To discover how much is the streetwear industry worth or try to estimate the worth of the global streetwear industry, we explore growth trends, major players and subcategories within this booming market.
The Culture and Fashion Phenomenon: Streetwear
What Is Streetwear?
Streetwear is a fashion style that originated from the urban youth culture in the late 1970s and early 1980s. It is a mix of casual, comfortable, and stylish clothing inspired by skateboarding, hip-hop, punk rock, and other subcultures.
The term “streetwear” refers to clothing that is not necessarily designed for sports or athletic activities but is more appropriate for everyday wear. It can range from simple T-shirts and hoodies to more elaborate items such as sneakers, jackets, and accessories.
Streetwear has developed into a global phenomenon over the past few decades, with its distinctive style influencing the fashion industry. Brands such as Supreme, Stussy, BAPE (A Bathing Ape), Off-White, Palace Skateboards have become synonymous with streetwear culture worldwide.
A Brief History of Streetwear
The origins of streetwear can be traced back to California’s surf culture in the 1960s when surfers started wearing Vans sneakers with their board shorts outside of beaches. Soon after that came the skateboarding scene in the 1970s where skaters wore loose-fitting jeans paired with graphic tees or oversized sweatshirts. As hip-hop music became popular during the 1980s era breakdancers started wearing tracksuits.
In Japan during the 1990s street fashion gained popularity , Harajuku became an epicenter of street style fashion trends inspired by American Hip-Hop Culture and this gave way to Japanese brands like BAPE (A Bathing Ape) who took inspiration from both Japanese Anime cartoons as well as American pop culture.. Over time streetwear evolved into a cultural phenomenon driven by independent brands launching their own unique lines or collaborations with major label brands creating demand for limited drops.
The Importance of Knowing the Worth of the Streetwear Industry
The streetwear industry is worth billions of dollars and continues to grow each year. According to Statista, in 2020, the global streetwear market was valued at 185 billion USD and is expected to reach 242 billion USD by 2024.
With social media platforms such as Instagram, TikTok, and YouTube influencing fashion trends, it’s no surprise that streetwear has gained popularity among celebrities and influencers worldwide. Understanding the value of this industry can help investors make informed financial decisions when investing in clothing brands or collaborating with independent designers.
The worth of streetwear can also shed light on its impact on popular culture as a whole. By understanding its worth we can see if Streetwear is just a passing trend or here to stay as a cultural phenomenon.
Overview of the Streetwear Industry
How much is the streetwear industry worth and it’s Current state with growth trends
The streetwear industry has been growing at a remarkable pace in recent years. According to a report by Business Insider, the global streetwear market was worth around $309 billion in 2020 and is expected to reach $485 billion by 2025.
This represents a compound annual growth rate (CAGR) of approximately 9.4% over the forecast period. One of the main reasons for this rapid growth is the increasing popularity of streetwear among young consumers.
Streetwear has become more than just clothing, it’s a lifestyle for many young people who want to express their individuality through fashion. This trend has been driven by social media influencers who have helped to make streetwear more mainstream.
Major players in the industry
The streetwear market is dominated by a handful of major players that have established themselves as go-to brands for consumers looking for high-quality, stylish products. Some of these major players include Supreme, Nike, Adidas, Off-White, and Palace Skateboards.
Supreme is one of the most well-known brands in the streetwear industry and has been around since 1994. The brand’s unique approach to marketing and collaborations with other companies have helped it build a loyal following among consumers.
Nike and Adidas are also major players in the industry with their own lines of sneakers and apparel that cater specifically to the growing demand for street-style fashion. Both companies have invested heavily in marketing campaigns targeting younger audiences on social media platforms like Instagram and Snapchat.
Key factors driving growth in the industry
There are several key factors driving growth in the streetwear industry today including: 1) Popularity among celebrities and influencers: Many celebrities like Kanye West, Pharrell Williams, Rihanna, Drake etc., have launched their own streetwear lines, which has helped to make the industry more mainstream.
2) Collaborations with other companies/brands: Streetwear brands have collaborated with other companies and brands ranging from high-end fashion houses like Louis Vuitton to fast-food chains like McDonald’s. These collaborations have helped to create unique products that appeal to a wider range of consumers.
3) Online shopping: As more consumers turn to online shopping, streetwear brands have established themselves as leaders in e-commerce. Consumers can easily find and purchase their favorite streetwear products online, which has helped drive growth in the industry.
Market Size and Value
Global Market Size and Value
The global streetwear industry has become a lucrative market, with its value estimated to be worth around $185 billion in 2019. This industry is projected to continue growing at a steady rate of approximately 5% per year by 2026, reaching a value of over $300 billion. Factors such as the increasing popularity of streetwear among younger generations, the growth of e-commerce, and the expansion of urban fashion culture worldwide have all contributed to this growth.
Revenue Generated by Region/Country
The United States is currently the largest market for streetwear in terms of revenue generated, accounting for almost one-third of global sales. Europe follows closely behind, with countries such as Germany, France, and Italy contributing significantly to the overall revenue generated in the region. Asia Pacific is also rapidly growing, with China being one of the largest markets within this region.
