India’s innerwear and knitwear markets are at an exciting crossroads, driven by the evolving tastes of Gen Z and Millennials. According to research, the country’s innerwear market is projected to reach USD 20.5 billion by the next five years, growing at a CAGR of 7.6% from 2024 to 2030. But this growth is about more than just numbers; it’s a reflection of how consumers are rethinking comfort, style, and self-expression, starting from the layers closest to their skin. As the old adage goes, “fashion begins from the inside out,” and in today’s India, this has never been truer.
These younger generations are rewriting the rulebook. Gen Zs, aged 12 to 27, value self-expression, boldness, and sustainability. They are unafraid to experiment with colors, patterns, and fabrics, seeing innerwear not just as a necessity but as a reflection of their identity. Millennials, aged 28 to 43, on the other hand, are driven by a mix of practicality and style. They prioritize quality, fit, and versatility, seeking pieces that can move seamlessly from home to office, from casual outings to active lifestyles. Together, these two groups are reshaping how manufacturers design, produce, and market this apparel sector in India.
Identity, Trends, and Fast Fashion
Gen Z’s fashion choices are identity-driven. They give utmost importance to character and inclusivity, with 62% preferring brands that reflect social responsibility. In the innerwear space, this has translated into a preference for bold designs, gender-neutral sizing, and vibrant colors. Knitwear, traditionally considered utilitarian, has become a medium for experimentation, seamless fabrics, bold patterns, and limited-edition capsule collections appeal to this generation’s desire for individuality.
Social media platforms play an outsized role in shaping this demographic’s consumption. Trends emerge and disappear rapidly, demanding agility from manufacturers. Microtrends such as Y2K-inspired loungewear, eco-friendly thermal wear, or multifunctional baselayers gain popularity overnight. For knitwear production, this means brands and manufacturers must adopt flexible production cycles, smaller batch runs, and quick design-to-market capabilities to meet demand without excess inventory.
‘Comfort’ remains a NON-NEGOTIABLE factor. The post-pandemic lifestyle, with work-from-home routines and increased emphasis on athleisure, has pushed Gen Z consumers toward soft, breathable fabrics that adapt to multiple settings, be it casual home wear, gym sessions, or outdoor activities. Advanced knitting technologies, such as 3D knitting and seamless construction, allow the creation of garments that meet these functional and aesthetic requirements while minimizing waste.
Quality, Longevity, and Investment Pieces
Millennials, in contrast, approach fashion from a quality-first mindset. Having grown up during the rise of fast fashion, they now prioritize premium materials, durability, and versatility. Innerwear and knitwear for this cohort are expected to deliver consistent fit, high-quality fabrics, and functional design. Organic cotton, bamboo blends, and micro-modal fabrics, paired with ergonomic design, cater to this generation’s desire for comfort without compromising style.
Millennials also demonstrate stronger brand loyalty. Their purchase decisions are influenced by perceived value, transparency in production, and a focus on long-term wear. For manufacturers, this implies a continued emphasis on elevated basics, tailored thermal wear, premium sleepwear, and functional innerwear staples. Knitwear collections that blend contemporary design with craftsmanship, offering a balance between aesthetic appeal and comfort, resonate strongly with this populace.
E-commerce plays a critical role in reaching this demographic. They prioritize seamless online shopping experiences, from detailed size guides to return-friendly policies. Investment in fit accuracy and user experience is essential, especially for intimate apparel, where comfort and correct sizing are key drivers of repeat purchases.
Redefining Innerwear and Knitwear Production
The evolving demands of these two population groups are redefining how India’s innerwear and knitwear sectors operate. Manufacturers are increasingly leveraging technology to streamline production, improve efficiency, and cater to diverse consumer needs.
Technological innovations such as computerized knitting machines, IoT-enabled production monitoring, and AI-driven quality checks are revolutionizing the sector. Circular knitting machines are ideal for high-volume production of smooth fabrics, while flat knitting machines allow intricate designs, motifs, and textures, essential for appealing to style-conscious Gen Z consumers. 3D knitting enables customized and complex garment constructions with minimal cutting and sewing, reducing waste and production time.
Sustainability has moved from a niche consideration to a central requirement. Both Gen Z and Millennials demand eco-conscious production practices. Manufacturers are responding with organic fibers, recycled fabrics, plant-based dyes, and biodegradable packaging. Energy-efficient knitting machines and waste reduction practices not only reduce environmental impact but also align with the values driving purchase decisions in the innerwear and knitwear markets.
Market Trends – From Function to Fashion
The innerwear market is no longer purely functional. It has transformed into a platform for self-expression, comfort, and style. Significant trends shaping the industry include:
- Athleisure and Multifunctional Wear: Seamless integration of innerwear, loungewear, and activewear is driving innovation. Boxer briefs doubling as gym shorts, thermal baselayers suited for both outdoor and indoor use, and multifunctional undershirts are becoming mainstream.
- Inclusivity and Diversity: Expanded sizing ranges, gender-neutral offerings, and designs catering to varied body types are now central to production strategies. Manufacturers are exploring unisex and experimental styles to appeal to progressive consumer segments.
- Premiumization: While mid-market and economy segments dominate in volume, premium and super-premium categories are witnessing faster growth. Consumers are willing to pay more for elevated designs, superior fabrics, and technological features like sweat-resistant or odour-neutralizing properties.
- Digital Influence: From discovery to purchase, digital channels drive decision-making. Gen Z’s trend adoption is often real-time, while Millennials engage in research and comparison before purchase. Brands and manufacturers must adopt digital-first strategies, offering detailed product information, virtual fittings, and interactive experiences.
- Regional and Cultural Nuances: India’s diverse climatic conditions and cultural preferences influence fabric choices and design. Breathable knitted fabrics suit humid climates, while thermals and baselayers cater to colder regions. Localized designs and culturally inspired motifs can provide differentiation and enhance market appeal.
Opportunities and Challenges
The nation’s innerwear and knitwear sectors stand at a promising juncture. Rising disposable incomes, urbanization, and digital penetration are accelerating growth, while the convergence of fashion and function is creating opportunities for innovation.
However, challenges remain. Production cost pressures, skills gaps in operating advanced machinery, and the need to balance affordability with premiumization require strategic solutions. Geopolitical and economic fluctuations, alongside fragmented regulatory environments, add layers of complexity for manufacturers targeting domestic and export markets.
Government initiatives, such as the Production-Linked Incentive (PLI) scheme for textiles, coupled with Free Trade Agreements (FTAs) and export facilitation policies, are enabling manufacturers to scale, modernize operations, and invest in R&D. Organized players leveraging technology, sustainable practices, and consumer insights are composed to capture the next wave of growth in India’s apparel segments.
The Future of Fashion Consumption
Gen Z and Millennials are not just shaping consumer demand; they are modifying what fashion means in India. Innerwear and knitwear are no longer hidden essentials; they are central to personality-expression, comfort, and lifestyle.
Manufacturers and designers must embrace a dual approach of speed, trend responsiveness, and identity-driven designs for Gen Z, alongside quality, longevity, and value-driven products for Millennials. Investments in technology, sustainability, and digital-first experiences are no longer optional but are prerequisites for competing in a market set to expand exponentially over the next decade.
As India’s innerwear and knitwear markets evolve, the industry has an unprecedented opportunity to innovate, elevate, and redefine consumer expectations. From seamless athleisure knits to premium, body-conscious thermal wear, the next generation of fashion consumption is being woven in real time; one stitch, one fabric, and one consumer insight at a time.
