Category: Denim Reports

 
USA consumes almost 30% of world denim jeans production. Being such a large market , the figures related to this market are generally of great interest. One such figure is that often surfaces in various news reports  is that of ‘ Per Capita Consumption of Jeans in USA ‘ ie how many jeans does every resident of USA buys on an average in a year..

I have seen that the figures that surface range from 1 Jeans per person p.a to 7 jeans per person p.a .. I thought it would be a good idea if we could arrive at a calculated figure which does away with the ambiguities related to this .

Now, the main point to remember is that almost all of the jeans consumed in US is imported from outside. Premium denim jeans are an exception as they are mostly made in USA. But though premium denim jeans are very important due to their high value, their share of the total volume of jeans consumed in US is quite low. So lets look at the figures below:

 

Imports Of Jeans Into USA in the Year 2008

	2007(million pcs)	2008(million pcs)
Imports of Mens/Boys Jeans	273.94	292.00
Imports of Women’s/Girls Jeans	249.55	269.53
Production In USA (approx.)	20.00	20.00
Total Consumption	523.49	561.53
Population of USA	301 million	304 million
Per Capita Consumption of Jeans in USA	1.80 Jeans	1.91 Jeans

Note: Import figures are sourced from US Customs
 

The figures for production of Jeans in USA are an approximation and taken after considering various reports in this regard, though there are no authentic figures available in this regard. However, the production of jeans is a small percentage of imports and hence a slight variation (+ or –) will not make much difference.

These figures also clearly show that the consumption of denim jeans is on the rise in US as reported in various posts before here  ,  here and many other places. Just search the site and you will find some more reports in this regard.

I have done my best to put up the most updated figures. However, if any viewer finds any better figures , I would be most happy to update them here….:)

 

Update: Check  out our latest 2012 report on the global denim market 

Recently an International Conference on “Steering Mature Business: A Leadership Challenge to Textile Industry”  was held in Ahmedabad (India) – organised by Fibre2Fashion.com.

Amir Akhtar, CEO of Arvind Lifestyle Fabrics , made an interesting presentation ‘Denim Today and Tomorrow’ . Some excerpts from the presentation are given below :

World Denim Market

The world denim market is likely to grow continously for the next few years . However, supply is growing at a faster pace.

•World Jeans Market- 51.6$ Billion in 2007

•Expected to become 56.2$ billion by 2014

•Global demand growing at 5%, supply at 8%

•Global Denim fabric production in 2006- 2.7 billion mtrs.

•Over 50 percent of denim production is based in Asia with China, India, Turkey, Pakistan and Bangladesh.

•Between EU, US and China, 70% of world jeans consumption.

Estimated Share of Jeans Purchase By Region

North America : 39%

Western Europe : 20%

Japan & Korea : 10%

Rest of the world : 31%

No. Of Denim Mills Worldwide

Region	No. Of Denim Mills
Asia(China)	297
Asia(Other countries)	104
North America	9
Europe	41
Latin America	46
Africa	15
Australia	1
Total Denim Mills (World)	513

 

Note: The presentation also mentions the denim capacities in each of this region with a world total of 7.7 billion metres. However, I do not agree with these figures(they are grossly overstated) and hence have not reproduced them here.

Forecasts For Denim Market – 2010

In volume terms:

•the developed world will not grow at all, remaining at 1240 million units  of jeans.

•the rest of the world will grow by 13 per cent to 783 million units.

•In total this means that world volume growth will be 4.8 per cent, delivering 2024 million units.

 

In Value terms:

•Value growth is effectively zero. In the short term the world market will grow by 1.5 per cent in volume and will fall by 3 per cent in value in long term. This is because of :

-continuing downwards price pressure from retailers in USA and Europe,

-elimination of tariff and quota barriers to low cost imports from the developing world

-Overcapacity  Global installed capacity of denim.

 

Denim Market In India

• There are 23 denim mills in India

•600 million mtrs/ Year denim manufacturing capacity ( installed/under installation)

•Approx. 79 % of the jeans sold in India are tagged with a label, the rest by tailors and localized manufacturers.

•The menswear obtains a majority share of the Indian market with around 75 per cent, women’s wear at around 15 per cent and kids wear at around 10 percent. (This is because the Indians are still very conservative with most of the denim wear in women’s segment being worn in the cities )

•Domestic Market sells approx 300 million metres/ annum: Domestic denim market of India is huge and growing . The per capita consumption of jeans in India is, however, only about 0.3 jeans per person p.a.

•Where as export of denim fabrics  is around 170 -180 million metres/ annum.

Indian Domestic Denim Market

Denim Fabric Selling Centre	Sales/Month (In Million Mtrs.)	Sales/Annum (in Million Mtrs.)
Ahmedabad	0.6	7.2
Delhi &Nearby	10	120
Mumbai	6	72
Ulhasnagar	3	36
Kolkatta	2.5	30
Bellari	0.5	6
Indore	0.3	3.6
Others	1	12
Total	23.9	286.8

 

The domestic denim market in India consumes about 300 million mtrs of denim currently and at a  10% CAGR , can reach about 530 million mtrs in 2015.

The Spirit Of Denim Like You Have Never Seen Before.

And , here are some uncoventional product possibilities from Denim to keep you thinking..

 

 

Download the full presentation from this link (about 34mb).

The latest figures of imports of men’s/boy’s denim jeans into US reveal that the imports of Men’s Jeans are down by 3.9%  during the period Jan-July 2009 as compared to the same period in 2008..

Imports of Men’s/Boy’s Denim Jeans –2009 (million pcs)

Particulars	Jan-July 2009	Jan-July 2008	% Change
Men’s Jeans	108.79	113.26	-3.95%
Boy’s Jeans	43.92	36.87	+17.67
Total	152.71	150.13	+1.35%

 

Boy’s jeans , on the other hand, have increased in imports by over 17% !. However, since the actual import size of Boys’ Jeans is small, the net impact of both the categories put together is slightly positive and gives a healthy figure of +1.35% . This augurs well for the coming times if seen with the figures of Imports of Women’s Jeans also – which have shown a 6.3% rise during 2009

What is the reason for a great surge of imports in the Boy’s Jeans ?? No clear explanation seems to be available for this as of now. But it is seen during previous years that Men’s Jeans imports are concentrated more in the last 5 months of the year than the first 7 months. Last year almost 50% of the imports of Men’s Jeans were during the period September – December.. On the other hand, Boys’ Jeans imports seem to be evenly spread out during the year ..