Ethnic Wear Market: The Significance of Custom Tailoring in Modern Apparel

The global ethnic wear market was valued at USD 77.6 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 6.3% from 2021 to 2028. The rising popularity of ethnic clothing from various cultures is largely attributed to globalization and the blending of traditions through international travel and migration. The COVID-19 pandemic had an unprecedented global impact, affecting virtually every industry. Among the hardest hit was the textile and apparel sector, due to travel restrictions, lockdowns, and shifts in consumer behavior. Retail sales declined significantly, while changes in shopping habits altered not only product volumes but also types and distribution methods. These transformations have not only disrupted operations in the short term but are expected to reshape production models and value chains in the medium and long term.

Key factors propelling market growth include increasing fashion consciousness, urbanization, and evolving consumer lifestyles across all age groups. The diverse cultural and religious backgrounds worldwide give rise to a variety of celebrations, which, in turn, drive demand for ethnic apparel for both personal use and gifting. Brands often introduce new styles aligned with these festive periods, further fueling growth in this segment.

Ethnic clothing is recognized for its elegance, vibrancy, and cultural richness, often featuring distinctive colors, patterns, and designs. The fashion industry continues to expand its reach via e-commerce, allowing ethnic wear to gain global traction. For instance, Indian ethnic wear, known for its traditional grandeur and contemporary comfort, has gained significant popularity in international markets by blending Eastern aesthetics with Western practicality.

Convenience, comfort, and style have been pivotal in the rise of modern, organized ethnic wear formats. Organized retailers offer ready-to-wear collections that appeal particularly to younger demographics. Another major growth driver is the rise in female participation in the workforce. According to data from The Global Economy, Nepal’s female labor force participation was 55.7% in 2019, up from 51.2% in 2012. Similarly, India’s rate rose slightly from 20.2% in 2018 to 20.3% in 2019.

Get a preview of the latest developments in the Global Ethnic Wear Market! Download your FREE sample PDF today and explore key data and trends

Regional Insights
Asia Pacific led the global ethnic wear market in 2020, accounting for a 60.7% share in terms of value. The region is expected to continue expanding at a CAGR of 6.5% through 2028. India, in particular, remains a key market within the region, showing strong dominance and future potential.

The growth of e-commerce has significantly contributed to the rise of ethnic wear, especially in India. Digital platforms have empowered local brands to compete globally, enabling them to access international consumers. As a result, traditional Indian garments like embroidered sarees, kaftans, tunics, and kurtis have gained popularity on global online marketplaces.

In North America, the ethnic wear market held a notable share in 2020 and is projected to grow at a CAGR of 5.1% during the forecast period. A major contributor to this growth is the increasing population of American Indians. According to the U.S. Census Bureau, the American Indian and Alaska Native population rose from 5.2 million in 2010 to 9.7 million in 2020—an 86.5% increase.

Key Market Players: