Jeans Manufacturing Industry. How to Start a Denim Jeans Factory. Apparel and Clothing Business

Jeans is one garment worn by people of all ages around the world that needs no introduction today. Jeans has today become a type of trouser that is seen in the wardrobe of most men and women across the world. It has a universal appeal and a very youthful and rugged image. Jeans is considered casual wear and worn by men and women outside workplaces. Jeans are preferred by people over other formal trousers as these can be worn without the need for press.

Blue is the color that gives jeans their unique identity though today they are available in many over dyed colors. They are durable and well-insulated to wear comfortably in treacherous weather conditions. Cotton (denim) is the fabric material behind the versatility and comfort of jeans.

Market Outlook

The global denim market was valued at $56,178.1 million in 2017 and is forecasted to witness a CAGR of 5.8% during 2018–2023. Changing Asian retail clothing industry and growing global e-commerce industry buoyed the overall denim market. On the basis of product, the denim market has been categorized into jeans, jackets and shirts, dresses, and others, wherein others include tops and shorts. Of these, the market for jeans is expected to continue holding the largest revenue share, during the forecast period. This is attributed to high demand for distressed and casual-wear globally, especially among the young populace.

The denim segment has always reigned as one of the leading segments in the fashion industry. The blue denim has been a wardrobe staple and a fashion essential for decades. In terms of pricing behaviour, the growth is expected to be the highest in the Premium and Super Premium categories of the denim products with smaller base numbers.

On the basis of segment, the denim market has been categorized into mass market, standard, and premium. Globally, mass market segment held largest revenue share in 2017, as majority of the populace prefer high quality clothes at reasonable price. Customers demand for cost-effective denim wear in addition to comfort is also boosting the market growth. However, with growing westernization, mounting upper middle-class population throughout the globe and rising number of high net worth individuals (HNWI), the demand for premium denim market is expected to witness fastest growth, during the forecast period.

On the basis of consumer type, the denim market has been segmented into men, women, and children. Of these, men category is expected to continue holding the largest market share, during the forecast period, owing to heavy demand for casual-wear and rugged-material clothing by men across the globe. Denim-wear has proved to be the go-to clothing for men, who are widely adopting denim clothing for various purposes, from casual-wear to work-wear and party-wear.

The Denim Jeans are one of the most significant part of the clothing & apparel industry. The Denim jeans are mostly popular among the youths. Increasing demand for denim jeans products is further expected to impact the global market growth of denim jeans positively. There are many benefits of denim such as denim jeans provides you a street style fashion to your lifestyle and adding leather boots make you junky and give you a rough look, denims jeans are indeed very tough and durable material and it is cost effective clothing to wear and stylish at the same time.

The regional analysis of Global Denim Jeans Market is considered for the key regions such as Asia Pacific, North America, Europe, Latin America and Rest of the World. North America has accounted leading 30% share of total generating revenue in 2016 across the globe. Asia-Pacific region is also anticipated to exhibit higher growth rate / CAGR over the forecast period 2018-2025, due to the factors such as surge in digitization within the apparel industry and advancement in new denim knitting technologies.

The denim market in APAC is expected to witness fastest CAGR of over 10%, during 2018–2023. The rising disposable income of people, expanding base of working-class population, availability of ample amount of raw materials and cost-friendly labor resources, as well as increasing government initiatives in countries like India, China, and Vietnam are the key factors contributing to the growth of market in the region.

Indian Denim Market

The market size of Indian Denim Wear was estimated to be Rs 20,205 crore in 2016. The market is now projected to grow at a CAGR of 14.5 per cent and reach Rs 39,651 crore by 2021, and Rs 77,999 crore markets by 2026. The men’s denim segment comprises 84 per cent of the market while the women’s denim segment and kids’ denim segment comprise 10 per cent and 6 per cent respectively.

Denim makes up for a sizable share of India’s total textile exports and it is expected that production may increase to 1.5 billion metres by 2020. Indian denim industry is primarily aiming to increase its share in exports, which currently pegged at 35% of production compared to domestic consumption of remaining 65% of the produce.

The ever-growing denim market in India is on a roll, feel leading jeans manufacturers who credit evolved Indian customers and the influence of global style trends for this change. An organised retail sector, young population, online penetration of denims and increasing popularity of engineered or distressed pieces will continue to fuel the growth of this segment.

Denim

Men’s Denim Segment:Men’s denim enjoy the largest share and are poised to grow at a high CAGR of 14 per cent over the next decade. Until a few years ago, denim was popular with men in the urban cities only, however, it has now gradually become popular in the semi-urban and rural markets also. Growing awareness and an increasing affinity for global fashion have led to this development. Denim is considered the most versatile fabric for men with multiple applications over casual wear, work wear and every day wear.

Women’s Denim Segment:Among Indian women, jeans or denim trousers are the most popular articles. Women across different age brackets and spanning all shapes and sizes like to wear denim as it is comfortable, functional and durable. Denim is also gaining popularity in athleisure form among women owing to the comfort provided by stretch denims.

The Indian Denim wear market is currently dominated by unorganised players. However, with many private labels and international brands entering Indian apparel market, the inclination towards branded denims is increasing among consumers.

Denim industry like any other textile and clothing products is largely fragmented. While the westerners were the major producers of denim in yesteryears, now Asian manufacturers are contributing to about 50 percent of the world denim capacity. Most of the production in Asia is generated primarily in China and India. Some of the capacity expansion is taking place in the countries like Bangladesh, Indonesia, Pakistan and Turkey. There are several thousands of companies targeting specific customer segments for increasing their market shares.

The demand of denim jeans from the Asia-Pacific region is dominated by countries like India and China. The western style of dressing has influenced the dressing style in these countries and is expected to continue influencing resulting in increased growth of denim wear in these countries for the coming years. The most preferred brands of the middle class community in the Asian countries are expected to be the high-end designer labels along with mid-priced well established international brands. Constant increase in the prices of cotton is a matter of concern for the manufacturers and marketers in the denim jeans market. The manufacturers in the industry are increasingly shifting focus on developing strategies to deal with these price hikes.

The denim jeans market is part of the retail industry of India in the apparels & accessories segment, and is thus gaining growth as a result of developments in the retail industry.

The Indian denim industry has shown continual growth over the years and currently the country boasts of a denim manufacturing capacity of around 1.1 billion metres per annum. Its utilization levels are pegged at 80-85%. Despite the impressive statistics, the Indian denim manufacturing industry contributes ~5% to the global scenario, reflecting the overall performance of the textiles industry.

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