The global ethnic wear products market is expected to grow at a CAGR of 7.2% during the forecast period from 2021 to 2030. Ethnic wear is a combination of traditional Indian clothing and western clothing, which is gaining traction among consumers due to its stylish and comfortable look. The increasing demand for traditional and ethnic clothing from consumers, along with the growing trend of fusion wear, is expected to drive the growth of the market in the coming years.

The market for ethnic wear has been divided into two broad categories: men’s ethnic wear and women’s ethnic wear. The demand for women’s ethnic wear is expected to remain higher than that of men’s ethnic wear due to the increasing demand for designer ethnic wear and fusion wear from women. Additionally, there is an increasing trend of women wearing ethnic wear as daily workwear.

The demand for designer ethnic wear has been increasing in recent years due to the growing trend of fusion wear. This is due to the increasing preference of consumers for designer ethnic wear, which is stylish and comfortable. The growing trend of the fusion of traditional and modern clothing has been gaining traction among consumers and is expected to drive the growth of the market.

Furthermore, the increasing number of fashion shows and events, as well as the growing influence of celebrities and influencers, is expected to boost the demand for ethnic wear in the coming years. The increasing availability of ethnic wear products online is also expected to drive the growth of the market. Online sales of ethnic wear are expected to remain higher than offline sales due to the increasing availability of a wide variety of ethnic wear products online.

The increasing demand for sustainable fashion is also expected to drive the growth of the market. This is due to the increasing awareness among consumers about the environmental impacts of synthetic fabrics used in traditional western clothing. Hence, consumers are increasingly switching to sustainable fabrics like cotton, linen, rayon, and hemp for their ethnic wear. This is expected to drive the growth of the ethnic wear market in the coming years.

The sarees segment held the largest share in the ethnic wear market in 2019 and is expected to witness the highest CAGR over the forecast period. The growing popularity of sarees among women of all age groups, due to their comfort and style, is a major factor driving the segment’s growth. According to an article published by the Asian Age, in February 2020, the saree market in India is estimated to reach INR 3,00,000 crore by 2021, owing to its popularity among women. Furthermore, the increasing focus of e-commerce players on introducing the latest designs and fabrics is expected to boost the segment’s growth.

The kurta segment is expected to expand at the second-fastest CAGR over the forecast period. Kurta is a traditional yet stylish apparel that is widely popular among men and women of all ages. The rising popularity of ethnic wear among millennials is expected to drive the segment’s growth. In addition, the increasing availability of kurtas in various fabrics, designs, and colorful patterns is likely to fuel the segment’s growth over the forecast period.

The specialty stores segment captured the major share of over 40.9% in 2022. The growth of the segment is mainly driven by the increasing number of ethnic wear specialty stores that offer a wide range of ethnic wear products. These specialty stores have been gaining immense popularity among consumers due to the availability of a wide variety of ethnic wear products, competitive prices, and personalized services. Additionally, the increasing availability of these stores in both rural and urban areas has been one of the major factors driving the growth of the segment.

The e-commerce segment is anticipated to expand at the highest CAGR of 10.7% over the forecast period. The growth of the segment is mainly driven by the increasing penetration of internet services, growing number of online shoppers, and the convenience of shopping from any location. In addition, the presence of several e-commerce websites and mobile applications, such as Myntra, Ajio, and Naturelle, has made it easier for consumers to buy ethnic wear products. Furthermore, the availability of attractive discounts and offers on these websites is expected to drive the segment growth during the forecast period.

The traditional ethnic wear segment accounted for the largest revenue share of 62.1% in the year 2022. Traditional ethnic wear is the most preferred clothing option by individuals across the globe, including the younger generation. The increasing trend of westernization among youth in developing countries such as India, China, and Brazil is driving the demand for traditional ethnic wear. Furthermore, the increasing trend of fusions between traditional and contemporary styles is also boosting the demand for traditional ethnic wear. For instance, in April 2022, W for Woman, an ethnic wear brand in India, launched a new collection of contemporary fusion styles for women. This collection includes Kurtis, salwar suits, and palazzos with modern necklines and sleeve patterns.

The fusion ethnic wear segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The increasing trend of fusions between traditional and contemporary styles is likely to drive the demand for fusion ethnic wear. Also, increasing awareness about fashion and the growing number of fashion bloggers promoting the fusion ethnic wear is further propelling the market. Furthermore, the availability of fusion ethnic wear in various e-commerce platforms is also one of the major factors driving the segment’s growth.

Asia Pacific dominated the market and accounted for the largest revenue share of over 42.2% in 2022. Growing demand for ethnic wear has been driven by factors such as the changing fashion trends, rising disposable income, and rising awareness about the latest fashion trends among consumers. The increasing influence of celebrities and influencers on social media has also been a key factor driving the growth of ethnic wear in the region. In October 2021, Bollywood actor Sonam Kapoor designed a sustainable collection of ethnic wear for the brand Anamika Khanna.

Europe is expected to be the second-largest market in terms of revenue share. Rising demand from consumers for ethnic wear owing to their cultural heritage and affinity toward traditional clothing are expected to drive the market in the region. For instance, in June 2021, the European Union-funded project “Fashion the Future” was launched to promote the production of sustainable fashion with a focus on upcycling. This project is expected to boost demand for ethnic wear in the region.

In this part of the ethnic wear products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your ethnic wear business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for an ethnic wear products business comes from retail sales, wholesale orders, and possibly online sales. Here you will find a list with a description of each of them and other possible sources of profit such as special promotions and discounts, the sale of accessories and complementary products, and leasing the store for events.

Projecting Expenses
In this section, all the regular expenses related to keeping the ethnic wear products business running will be described. The list of operating expenses includes rent, wages, utilities, advertising, raw materials, manufacturing costs, and others.

Some of the major companies operating in the ethnic wear market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In October 2022, Amazon Fashion launched a range of ethnic wear including sarees and salwar suits.

– In April 2022, Myntra launched the ‘Made in India’ collection of ethnic wear including kurtas, lehengas, and sarees.

– In June 2022, Flipkart launched the ‘Aur Dikhao’ collection of ethnic wear for men and women.

Some of the prominent players in the ethnic wear market include:

– Amazon Fashion
– Myntra
– Flipkart
– Jawharlal Nehru
– Fab India
– Shoppers Stop
– Raymond
– Sabyasachi
– Ritu Kumar
– Biba

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global ethnic wear products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Kurtas
– Salwar Suits
– Sarees
– Lehengas
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Department Stores
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Traditional
– Contemporary

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the Market Outlook for Ethnic Wear?
[A]: The global ethnic wear market is expected to grow at a CAGR of 8.5% from 2020 to 2027. Increasing demand for traditional clothing, growing fashion consciousness among consumers, and the expanding e-commerce platform are some of the major factors driving the market growth.

[Q]: Who are the Key Players in the Ethnic Wear Market?
[A]: Key players in the market include Raymond Limited, Arvind Ltd, Bombay Rayon Fashions Ltd, Aditya Birla Fashion and Retail Ltd, Grasim Industries Ltd., Pantaloons Fashion & Retail Ltd., and Reliance Brands Ltd.

[Q]: What are the factors driving the ethnic wear market?
[A]: Factors such as increasing demand for traditional clothing, growing fashion consciousness among consumers, and the expanding e-commerce platform are some of the major factors driving the market growth. Additionally, rising disposable incomes and the growing influence of western fashion are also contributing to market growth.

[Q]: What are the Opportunities for Ethnic Wear Product Manufacturers?
[A]: The increasing demand for traditional clothing has opened up opportunities for product manufacturers to develop innovative designs and fabrics for ethnic wear. Additionally, manufacturers are also focusing on product customization and personalization to meet the changing needs of consumers.

[Q]: What are the Challenges Faced by Ethnic Wear Manufacturers?
[A]: Some of the challenges faced by manufacturers include intense competition, cost pressures, and changing consumer trends. Additionally, manufacturers also face issues related to product quality and availability. As a result, they are focusing on product innovation and cost optimization to stay ahead in the market.