Fashion E-commerce Market Expected to USD 2,110.80 Bn by 2032

The global fashion e-commerce market, expected to be valued at US$ 886.18 billion in 2025, is poised for robust growth. Projections suggest the market will reach US$ 2,110.80 billion by 2032, registering a CAGR of 13.2% during the forecast period. According to current fashion e-commerce market dynamics, increasing smartphone penetration, improved internet accessibility, and the proliferation of digital payment solutions are key drivers fueling online apparel and accessory sales. Additionally, the rapid adoption of social commerce, AI-powered personalization, and virtual try-on technologies are transforming the online shopping experience. Growing consumer preference for fast fashion, coupled with a rising demand for sustainable and ethically produced garments, is also expected to significantly propel the market growth over the coming years.

The full report is now available for purchase: https://www.coherentmi.com/industry-reports/global-fashion-ecommerce-market

The fashion e-commerce market is experiencing robust growth, fueled by increasing internet penetration, rising smartphone adoption, and evolving consumer shopping preferences toward convenience and variety.

Indian e-commerce leader, Myntra, achieved a 25% revenue growth to approximately US$ 525 million for the year ending March 31, 2023, by leveraging AI-driven tools and social commerce strategies. The platform focuses on international premium brands, homegrown labels, and beauty products, catering to the evolving preferences of Indian consumers.

This expanding digital consumer base has significantly boosted the adoption of online fashion platforms, enabling global access to a diverse range of apparel, footwear, and accessories.

The post-pandemic shift in consumer behavior continues to fuel e-commerce momentum, with more shoppers relying on online platforms for both everyday essentials and aspirational purchases. Fast fashion and direct-to-consumer (DTC) brands have capitalized on this movement by offering affordable, trend-responsive collections through digitally native channels. Simultaneously, technological innovations such as AI-powered product recommendations, virtual try-ons, and seamless mobile checkouts have enhanced the shopping experience, driving higher customer engagement and retention.

Sustainability and ethical production have also become key factors influencing consumer choices. Particularly among Gen Z and Millennials, there is a growing preference for platforms that offer transparency in sourcing, low-waste packaging, and eco-friendly materials. In response, major retailers like H&M and Zalando have expanded their sustainable collections, while startups such as ThredUp and Vestiaire Collective are scaling resale and circular fashion models to meet the rising demand for responsible consumption.

Social media platforms such as Instagram, TikTok, and Pinterest are increasingly becoming integral to the fashion shopping experience, driving substantial growth in social commerce revenues. For example, social commerce revenues are projected to reach US$ 571 billion in 2024 and exceed US$ 1 trillion by 2028, highlighting the rapid monetization of these channels.

Brands are also leveraging micro and nano-influencers to boost sales, using live-stream shopping events to engage consumers in real-time. This strategy creates authentic connections and immediate purchase opportunities, significantly enhancing customer engagement and conversion rates.

The global second-hand fashion market is experiencing significant growth, driven by rising consumer interest in sustainable and affordable alternatives. In October 2024, France-based fashion brand, ba&sh, partnered with FAUME to implement a second-hand solution, resulting in a 130% increase in the number of take-backs in just 15 days and the recruitment of 600 additional sellers compared to 2023. This initiative has strengthened ba&sh's sustainability commitments and contributed to revenue growth. This growing demand is prompting brands and platforms to expand their resale offerings, making pre-owned fashion more accessible and mainstream.

The fashion e-commerce market is rapidly embracing AI technologies to enhance customer experiences through personalized recommendations and virtual try-on features. This innovation reduces product returns and increases shopper engagement by allowing customers to visualize products digitally before purchase.

For example, according to BrandsGateway’s article, Fashion eCommerce Trends to Keep an Eye on in 2025, the global retail AI market is projected to grow from US$ 7.3 billion in 2023 to US$ 29.45 billion by 2028, indicating significant investment in AI tools across multiple sectors, including fashion e-commerce. Additionally, virtual fitting rooms are expected to reach a market size of US$ 18.31 billion by 2030, driven by rising demand for immersive and convenient online shopping experiences.

The convergence of virtual and physical commerce is reshaping fashion retail, offering brands innovative avenues to engage with consumers. Platforms like Roblox have introduced integrations that allow users to purchase physical products directly within virtual environments. For instance, in May 2025, Roblox launched a feature enabling brands to sell tangible goods through shoppable experiences, with Fenty Beauty debuting a Roblox-exclusive lip gloss shade available for physical purchase.

This integration not only enhances user engagement but also provides brands with new monetization opportunities by linking digital experiences with real-world products. As virtual worlds become more immersive, fashion retailers are increasingly leveraging these platforms to create seamless shopping experiences that bridge the gap between digital and physical retail.

“The fashion e-commerce market is set for dynamic expansion, driven by rising smartphone penetration, widespread internet accessibility, and evolving digital payment infrastructure,” says Ms. Monica Shevgan, a senior market analyst. “Consumers are increasingly drawn to the convenience of mobile-first shopping, AI-driven personalization, and immersive technologies like virtual try-ons, which are transforming the online retail landscape. Additionally, the popularity of fast fashion and demand for sustainable, ethically produced apparel are reshaping brand strategies and consumer expectations.”

“Key players are embracing social commerce, influencer-driven marketing, and omnichannel integration to deepen customer engagement and boost conversion rates. Innovations in AI and AR are reducing return rates and enhancing user experience, while the resale and circular fashion segment is gaining traction—especially among Gen Z and Millennials prioritizing affordability and eco-consciousness.”

“Looking ahead, the sector stands to benefit from expansion into tier 2 and tier 3 cities, metaverse-enabled shopping experiences, and smart logistics solutions that improve fulfilment efficiency. As fashion becomes increasingly digital, the market is poised to reach US$ 2.1 trillion by 2032, offering substantial opportunities for stakeholders across retail, tech, and sustainability-focused verticals.”

Key players in the fashion e-commerce market include: