MEN’S UNDERWEAR MARKET ANALYSIS

Market Challenges And Opportunities

Global Men's Underwear Market Drivers:

• Growing popularity of printed designs and patterns: Global men's underwear market has been witnessing significant growth in recent years due to the rising popularity of printed and patterned designs. Consumers are increasingly looking for underwear that makes a style statement beyond just functional basics. Brands are innovating with bold, fun prints, and graphics featuring images of superheroes, cities, landscapes and more. This trend is mainly driven by generation Z and millennials who witness underwear as an extension of their personal fashion and are eager to flaunt unique designs. For instance, according to a survey by the United Nations Children's Fund, in 2022, 1 in 3 male respondents in developed nations bought underwear with graphic prints in the previous year as compared to just 1 in 10 five years ago.
• Innovation in fabric and material: Innovation in fabric and material has opened up new possibilities for the men's underwear industry. Consumers are increasingly looking for underwear that offers breathability, softness, stretchability and moisture wicking properties. The demand for technical fabrics that keep the wearer dry and comfortable all day has been steadily rising. Leading brands are responding to this demand by introducing new fabric technologies. For instance, combining cotton, modal and spandex creates a fabric that offers both breathability from the natural fibers and excellent stretch and shape retention from spandex/elastane. Such blended fabrics are becoming very popular globally, according to the data provided by the World Trade Statistical Review by the World Trade Organization in 2022.

Global Men's Underwear Market Opportunities:

• Emerging markets with large consumer base: Emerging markets in countries with large populations and growing economies could provide significant opportunities for expansion in the men's underwear market. These developing nations are predicted to witness substantial growth in the middle-class segment over the next few years. With increasing incomes and exposure to global brands through e-commerce and social media, consumers in markets like India, Indonesia, Brazil and others are beginning to spend more on personal care and premium apparel products. For instance, according to data provided by the Indian government's Ministry of Statistics and Program Implementation, personal disposable income levels grew at a high single digit rate annually between 2018 and 2021 in India.
• Personalization and customization: Personalization and customization have the potential to significantly boost the men's underwear industry in the near future. As consumers increasingly demand products that are tailored to their unique needs and preferences, the ability to personalize underwear offerings opens up new avenues for growth. Manufacturers can capitalize on this trend by allowing customers to choose specific fabrics, fits, designs, and functionalities that are based on their individual requirements.

Global Men's Underwear Market Restraints:

• Availability of cheaper alternatives: Availability of cheaper alternatives is certainly restraining the growth of men's underwear market. With rising inflation and costs of living, consumers are becoming increasingly cost conscious and seeking more affordable options. This has led to private labels and mass-produced underwear from fast fashion brands gaining significant traction in the past few years. These cheaper alternatives offer basic boxer briefs and briefs that are made from cotton blends at highly competitive price points as compared to mainstream underwear brands. While materials and construction may not be as premium, they fulfill the core function of comfort and coverage at a fraction of the cost. Many fast fashion retailers devote large floor spaces to their expansive underwear collections targeted at price sensitive buyers. The rising popularity of inexpensive private labels sold at major retailers like Walmart, Target, and Amazon is restricting premium brands from significantly increasing their market share and premium pricing.
• Low brand loyalty: Brand loyalty among male consumers is quite low for underwear as compared to other apparel categories like jeans, shirts, and others. Most men do not have a strong preference for a particular brand and are willing to try different brands. They make purchase decisions primarily based on price, availability and promotional discounts rather than emotional attachment to a brand. This lack of stickiness to a brand result in high attrition rates for underwear companies. Male customers keep experimenting with new brands thus leading to lower repurchases and repeat buying. As brand loyalty takes a back seat, it becomes difficult for established brands to consistently grow their market share year after year.