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The UK fashion industry has continued to demonstrate remarkable resilience and innovation in 2025. With robust revenue growth, changing consumer behaviours, sustainability, and even AI fashion assistants at the forefront, the sector remains a vital pillar of the British economy. Let's explore the statistics, trends, and defining moments that shaped the UK fashion industry in 2025 and highlight where the industry is heading as we go into 2026.
Market overview: A resilient billion-pound market
The UK apparel market is in line to generate approximately £68.7 billion in revenue by the end of 2025, maintaining its position as the third-largest apparel and footwear market globally, trailing only the United States and China. Per capita spending on apparel has reached approximately £1,003 in 2025, with the average Briton purchasing approximately 61.2 pieces annually. A figure perhaps somewhat surprising considering the mainstream rise in more value-driven and considered purchasing ethos.
The market continues to expand at a compound annual growth rate (CAGR) of 3.39% between 2025 and 2029, with market volume reaching an estimated 4.3 billion pieces in 2025. On the e-commerce front, the UK fashion market is around $44 billion in 2025, with a strong forecast for growth to 2032.
Women’s apparel: continued market leadership
Women's apparel remains the dominant segment in the UK fashion sector, reaching a market volume of £37.6 billion in 2025. This segment continues to thrive on the back of diverse consumer preferences, from accessible fashion to sustainable luxury. The growing appreciation for quality, and ethical production has only reinforced women's fashion as the cornerstone of the British apparel market, spanning across both physical retail and digital channels.
Household Spending and Employment: A Snapshot of Consumer and Economic Power
The UK fashion and textile industry continues to play a vital role in both household spending patterns and national employment, underpinning the sector’s economic significance well throughout 2025. Despite increasing cost-of-living pressures, British consumers have maintained a strong appetite for apparel, accessories, and footwear, demonstrating fashion’s enduring place in household budgets.
According to the Office for National Statistics Family Spending Report 2025, the average UK household expenditure stands at approximately £36,200 per year. Of this, an estimated 3.9% to 4.1% is allocated to clothing and footwear, equivalent to roughly £1,410 per household annually, or about £27 per week.
This steady spending underscores fashion’s resilience as a consumer priority, even amid inflationary pressures and tighter disposable incomes.
Younger consumers, particularly Gen Z and millennials, continue to drive demand, though their buying habits have shifted toward value-driven and sustainable purchases. Rather than buying more, they are buying better, opting for longer-lasting garments, rental and resale options, actively seeking brands with strong ethical and environmental credentials.
Even back in 2024, Mintel Sustainability in Fashion Report found that 48% of UK consumers had bought second-hand clothing in the past year, one in five had tried renting apparel.
However, the employment landscape has faced challenges in 2025. Retail employment has declined, with 2.73 million jobs in retail by June 2025, 97,000 fewer than the previous year. This downturn is attributed to rising employer National Insurance contributions, which increased from 13.8% to 15% in April 2025, and post-Brexit labour shortages that have reduced the EU workforce by approximately 103,000 workers in the wholesale and retail sector.
The Trends that defined the UK fashion landscape in 2025
Sustainability and Ethical Production
Three in five Britons in 2025 see sustainability as important for fashion.
Sustainability has long since evolved from a trend into a business imperative. The UK sustainable fashion market reached $261.04 million in 2024, and is projected to grow at a remarkable CAGR of 23.60% through 2033, reaching $1,757.42 million.
In 2025, 73% of fashion brands invested in circular economy initiatives, with consumers understandably increasingly demanding transparency around materials, supply chains, and labour practices.
Circular fashion and zero-waste initiatives are gaining significant momentum, and definitely something that will only increase in 2026. Take-back schemes, repair services, and resale platforms are becoming standard offerings. Brands like John Lewis launched circular clothing collections back in 2024, while platforms like Vinted and Depop have seen explosive growth in the secondhand market.
The Resale Revolution
Marching onwards with the sustainability theme, the secondhand market has exploded in 2025, driven by both ethical concerns and economic pragmatism. The resale market is estimated to be worth over £3 billion in the UK, with platforms like Vinted expanding from 1 million users in 2020 to over 2.5 million by 2023, with transactions increasing by 75% year-over-year.
