Key Takeaways
- Indonesia's fashion market was valued at USD 22.5 billion in 2022, projected to reach USD 32.8 billion by 2027 with a CAGR of 7.8% driven by rising middle-class demand.
- The apparel segment in Indonesia generated revenue of USD 18.4 billion in 2023, accounting for 82% of the total fashion market.
- Indonesia's textile and apparel industry contributed 7% to national GDP in 2022, employing over 3.5 million people directly.
- Indonesia produced 1.2 billion pieces of garments in 2022, mainly cotton-based.
- Textile manufacturing capacity in Indonesia stands at 4.5 million tons annually as of 2023.
- Over 2,500 garment factories operate in Indonesia, producing for global brands like Nike and Adidas.
- Indonesia exported USD 13.4 billion worth of textiles and apparel in 2023.
- US is the top destination for Indonesian fashion exports, at 28% share in 2023.
- EU imported USD 4.2 billion from Indonesia's fashion sector in 2023.
- 55% of Indonesian consumers prefer local brands in fashion purchases as of 2023.
- Online shopping accounts for 38% of fashion retail sales in Indonesia 2023.
- Millennial spending on fashion averages IDR 2.5 million monthly in urban Indonesia.
- 42% of Indonesian fashion brands use recycled materials in 2023.
- Water usage in textile industry reduced by 30% via new tech in 2023.
- Zero-waste pattern cutting adopted by 25% of Jakarta factories.
Indonesia's booming fashion industry is a key economic driver fueled by strong growth and domestic demand.
Consumer Trends and Retail
- 55% of Indonesian consumers prefer local brands in fashion purchases as of 2023.
- Online shopping accounts for 38% of fashion retail sales in Indonesia 2023.
- Millennial spending on fashion averages IDR 2.5 million monthly in urban Indonesia.
- 72% of Indonesian women aged 18-35 buy fast fashion monthly.
- Sustainable fashion preference rose to 45% among Gen Z in 2023 survey.
- Offline mall retail still dominates with 62% fashion sales share in 2023.
- Streetwear popularity surged 30% in sales among youth in 2023.
- Average basket size for fashion e-commerce is IDR 450,000 in 2023.
- 68% consumers influenced by social media influencers for fashion buys.
- Luxury resale market grew 25% with platforms like preloved apps.
- Sportswear demand up 20% post-COVID, 40% of total apparel sales.
- 52% of fashion shoppers use buy-now-pay-later options in 2023.
- Traditional kebaya sales peak during holidays, +50% in Q4 2023.
- Male grooming and fashion accessories spending up 15% YoY.
- 75% urban consumers prioritize price over brand in fast fashion.
- Footwear retail sales volume 450 million pairs annually in 2023.
- Live streaming sales contribute 12% to fashion e-commerce revenue.
- Plus-size fashion demand increased 18% with inclusive sizing.
- 60% return rate for online fashion purchases in Indonesia 2023.
- Loyalty programs boost repeat fashion buys by 35%.
Consumer Trends and Retail Interpretation
Export and Import
- Indonesia exported USD 13.4 billion worth of textiles and apparel in 2023.
- US is the top destination for Indonesian fashion exports, at 28% share in 2023.
- EU imported USD 4.2 billion from Indonesia's fashion sector in 2023.
- Japan accounts for 15% of Indonesia's apparel exports, valued at USD 2.1 billion in 2023.
- Footwear exports from Indonesia reached USD 5.6 billion in 2023.
- Import of raw textiles into Indonesia was USD 3.8 billion in 2023.
- Indonesia's fashion trade surplus stood at USD 8.7 billion in 2023.
- China supplies 60% of Indonesia's fabric imports, USD 2.5 billion in 2023.
- GSP benefits from US saved Indonesian exporters USD 1.2 billion in duties in 2023.
- Korea imported USD 1.4 billion in Indonesian knits in 2023.
- Australia-New Zealand FTA boosted fashion exports by 18% to AUD 1.1 billion.
- Vietnam competition reduced Indonesia's ASEAN export share to 35% in 2023.
- Duty-free exports to EU under GSP+ totaled USD 3.1 billion in 2023.
- Indonesia's leather goods exports grew 12% to USD 450 million in 2023.
- Import tariffs on synthetic yarns averaged 10% in Indonesia 2023.
- Total fashion import volume was 1.1 million tons in 2023.
- Exports to Middle East rose 22% to USD 800 million in 2023.
- Indonesia fashion exports to India hit USD 300 million in 2023.
Export and Import Interpretation
Market Size and Growth
- Indonesia's fashion market was valued at USD 22.5 billion in 2022, projected to reach USD 32.8 billion by 2027 with a CAGR of 7.8% driven by rising middle-class demand.
- The apparel segment in Indonesia generated revenue of USD 18.4 billion in 2023, accounting for 82% of the total fashion market.
- Indonesia's textile and apparel industry contributed 7% to national GDP in 2022, employing over 3.5 million people directly.
- E-commerce fashion sales in Indonesia grew by 25% YoY in 2023, reaching USD 4.2 billion.
- The luxury fashion segment in Indonesia expanded by 12% in 2023, valued at USD 1.1 billion.
- Indonesia's ready-to-wear fashion market size stood at USD 12.3 billion in 2022, with 8.5% CAGR forecast to 2030.
- Footwear fashion revenue in Indonesia hit USD 3.8 billion in 2023, up 9% from previous year.
- Batik and traditional fashion subsector generated USD 2.1 billion in exports in 2022.
- Indonesia fashion retail sales volume increased by 15% in urban areas during 2023.
- The athleisure fashion category grew 18% in Indonesia in 2023, valued at USD 1.5 billion.
- Sustainable fashion market in Indonesia reached USD 1.2 billion in 2023, with 22% growth.
- Indonesia's online fashion marketplace penetration hit 45% of total sales in 2023.
- Fashion industry FDI inflows to Indonesia totaled USD 1.8 billion in 2022.
- Per capita fashion spending in Indonesia rose to USD 85 in 2023 from USD 72 in 2022.
- Women's apparel dominated with 55% market share in Indonesia fashion in 2023.
- Men's fashion segment valued at USD 5.6 billion in 2023, growing at 6.2% CAGR.
- Children's fashion market in Indonesia projected to grow 10% annually to 2028.
- Vintage and second-hand fashion sales surged 30% in Indonesia in 2023.
- Fashion tech investments in Indonesia reached USD 450 million in 2023.
- Overall fashion industry revenue per capita in Indonesia was USD 82 in 2023.
Market Size and Growth Interpretation
Production and Manufacturing
- Indonesia produced 1.2 billion pieces of garments in 2022, mainly cotton-based.
- Textile manufacturing capacity in Indonesia stands at 4.5 million tons annually as of 2023.
- Over 2,500 garment factories operate in Indonesia, producing for global brands like Nike and Adidas.
- Indonesia's spinning capacity reached 2.8 million tons of yarn in 2023.
- Weaving industry in Indonesia produced 1.1 billion meters of fabric in 2022.
- Dyeing and finishing plants number 1,200 in Indonesia, handling 3.2 million tons yearly.
- Batik production employs 500,000 artisans, outputting 50 million pieces annually.
- Automation in Indonesian garment factories increased productivity by 25% in 2023.
- Cotton consumption in Indonesia's fashion production was 1.5 million tons in 2022.
- Synthetic fiber production hit 800,000 tons in Indonesia in 2023.
- Labor productivity in Indonesian apparel sector averaged 120 pieces per worker per day in 2023.
- 65% of Indonesia's garment production is exported, with domestic supply chain covering 85% inputs.
- Investment in new textile mills totaled USD 2.3 billion in Indonesia 2022-2023.
- Handloom sector produces 10 million sarongs yearly in Java alone.
- Quality certification (OEKO-TEX) held by 40% of Indonesian fashion manufacturers in 2023.
- Average factory size in Indonesia apparel is 500 workers, with 70% in West Java.
- Digital printing adoption in fashion printing reached 15% of total output in 2023.
- Waste generation in Indonesian textile production is 20% of input materials.
Production and Manufacturing Interpretation
Sustainability and Innovation
- 42% of Indonesian fashion brands use recycled materials in 2023.
- Water usage in textile industry reduced by 30% via new tech in 2023.
- Zero-waste pattern cutting adopted by 25% of Jakarta factories.
- Organic cotton farming expanded to 50,000 hectares in 2023.
- Blockchain traceability implemented in 15% supply chains for fashion.
- Solar power usage in factories reached 20% energy mix in 2023.
- Biodegradable packaging adopted by 35% e-commerce fashion sellers.
- Upcycling initiatives recycled 100,000 tons of fabric waste in 2023.
- Carbon footprint labeling on 10% of exported apparel in 2023.
- Regenerative agriculture pilots for dyes cover 5,000 farms.
- AI-driven inventory reduces overproduction by 22% in brands.
- 30% reduction in chemical dyes via natural alternatives in 2023.
- Circular fashion hubs established in 10 cities, processing 20k tons.
- Fair wage certification for 40% workforce in sustainable lines.
- 3D printing for prototypes cuts material use by 40%.
- Microplastic reduction tech in synthetics adopted by 12 factories.
- Biodiversity-friendly cotton yields up 15% in Sulawesi projects.
- Digital passports for garments track lifecycle for 5% exports.
- Energy-efficient machinery retrofits save 18% power in 200 plants.
- Vegan leather from pineapple waste produced 2 million sqm in 2023.
Sustainability and Innovation Interpretation
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