20 April 2023, Mumbai
In India, the t-shirt market is estimated to be valued at Rs 23,211 crore and is anticipated to grow at a CAGR of approximately 10 percent over the next decade, reaching Rs 61,954 crore by 2027.
This growth is attributed to the rising usage of custom-designed t-shirts as a branding tool by companies, especially start-ups, to increase their brand visibility and attract prospective customers.
The global custom t-shirt printing market is projected to witness a CAGR of 11.1% from 2023 to 2030, with a valuation of USD 4,314.0 million in 2022.
The Growing Scope of the T-Shirt Industry in India
The Indian urban Tier I-II markets have a combined population of over 400 million people, with a growing middle class driving consumer spending. Currently, men's wear dominates the market, followed by women's wear and kidswear.
However, the women's segment is experiencing faster growth, owing to the lower market size base and increasing acceptance of casual wear among women. The Indian t-shirt market comprises knit shirts, polos, and knit tops, and is primarily targeted toward the youth segment. T-shirts' versatility has contributed to its demand across all age groups.
Exploring the sourcing landscape; the T-shirt manufacturing scenario in India goes like that the key production hubs are leading cities like Tirupur, Ludhiana, and Mumbai, as these centers have a well-oiled eco-system coupled with availability of skilled workforce and favorable business working conditions, and on the back of it India enjoys the position of being one of the top exporters of t-shirts to markets all across the world.
A Thriving Market
The shift in consumer preferences from formal to casual attire has been a driving factor for the t-shirt market in India. The primary drivers of this market are the t-shirt's comfort characteristics, easy-care properties, affordability, easy-design options, and casual look.
The trend of occasion-specific clothing has also contributed to the growth of casual wear. The trend of Friday dressing is another factor propelling the t-shirt market in India.
Furthermore, shrinking boundaries have played a significant role in expanding opportunities in the Indian t-shirt market. The t-shirt market in India offers significant potential for industry players due to its increasing penetration into smaller towns, rural areas, middle-aged consumers, and women.
Exploring the Potential
T-shirts have always been popular among the youth globally. In a young country like India, with a median age of 27 years, this segment offers enormous opportunities for brands and retailers. The Indian youth seek comfort and style in their clothing, which is better met by t-shirts than woven shirts.
According to a March 2018 report by Credence Research, India is set to witness the highest growth rate for t-shirts sale in the Asia-Pacific region over the next five years.
Hope is not a strategy
The early arrival of summer in 2023 could promote sales of summer apparel most interestingly T-shirts/knitwear, triggering an increase in demand and revenue for apparel/garment producers and retailers.
Global view
Over the past 20 years, Tirupur, Known as ‘T-shirt City’ has established itself as a significant knitwear export hub, with operations in the US, Europe, and the Pacific. The Tirupur cluster has developed into a well-connected unit cluster that works together to turn cotton into knitwear items.
T-shirts have consistently been the most popular imported product by US customers, and this tendency has continued in H1 '21. According to OTEXA statistics collected by Apparel Resources, T-shirt imports by the United States increased by 37.97% Y-o-Y to US $ 9.78 billion in the January-June 21 period.
Emerging Market Insights
The t-shirt market in India has significant potential for growth due to several factors, including the shift in consumer preferences towards casual wear, the trend of occasion-specific clothing, the growing popularity of t-shirts as a branding tool, and the increasing penetration of the category into smaller towns, rural areas, middle-aged consumers, and women.
New Paradigm; The apparel and fashion industry has been greatly impacted by the "New Normal." Across the globe, brands are now expanding their work-from-home (WFH) collections and promoting "business casuals" for individuals who attend online meetings.
As a result, online sales have increased, particularly in the sleepwear and loungewear categories.
Comfortwear has experienced a significant surge in demand across genders, with knitted garments selling more than woven ones.
Change is the only constant; No-brainer that cotton remains the fabric of preference for knitted garments like T-shirts as India has a tropical climate, but interestingly blends with polyester, modal and viscose are also getting popularity in recent years.
Pricing power for Indian T-shirts is limited on account of fierce competition, low/no entry barriers, and highly price-sensitive consumers.
Future is here; Against the background of changing consumer and lifestyle landscape Indian T-shirt brands are increasingly adopting specialty performance fabrics like moisture-wicking and quick-dry to cater to the active lifestyle market and the trend is here to stay.
T-shirts, track pants, shorts, and athleisure wear, in general, have become more popular. Many apparel manufacturers in India and Bangladesh have noticed a decrease in demand for high-value-added garments. Despite these changes, these manufacturers are managing to cope with the situation.
