Cashmere Clothing Market

Market Overview

The global cashmere clothing market was valued at USD 2,616.69 million in 2023 and is projected to reach USD 3,637.12 million by 2032, registering a CAGR of 4.2% during the forecast period (2024-2032). The increase in disposable income and the ensuing spending by consumers on high-end clothing, such as cashmere items, are important factors influencing product demand.

Clothes made from cashmere fabric, a lovely and silky material derived from cashmere goats' undercoats, are called cashmere clothing. Excellent-end fashion goods like sweaters, jackets, pants, and t-shirts are often made from cashmere, widely associated with luxury and excellent quality. Because cashmere is known for being warm, soft, and durable, high-end fashion designers regularly use the material to create intricate and sophisticated clothing. In addition to being worn in formal situations, cashmere clothing is also accessible in various styles and price points to cater to a wide range of customer preferences.

Around the world, cashmere apparel has become very popular and is now often associated with elegance, comfort, and luxury. Customers' growing desire for premium, natural fabrics has constantly increased the demand for cashmere clothing. Celebrity endorsements and fashion trends often influence the market for a product.

Key Highlights

• Sweaters and coats generate the highest revenue share based on product.
• Women generate the highest revenue share based on end-users.
• Offline generates the highest revenue share based on distribution channels.

Market Dynamics

Global Cashmere Clothing Market Drivers

Rising Number of HNWIs

The predicted growth of the cashmere clothing market over the forecast period is expected to be driven by the increasing number of high-net-worth individuals (HNWIs) and brand-loyal customers worldwide and according to a survey published by Wealth-X, the global population of high-net-worth individuals (HNWIs) reached an unprecedented 22.1 million in the year 2020. The World Wealth Report (WWR) by Capgemini indicates that the global population of High Net Worth Individuals (HNWIs) experienced a growth of 7.8% in 2021, accompanied by an 8% increase in their wealth. This growth may be attributed to the recovery of economies, further bolstered by the stock market's performance. A survey conducted by McKinsey and Company revealed that high-net-worth individuals (HNWIs) highly value personalized experiences and customized offers. 77% of HNWIs strongly desire products and services tailored to their needs and preferences.

Additionally, cashmere clothing is renowned for its supple and featherweight characteristics, making it an essential fabric for discerning high-end buyers seeking distinctive and opulent cashmere products. Cashmere clothing is costly because of the time, effort, and specialized knowledge needed for production. The increasing belief among consumers that luxury clothing enhances social acceptance is fueling the demand for these products. Moreover, most consumers who buy luxury items comprise 63% of millennials and 60% of Gen Zers. These individuals possess the financial means and the desire to invest in prestigious companies. Therefore, the rise in disposable income and the growing expenditure on high-end clothing, such as cashmere, are significant factors that contribute to the expanding demand for this product.

Growing Popularity of E-commerce as a Selling Channel

E-commerce retail channels are crucial in distributing cashmere apparel as they generate significant market revenue. E-commerce platforms allow users to conveniently access a wide range of products without physically visiting brick-and-mortar stores. A substantial surge in e-commerce retail sales is anticipated shortly, driven by expanding consumer spending, population growth, and enhanced Internet accessibility. The global value of online retail sales in 2021 was USD 5.2 trillion and is projected to grow by 56%, reaching around USD 8.1 trillion by 2026. By 2023, the number of digital buyers is projected to reach 2.64 billion, representing approximately 33.3% of the world's population. This indicates that 33% of individuals have a preference for internet shopping. The number of internet shoppers has been steadily rising since its inception. In 2023, the number of digital buyers increased by 80 million compared to 2022, representing a year-over-year growth rate of 3.1%.

Furthermore, the expansion of e-commerce is facilitated by the advancement of mobile shopping apps and the availability of secure and user-friendly payment systems. The typical American customer dedicates approximately 5 hours daily to using their cell phone. A significant portion of that time is devoted to using applications. Online consumers in eight prominent markets, such as the US, Indonesia, and Brazil, dedicate more than five hours every day only to using mobile applications. The global aggregate of time spent on shopping applications in 2021 amounted to 100 billion hours.  Mobile commerce in the United States generated USD 431 billion in 2022.

