Headwear Market Size, Share & Trends Analysis Report By Type (Hats & Caps, Beanies), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global headwear market size was valued at USD 26,496.37 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030. The growth of the market for headwear is primarily driven by the growth of the fashion industry which has resulted in the growing appeal of fashion among the global population. In addition, changing weather conditions due to global warming have played a major role in the growing popularity of winter apparel and accessories like hats, beanies, and winter headwear products in established regions. Leading companies in the industry are placing a greater emphasis on offering a variety of winter hats. Their new designs vary significantly based on color, shape, style, and size to cater to unique customer requirements.In Oct 2022, Southern California’s headwear brand, Melin announced the launch of the, ‘Infinite THERMAL Collection’. The collection of hats is designed to make cold-weather adventures more enjoyable. The brand partnered with professional snowboarder and adventurist Louie Vito to create a limited edition titled, Infinite A-Game, in maroon, frost, navy, and olive varieties.

Nowadays, most women opt to wear headbands, headscarves, and hats to enhance their appeal and to protect themselves from heat, dust, and cold while outdoors.  They prefer wearing such headwear accessories to protect their skin from being exposed to sun damage and cold weather which can lead to premature aging marks on the face and neck areas. 

During the COVID outbreak, there was a shortage of both raw materials, skilled labor, and the distribution network also experienced disruptions. The outbreak of COVID-19 caused a global financial crisis, which further altered consumer preferences and led to a decline in sales of items that were treated as non-essential. As a result, the market saw a drop in sales during the COVID-19 pandemic.

However, the market is expected to rebound at a positive rate in the coming years.According to the 2022 National Retail Federation data, clothing and clothing accessory stores were up 2.6% in month-over-month sales, which were seasonally adjusted and up 7.5 percent (unadjusted) year-over-year.

Type Insights

The hats & caps segment is expected to dominate the headwear industry and will likely account for the dominant revenue share over the forecast period. Caps are multifunctional and are worn by everyone as an everyday outdoor accessory. As companies design caps with diverse designs for various occasions, the cap segment continues to gain widespread acceptance among youth. Baseball caps and sun visors are popular among athletes who consider them to be a sports necessity.

In May 2020, New York-based e-commerce retailer, Jae Tips, released a collaboration with Hat Club to launch a purple cap with a white Yankees logo and pastel pink under visor (UV). Both the products were reminiscent of the 2000 World Series between the Yankees and New York Mets and retailed at USD 45. With the rise of sportswear, the sports cap segment gained prominence, transitioning from a streetwear staple to a fashionable must-have among general consumers.

The beanies market is also expected to expand significantly in the coming years. Beanies are multifunctional, and many people use them for daily wear as well as for a variety of indoor and outdoor activities. Beanies have enjoyed huge popularity in regions with a cool climate throughout history due to their essential function of delivering protection from the cold. Moreover,  beanies have gained popularity among young people as they are available in fashionable designs and colors. Such aspects will aid in the segment’s growth.

Distribution Channel Insights

The offline segment is expected to lead the segmental share in the forecast period as there is a greater expansion of apparel and accessories retail outlets in tier I, II, and III cities globally. The expansion of apparel retail establishments, both local and startup, has contributed to a larger expansion of offline channel sales in the global market.

In December 2022, Lids Inc., a leading sports retailer unveiled its newest retail concept, with the opening of ‘Lids Hat Drop’ in Queens, New York. The concept is the brick & mortar iteration of Lids' successful LidsHatDrop.com platform. It aims to engage customers while selling baseball caps, snapbacks, and beanies, among other products. To increase customer traction and sales, headwear manufacturers also advertise their accessories in hypermarkets and supermarkets.

During the festive season, key manufacturers' promotional and advertising activities through shopping malls and independent supermarkets, as well as the shopping benefits offered, will most likely drive consumers to make purchases through these channels. Furthermore, to improve customer in-store purchasing habits, sales personnel assist users in purchase decisions through end-to-end customer interactions regarding product details. Such factors will lead to a major expansion of the offline sales channel during the forecast period.

Moreover, companies are launching virtual headwear products of higher quality and new designs to fulfill the growing demand for headwear products in the overall market. For example, Azuki, a Web3 anime brand, offers owners the option to embrace the holiday season by releasing virtual festive wear. Azuki owners can now outfit their (Non-Fungible Token) NFTs with a Santa hat and a holiday sweater.

Regional Insights

Asia Pacific dominated the market and accounted for over 40.5% share, in terms of revenue, in 2022. The Asia Pacific market is expected to expand significantly and progressively in the coming years, driven by a rise in acceptance of wide categories of winter hats in countries such as China, India, and Japan along with a large population base. Moreover, due to the fluctuating weather in the countries of Southern Asia, such as Australia, New Zealand, and others, headwear goods are widely utilized and people prefer wearing them as a style statement, especially among the Gen Z and millennial demographic.

Therefore, retailers are responding to growing fashion trends by introducing stylish headbands, caps, and beanies. Moreover, the major brands including Nike, Adidas, Puma, etc. are introducing headbands and caps in trendy designs such as padded and embroidered varieties.

The market in Europe is expected to lead the regional segmental share in the coming years. The demand for beanies, mufflers, and scarves is driven by favorable environmental conditions for winterwear in countries including Norway, Finland, and Sweden, among others such as Sweden, Norway, and Finland.

Also, the region experiences a colder climate throughout the year and due to this reason, there is a growing demand for winterwear products throughout the region. Companies are introducing innovative headwear products of higher quality and new designs to meet the growing demand for headwear products in the overall market.

Key Companies & Market Share Insights

The headwear industry remains a competitive, and robust arena. To stay ahead in the market, players continue to deploy new strategies frequently. Market players are focused on increasing investments in R&D to innovate new and attractive solutions for consumers for niche requirements such as the ease of purchasing event tickets. Moreover, major players are targeting new regions and demography to increase the sales of the products, by either entering the new market solely or by collaborating with local sports event companies across the globe.   

• PUMA SE launched ‘Hometown Heroes’, a freshly designed and limited edition hat collection featuring three different cap styles. The first limited edition headwear collection will feature caps, beanies, and bucket hats designed and developed in collaboration with the founder of Upscale Vandal, Mike Camargo.

• Autumn Headwear, a US-based modern headwear brand announced the launch of its spring collection ‘Spring/Summer 2022’ at select retailers and online. The headwear collection includes caps, beanies, and bucket hats, and was designed by August Studio of Los Angeles.

Some prominent players in the global headwear market include:

• Adidas AG

• Calvin Klein

• Gianni Versace S.r.l.

• Guccio Gucci S.p.A.

• New Era Cap

• LACOSTE

• Superdry PLC

• Nike, Inc.

• RALPH LAUREN MEDIA LLC

• PUMA SE

Headwear Market Report Scope

Global Headwear Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global headwear market report based on type, distribution channel, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Hats & Caps

  • Beanies

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa