The global market for functional apparel is expected to slump by -8% in the year 2020 and thereafter recover and grow to reach US$393.1 billion by the year 2027, trailing a post COVID-19 CAGR of 5.7%, over the analysis period 2020 through 2027. COVID-19 has disrupted, changed and destroyed everything in its path i.e. industries, markets, societies, communities & everyday human life. The ruins of the global economy are made up of failed, collapsing, choking, struggling and decimated industries & businesses and among the vanquished is the apparel industry. Akin to other consumer industries, global textile industry represents one of the worst affected industries due to the pandemic. Lockdowns, shelter-in-place, work from home, voluntary renunciation of social life, unemployment and loss of household income have together dealt an unprecedented blow, bringing the industry to its knees. The pandemic continues to have a major impact on the textiles industry in terms of logistics interruptions, increased costs, absent workforce and reduced inventory and supply. Because of the lockdowns, investments on textiles, garments, and apparel remain sluggish and the scenario is likely to continue through the end of the current year, pointing towards a negative overall growth for the year 2020. Delays and disruptions in production, exports and imports are also wielding considerable impact on the textile industry. China, which was the epicenter of worldwide Covid-19 outbreak, is the largest producer and exporter of textiles, worldwide. Amid the escalating pandemic spread, demand for textiles is expected to remain under pressure till the year end.

Retail sales in countries such as the UK and US are also expected to register double-digit declines in 2020, with footwear and clothing brands being one of the hardest hit. Even online sales of apparel and accessories slumped considerably in the 1st quarter 2020. The disruptions caused by the pandemic continue to impact garment and textile industries across various regional markets. As the duration and the severity of the pandemic in the long run are unclear, the fashion industry struggles to sustain through the crisis. The closure of stores has impacted leading fashion companies in North America and Europe, sending several of them into severe financial crisis and bankruptcies. With apparel industry severely hit all over the world, and export orders being cancelled, the textiles sector in other Asian countries such as India and Bangladesh is also facing the brunt. Closed stores and cancelling of orders have resulted in wage cuts and staff layoffs, leaving the workers of the garment sectors, income less. As most of the apparel products are design and fashion specific, and customized according to the consumers' choice, they are considered to be perishable, and their cancellation will leave them with little salvage value as time passes. With the widespread cancellations both at global and local levels, the manufacturers are not stepping up production of new items. Many overseas buyers are either postponing or cancelling the confirmed export orders. However, the current situation is offering unique opportunity for companies to associate with small local businesses to generate quick churning of inventory.

The effects of the outbreak are expected to remain for at least another year. If the companies get a chance to resume their operations soon, the materialization of the order execution may take around 2-3 months, owing to the cold response from the foreign buyers. Even if the COVID-19 pandemic subsides, consumers may not be ready to spend on garments in the stores. A non-essential and discretionary product, functional apparel is expected to fall to steepest among all other apparel segments with losses accumulating to US$23.3 billion for the year 2020. In the post COVID-19 period, recovery will be led by the growing health and wellness trend. When the economic and employment climate improves, consumers will begin to spend on apparels, mainly sportswear and active wear products. Consumer focus on healthy regime and rising level of health-consciousness will drive demand for apparels for gym sessions, personal training and casual work. Increasing engagement in sports and adventurous activities like cycling and trekking will favor market expansion. In addition, aggressive efforts by fitness influencers to promote active wear and attract consumers will re-ignite the athleisure cult, encouraging people to wear active wear on gyms as well as social gatherings and runways. Market growth will also be propelled by rising adoption of functionality-specific apparels and footwear and technological advancements. The use of engineered fabrics in functional apparel offers protects from extreme cold or heat, chemicals and radiation. These fabrics can absorb sweat and keep users cooler in summer and warm in winters. Some of the latest functional apparels are made using anti-bacterial materials capable of preventing body odor.