By 2024, mobile commerce will generate USD 4.5 trillion in sales or almost 70% of the retail e-commerce market. Therefore, customers have demonstrated a heightened inclination toward e-commerce platforms for acquiring a wide range of everyday products due to the advantages of flexibility, convenience, and cost savings online shopping offers. These factors contribute to the expansion of the market.

Global Cashmere Clothing Market Restraints

Ethical Concerns

Numerous international organizations, particularly People for the Ethical Treatment of Animals (PETA), an American animal rights organization, have been actively working to combat animal abuse in the sector. The cashmere apparel business is facing a threat due to ethical concerns. Furthermore, many cashmere goats are specifically bred to produce cashmere wool, as approximately five to six goats are required to make a single sweater. Cashmere manufacture does not cause direct harm to goats. Nevertheless, during shearing, many goats succumb to cold stress due to being sheared during the winter season.

Moreover, as goats' capacity to produce cashmere wool diminishes or when they fail to produce wool of a specific standard, they are frequently sold to the meat sector. This has prompted manufacturers to transition from unsustainable luxury garment products to sustainable or eco-friendly production processes. In short, the decrease in profit margins may arise due to ethical considerations over utilizing animal-derived components in manufacturing cashmere clothing.

Global Cashmere Clothing Market Opportunity

Sustainable Clothing Production

The cashmere garments industry is anticipated to capitalize on profitable prospects in the sustainable sector. Sustainable clothing production is a famous strategy market participants use to remain competitive, supported by an increasing consumer base of conscientious individuals who care about animal rights and sustainable production methods. As ethical fashion becomes more mainstream, sustainable and ethically manufactured cashmere firms are predicted to take advantage of more considerable commercial prospects in the foreseeable future.

Moreover, emphasizing technological advancement in the manufacturing and development of cashmere is a highly profitable prospect for expanding the industry. With the rapid advancement of technologies in the garment industry, new designs, and business models are anticipated to emerge soon. Regarding this matter, digital printing will likely become the predominant method for cashmere in the future. ITMA 2023 exhibited the most recent advancements in scan-type printers, with a particular emphasis on sustainability.

Additionally, the event highlighted efforts to optimize the printing process to enhance quality and minimize the use of colorants, chemicals, and time. The rapid velocity of single-pass printers results in the inability to accomplish around 20 percent of designs, especially those prints that necessitate more saturation and larger solid print areas. Scanners are more cost-effective and need less physical space, allowing multiple units to be placed on the manufacturing floor for printing with different colorants on various substrates. Scanning technologies provide manufacturing flexibility and redundancy, which is crucial for print-on-demand environments. These environments require quick turnarounds for ultra-short-run printing on many materials and products. Integrating digital apparel printers with fragmented practices in the production process and supply chain can significantly reduce the cost of apparel goods and printed fashion for the end customer.

Regional Analysis

The global cashmere clothing market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global cashmere clothing market shareholder and is estimated to grow at a CAGR of 5.2% over the forecast period. The growing regional apparel and textile market is expected to drive market growth. The Asia-Pacific region houses some of the biggest apparel markets in the world, including China, India, and Japan. Regarding international trade, China is the largest apparel exporter in the world, with Bangladesh and Vietnam making it in the top five. International trade figures further emphasize China's current position as the world's largest textile-exporting country. In 2022, China accounted for over 43.6 percent of the world's textile exports, followed by the European Union and India.  In March 2024, approximately three billion meters of clothing fabric were produced in China. The average monthly production of textiles was around 2.72 billion meters in the past year.

Europe is expected to exhibit a CAGR of 3.9% over the forecast period. Numerous regional apparel manufacturers have been driving the demand for cashmere clothing. Europe houses some of the world's most renowned apparel companies and has a well-performing apparel sector. The rising tendency of consumers of all age groups to spend on comfortable luxury clothing drives the demand for knitwear, jackets, and cardigans. In addition, countries such as Italy and Scotland are among the region's prominent contributors to the cashmere clothing market. For instance, Loro Piana, an Italian-based fabric and clothing brand, specializes in high-end luxury cashmere and offers customized luxury apparel with a minimalist aesthetic, a neutral color palette, and wearable designs that are rapidly gaining popularity. Such factors indicate the immense potential of the cashmere clothing market in the foreseeable future.

