Key apparel industry statistics
- US households spent $2,010 on apparel and services in 2025, 2.5% of their budgets, about $277 billion in total.
- That spending rose 14.6% since 2021, less than inflation (18.7%): in real terms Americans buy about 3.5% less clothing than four years ago.
- US clothing and accessories stores sold $218.3 billion in January to September 2026, up 5.3%, faster than retail overall.
- Indian households spend an estimated ₹5.37 lakh crore a year on clothing, bedding and footwear, about 6% of all household spending.
- India has about 89.3 lakh small tailoring and garment businesses, the second-largest small business activity, and 95% of them employ no one but the owner.
These apparel industry statistics cover clothing and fashion in the United States and India: what households spend, store sales, growth after inflation, and the number, size and earnings of India’s small tailoring, garment and textile businesses. All figures come from official sources and link to Advanton Statistics.
Updated November 2026.
20 apparel industry statistics at a glance
Table of Contents
- US households spent $2,010 each on apparel and services in 2025 (BLS).
- That is 2.5% of the average household budget, about $168 a month.
- Across about 138 million households, that is about $277 billion a year.
- Spending rose only 0.4% from 2024 to 2025.
- From 2021 ($1,754) to 2025, it rose 14.6%.
- Prices rose 18.7% over the same period, so real apparel spending fell about 3.5%.
- US clothing and accessories stores sold $218.3 billion in January to September 2026.
- That was 5.3% more than a year earlier, against 4.8% for all retail.
- Clothing stores account for 3.9% of US retail trade sales.
- In September 2026, clothing store sales were $26.5 billion, up 5.0% year on year.
- US department stores sold $30.8 billion, up just 0.9%.
- Urban Indians spend ₹396 a month per person on clothing, bedding and footwear (HCES 2023-24).
- That is 5.7% of urban spending.
- Rural Indians spend ₹273 a month, 6.6% of their spending.
- Indian households spend an estimated ₹5.37 lakh crore a year on clothing, bedding and footwear.
- India has about 89.3 lakh small tailoring and garment businesses (ASUSE 2023-24).
- They employ about 1.11 crore workers.
- 95.1% have no hired workers.
- An urban tailoring business adds about ₹1.57 lakh a year in value, 2.5 times a rural one (₹62,496).
- India also has about 22.2 lakh small textile businesses (weaving, spinning and similar).
US apparel industry statistics
What households spend on clothing
| Year | Apparel and services per household | Change |
|---|---|---|
| 2021 | $1,754 | |
| 2022 | $1,945 | +10.9% |
| 2023 | $2,041 | +4.9% |
| 2024 | $2,001 | −2.0% |
| 2025 | $2,010 | +0.4% |
BLS Consumer Expenditure Survey. Includes clothing, footwear, accessories and apparel services such as dry cleaning and alterations.
Clothing spending jumped after the pandemic, peaked in 2023 and has been flat since. Over four years it grew less than prices, so households are buying fewer clothes in real terms and putting more of their budgets into housing, transport and food.
Clothing store sales
| January to September 2026 vs 2025 | Sales | Change |
|---|---|---|
| Clothing and accessories stores | $218.3 billion | +5.3% |
| Department stores | $30.8 billion | +0.9% |
| Nonstore retailers (online and mail order, all categories) | $1,046.1 billion | +8.0% |
| All retail trade | $5,637.8 billion | +4.8% |
Census Bureau, Advance Monthly Sales for Retail and Food Services, September 2026. Not adjusted for prices.
Specialist clothing stores grew faster than retail overall in 2026, while department stores barely grew. Much clothing is also sold online and through general merchandise stores, which these store figures do not separate.
India apparel industry statistics
What households spend on clothing
| Urban India | Rural India | |
|---|---|---|
| Clothing, bedding and footwear, per person a month | ₹396 | ₹273 |
| Share of all spending | 5.7% | 6.6% |
Rural households spend a larger share of their budgets on clothing than urban households, even though they spend less in rupees. Across India’s population, the category comes to an estimated ₹5.37 lakh crore a year, about 6.2% of all household spending (fashion and apparel market size estimate).
Largest state markets for clothing
| State | Estimated household spending on clothing, bedding and footwear a year |
|---|---|
| Uttar Pradesh | about ₹71,777 crore |
| Maharashtra | about ₹53,027 crore |
| Tamil Nadu | about ₹39,315 crore |
| Bihar | about ₹38,909 crore |
| West Bengal | about ₹32,718 crore |
Advanton estimates from HCES 2023-24 and 2025 population projections. See every state’s clothing spending.
Clothing spending per person by state
Urban clothing spending per person varies widely between states (Advanton estimates, scaling India’s urban clothing share by each state’s measured spending per person):
| State | Urban clothing spending per person a month (estimate) | |
|---|---|---|
| Highest | Sikkim | about ₹788 |
| Chandigarh | about ₹760 | |
| Highest among large states | Telangana | about ₹508 |
| Lowest among large states | Bihar | about ₹288 |
| Lowest | Chhattisgarh | about ₹279 |
Premium and branded clothing has its strongest base in the high-spending states and union territories; value clothing fits the large, lower-spending states, which are also the biggest markets by total spending.
