2023 is the year for back-to-work fits, sustainable production, and manufacturers beyond China that are closer where shoppers are
Like all sectors, the garment industry has been hugely affected by the Covid-19 pandemic and subsequent rising inflation. The industry is also facing pressure to evolve to meet the challenges of climate change and eco-friendly production. The end of the global pandemic and increased concern for sustainability are the two key factors driving trends in garment manufacturing, from a redrawn supply map to increased use of recycled materials. Read on for a breakdown of the top trends in garment manufacturing in 2023.
Fashion Trends: High Demand for Luxury & Work Attire
The rise of inflation has brought an increase in the garment prices, and the looming threat of an economic recession has made consumers hesitant to spend on new clothes. This means that the garment industry’s growth this year will be the lowest since 2021, at around 0.8 to 1.5 percent. Despite the garment industry’s predicted loss in total growth, industry expert Prasenjit Tito Chowdhury predicts that in 2023 garment manufacturers will see a sharp rise in orders for luxury fashion items and smart work attire.
With Covid-19 restrictions behind us in most regions of the world, consumers will be eager to revamp their wardrobes and dress stylishly when they go out. As more and more white-collar workers head back to the office, they’ll also shelve the sweatpants and buy new office attire. This means garment manufacturers will want to expand their portfolio to include fashionable and professional products to weather the overall growth slowdown.
The Rise of Green Fashion
In recent years, governments and non-governmental organizations (NGOs) including the UN have been calling on the garment industry to reduce its carbon footprint and implement sustainable business practices. The European Union’s Strategy for Sustainable and Circular Textiles, for example, introduces measures aimed at preventing or reducing the unintentional release of microplastics from garments into the ocean. These measures include prewashing, where manufacturers are required to wash garments prior to shipment so as to contain microplastics released from the fabric upon first wash, as well as product labeling and measures to promote the use of innovative materials.
It’s now up to EU member states to implement and enforce this legislation in their own countries’ garment industries. In keeping with the EU measures, France’s new Climate and Resilience Law, in effect from January 2023, has established an environmental product label that applies to all textile products, so consumers can more easily know if their garments are sustainably produced.
Garment industry leaders have responded to new legislation like this by setting sustainability goals like reaching net-zero emissions by 2050, the target set in the UN-sponsored Fashion Industry Charter for Climate Action. With climate change a mounting concern for consumers as well, it’s no surprise that this trend is expected to continue in 2023. Industry analyst Edwin Keh predicts that the coming years will see garment brands and manufacturers compete in a “race to zero,” where the winners will be those who are the soonest to embrace zero-waste, zero-carbon production.
New Materials in Fashion: Moving Beyond Synthetics
When it comes to raw materials, the garment industry weathered dramatic price fluctuations in 2022 due to the impact of Russia’s invasion of Ukraine. The prices of synthetic fibers have now restabilized—but above pre-invasion levels. On top of this, consumers are paying attention to how their clothing is made, preferring natural materials over less eco-friendly synthetic materials. For these reasons, in 2023 garment manufacturers are expected to further increase their use of natural fibers like cotton, flax, hemp, and milkweed.
The use of recycled and recyclable materials is also expected to increase. A minimum amount of recycled materials is mandated by the EU’s new design requirements for textiles. Meanwhile, policy bodies in other regions like California and New Zealand have expressed an interest in applying Extended Producer Responsibility (EPR), where companies must pay fees to cover the costs of end-of-life management of their products, to apparel. If EPR is adopted in key markets, garment brands will have a powerful incentive to use recyclable materials in their products as a means to minimize the cost of product disposal. Garment manufacturers will need to revise their usual fabric orders to make products that require greater use of sustainable materials.
Changing Fashion Hubs: Beyond China
For decades now, the world’s top textile supplier has been China, which has historically outcompeted other manufacturing centers with unbeatable labor prices. China has seen its grip on the global garment industry slip in the past couple years, however, as the Chinese government’s stringent zero-covid policy has caused order inconsistency. This combined with geopolitical tensions has made garment brands opt for suppliers in nearby countries like Bangladesh, Pakistan, India, Myanmar and Vietnam.
It remains to be seen if China’s manufacturing sector will bounce back after the country’s move to lift Covid restrictions and open its borders in December 2022. What’s clear, though, is that the global manufacturing supply map will continue to look more varied than before the pandemic shook things up.
In addition to sourcing more products from Asian manufacturing centers beyond China, it’s expected that garment brands will expand their nearsourcing as well in order to shorten their supply chain after a few years of pandemic-related supply chain issues. This should bring business to garment manufacturers in Western countries with large apparel markets.
Garment manufacturers in both Western and Asian countries will need to expand their capacity to meet increased orders, and this means outfitting their factories with efficient equipment. Meanwhile, Chinese manufacturers wishing to remain competitive would do well to switch to sustainable manufacturing practices, technology, and materials to stay on top of the global trend towards climate-conscious consumption.
Conclusion
In 2023, the garment industry will continue to take a hit from global inflation and feel the aftershocks of the pandemic. It will also face increased pressure from consumers, NGOs, and especially governments to go sustainable. These are daunting challenges, but they’re also an opportunity for forward-thinking garment manufacturers to sharpen their competitive edge in the global market.
Garment suppliers in emerging markets like Southeast Asia should seize their chance at expanding their customer base by improving their capacity and sustainability. Suppliers in established manufacturing centers like China should also update their production practices and portfolio to hold on to their customers in a shifting market.
New garment manufacturing technology can help. Automated and AI-powered machinery decreases production waste and increases product quality by reducing the risk of human error. It also improves manufacturers’ sustainability by making production more efficient. OSHIMA is a leading supplier of automated garment machinery for nearly all stages of production. Contact us today to learn how we can help garment manufacturers prepare to meet the challenges—and seize the opportunities—that the coming year will bring.
