Sustainable Athleisure Market

Market Overview

The global sustainable athleisure market size was valued at USD 90.62 billion in 2022. It is estimated to reach USD 134.67 billion by 2031, growing at a CAGR of 4.5% during the forecast period (2023–2031). The expansion of the e-commerce market and increasing corporate wellness initiatives stimulate market growth.

Eco-friendly and environmentally friendly sportswear is referred to as sustainable athleisure. Utilizing recycled materials, these garments are produced with consideration for environmental sustainability, flexibility, and long-term wear. The clothing is manufactured without hazardous chemicals and is constructed from recycled synthetic, organic cotton, and green materials. They include using organically produced plants to obtain natural colors and biodegradable cassava starch, among other things. To deal with perspiration, guarantee the correct fitting and comfort levels that athletic businesses offer, and deal with sweating, high-grade materials are employed while creating sustainable athleisure gear. Activewear brands are not only in style, but their utilization has increased due to new releases, and customers generally regard them as a component of fashionable clothes.

Since it blends comfort, style, and usefulness, sustainable athleisure is one of the major trends in the fashion business. It combines urban fashion, sportswear, and culture. A growing understanding of the value of fitness over the past few years has led to increased involvement in sports and leisure activities. Wellness and fitness activities, as well as cozy fashion attire, are becoming more popular among consumers. Additionally, businesses and organizations are beginning to adopt comfortable casual attire like sweatpants. Additionally, the rise in fitness centers and recreation areas encourages staff to wear athleisure apparel.

Market Dynamics

Global Sustainable Athleisure Market Drivers

Expansion of the E-Commerce Market

Distributing sustainable athleisure products relies heavily on e-commerce retail channels because they generate a significant percentage of the market's revenue. Thanks to Internet sales platforms, consumers no longer need to visit retail establishments to browse through millions of products physically. According to the fashion search engine, more than 100 million queries for products with ethical and trendy standards, including terms like sustainable clothes, were done on the Lyst shopping website in 2018.

Due to rising consumer spending, a growing population, and more people having access to the Internet, e-commerce retail sales are predicted to experience significant growth in the upcoming years. Additionally, the development of mobile shopping applications and the accessibility of secure and practical payment methods are fostering the expansion of the online retail sector. Fashion blogs and social media platforms like Pinterest and Instagram greatly impact fashion trends. They are anticipated to affect the market for sustainable athleisure favorably. 

Increasing Corporate Wellness Initiatives

In recent years, corporate fitness has become a mainstay in many organizations. People who are physically healthy and active are more productive at work and perform better overall for the company. Many American businesses that offer exercise and wellness programs to their employees save close to USD 3.27 for every dollar invested in a corporate wellness program, according to a study done by Harvard Business School in 2019. Another recent employee performance analysis found that introducing fitness and wellness programs in numerous firms significantly increased staff productivity and reduced stress levels.

Many well-known corporations, such as Google, Apple, and LinkedIn, promote well-being and provide on-site wellness services for their staff. Several organizations also arrange on-site personal trainers, teachers, and group exercise courses for workers interested in achieving their health objectives. One of the main factors influencing customer demand for athleisure clothing is incorporating fitness activities and exercise sessions at work.

Global Sustainable Athleisure Market Restraint

Presence of Counterfeit Products

The athleisure market's expansion is predicted to be hampered by the increased presence of fake goods in the fashion sector. Clothes wrongly promoted and sold at a significantly lower price are known as counterfeit, fake, or first copies. Famous companies like Adidas and Nike, which provide eco-friendly activewear and sports equipment, have seen a significant presence of knockoff goods on the market. Through the gray market, which includes unlicensed suppliers and distributors that sell branded goods, counterfeit clothing is more widely distributed in Asian countries, notably in China, Indonesia, and India. Without the consent of the originating firm, these items are legitimately supplied outside the official distribution channel. According to the U.S. Government Accountability Office, over 70% of the fake goods sold in the United States come from China or Hong Kong. The market's expansion throughout the forecast period will probably be constrained by how easily counterfeit goods are accessible.

