India's Apparel Consumption: Maharashtra leads with Delhi in second place

13 January 2025, Mumbai

India's apparel retail sector is experiencing robust growth, with rising disposable incomes, rapid urbanization, and a burgeoning e-commerce landscape. But which states are leading this charge? While comprehensive, up-to-the-minute data can be challenging to obtain, here is an analysis of the key trends and identify the frontrunners.

What’s driving consumption?

There are several catalysts leading to apparel consumption across states. First states with higher per capita income and faster economic growth generally show greater apparel spending. Also urban areas tend to have higher fashion consciousness and greater access to organized retail, contributing to higher apparel consumption. A younger population and a growing middle class are demand drivers for fashion. And growing e-commerce has made fashion accessible to even remote areas, boosting apparel consumption in states with high internet penetration.

Leading states in apparel consumption

Based on available data and industry reports, the following states are among the leaders in apparel consumption.

Maharashtra: Home to Mumbai, India's financial capital, Maharashtra boasts a of high concentration of affluent consumers and a thriving fashion industry. The state's strong economic growth and urbanization further contribute to its high apparel consumption.

Delhi: As the national capital and a major metro, Delhi has a diverse population with varying fashion preferences. The presence of numerous shopping malls and a growing e-commerce market ensures high apparel consumption.

Karnataka: With Bengaluru as a major IT hub, Karnataka attracts a young and affluent workforce with significant disposable income. The state's cosmopolitan culture and rising fashion awareness drive apparel consumption.

Tamil Nadu: A major textile manufacturing hub, Tamil Nadu has a strong tradition of apparel consumption. The state's growing urbanization and rising middle class further contribute to its position as a leading consumer of apparel.

Gujarat: Gujarat's robust economic growth and entrepreneurial spirit translate into higher disposable incomes and increased spending on apparel. The state's growing urbanization and exposure to global fashion trends also contribute to its high apparel consumption.

While precise state-wise data on apparel consumption is limited, industry reports suggest that these leading states are experiencing impressive growth rates. For instance, a report by Centrum estimates the organized apparel retail market in India is expected to grow at a CAGR of 13-15 per cent over the next five years, with these states likely to be at the forefront of this growth.

Table: Estimated apparel market growth rates (FY23-FY27)

Source: Centrum Research Report

Table: Current apparel consumption

Growth challenges

Despite impressive growth, the Indian apparel market faces challenges such as counterfeiting, sustainability concerns, and supply chain disruptions. However, the industry is adapting through initiatives like promoting sustainable fashion, strengthening supply chains, and embracing technology.

The future of apparel consumption remains bright with favorable demographics, rising incomes, and increasing fashion consciousness. As the market continues to evolve, it will be interesting to see how the consumption patterns across different states change and which states emerge as the new leaders.

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