have improved access to fashion for both local and international consumers, offering a diverse selection of brands and products. 

• PLM and DAM systems help brands manage product development efficiently, ensuring transparency, reducing waste, and speeding up time-to-market. 

• Events like Afterpay Australian Fashion Week have embraced digital formats, offering live-streamed shows and virtual experiences, making fashion more accessible to a global audience. 

• Wearable technology and smart textiles are gaining popularity, with brands incorporating tech elements into their designs to appeal to modern consumers. 

• AI is also being utilized for demand forecasting and inventory management, helping brands avoid overproduction and reduce waste, contributing to sustainability efforts. 

The Australian fashion industry is at a pivotal moment, driven by sustainability, ethical practices, and technological integration. This shift is resonating with new generations of consumers who value integrity, innovation, and creativity. 

Looking ahead, the industry is poised to embrace even greater technological advancements and sustainable solutions. The rise of Indigenous designers, increased environmental responsibility, and deeper integration of technology are setting the stage for a fashion industry that is dynamic, inclusive, and forward-thinking. 

As brands continue to navigate these challenges, those who innovate while staying true to core values will lead the next chapter of Australian fashion. The future is promising for those who embrace sustainability, equity, and creativity in their designs and business models. 

If you are a fashion business looking to transform your operations and embrace the future of fashion, come meet the WFX team at the Global Sourcing Expo in Melbourne at Booth E-38 from November 19 to 21, 2024.