Premium jeans market to grow at 8 percent globally: Technavio

The premium denim jeans market is forecast to grow at CAGR 8 percent globally as per says a recent Technavio study.The report gives an overview of the present market scenario along with a forecast on the prospect of premium denim jeans during 2016-20. The study further calculated the market size considering the revenue generated from retail sales of premium jeans to individual customers globally. The report also gives an insight into market segmentation as per end customers, various retail formats and geographical segmentation.

The report primarily highlights three key factors that are contributing to the growth of global premium denim jeans market. Recycled jeans from plastic and other materials, rise in demand for stretch jeans and also increasing demand HNWI and a status symbol are the major factors, say Technavio analysts.

Fast fashion brands focus on eco footprint

In a bid to promote sustainable clothing for a better, secure future, conscious manufacturers are striving hard to reduce the use of hazardous chemicals and reduce the greenhouse emission. Elaborating on the effort taken by various brands Brijesh Kumar Choubey, a lead analyst at Technavio for apparel and textile research says, “Sustainable jeans are not only a concept for the developed nations but are also gaining prominence in developing countries, including India and China.”

Simultaneously, one of the most popular fast fashion brand Levi’s , a major supporter of sustainable clothing industry, has introduced a line of denim jeans made of post-consumer waste like recycled plastic bottles and food trays under the ‘Waste>Less’ brand for both men and women. The company has also developed a process of using plastic sourced from brown beer bottles, green soda bottles, clear water bottles, and black food trays for manufacturing its denim material. It is also taking initiatives to reduce water by up to 98 per cent and a significant amount of pesticide use while growing the cotton and economically supports hundreds of thousands of cotton farmers. It has partnered textile technology start-up Evrnu, SPC to create the world’s first jean made of cotton recycled from five discarded cotton T-shirts to make new fiber in the form of a pair of Levi’s 511 jeans.

Customer preference for stretch jeans to stay

The Technavio report also delves on the market size and demand for stretch jeans. It suggests that manufacturers are replacing cotton with synthetic fibers for making denim jeans. Although the cost of product for stretch denim jean is 10-15 per cent higher than non-stretch denim but consumer preference is at its peak. The primary reasons behind growing demand for stretch jeans is that stretch fabric retains the shape and fit can be personalized even after frequent washes. Another benefit is that the apparel maintains its shape without bagging in the knee or other areas, which consumers appreciate. While stretch is being used for women’s wear the trend is also evident in men’s wear.

HNWI driving demand

The growing population of upper middle-class and high net worth individuals (HNWI) is driving the luxury denim market. Technavio says, the Asian countries have exceeded North America as home to the largest HNWI population, with the figure rising to 4.69 million in 2014, an 8.5 percent increase from a year earlier. China and Japan are the two emerging countries in the global market, registering double-digit growth in the HNWI population and ultra-HNWI wealth growth. These countries together accounted for nearly 60 percent of the global HNWI population growth and are fuelling the growth of premium denim jeans market globally.