Tailoring, garment and textile businesses
| Measure (ASUSE 2023-24) | Tailoring and garments | Textiles |
|---|---|---|
| Small businesses | about 89.3 lakh | about 22.2 lakh |
| Share in urban areas | 40.0% | 46.0% |
| Workers | about 1.11 crore | about 38.6 lakh |
| Owner-only businesses | 95.1% | 91.6% |
| Value added per business a year, urban | ₹1.57 lakh | ₹2.43 lakh |
| Value added per business a year, rural | ₹62,496 | ₹75,505 |
| Average annual pay per hired worker | about ₹1.28 lakh | about ₹1.37 lakh |
Tailoring and garments is India’s second-largest small business activity after retail, with 12.2% of all small businesses. It is also one of the least capital-intensive and lowest-earning activities: almost all are very small, owner-run units, with about 1.2 workers each. Urban tailoring businesses add 2.5 times the value of rural ones, and urban textile businesses about 3.2 times.
US and India compared
| Measure | United States | India |
|---|---|---|
| Household spending on clothing | $2,010 per household a year (2.5% of spending) | ₹396 (urban) and ₹273 (rural) per person a month (about 6% of spending) |
| Total household spending on clothing | about $277 billion a year | about ₹5.37 lakh crore a year |
| Trend | flat to falling in real terms since 2021 | single survey year (HCES 2023-24) |
| Typical small business | clothing stores and online sellers | owner-run tailoring and garment units |
Clothing takes a much larger share of household budgets in India than in the US, consistent with lower incomes: as incomes rise, essentials such as food and clothing take a smaller share.
Data sources for apparel market research
| Need | Source |
|---|---|
| US household spending on apparel | BLS Consumer Expenditure Survey (Advanton chart) |
| US clothing store sales, monthly | Census Bureau Monthly Retail Trade (Advanton chart) |
| India clothing spending by state | HCES (consumer spending statistics) |
| India tailoring, garment and textile businesses | ASUSE (small business statistics) |
| Garment and textile factories | Annual Survey of Industries (India’s factories) |
Key trends in the apparel industry
- US clothing spending is flat in real terms, squeezed by housing, transport and food costs.
- Specialist clothing stores are outgrowing department stores.
- Online keeps taking share of retail overall, including clothing.
- India’s clothing market is broad-based: rural households spend a larger share of their budgets on clothing than urban ones.
- India’s tailoring sector is huge but small-scale, with very low value added outside cities.
- Premium demand is concentrated: urban residents of high-spending states such as Sikkim, Chandigarh and Telangana spend far more per person on clothing than those in Bihar or Uttar Pradesh, even though the latter are larger markets in total.
Benchmarks for apparel business planning
| Benchmark | Figure | How it is calculated |
|---|---|---|
| US apparel spending per household per month | about $168 | $2,010 ÷ 12 |
| Real change in US apparel spending, 2021 to 2025 | about −3.5% | 14.6% nominal growth vs 18.7% inflation |
| India clothing spending as a share of household spending | about 6.2% | ₹5.37 lakh crore ÷ ₹87.2 lakh crore |
| Urban vs rural value added per Indian tailoring business | about 2.5 times | ₹1.57 lakh ÷ ₹62,496 |
What these statistics mean for apparel businesses
- In the US, growth must come from taking share, not from a growing market: real clothing spending is flat.
- Specialist and online formats are winning over department stores.
- In India, the mass market is large in every state, led by Uttar Pradesh, Maharashtra and Tamil Nadu; rural demand is significant.
- Tailoring businesses grow by moving up the value chain: urban locations, ready-made garments, boutiques and online sales add far more value than home-based tailoring alone.
- Size your market with how to calculate market size or the India Market Report Builder.
Questions about the apparel industry
How much do Americans spend on clothing?
The average US household spent $2,010 on apparel and services in 2025, 2.5% of its budget, about $277 billion in total.
Is the clothing industry growing?
In dollars, modestly: US clothing store sales grew 5.3% in January to September 2026. But household spending on apparel grew less than inflation from 2021 to 2025, so real demand is flat to falling.
How much do Indians spend on clothes?
Urban Indians spend about ₹396 a month per person on clothing, bedding and footwear; rural Indians about ₹273.
How big is India’s clothing market?
Indian households spend an estimated ₹5.37 lakh crore a year on clothing, bedding and footwear.
How many tailors are there in India?
ASUSE 2023-24 counts about 89.3 lakh small tailoring and garment businesses, employing about 1.11 crore workers.
How much does a tailoring business earn in India?
A typical small tailoring business adds about ₹1.57 lakh a year in value in urban areas and ₹62,496 in rural areas.
Do rural Indians spend more on clothes than urban Indians?
Not in rupees (₹273 against ₹396 per person a month), but clothing takes a larger share of rural budgets: 6.6% against 5.7%.
Which Indian state spends the most on clothing?
In total, Uttar Pradesh (about ₹71,777 crore a year), because of its population; per person in urban areas, Sikkim and Chandigarh spend the most (estimates).
What share of US retail sales is clothing?
Clothing and accessories stores made 3.9% of US retail trade sales in January to September 2026, before counting clothing sold online and in general merchandise stores.
How many textile businesses are there in India?
About 22.2 lakh small textile businesses (ASUSE 2023-24), plus registered textile factories covered by the Annual Survey of Industries.
Are department stores declining?
Their sales are barely growing: US department stores grew 0.9% in January to September 2026, below inflation.
Sources and methodology
- US Bureau of Labor Statistics, Consumer Expenditure Survey 2021 to 2025; Consumer Price Index.
- US Census Bureau, Advance Monthly Sales for Retail and Food Services, September 2026.
- MoSPI, HCES 2023-24 and ASUSE 2023-24. India market and state figures are Advanton estimates; see the methodology.
Last reviewed November 12, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.