Activewear is clothing that is valued for its functional properties – it is often made from stretchy, durable and moisture-wicking materials. Ultimately, it should offer freedom of movement and allow sporting and outdoor activities. In contrast to sportswear, activewear places particular emphasis on comfort and the ability to wear it not only during sporting activities but also in everyday life; a trend that has been expanded as athleisure.
Although activewear was already popular in the 1990s and continued into the early 2000s, it experienced a resurgence due to the Covid pandemic: those who didn’t have to go to the office wanted to wear comfortable clothes at home – no more suits, ties and formal wear. Activewear and athleisure seemed to be advancing inexorably, especially as boundaries between work, home, travel and fitness became blurred. However, according to a new study by the Boston Consulting Group (BCG), the days of strong tailwinds and slight growth are over.
Activewear market is slowing down
“After years of consumers purchasing sportswear and sports shoes in large quantities, the market is approaching saturation. Sales are forecast to only grow by a moderate 3 to 5 percent annually by 2029 – a far cry from the double-digit growth rates of the past,” reports the consulting firm.
Pressure on activewear brands is also increasing: “The 15 largest U.S. activewear companies have collectively lost market share over the past decade as emerging brands gradually erode their dominance,” according to BCG.
But all is not lost yet. For the consultancy, access to the market lies in understanding different generations – how they shop, think about activewear and how they wear it. To this end, the company surveyed 4,000 consumers in the USA.
Gen Z to the rescue
The survey showed that Gen Z is becoming a style-defining trendsetter: “Activewear is no longer just about functionality, but also about self-expression. When it comes to clothing, Gen Z values comfort and self-confidence; when it comes to shoes, they prefer trendy looks that signal exclusivity and belonging.”
Their influence extends far beyond their own wardrobe: “Brands that attract the attention of Gen Z often benefit from a positive image transfer to older generations. Those who remain relevant to Gen Z set the tone for the entire market,” according to the study.
Brands should therefore invest in Gen Z and their preferences to lead cultural relevance. You should also consider subtle branding and design elements to appeal to Gen Z’s individuality. Products should be characterized by what matters most to this generation: comfort, quality and function.
When it comes to activewear discovery and purchasing, half of Gen Z and Millennials’ purchases begin online. It should be noted here that consumers are increasingly orienting themselves towards sales channels and less directly towards the brands, i.e. via generative AI, e-commerce, directly from the brand or in brick-and-mortar stores.
A quarter of them are influenced by recommendations from influencers. But not all influencers are the same. While celebrities may reach a wide audience, macro-influencers offer reach and a level of trust. Micro-influencers score points in terms of credibility, but cannot guarantee a large reach. “For brands, these trade-offs are real, and choosing the right mix is crucial,” advises BCG.
Millennials want belonging and longevity
Things are a little different for Millennials: They see activewear as an expression of their identity and belonging to a certain community. This is often linked to wellness and lifestyle choices. Accordingly, Millennials are investing in health, fitness and longevity and expect their clothing and footwear to support this lifestyle. Status and self-expression go hand in hand, which means they more often buy brands that are popular and trendy.
Brands should therefore make performance part of identity and position sportswear and equipment as a sign of ambition, discipline and belonging, and develop collections dedicated to different sporting activities, the study advises.
Gen X and Baby Boomers: Comfort is king
Even though Gen They put comfort first, as do lower-impact activities like walking, hiking and swimming.
According to the study, brands should therefore address them directly in these activities and pay attention to comfort, lightness and fit, as well as quality and design that responds to the needs of aging people.
How brands can score points
The consulting firm advises brands to differentiate themselves more: “Brands must stand for something unique, be it innovative fashion, well-being, credibility with top athletes or a design that puts comfort first.”
In addition, adapting the offers to the needs of different generations is crucial in order to achieve greater relevance.
It is also important to keep up with changing expectations, i.e. to act faster, for example with shortened design cycles or the integration of AI into customer communication. Brands must also adapt their approach to evolving customer journeys to meet a world of AI, social commerce and online marketplaces.
“The market for activewear is slowing down, but it is far from over. The brands that will be successful will be those that not only understand what people wear, but also why they wear it,” is the conclusion.