In Asia-Pacific, the booming textile and apparel market in nations such as Japan, China, India, and Indonesia has positively impacted the cashmere clothing market. The rising disposable earnings of the middle class have pushed the number of first-time buyers of cashmere apparel in the region. Many consumers choose these products owing to their high quality and comfort. Cashmere's premium and luxury connotations also appeal to affluent customers or those looking to make a fashion statement. In addition, the expansion of regional and international players is a significant driver of market growth. For instance, according to a report by Reatil.com, close to 300 global fashion brands are likely to open stores in India by the end of 2021.

Segmental Analysis

The global cashmere clothing market is bifurcated into product, end-user, and distribution channels.

Based on the product, the market is bifurcated into sweaters and coats, pants and trousers, tees and polos, and others.

The sweaters and coats segment dominated the market and is expected to exhibit a CAGR of 3.7% over the forecast period. The surge in popularity of cashmere sweaters and coats can be ascribed to the growing interest of millennial consumers and apparel companies in comfortable and high-quality fabric that is also reasonably priced. Several prestigious manufacturers have been providing cashmere sweaters and jackets at a reasonable price, which aids in attracting a large number of consumers. 

The pants and Trousers segment is the fastest growing. Cashmere pants and trousers significantly drive the expansion of the worldwide cashmere clothing industry by providing luxury, coziness, and adaptability. As fashion trends progress, there is a growing need for superior-quality garments and delicate textures. The impression of cashmere as a high-quality material enhances its attractiveness among wealthier buyers. Furthermore, the worldwide integration of fashion and the increasing adoption of ecological and ethical methods contribute to the growth of the cashmere pants and trousers market.

Based on end-users, the market is bifurcated into Men and Women.

The women segment owns the highest market share and is predicted to exhibit a CAGR of 3.9% over the forecast period. Women's cashmere sweaters and cardigans cater to consumers and buyers seeking sophistication, comfort, and fashion in knitted garments. Women commonly favor several cashmere sweaters and knitwear styles, including crew necks, V-necks, turtlenecks, hoodies, boat necks, and short sleeves. Cashmere clothing producers provide a range of options with varying thicknesses, known as knitwear gauge, to assist buyers in selecting garments suitable for each season. Regarding material composition, the women's category is famous for featuring items made of 100% cashmere, blends of 70% cashmere, 30% silk, and 70% merino and 30% cashmere.

The men's segment is the fastest growing. Men's apparel, which encompasses cashmere sweaters, coats, and suits, significantly influences the expansion of the worldwide cashmere clothing industry. With the growing emphasis on fashion and luxury among males, there is a rising demand for high-quality cashmere clothing. Fashion trends, globalization, and the perception of cashmere as a luxury material drive the expansion of the market. Additionally, the emphasis on sustainability and ethical production processes strengthens the attractiveness of cashmere clothes for men, promoting market expansion.

The market is divided into Offline and Online Channels based on distribution channels. 

The offline segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.7% over the forecast period. Manufacturers utilize offline distribution channels to attract clients and shoppers and establish authentic brand communities. In recent years, there have been several advancements in the offline distribution industry, with several digitally native firms, such as NAADAM, a clothing manufacturer based in the United States, venturing into or testing physical retail. Cashmere clothing is mainly distributed through specialty and department stores in offline retail. UNIQLO CO. LTD., a prominent Japanese clothing shop, has emerged as a leading global distributor of cashmere goods. The retailer provides an extensive range of cashmere apparel for both men and women. 

The online channel segment is the fastest growing. The digital environment enables the promotion and recognition of brands, as well as the implementation of marketing strategies and the generation of sales, which in turn leads to the expansion of the market. In addition, internet platforms facilitate direct sales to consumers, cultivating connections between companies and customers while encouraging openness and confidence, thus stimulating market expansion.

Recent Developments

• May 2024 - ZEGNA brought the new "VILLA ZEGNA" experience to Shanghai. Inspired by the original house founder Ermenegildo Zegna, located in Oasi Zegna, the 100km2 natural territory in Piedmont, Northern Italy, "VILLA ZEGNA" allows guests to embark on a multi-sensory exploration of the world of ZEGNA.
• January 2024 - Tory Burch and Humberto Leon collaborated on a new Tory Burch concept store in Los Angeles. The boutique's façade and interior feature the work of German photographer Walter Schels, whose animal portraits appear in Tory's Resort 2024 collection. A large-scale game of cat and mouse unfolds along Melrose Avenue, with Schels's portrait of a mouse repeating on the outside walls and a cat, mid-meow, filling the interior space.