Global Sustainable Athleisure Market Opportunities

Increasing Demand and Industry Growth

The need for fair trade and ethical labor methods, natural and recycled textiles, and local, limited, and conscientious production among garment manufacturers will increase the market for sustainable athleisure. This aligns with the expanding demand for environmentally friendly products in other industries. Customers worldwide seek clothing that can be worn during the day and effortlessly transition from daywear to nightwear. Regarding commercial opportunities for design innovation, athletic wear that can be worn at the workplace, in a restaurant, at the gym, and at fitness studios is appealing.

A good potential to create cutting-edge goods exists for sustainable athleisure producers thanks to the rising popularity of sports and physical activity. Parents worldwide are trying to keep their kids active in sports and fitness because of the numerous health hazards linked with obesity and the need to foster confidence and guarantee general health and wellness. Plans have been created and implemented nationally and internationally to promote and support physical activity in response to the rising incidence of obesity. The growing interest in sports and sustainable development among educational institutions is also expected to provide sustainable athleisure producers a chance to market their goods to a larger target market.

Regional Analysis

North America Dominates the Global Market

Based on region, the global sustainable athleisure market is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.

North America is the most significant global sustainable athleisure market shareholder and is estimated to grow at a CAGR of 5.59% over the forecast period. More than half of all sales are made in North America. The region's expanding clothing and textile industry is anticipated to fuel market expansion. The National Council of Textile Organization estimates that the value of industry shipments in 2018 placed the U.S. textile and apparel market at USD 70 billion. When investing in ethical apparel, sustainable textiles, and recycled materials made using low-impact processes like organic cotton, the United States is one of the most significant countries in North America. Such elements will significantly affect the North American market throughout the projected period. The market segment is driven by the rising demand for fashionable and cozy sportswear and the expansion of outdoor recreation activities like camping and sporting events in the area.

Europe is anticipated to exhibit a CAGR of 4.5% over the forecast period. Europe is home to some of the most well-known garment firms in the world, as well as a thriving market for sustainable clothing. The European Union (EU), which imported 23.1% of all textile and clothing imports worldwide in 2018, is the world's largest textile and apparel importer, according to the World Trade Organization (WTO). These elements highlight the market's enormous potential for sustainable athleisure in Europe shortly. The region's sustainable apparel market has recently transformed significantly thanks to millennials. These days, millennials are more aware of the environment and their surroundings, and they are prepared to spend a higher price on clothing that is made ethically.

The Asia-Pacific market is expected to surge in demand during the forecast period. Booming textile industries in nations like China, India, Japan, Indonesia, Vietnam, and Bangladesh have made athleisure clothing readily available, which has increased athleisure clothing's uptake in the area. Athleisure clothing is becoming more popular in the region due to the increased focus on work-life balance being placed on it by local businesses and government organizations. The athleisure trend is gaining momentum as local customers become more interested in sports fashion, and businesses in the sector are concentrating on meeting changing consumer needs. Women's growing desire for fashionable and cozy clothing drives the Asia Pacific sustainable athleisure market. Increasing regional public events, outdoor exhibits, and concerts fuel this development. Major factors influencing the market growth include a growing emphasis on health and fitness, growing consumer awareness of sustainable products, rising disposable income, and expanding foreign competitors.

In LAMEA, the sustainable athleisure business in the area is still in its infancy. Still, it has enormous development potential due to the significant number of young, affluent consumers drawn to sports participation as a rising leisure activity and status symbol. Most people in the area have low per capita incomes due to the popularity of athleisure clothing among customers, thanks to e-commerce behemoths like Amazon and eBay. Athleisure clothing sales are also increasing due to features like a simple replacement, cash on delivery, and same-day shipping.

Segmental Analysis

The global sustainable athleisure market is bifurcated into products, types, genders, and distribution channels.

Based on products, the global market is bifurcated into shirts, yoga pants, leggings, shorts, and others.