Streetwear brands have been successful in targeting specific demographics across different regions and countries. For example, luxury streetwear brands like Off-White have been successful in appealing to both North American and Asian markets through their collaborations with popular celebrities and influencers from those regions.
Market Segmentation by Product Type, Distribution Channel, and Demographics
The streetwear industry can be segmented into various product types such as clothing (t-shirts, hoodies), footwear (sneakers), accessories (hats, bags), and more recently face masks. The sneaker subcategory represents one of the most valuable categories within streetwear due to its high demand from consumers around the globe.
Streetwear brands are also sold through various distribution channels such as brick-and-mortar stores or online platforms like Grailed or StockX. E-commerce has played a significant role in driving growth within this industry due to its accessibility for consumers worldwide.
In terms of demographics, the streetwear industry is primarily targeted towards younger generations such as millennials and Gen Z. Brands have been successful in tapping into this demographic through their social media presence and by collaborating with popular influencers who appeal to these audiences. However, some streetwear brands have also begun to shift their focus towards older generations by introducing more mature designs and collaborations with established designers such as Louis Vuitton x Supreme.
Subcategories within Streetwear
Streetwear is a multi-billion dollar industry, and there are several subcategories in this sector. The two most valuable subcategories are Sneakers and Clothing. These categories have seen tremendous growth in recent years, driven by the popularity of streetwear among celebrities, athletes and influencers.
Sneakers: The Most Valuable Subcategory within Streetwear
Sneakers have become a staple of streetwear fashion and culture. The demand for limited edition sneakers has skyrocketed in recent years, resulting in long lines outside stores for sneaker releases, high resale prices on online marketplaces like StockX and Grailed.
Some of the most popular sneaker brands in streetwear include Nike, Adidas, Jordan Brand, and Yeezy. Nike is the largest player in the global sneaker market with a 37% market share as of 2021.
Its Air Jordans line has consistently been one of the best-selling sneakers on the market since its first release in 1985. Adidas is another major contender with its Yeezy line launched by Kanye West which has gained immense popularity among sneakerheads.
Collaborations between sneaker brands and fashion designers or other companies have had a significant impact on sneaker sales. For example, Nike’s collaboration with Off-White designer Virgil Abloh resulted in highly coveted sneakers that sold out instantly upon release.
Clothing: The Second Most Valuable Subcategory within Streetwear
Streetwear clothing brands often feature bold designs and graphics that appeal to younger consumers who want to express their individuality through fashion. Some of the most popular clothing brands within streetwear include Supreme, Palace Skateboards, Stüssy, BAPE (A Bathing Ape). Supreme is one of the most recognizable names among streetwear enthusiasts worldwide following collaborations with luxury brand Louis Vuitton and iconic sportswear brand Nike.
Palace Skateboards, founded in London in 2009, has become a global phenomenon with its minimalist designs and skate culture-inspired clothing. Stüssy is another brand that has been around since the early days of streetwear, known for its surf-inspired clothing and graphics.
In terms of trends driving sales within clothing subcategories, oversized fits and bold color schemes have become increasingly popular among consumers. Many streetwear brands have also incorporated sustainability into their production processes, making use of recycled materials or focusing on ethical labor practices.
Sneakers and clothing are the two most valuable subcategories within the streetwear industry. The demand for limited edition releases by popular brands results in long lines outside stores for sneaker releases and high resale prices on online marketplaces like StockX and Grailed.
Popular clothing brands such as Supreme, Palace Skateboards, Stüssy have driven growth in this sector with minimalistic designs inspired by skate culture or surf lifestyle graphics. The popularity of sustainable fashion is also paving the way for future growth opportunities in this sector.
Factors Driving Growth in Streetwear Industry
Popularity among Celebrities, Influencers, and Athletes
Over the last decade, the streetwear industry has become a staple in popular culture. Celebrities, influencers, and athletes have embraced streetwear as a way to showcase personal style and make a statement.
The trend started with hip-hop artists like Run-DMC wearing Adidas tracksuits in the 80s, but it has since evolved to include everyone from A-list actors to professional athletes. This popularity among high-profile individuals has been a major factor in driving growth for the industry.
When celebrities or influencers are seen wearing a particular brand or piece of clothing, it often creates buzz and generates interest from fans and followers. This can lead to increased sales for that particular brand or item.
Examples of Celebrities who have Launched their Own Streetwear
Not only are celebrities sporting streetwear brands, but they are also creating their own lines. Some notable examples include Kanye West’s Yeezy line with Adidas and Rihanna’s Fenty x Puma collaboration. These lines not only generate revenue for the celebrity behind them but also contribute to the overall growth of the industry.
Athletes have also gotten into the streetwear game with collaborations like Michael Jordan’s Air Jordan line with Nike. These collaborations often sell out quickly due to both their limited availability and connection to a high-profile individual.
Conclusion
While there are many factors contributing to the growth of the streetwear industry such as social media marketing and nostalgia trends, it is undeniable that celebrity influence has played a significant role. As long as celebrities continue to embrace streetwear as part of their personal style and create their own lines within the industry, we can expect this trend to continue driving growth for years to come.
