U.S. MEN’S UNDERWEAR MARKET ANALYSIS

Market Challenges And Opportunities

• Availability of cheaper alternatives
• Macroeconomic challenges in retail industry

U.S. Men’s Underwear Market Drivers:

• Increasing online sales: The men’s underwear market in the US has seen significant growth in recent years, driven largely by increased online shopping. As more consumers have adopted an online-first approach to purchasing, underwear retailers have invested heavily in ecommerce platforms and digital marketing. This has made trying new brands and styles much more convenient without needing to visit brick-and-mortar stores. For instance, according to the U.S. Census Bureau, the total value of US retail e-commerce sales grew by over 15% year-over-year in 2021.
• Growing focus on personal grooming and style: The personal grooming habits and lifestyles of American men have undergone a significant evolution in recent years, leading to impressive growth in the men’s underwear market. Growing concerns about body image, physical fitness and personal style have made underwear an increasingly important item in the daily wardrobe of the modern man. Men are now more willing to experiment with colors, patterns and fit when purchasing underwear compared to a decade ago. For Instances, According to data from the U.S. Census Bureau, in 2022, around 67% of American households now own sweatpants or loungewear, a sharp uptick from pre-pandemic levels.

U.S. Men’s Underwear Market Opportunities:

• Emergence of specialized stores and outlets: The US men’s underwear market has traditionally been dominated by mass retailers that offer a one-size-fits-all approach. However, as consumers have grown more discerning about fit and functionality in their intimates, there is a strong opportunity for specialized retailers to offer a more personalized shopping experience. Men are increasingly seeking out underwear made from premium fabrics, designed for specific activities or body types, and offered in a wider array of stylish designs. Specialty retailers can meet this evolving demand by curating targeted product assortments from a variety of high-quality brands. For instance, data from Statista shows U.S. online health and wellness sales grew over 30% year-on-year during the 2020-2021 period alone, indicating growing demand for specialized intimate apparel.
• Growth of private labels: The U.S. men’s underwear market has traditionally been dominated by major brands such as Calvin Klein, Hanes, and Fruit of the LoomMany major retailers, such as Walmart, Target, and Amazon, have greatly expanded their private label underwear selections for men. These private labels offer stylish and comfortable basics at highly competitive price points compared to national brands. As consumer focus shifts more towards value during economic uncertainties, private labels allow price-conscious men to fulfill their underwear needs without compromising too much on quality or style. For Instances, According to the US Bureau of Labor Statistics, apparel inflation increased substantially in 2021 and 2022 due to supply chain issues and higher production and transportation costs. National brands will find it increasingly difficult to absorb these rising costs without passing them on to customers via price increases.