Baby Apparel Market Size

Baby Apparel Market Size

Baby Apparel Market size was valued at USD 45 Billion in 2023 and is anticipated to register a CAGR of 4.7% between 2024 to 2032 driven by the rising birth rates and increasing disposable income.

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According to The World Count, around 140 million babies are born every year across the globe. That’s more than four births every second of every day. More than half of all births take place in Asia with 25 million births in India and 16 million births in China alone every year. As per the State of Babies Yearbook 2023, the United States is home to 11,034,857 babies, representing 3.3 percent of the nation’s population.
 

As many as 38.9 percent live in households with incomes less than twice the federal poverty line (in 2021, about $55,000 for a family of four), placing them at economic disadvantage. According to Eurostat, the statistical office of the EU, more than 4 million babies have been born in the European Union every year in the last three decades. 
 

Additionally, with an increasing number of women entering the workforce, there has been a rise in dual-income households, resulting in higher disposable incomes. This has led to an increase in the purchasing power of parents, allowing them to spend more on their children's clothing. In 2024, China surpasses USA and Japan in expenses of raising a child. On average, parents spend $74,800 on a child until age 17, which is 6.3 times China's GDP per capita.
 

According to a US Department of Agriculture report, the average middle-income family spends between $12,000 and $14,000 on child-related expenses each year. In June 2023, the cost of clothes in the UK had risen by an average of 7.2% in the year since June 2022. This rise affects parents as children need new clothes and shoes regularly as they grow out of them so rapidly.
 

With the increasing demand for eco-friendly and organic materials, manufacturers are faced with higher costs of sourcing and producing these materials. This ultimately leads to higher prices for the end consumer, making it difficult for some families to afford quality baby clothing. Babies and toddlers come in all shapes and sizes, and it can be challenging for manufacturers to cater to the diverse range of body types. This often results in a lack of options for parents, especially for those with larger or smaller babies.
 

Furthermore, the market is highly competitive, this leads to intense pressure on manufacturers to constantly innovate and come up with new designs to stand out from the competition. This not only adds to the production costs but also makes it difficult for smaller businesses to compete with established brands.