As Gen Z and Gen Alpha become more impactful as consumers, their buying power could drive a major boom for the fast fashion market.
That’s the finding of a new report from research firm Technavio, which shows the fast fashion market is poised to see a compound annual growth rate of 11 percent between 2024 and 2029. That amounts to an increase of $79.2 billion over the next four years, and 53 percent of that growth will originate from North America, with women outpacing men in purchasing.
Unsurprisingly, with haul videos and other shopping content on TikTok and Instagram, Technavio found that social media has and will continue to be a key driver of fast fashion sales. “Instagram, with its large user base and visually-driven content, has emerged as a key platform for fashion brands to connect with consumers,” the report said. “By 2024, over 30 percent of global internet users and approximately 2 billion monthly active users will be on Meta’s Instagram platform.”
Technavio identified a number of companies as key brands in fast fashion growth, including H&M, Boohoo, Forever 21 and Primark, as well as traditional mall stores such as Victoria’s Secret and Gap. The report also noted challenges that could potentially temper that growth, including sustainability concerns. The growing conversation around overconsumption and the environmental impact of fast fashion—both from its production to waste ending up in landfills—could cause some to think twice before purchasing disposable garments.
“The fashion industry’s environmental impact is significant, with landfills filling up with textile waste and global wastewater usage increasing,” the report said. “Fast fashion’s throwaway culture contributes to this issue, with sweatshop working conditions and dumping strategies adding to ethical concerns.”
Another major obstacle the report doesn’t cover is the tariffs imposed by President DonaldTrump on imports from China, Mexico and Canada. While the Canada and Mexico tariffs have been delayed, the additional 10 percent tariff on imports from China, as well as the potential revocation of the de minimis exception, will likely impact many fast fashion brands.
The de minimis exception allows goods valued less than $800 to enter the United States without duties, a provision that allowed China-based fast fashion brands such as Shein and Temu to send low-cost goods to American shoppers. In response, Temu has partnered with third-party logistics companies throughout the U.S. to ship from domestic warehouses. Shein has a supply chain facility in Seattle, but it doesn’t have the same warehouse network in the U.S. that Temu is leveraging.
While tariffs and sustainability concerns will certainly have a considerable impact on the fast fashion sector going forward, Technavio said it believes these brands can maintain growth by catering to the needs of younger consumers.
“Brands must offer personalization and customization, contactless in-store technologies, and exclusive private labels to meet consumer demands,” the report said. “The future of fashion liesin balancing affordability, sustainability, and consumer preferences.”