The shirt segment dominates the global market and is projected to exhibit a CAGR of 4.3% over the forecast period. Since athleisure shirts combine comfort and fashion, their demand is rising. Introducing new products by top companies has aided the segment's growth. For instance, in December 2019, the Mumbai, India-based sustainable company Filemot unveiled their distinctive men's shirt from recycled materials. The shirt is offered in a variety of eye-catching and vibrant designs. The segment's growth has been aided by the introduction of new goods by leading players in the market.

Based on type, the global market is bifurcated into mass and premium segments. 

The mass segment owns the global market and is predicted to exhibit a CAGR of 4.1% over the forecast period. Due to multiple product releases by local and regional competitors, the athleisure clothing industry is expanding steadily among the public. Athleisure clothing's moderate price points and millennials' propensity for sustainability are favorable for the segment's growth. Athleisure apparel meets the needs of consumers who seek practical and stylish clothing. Workwear is one of the undiscovered markets in athleisure that sustainable manufacturers are targeting. Several brands and businesses have paired modern workplaces and eco-friendly athleisure. For instance, the sustainable athleisure company Lululemon, with headquarters in Canada, sells clothing for men and women under the "Office, Travel, Commute" brand.

Manufacturers frequently work with environmental groups and inventors to achieve the most efficient and environmentally friendly production process. Sustainable athleisure is now more widely available to the public thanks to the growth of the internet market, where customers can access a wide variety of goods from all over the nation and the globe.

Based on gender, the Global Market is segmented into men and women. 

The men’s segment dominates the global market and is predicted to exhibit a CAGR of 4.4% during the forecast period. This market has been driven by the increased use of comfort clothing among men who engage in outdoor physical activity. Consumers choose athleisure apparel because of its enhanced performance and flexibility. Athleisure has evolved into a lifestyle over the past few years. Many manufacturers have begun releasing athleisure gear in the sustainable market to meet this expanding demand and achieve momentum among customers. For instance, Coalatree, a sustainable outdoor apparel and gear company with headquarters in Utah, collected more than USD 400,000 on Kickstarter with the help of its ground-breaking Trailhead Adventure Pant for men. These shrewdly constructed, incredibly durable outdoor trousers provide comfort and can be worn to work. They are constructed from a unique waterproof technical fabric with new improvements and strengthened seams.

Consumers are frequently significantly influenced by celebrity endorsements, marketing, and campaigns conducted by well-known individuals. In addition, online engagement efforts, influencer programs, and social media marketing can affect customer purchasing decisions and shopping habits. Leading companies like Nike and Adidas have marked their online presence to attract customers. Regarding this, the introduction of upscale e-commerce platforms is anticipated to operate as a growth driver for the men's sustainable athleisure market soon.

Based on distribution channels, the Global  Market is divided into offline and online channels. 

The offline segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.4% over the forecast period. Customers prefer sustainable activewear from brick-and-mortar retailers because they can get high-quality items in various styles, colors, sizes, and materials. This is the main driver of the offline market. In addition, many retailers concentrate on niche segments of the activewear market and prioritize high levels of client satisfaction. In addition, several shops provide expert advice to assist consumers in selecting the right items and offer personalized gear best suited to various customers. For instance, the 20,000-square-foot flagship Lululemon store in Chicago offers more than just retail space; it also has various workout studios and a café serving breakfast bowls, smoothies, and other items. These stores are often found in the city's core and draw much foot traffic. Usually, customers go to these stores on weekends and holidays to buy casual clothes, including athleisure clothing. Such brand initiatives are only achievable in offline stores, greatly accelerating the segment's growth.

Recent Developments

• May 2023- The new athleisure and essential wear company "Good Indian" was founded by entrepreneurs Rushad Wadia and Avneesh Gadgil. The new brand sells its products through its online store.
• November 2022- Pangaia, a materials science brand, collaborates with Evo on a bio-based activewear line to identify breakthrough materials that enhance biodiversity, eliminate petrochemical products, and support a good climate future.