Fashion Moves Away from China, but Asia Remains the Logistic Hub
The global fashion industry is moving production away from China, but other Asian countries are the primary beneficiaries. As a result, the region will remain the logistical epicenter supporting the fashion business. Meanwhile, across the Pacific, the escalating trade war with China could seriously harm U.S. logistics operators, given that 98% of clothing sold in the country is imported. Europe, which accounts for nearly 16% of logistics revenues in the apparel, footwear, and accessories sector, will compete for brands looking to expand their markets amid steep U.S. tariffs.
Fashion Logistics Market Set to Grow Through 2029
According to Transport Intelligence (Ti), spending on logistics services for the global fashion industry will exceed €327.9 billion in 2025, marking a 3.1% increase from 2024 when the market surpassed €318 billion. By 2029, logistics operations for fashion brands and retailers are projected to be worth over €369.3 billion, with an average annual growth rate of 3% from 2024 to 2029.
Asia Leads, but China’s Dominance Is Being Challenged
The Asia-Pacific region is driving global growth. In 2024, logistics spending for fashion in this region rose 3.5% year-on-year, reaching nearly €147.5 billion, representing 46.36% of the global market. This figure could rise to over €153 billion this year, with an expected growth of 3.7%. By 2029, fashion logistics in Asia could reach €175.8 billion, with a 3.6% annual growth rate and a market share of 47.59%.
While Asia remains crucial to both the fashion and logistics sectors, China’s long-standing dominance is fading due to intensifying U.S. trade policies, especially targeting Chinese e-commerce platforms that ship directly to consumers. A recent blow came with 145% tariffs on all Chinese imports and a presidential executive order signed on April 8, 2025, eliminating the “de minimis” exemption for low-value e-commerce shipments (under $800) and imposing a 90% tariff on them.
Brands Relocate, but Production Stays in Asia
The shift away from China also stems from brands pursuing nearshoring—relocating production closer to end markets. However, the preferred alternatives remain within Asia. Internal factors also play a role, such as waning consumer confidence within China. McKinsey’s 2025 report predicts that luxury fashion sales in China may continue to decline, possibly dropping 3% year-on-year, echoing the slump from early 2024.
Despite these challenges, China’s role as a fashion exporter remains strong, accounting for about 31% of global market share. Many brands are shifting operations to countries like Vietnam, Bangladesh, and India, but the region as a whole continues to grow in significance.
Fashion Logistics in North America: Slower Growth, Greater Risk
Despite being a massive consumer market—absorbing 20% of global clothing exports—North America lags in logistics growth. The U.S. alone, with fashion sales valued at $365.7 billion in 2025, imports 98% of its clothing and 99% of its footwear. The sector grew by 2.3% in 2024 to over €76.5 billion, but with only a 2.2% projected annual growth rate, revenue is expected to reach €85.2 billion by 2029. However, its global market share is expected to drop to 23.07%.
U.S. logistics operators are especially vulnerable due to their dependence on imports and exposure to new tariffs. With minimal domestic production, rising costs will likely reduce demand.
Europe Is Catching Up—and Has Strategic Advantages
Europe generated nearly €50.5 billion in fashion logistics revenues last year, but is expected to grow at just 2% annually through 2029—the lowest among key regions. By then, revenues may reach €55.8 billion, giving Europe a 15.13% global market share and securing third place worldwide.
Unlike the U.S., Europe is not embroiled in an aggressive trade war with China. While the EU is considering measures like ending the de minimis exemption (with 91% of low-value e-commerce parcels originating from China), it has not imposed extreme tariffs. This stability gives Europe a competitive edge, especially as global manufacturers look to redirect exports to affluent markets.
According to Beata Troczyńska of ID Logistics Poland, brands are increasingly establishing distribution and returns centers in Europe—particularly in Poland—creating a growth opportunity for logistics operators.
Europe’s E-Commerce Fashion Boom
According to ECDB, Europe’s fashion e-commerce sector generated $149 billion in 2024, accounting for 21% of total online sales. Eurostat reports that 46% of internet users in the EU bought clothing, shoes, or accessories online—making it the most popular category.
In Poland, the fashion segment made up 28% of all e-commerce sales in February 2025, according to GUS. The Polish Chamber of Commerce estimates the sector’s revenue at PLN 999 million that month—15.5% of total e-commerce turnover.
Global Fashion Market: Who Dominates?
McKinsey estimated that the global apparel market was worth $1.7 trillion in 2023, with Statista predicting it will grow to $1.84 trillion by 2025. Despite its fragmented nature, the market is expected to grow at 2.64% annually from 2025 to 2029—slightly slower than the logistics segment serving it.
Transport Intelligence identifies the fashion supply chain as one of the most dynamic in logistics. Advanced logistics capabilities are key to maintaining brand competitiveness and will be decisive in determining future production and distribution locations.
China continues to lead in exports, with 31.6% of global apparel exports in 2023. Bangladesh and Vietnam follow with 7.4% and 6%, respectively. The U.S. lags far behind at 1.4%, while the EU, trading mainly internally, accounts for 31.2%.
China’s Global Fashion Dominance is Fading
Data shows a clear decline in China’s dominance. Its share of global exports fell from 38.5% in 2015 to 31.6% in both 2022 and 2023. Meanwhile, Bangladesh and Vietnam have grown their combined share from 10.7% to over 13%.
McKinsey forecasts that by 2030, China’s share of fashion imports to Europe will drop to 26%, down from 34% in 2019. Conversely, the share from India, Vietnam, Bangladesh, and Cambodia is expected to grow from 29% to 33%.
A similar trend is expected in the U.S., where imports from China are projected to fall from 40% in 2019 to 30% in 2030, with Southeast Asian countries filling the gap.
Nearshoring on the Rise in Europe and the U.S.
Nearshoring—relocating production closer to key markets—is on the rise. In Europe, direct foreign investment in textile and apparel nearshoring grew from 17% in 2015 to 37% in 2024, targeting North Africa and non-EU countries, particularly Turkey.
In the U.S., nearshoring investments increased from 41% in 2015 to 49% in 2024, with production shifting to Latin America and neighboring countries.
Krzysztof Oflakowski
Source: ManagerPlus
