Sleepwear, Underwear and Infant Clothing Manufacturing in Australia - Market Research Report

Delicate Business: Low-Cost Inputs and the Covid-19 Pandemic Have Worn Down Industry Revenue

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Over the last half-decade, the Sleepwear, Underwear and Infant Clothing Manufacturing industry has been experiencing some turbulent times. The competition from foreign manufacturers has been fierce and noteworthy, with imports taking up a significant slice of market demand. Countries like China and Bangladesh - who leverage their minimal operating costs to price final goods competitively - have made considerable inroads into the domestic market share, spurred on by favourable economic policies like free trade agreements. An appreciating Australian dollar has made foreign goods more affordable, boosting the positions of importers. Likewise, volatile consumer sentiment has fuelled bargain-hunting behaviour among downstream customers, with many looking for inexpensive alternatives abroad. In turn, the industry's revenue has shrunk at an annualised 3.8% over the five years through 2023-24, to an expected $231.8 million. This includes an anticipated 2.3% drop over 2023-24, as cost-of-living pressures slow spending on sleepwear, underwear and infant clothing at the retail level. Companies in the Sleepwear, Underwear and Infant Clothing Manufacturing industry primarily produce shapewear, underwear, sleepwear or infants’ clothing. Specific products include brassieres, corsets and girdles.