Source Fashion: Euromonitor talks redrawing of global trade in apparel and footwear

Geographical trade patterns for apparel and footwear are becoming more and more fragmented in 2026, driven by slower global growth, geopolitical uncertainty and shifting regional demand. These themes were explored during the ongoing Source Fashion trade fair in London, in a talk by Marguerite Le Rolland, global insights manager of fashion at Euromonitor International, titled ‘Apparel & Footwear Market in 2026 and Beyond: Navigating the New World Order’.

Challenging global backdrop

While fashion will always remain a global industry, where growth comes from, and how brands geographically position themselves, is changing. According to Euromonitor, the industry’s growth is becoming increasingly disconnected from broader economic implications.

Global real GDP growth has been strained over the past two decades, impacted by events such as the global financial crisis, Covid-19, the war in Ukraine, Brexit, and ongoing US-China trade tensions. In contrast, global apparel and footwear sales continue to grow in value, yet growth in constant fixed rates remains subdued, highlighting wider market uncertainty.

Asia Pacific remains the growth driver, emerging markets reshape priorities

Asia Pacific (APAC) continues to play a key role for apparel and footwear. Euromonitor projects that the region will contribute over 30 percent of global growth between 2025 and 2030, despite a slowdown in China. Other countries in the region are benefiting from population growth, rising income and other factors, reflecting a need for companies to think beyond China-only strategies.

Emerging markets, for example, are becoming increasingly important growth drivers. Euromonitor shows that the combined share of the US and China accounts for 44 percent of global apparel and footwear sales in 2025, leaving room for growth elsewhere. Similarly, Europe and North America, while serving as the third and second largest regions in terms of sales, are both set for slow growth.

Euromonitor sees more potential in regions such as Latin America, the Middle East and Africa, which are forecast to deliver stronger growth rates than their mature counterparts. The Middle East and Africa, in particular, are due to see global sales rise by a CAGR of over 10 percent between 2025 and 2030.

Mature markets slow, intentional strategies become essential

Growth in North America and Western Europe is expected to remain modest through 2026, yet these regions still continue to play a major role in value and influence. Despite this, Euromonitor forecasts low single-digit growth for many developed markets, including the UK, whose apparel and footwear market is expected to grow at a CAGR of around 1.5 percent between 2025 and 2030.

This underlines the importance of nearshoring and value optimisation in trade. Buyers in mature markets are more price-sensitive, meaning suppliers need to manage costs carefully while maintaining quality and compliance. Sourcing decisions are increasingly becoming a balancing act between cost competitiveness, speed to market and regulatory stability.

Geographically, trade in 2026 will be less defined by rapid expansion, and more by selective opportunity. Euromonitor’s report shows growth becoming more uneven across regions, requiring intentional sourcing strategies. APAC remains indispensable, emerging markets are rising in strategic importance, and developed markets are demanding more discipline. An understanding of regional differences and geographic flexibility is required for success.