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The Asia Pacific hats market size was valued at USD 1.03 billion in 2021. The market is projected to grow from USD 1.08 billion in 2022 to USD 1.55 billion by 2029, exhibiting a CAGR of 5.30% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with hats experiencing lower-than-anticipated demand across Asia Pacific compared to pre-pandemic levels. Based on our analysis, the market exhibited a decline of 5.8% in 2020 as compared to 2019.
The growing demand for hats in various fields such as schools, colleges, cricket clubs, and fitness centers is driving the product demand in the Asia Pacific region. Today's consumers also demand a variety of products that are easy to use. Increasing demand for customized sports products and accessories is driving the growth of the market. In addition, increased construction of stadiums in countries such as India, Australia, New Zealand, China, and Japan and the emergence of local sports clubs at the national level have boosted the market growth rate.
In addition, a shift in consumer preference toward premium and branded products, coupled with a wide range of attractive products, is likely to accelerate the consumption of sporty and stylish headwear increasing their market share. Demand in the sports industry is rapidly increasing as consumers become more conscious of safety and security. In addition, the growing demand for fashionable hats among the younger generation is expected to boost the expansion of the market share during the market analysis period.
Market Growth Hindered by Severe Supply Chain Disruptions
The coronavirus pandemic negatively impacted the expansion of the market. Various lockdowns around the world have forced manufacturers to close production facilities due to labor shortages, reducing the demand for apparel products. Additionally, multiple lockdowns across the globe have impacted the sales of sporting goods with the closure of hypermarkets, supermarkets, and specialty stores. In addition, at the international level, China, India, the U.S. or other trading partners have trade tensions between two countries and protectionist measures are anticipated to restrain sales of consumer goods in the short term.
The pandemic has also created great opportunities for domestic and foreign brands to take advantage of severe disruptions in supply chains. However, while offline sales have been hit hard, online sales have continued to stay resilient. The online shopping outlet grabbed a competitive market share in 2020 as offline channels were completely shut down. In recent years, several market participants have implemented various strategies to minimize the operational impact of COVID-19 on product markets. Brand recovery strategies include diversifying product offerings and pricing, investing in new technologies, and personalized marketing campaigns.
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Shifting Consumer Preference Toward Branded Products to Influence Consumption Trends
Recent years have recorded considerable shifts in consumer preference for numerous goods. The rising demand for branded cricket goods has resulted in significant changes in the competitive landscape of the sports sector. One of the prominent trends in the industry is the changing consumer purchasing behavior, with more preference for premium and comfortable products. This has created opportunities for various brand owners to produce cricket equipment from various materials.
Rising Product Demand from the Sports Industry to Drive Market Growth
The increasing number of international cricketers in countries such as India, Sri Lanka, Pakistan, and Australia is projected to boost the Asia Pacific hats market growth. Cricket is a very popular sport, with approximately 2.5 billion people watching the game worldwide, with majority of fans found in Asian countries such as India, Pakistan, Bangladesh, Australia, and New Zealand. This will increase the demand for hats and caps in these countries, driving the growth of the market. For instance, as per the report published by BMJ Publishing Group Ltd, around 1.4 million people in Australia, around 300,000 in the U.K. and more than 5 million people in India played cricket in 2019.
Increasing Awareness About Fashion Trends Among Consumers to Support Market Expansion
In recent times, consumers are focusing on latest fashion trends via the consumption of branded and luxury apparel products. The fashion industry in the Asia Pacific region is on track to gain momentum in recent times as consumers are rapidly unleashing pent-up buying post pandemic, which increased the sales of apparel products, including headgears in several countries such as China, India, and Japan, among others.
Further, the growing prevalence of the company’s own e-retail portals along with a variety of options for consumers is further expected to boost the demand in the long run. For instance, Goorin Bros., Inc. launched its application named ‘GOORIN DROPS’ where their customers can access exclusive products, including the coveted Friday Drop, along with early releases to products and other surprise drops along the way. This allows the major company to attract more consumers from different regions including the Asia Pacific region.
Fluctuating Prices of Raw Materials to Hinder Market Expansion
Variations in the costs of raw materials such as wool and cotton affect the production of final products such as caps and hats, limiting product sales in the Asia Pacific region. Soaring prices of wool imported from Australia are putting pressure on India's garment industry. Therefore, Indian exporters have to endure the heat as they commit to export at negotiated rates, thereby impacting this market.
India is one of Australia's largest importers of merino wool after China. Hence, rising wool prices due to bulk procurement from China will hit Indian exporters. Therefore, recently, Indian exports have already declined as manufacturers face stiff competition from Italy and Turkey. In addition, fluctuating cotton prices in the Indian market are also impacting the production, hampering the growth of the overall asian market. For instance, as per a report published by the Economic Times in August 2022, cotton price per candy in India fluctuates continuously from about USD 1,121 per candy in June to about USD 1,047 per candy in August.
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Growing Fashion Sense Among Consumers to Trigger Demand for Fashion Hats
The market is segmented into sports hats, fashion hats, and working hats based on product type. The fashion hats segment is anticipated to dominate the market during the forecast period. Headgear has always been a symbol of status and fashion for all consumer groups. As civilizations evolved and fashions emerged, hats became even more popular, partly as part of religious traditions and practices. Recently, various types of hats have been promoted through fashion magazines, promoting the democratization of fashion and style trends. This has led to an increased demand for fashion hats, augmenting the overall market growth.
Additionally, weight, sustainability, and flexibility are also impacting the consumer demand for sporting goods. The demand for sports hats and caps is increasing as manufacturers focus on using more sustainable raw materials to create eco-friendly sporting goods. The sports hats segment is poised to grow steadily during the forecast period, contributing to 22.67% of the Asia Pacific hats market share in 2021.
Durability Feature of Polyester Material to Drive the Demand for Polyester Segment
Based on material use, the market is segmented into polyester, cotton, wool, and others. The polyester segment accounted for a major share of 41.36% of the market in 2021. The segment is set to grow at a substantial CAGR of 5.76% over the estimated period owing to increasing fashion trends among consumers across the region.
Polyester is a type of synthetic fiber made from recycled plastic and commonly used as the main raw material for caps and hats. This material is not only highly durable but also water and abrasion resistant, and it also has moisture retaining properties. Therefore, it is easy to wick sweat away from the scalp, keeping it dry. Polyester hats are very common in all countries, including China, India, Japan, Australia, and other Asian countries.
Men Segment to Dominate the Market Owing to Wide Usage of Sports Hats
Based on end user, the market is segmented into men and women. The men segment is expected to dominate the market due to the wide usage of sports hats and caps mostly by men in all regions, which increases its demand in the market. The men segment held 57.90% of the market share in 2021 and is expected to expand at a CAGR of 5.94%. The rise is driven by surging sports activities and tournaments across the region.
Over the years, it has been observed that men have been participating in professional and international games more than women, which, in turn, boosted the demand for sports hats in terms of men’s segment.
The women segment has also experienced a steady growth over the years in many countries, including India, Australia, China, and Japan, among others. The growing participation of women in several sports such as cricket, tennis, and badminton, among others is propelling the growth of the market in Asia Pacific, contributing to market growth.
Led by China and India, the market is characterized by a substantial consumer preference for premium and luxury apparel products. Moreover, the continued emergence of small manufacturers offering their products at affordable prices has significantly boosted the consumption of hats in Asian countries such as Australia, China, India, and Japan.
The Asia Pacific region is anticipated to expand at the fastest CAGR of 5.30% during the estimated period. With the world's largest population, China is one of the largest manufacturers, consumers, and importers of apparel products, including caps and hats. The country is also involved in manufacturing and importing various types of hats and caps from neighboring countries such as India and Australia. The growing population of the country along with rising fashion trends among the younger generation has increased the product demand. In addition, China is popular for sports activities such as swimming, skiing, hiking, and other winter sports such as volleyball, badminton, and gymnastics. This increases the demand for sports hats and caps in the country, fostering the market growth.
On the other hand, India is one of the top apparel manufacturing and exporting countries in the Asia Pacific region. India's textile industry plays an important role in earning foreign currency and creating jobs, and is expected to play an important role in future economic development. Over the years, the Indian textile industry has built an impressive reputation as a producer of sporting goods such as hats and caps that are exported abroad. Besides, the government of India has taken several measures for the manufacturers of apparel to improve their production efficiency, and thus increase the production volume of apparel products. This, in turn, propels the demand for headwear in India.
Market Players Focus on Product Innovation to Expand Product Reach
Key players focus on launching flexible and efficient apparel products, appropriate for every consumer group. Furthermore, increasing prevalence of sports tournaments and championship and the growing trend of travel & tourism post the pandemic have surged the demand for hats and caps in the region.
The fashion hats segment is estimated to secure a competitive market share throughout the analysis period. The increasing fashion sense among consumers in various countries such as China, South Korea, Japan, Australia, and others has led to the rise in demand for fashion hats. Also, from a production perspective, the development of new business opportunities and product categories will continuously and gradually enhance traditional product designs in the coming years.
An Infographic Representation of Asia Pacific Hats Market
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The research report analyzes the market in-depth and highlights crucial aspects such as prominent companies operating, product types, and sales channels. Besides this, the report includes insights into the prominent Asia pacific hats market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to market growth.
Value (USD Million)
By Product Type
By Material Use
Fortune Business Insights says that the market size was USD 1.03 billion in 2021 and is anticipated to reach USD 1.55 billion by 2029.
In 2021, the market value stood at USD 1.03 billion.
Rising at a CAGR of 5.30%, the market will exhibit steady growth over the forecast period (2022-2029).
By product type, the fashion hats segment is anticipated to dominate the market during the forecast period (2022-2029).
The increasing fashion trend among consumers is augmenting the market growth.
Lock & Co. Hatters, Goorin Bros., Inc., Bailey Hats, Dalix, Tan Thanh Dat Co., Ltd., Nike, Inc., Zhangjiagang Huaxia Headgear Co., Ltd., Nantong Foremost Garments & Accessories Co., Ltd., Richardson, and Larix Gear are the leading players in Asia Pacific.
China dominated the market in 2021.
The rising demand for fashionable hats among the young population along with the expanding number of brands producing a wide range of hats and caps is favoring market expansion.
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