India Kids Apparel Market Outlook to 2028

India Kids Apparel Market Outlook to 2028

• The India Kids Apparel market is valued at USD 22 billion as per our historic 5 year analysis, it is driven by factors such as urbanization, rising disposable incomes, and a shift towards branded and high-quality apparel. The growing influence of online retail platforms and the rising awareness of fashion among the younger demographic are pivotal in the market's expansion. E-commerce platforms like Amazon, Flipkart, and Myntra play a significant role in driving sales, especially in tier II and III cities where the access to traditional retail stores is limited.

• India's major cities such as Delhi, Mumbai, Bengaluru, and Hyderabad dominate the Kids Apparel market due to their significant urban populations and high purchasing power. The rapid growth of organized retail and branded apparel stores in these cities, coupled with the increasing trend of fashion-conscious parents, fuels demand.
• In 2023, India updated its requirements for azo dyes in imported apparel and textile products. The import of textiles and textile articles is permitted only if they do not contain hazardous dyes, which includes products for children. The import consignments must be accompanied by a pre-shipment certificate (PSC) from a textile testing laboratory accredited to the National Accreditation Agency (NAA) of the country of origin.

India Kids Apparel Market Segmentation

• By Product : The India Kids Apparel market is segmented by product type into t-shirts, shirts, bottoms, ethnic wear, dresses, and others. The t-shirts segment holds a dominant market share in India. This dominance is attributed to the casual and comfortable nature of t-shirts, which makes them a staple in children's wardrobes. The rise of international and local brands offering trendy designs at competitive prices has further fueled this segment's growth. T-shirts are a versatile clothing item, making them ideal for all seasons, contributing to their significant market presence.

• By Season : The market is also segmented by season into summer wear, winter wear, and all-season wear. The summer wear segment is dominating the market share due to the hot and tropical climate in many parts of India. Summer apparel, which includes lighter clothing like t-shirts, shorts, and dresses, accounts for a significant portion of the market. This is further fueled by the growing preference for comfortable, breathable fabrics during the hot months, alongside the expansion of fast fashion brands offering seasonal collections at affordable prices.

India Kids Apparel Market Competitive Landscape

The India Kids Apparel market is dominated by a few key players, including both established local companies and international brands. These companies have leveraged strong distribution networks, extensive product portfolios, and effective marketing strategies to consolidate their market presence. Major players in the market include Gini & Jony Ltd., Aditya Birla Fashion and Retail Ltd., Benetton India Pvt. Ltd., Arvind Fashion Pvt. Ltd., and Indian Clothing League Pvt. Ltd. These players continue to innovate in terms of product offerings and expand their retail presence both online and offline.

India Kids Apparel Industry Analysis

Growth Drivers

• Demand for Sustainable Clothing : A rising awareness of sustainability has driven demand for eco-friendly kids clothing. In India 80% of parents are willing to pay more for eco-friendly products, as environmental concerns grow, demand for organic cotton and recycled material-based apparel is expected to continue growing.
• Growth of Organized Retail Chains: The growth of organized retail chains like Kidology and FirstCry has significantly improved the accessibility of high-quality kids' apparel across India. These retailers offer a wide range of products, from casual wear to formal and ethnic attire, catering to evolving consumer preferences. Their expansion into smaller cities is also driving increased demand for diverse childrens fashion options.
• Influence of Social Media and Fashion Trends : Social media is a driving force in influencing consumer behaviour in India. With 886 million active internet users and 485 million social media users in 2024, the digital shift significantly impacts children's fashion. Brands are increasingly focusing on online platforms to connect with parents, especially those who follow global fashion trends and online influencers for kids clothing.

Challenges

• Price Sensitivity Among Consumers : While India's middle class continues to grow, a significant portion of the population remains price-sensitive. Indian households which still live below the middle-income bracket, are cautious about spending on non-essential items. The majority of purchases in kids apparel are highly price-sensitive, especially in rural areas.
• Supply Chain and Logistics Challenges : India's logistics costs are among the highest globally, accounting for 13-14% of GDP, compared to the global average of 8-9%.Several apparel businesses in India have reported challenges related to delayed shipments and high logistics costs, which affects their ability to meet consumer demand, especially in smaller cities.

Future Outlook

Over the next few years, the India Kids Apparel market is expected to continue its robust growth, driven by factors such as the increasing disposable income of the middle class, the growing preference for branded clothing, and the expansion of e-commerce. In addition, the demand for sustainable and eco-friendly apparel is gaining momentum, especially among urban and environmentally-conscious families. As the trend for fashionable and comfortable kids' clothing continues, market players will likely increase their offerings in these categories to cater to the evolving consumer preferences.

Opportunities

• Sustainable and Ethical Clothing : Sustainability is increasingly becoming a priority for Indian consumers. A survey showed that 89% of parents prefer eco-friendly materials for their childrens apparel. With rising concerns about climate change and sustainability, brands offering organic cotton, recycled fibers, and cruelty-free manufacturing are gaining traction, positioning themselves for future growth as consumer awareness increases.
• Expansion into Tier II and III Cities : As urbanization accelerates, a growing proportion of India's population in Tier II and III cities is expected to adopt modern consumer habits. In 2024, these regions have accounted for 64% of new store openings, with an increasing focus on childrens apparel due to rising disposable incomes and a demand for branded products. Brands expanding into these areas are likely to tap into a previously underserved market.