Rental services are also booming under this new age of sustainability. Hirestreet partnered with Asos to introduce the UK's largest retailer-rental subscription service, offering access to over 20,000 products from more than 50 brands. This trend reflects a fundamental shift toward "access over ownership" and conscious consumption.
E-commerce Evolution and Digital Dominance
The UK maintains its position as Europe's e-commerce leader. Online fashion sales are projected to reach £52.8 billion in 2025, representing approximately 73% of total fashion sales.
Mobile commerce now accounts for 67-71% of fashion e-commerce, while social commerce represents 23% of online fashion purchases, the highest rate in all of Europe. Major players such as Asos, Boohoo, Next, and Amazon continue to dominate the digital landscape, while traditional retailers like M&S have successfully recovered market share, growing from 7.6% to 8.9% through digital transformation initiatives.
The integration of AI and augmented reality is transforming the shopping experience. Virtual try-on technology, AI-powered personalisation, and chatbots are becoming standard features, while video commerce and live shopping events are gaining traction, particularly among younger consumers on platforms like TikTok where 42.39 million sales were made in the UK in 2024.
High Street Resilience
The high street in 2025 presents a complex picture of both challenges and adaptation. While overall footfall declined year-over-year in October 2024 by 3.6%, there are pockets of resilience. With in-store fashion sales ticking up by 1.5% this month.
Footfall patterns varied considerably throughout 2025, with regional cities outside London experiencing growth of 6.4% year-over-year. Reflective of sunny weather and other extermal occurring's like school holidays, some periods experienced significant growth in footfall throughout the year, however the problem lies in converting this seasonal traffic into sustained momentum.
Clothing retailing revenue is expected to increase by 1.6%, reaching £50 billion in 2025-26, though this statistic masks significant regional disparities. Cities like London, Cambridge, Oxford, Brighton, and Edinburgh are thriving with vacancy rates below 10%, benefiting from tourism, professional economies, and diverse leisure offerings. Meanwhile, retail-reliant towns like Wigan and Huddersfield continue to struggle.
Despite e-commerce dominating, there’s still something to be said about the power of brick and mortar with the high street demonstrating remarkable resilience in 2025. Experiential retail has become a key differentiator, with stores offering personalised styling services, sustainability workshops, and immersive brand experiences.
Flagship locations for Primark, Zara, and JD Sports continue to draw significant footfall. Primark's same-store sales grew 12% in 2024, with the retailer opening 23 new stores and expanding existing locations by 34% on average.
Key highlights from British fashion
British fashion continues to mix heritage and innovation. Iconic brands remain globally recognised, while new business models are emerging. Locally produced manufacturing and smaller scale operations are receiving greater attention as consumers demand transparency and provenance. Digital-native brands are leveraging data, design agility, and direct-to-consumer models to challenge incumbents.
Challenges and opportunities ahead
Challenges:
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Economic pressures: inflation, higher input costs, supply-chain disruptions.
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Consumer behaviour: younger consumers buying fewer items, greater demand for second-hand.
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Environmental/regulatory pressures: Brands must increasingly demonstrate sustainability credentials and circular practices.
Opportunities:
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Sustainability as competitive advantage: Brands that embed ethical production and circularity can lead.
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Digital transformation: Investment in e-commerce, social commerce, AI, and immersive technologies will drive growth.
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Product & experience innovation: Athleisure, hybrid wear, rental & resale models, inclusive sizing, and new discovery channels are growth arenas.
Looking ahead to 2026 and beyond
As we head beyond 2025, the UK fashion industry is well-positioned for further evolution. With the combination of digital innovation, sustainability, consumer experience and brand agility, the sector’s future looks promising. Whether via immersive retail experiences, circular business models, or regional growth beyond London, British fashion is poised to remain relevant globally.
The year 2025 underscores that UK fashion is not just about style, but strategy, resilience and transformation. From the high-street to the metaverse, from sustainability commitments to social commerce, the British fashion industry continues to chart its course in a changing world.
Spring Fair 2026 returns to NEC Birmingham from 1st–4th February 2026, bringing together the UK's most influential retail community. Connect with over 38,000 buyers, discover 1,500+ suppliers, and explore the future of retail. Moda is now an integral part of Spring Fair, uniting the fashion community and showcasing the best in apparel, footwear, and accessories.
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