Summary

The global ethnic wear market has witnessed significant growth and transformation in recent years, driven by a combination of cultural influences, changing consumer preferences, and globalization. Ethnic wear encompasses a diverse range of traditional clothing that reflects the rich cultural heritage of various regions around the world. With the increasing popularity of cultural festivals, weddings, and other traditional celebrations on a global scale, there has been a growing demand for ethnic wear that goes beyond regional boundaries. This has led to the emergence of a vibrant and dynamic global ethnic wear market, where traditional clothing styles from different cultures are not only preserved but also adapted to contemporary fashion trends. In terms of regulations, apparel manufacturers engaged in ethnic wear must comply with textile-industry standards and trade regulations in key sourcing markets. For example, export of textiles from countries such as India and Bangladesh may involve compliance with labour standards, export licensing, and quotas under free-trade agreements. While not always specific to the “ethnic wear” label, these regulations influence the supply chain. On the policy front, governments in major sourcing geographies are increasingly promoting “Made in (country)” textile manufacturing, artisan-craft revival schemes, subsidies for hand-loom clusters, and sustainable-textile initiatives. New brand has launched a sustainable hand-woven organic cotton textile line in context of the ethnic wear market. Among new launches, brands are also targeting global diasporic demand such as, the D2C brand DesiQlo offers curated Indian-ethnic wear collections to consumers in the North America, Germany and the Middle East, thereby tapping an underserved global segment. According to the research report "Global Ethnic Wear Market Outlook, 2030," published by Bonafide Research, the Global Ethnic Wear market was valued at more than USD 87.34 Billion in 2024, and expected to reach a market size of more than USD 124.93 Billion by 2030 with the CAGR of 6.28% from 2025-2030. Mergers, collaborations and strategic acquisitions are playing a significant role in shaping the growth trajectory of the global ethnic wear market. In Asia- Pacific (India), Aditya Birla Fashion & Retail Ltd. acquired a 51 % stake in TCNS Clothing Co. in 2023 for about INR 1,650 crore, marking one of the largest deals in the ethnic-fashion space. Earlier, ABFRL also entered into a strategic partnership with designer Tarun Tahiliani to launch a men’s ethnic-wear brand, targeting a business of approximately ₹500 crore with 250 stores in five years. These moves reflect intensifying consolidation as larger apparel houses build fuller portfolios across value, premium and luxury tiers. From a raw-material and trade perspective, ethnic wear production depends heavily on textiles such as cotton, silk, hand-loom fabrics, embroidery threads and artisanal embellishments. That makes supply chains sensitive to raw-material cost inflation, artisan-labour availability and trade-policy shifts. Reports indicate that hand-loom and cotton supplies remain fragmented and somewhat inconsistent, posing a restraint on scalability. On the trade front, ethnic wear producers are benefiting from cross-border demand with online platforms enabling exports of ethnic styles to diaspora markets globally, trade flows of garments, accessories and fabrics are expanding. Yet they must contend with export complications like tariff differentials, shipping logistics, customs delays and trade-compliance burdens in different jurisdictions. Market Drivers • Growing Appreciation for Cultural Heritage: Consumers across the globe are increasingly valuing their cultural identity and traditions. Festivals, weddings, and other cultural events drive the demand for traditional ethnic attire. This renewed interest in cultural heritage encourages people to purchase ethnic wear not just as clothing, but as a statement of identity and pride in their roots. • Rise of E-Commerce Influence: the expansion of online shopping platforms has made ethnic wear accessible to a global audience. Consumers from different regions can now explore and buy ethnic garments without geographical limitations. Social media and celebrity endorsements further boost this trend, as fashion influencers showcase ethnic outfits, inspiring wider adoption. Market Challenges • Cultural Appropriation Concerns: as ethnic wear gains international popularity, the misuse or misrepresentation of traditional designs can lead to cultural backlash. Brands must handle ethnic motifs sensitively to respect the culture they represent. Failing to do so can result in reputational damage and decreased consumer trust. • Supply Chain and Cost Constraints: Producing authentic ethnic wear often requires specialized materials and skilled craftsmanship, which can be expensive. Small-scale artisans may struggle to meet high demand or maintain consistent quality, creating challenges in scaling production while preserving authenticity. Market Trends • Ethical Practices: There is a growing consumer demand for ethically produced and eco-friendly ethnic wear. Brands are increasingly adopting sustainable materials, transparent supply chains, and fair trade practices. This trend reflects a broader shift toward responsible consumerism, where buyers consider both environmental impact and ethical standards. • Fusion of Traditional Styles: Modern consumers, especially younger generations, are drawn to ethnic wear that combines traditional elements with contemporary fashion. This fusion creates versatile garments suitable for both cultural events and modern lifestyles, allowing ethnic wear to stay relevant in a fast-evolving fashion market. Traditional wear remains the largest segment in the global ethnic wear market due to its deep cultural significance and the growing consumer preference for heritage-rich garments. Traditional wear continues to dominate the global ethnic wear market, holding the largest share due to its profound cultural significance and enduring popularity. Garments such as sarees, salwar kameez, kurtas, lehengas, and sherwanis are not merely pieces of clothing but are deeply intertwined with cultural identity and heritage. These garments are predominantly worn during significant life events like weddings, religious ceremonies, and festivals, occasions where cultural expressions are paramount. The demand for traditional wear is further amplified by the increasing participation of women in the workforce and the rise of online platforms, which have made ethnic clothing more accessible to a broader audience. This accessibility has led to a surge in consumer interest, particularly during festive seasons and weddings, where traditional attire is often preferred. Brands are responding to this demand by focusing on reviving handloom textiles, intricate embroidery, and sustainable fabric choices, catering to eco-conscious consumers. The traditional wear segment benefits from innovations in fabric blends, digital printing, and AI-powered styling recommendations, which enhance the appeal of ethnic garments to a modern audience. These technological advancements allow for the creation of designs that resonate with contemporary fashion sensibilities while retaining traditional elements. The fusion of traditional craftsmanship with modern techniques has led to the development of garments that are both culturally rich and fashion-forward, appealing to a diverse consumer base. Women constitute the largest and fastest-growing segment in the global ethnic wear market due to their deep cultural affinity and increasing participation in the workforce across various occasions. Ethnic wear for women encompasses a broad spectrum of garments, including sarees, lehengas, salwar kameez, kurtis, and dupattas, catering to a wide range of occasions such as weddings, festivals, and cultural ceremonies. The versatility and rich cultural heritage associated with these garments make them a staple in women's wardrobes. One of the key drivers of this dominance is the deep-rooted cultural affinity women have for traditional attire. In many cultures, wearing ethnic clothing is not just a fashion choice but a way to express cultural identity and heritage. This emotional connection to traditional garments ensures a steady demand, particularly during significant cultural events and festivals. The increasing participation of women in the workforce has contributed to the growth of the ethnic wear market. As more women engage in professional environments, there is a rising demand for ethnic wear that is suitable for both formal and casual settings. Designers and brands have responded by creating ethnic garments that blend traditional elements with contemporary styles, offering versatility for daily wear and special occasions alike. The influence of social media and celebrity endorsements has further amplified the popularity of women's ethnic wear. Platforms like Instagram and Pinterest showcase a plethora of ethnic fashion styles, inspiring women to experiment with different looks and incorporate ethnic garments into their daily attire. Celebrity endorsements and collaborations with designers have also played a pivotal role in making ethnic wear more mainstream and appealing to a younger audience. Offline distribution channels lead the global ethnic wear market due to consumers' preference for in-store shopping where they can experience fabric quality particularly in emerging markets and tier-2 cities. Ethnic wear is often associated with significant life events such as weddings, festivals, and religious ceremonies, where the tactile experience of selecting garments plays a crucial role. Consumers value the ability to touch and feel the fabric, assess the quality of craftsmanship, and try on garments to ensure proper fit and comfort. In emerging markets and tier-2 cities, physical retail stores are particularly influential. These regions exhibit a strong inclination towards traditional shopping experiences, where personal interaction with sales staff and the ability to physically examine products are paramount. The trust built through face-to-face interactions and the immediate gratification of purchasing items in-store contribute significantly to the sustained dominance of offline channels in these areas. The offline retail environment offers personalized services such as tailoring and customization, which are highly valued by consumers seeking ethnic wear. Specialty stores and exclusive brand outlets provide bespoke services that cater to individual preferences, enhancing the overall shopping experience. This level of personalization is often challenging to replicate in online platforms, further solidifying the position of offline channels in the ethnic wear market. The festive and wedding seasons also play a pivotal role in driving foot traffic to physical stores. During these periods, consumers are more inclined to visit stores to purchase ethnic attire for special occasions. Retailers capitalize on this surge in demand by offering exclusive collections, promotions, and in-store events that attract customers. The seasonal nature of ethnic wear purchases ensures a consistent flow of customers to offline stores, reinforcing their dominance in the market. Asia-Pacific is the largest and fastest-growing region in the global ethnic wear market due to its rich cultural heritage and the growing influence of digital platforms in promoting traditional fashion. The Asia-Pacific region boasts a large and youthful population, which plays a crucial role in the market's growth. A significant proportion of the population is under the age of 35, a demographic that is increasingly fashion-conscious and open to blending traditional styles with contemporary trends. This fusion of modern and traditional elements has led to the emergence of fusion wear, which appeals to younger consumers seeking to express their cultural identity while staying fashionable. The growing fashion consciousness among the youth has spurred demand for ethnic wear that aligns with global fashion trends, thereby expanding the market's reach. The rising disposable incomes in countries like India and China have enabled consumers to spend more on ethnic clothing, particularly during festive seasons and weddings, which are significant events in many Asian cultures. This increased purchasing power has led to a surge in demand for high-quality ethnic garments, further propelling market growth. The growing influence of digital platforms has played a pivotal role in promoting ethnic wear in the Asia-Pacific region. E-commerce platforms and social media have made traditional attire more accessible to a broader audience, including those in remote areas. Online platforms allow consumers to explore a wide variety of ethnic garments from different regions, facilitating cross-cultural exchanges and increasing the visibility of traditional clothing. Social media influencers and celebrities showcasing ethnic wear have also contributed to its popularity, especially among younger consumers who are active on these platforms. • January 2025: D2C ethnic wear brand House of Chikankari raised ₹4 crore in seed funding to scale up operations, enhance its online presence, and increase its offerings of hand-crafted, traditional chikankari garments. • May 2024: ethnic wear brand Libas secured ₹150 crore in funding from investors, with plans to utilize the capital for expanding its retail presence and accelerating growth through both physical and online channels. • September 2023: ethnic wear brand Soch reported surpassing the ₹400 crore revenue milestone for FY 2022-2023, showcasing robust growth in the Indian ethnic wear market through its wide array of offerings and customer base. • May 2023: ABFRL (Aditya Birla Fashion & Retail) announced its decision to acquire a controlling stake in TCNS Clothing, the owner of ethnic wear brand W, to strengthen its position in the ethnic wear segment. • January 2023: G.O.A.T Brand Labs, a direct-to-consumer (D2C) brand incubator, acquired the ethnic apparel brand Imara, aiming to expand its portfolio of fashion brands and cater to the growing demand for ethnic wear in the digital space.