Australia Activewear Market, By Product Type (Ready to Wear, Fashion Outer, Pants & T-Shirts, Rash Guard, Wet Suit & Swim Wear, Others), By Gender (Men, Women, Kids), By Distribution Channel (Offline, Online), By Region, Competition, Forecast & Opportunities, 2021-2031F

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 3.39 Billion
CAGR (2026-2031)	6.73%
Fastest Growing Segment	Women Activewear
Largest Market	ACT and New South Wales
Market Size (2031)	USD 5.01 Billion

Market Overview

The Australia Activewear Market will grow from USD 3.39 Billion in 2025 to USD 5.01 Billion by 2031 at a 6.73% CAGR. Activewear encompasses clothing designed for physical activity and athletic pursuits, extending to leisure and casual wear due to its comfort and functional attributes. The Australian activewear market's expansion is fundamentally driven by a heightened national focus on health and wellness, encouraging participation in sports and fitness activities across all demographics. Concurrently, the prevailing trend towards the casualization of fashion has integrated activewear into daily wardrobes, moving beyond its traditional utility. Furthermore, increasing disposable incomes amongst consumers enable greater expenditure on specialized and premium athletic apparel.

According to the Australian Fashion Council and Epson, in 2024, Australian Textiles, Clothing, and Footwear (TCF) manufacturing contributed $2.6 billion to the national economy. Despite these growth drivers, a significant impediment to market expansion remains the intense competition from international imports, often offering lower price points which pressure domestic manufacturers and can limit their market share.

Key Market Drivers

Rising Wellness Awareness Drives Activewear Demand in Australia
Rising Health and Wellness Awareness significantly propels the Australia Activewear Market, as consumers increasingly prioritize physical well-being and active lifestyles. This heightened focus translates into greater participation in diverse fitness pursuits, from gym activities to outdoor sports. Australians are integrating regular exercise into their routines, thereby increasing the demand for appropriate apparel. According to the Australian Sports Commission's 2023-2024 AusPlay results, published in December 2024, 6 million adult Australians participated in fitness or gym activities. This widespread engagement across different demographics underscores a fundamental shift in consumer priorities towards maintaining health, driving consistent expenditure on activewear that supports performance and comfort.

Athleisure Goes Mainstream, Expanding Activewear Market
The Mainstream Adoption of Athleisure Fashion stands as another critical driver, transforming activewear from purely functional gear into everyday attire. This trend, blurring the lines between athletic wear and casual fashion, has expanded the usage occasions for activewear beyond workouts to social settings, remote work, and daily errands. Consumers seek versatile clothing that offers both comfort and style, suitable for a dynamic lifestyle. According to CBRE's 'Fitness Becomes Fashion' report, published in May 2025, Australia's fitness and athletic clothing stores market was valued at $4.2 billion in 2024. This robust valuation highlights the substantial consumer spending on activewear as a fashion statement. Overall, the broader fitness market in Australia reflects this growth, with the market size reaching AUD 5.1 billion in 2024, according to Artbell Fitness. This integration into mainstream fashion is a key factor sustaining market expansion.

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Key Market Challenges

Import Competition Pressures Domestic Manufacturers
The Australian activewear market encounters a significant challenging factor through intense competition from international imports. These foreign products frequently enter the market at lower price points, placing considerable pressure on domestic manufacturers. This competitive environment forces local businesses to prioritize cost efficiency, often at the expense of profit margins, which subsequently constrains their ability to invest in product development and market expansion within Australia.

Overseas Production and Import Penetration Limit Domestic Growth
This reliance on overseas production directly limits the market share accessible to Australian activewear brands. According to the Australian Fashion Council, in 2025, approximately 97 per cent of all fashion and textile products sold in Australia were made overseas. This substantial proportion of imports indicates that consumer demand is predominantly met by foreign suppliers. Such a market dynamic curtails the growth potential of domestic activewear companies, as the widespread availability of cheaper imported goods diverts sales and inhibits the scaling of local manufacturing operations.

Key Market Trends

Sustainability and Transparency as Market Drivers
Consumer demand for sustainability and ethical sourcing has become a significant trend within the Australian activewear market, reflecting heightened awareness of environmental and social impacts. This prompts a preference for brands prioritizing transparency, eco-friendly materials, and responsible manufacturing. Activewear companies are focusing on innovations such as recycled fabrics and organic cotton to meet evolving expectations and gain a competitive edge. This commitment extends beyond product composition to the entire supply chain. According to the ACRS Retail Sustainability Spotlight 2024 Report in June 2024, 62% of sustainable shoppers personally decide a product is sustainable based on whether its packaging or product is recyclable.

E-commerce and DTC Reshape Brand Engagement and Investment
The Australian activewear market is also profoundly influenced by the growing dominance of e-commerce and direct-to-consumer (DTC) channels. This trend empowers brands to bypass traditional retail intermediaries, fostering direct relationships with consumers through online platforms. These channels offer enhanced control over brand messaging, customer data, and personalized shopping experiences. The direct model enables brands to efficiently reach a broader customer base, including niche segments, while optimizing operational costs. This digital pivot has intensified investment in robust online infrastructures. According to Ragtrader in March 2026, citing Australia Post's Annual eCommerce Report, online fashion and apparel spending rose by 11.5 percent year-on-year to $11.6 billion in 2025.

Segmental Insights

Women’s Activewear: Fastest-Growing Segment Fueled by Athleisure and Wellness Trends
The Australia Activewear Market demonstrates a key segmental insight with the Women Activewear segment emerging as the fastest-growing category. This rapid expansion is largely attributable to the enduring athleisure movement, which sees women integrating performance-oriented, stylish clothing into diverse daily activities beyond exercise. Furthermore, a significant increase in health and wellness consciousness among Australian women, supported by consistent engagement in physical activities as reported by institutions like the Australian Institute of Health and Welfare, drives demand for functional and comfortable apparel. Brands are strategically addressing these evolving consumer preferences by offering versatile designs that blend aesthetics with practicality.

Regional Insights

ACT and NSW: Regional Drivers of the Australian Activewear Market
The Australian Capital Territory and New South Wales emerge as pivotal regions within the Australia Activewear Market, primarily driven by their substantial population density and ingrained urban lifestyles. These areas exhibit a pronounced health and fitness consciousness, fostering active outdoor cultures and robust fitness communities, particularly in metropolitan centers like Sydney. This cultural inclination results in high participation rates across diverse physical activities, consequently driving sustained demand for functional and fashionable activewear. Furthermore, a strong concentration of sporting goods retailers and prominent brand outlets throughout these regions ensures widespread product accessibility, further cementing their market dominance. State health initiatives, such as those promoted by NSW Health, also implicitly encourage active lifestyles, contributing to the consistent growth of the activewear segment.

Recent Developments

• In October 2025, Australian activewear brand Lorna Jane released its new spring collection, emphasizing versatile designs for varied activities. The collection featured lightweight, flattering separates intended for seamless transition from fitness pursuits to casual outings, including the beach or brunch. Key items included a Preset Stripe Linen Short Sleeve Shirt with matching shorts, alongside Sweet Spot Bike Shorts and a Sports Bra, crafted from moisture-wicking, quick-drying LJ Elite fabric. This launch further solidified Lorna Jane’s commitment to stylish and functional activewear in the Australian market.
• In July 2024, 2XU, an activewear company founded in Melbourne, collaborated with District Vision to launch a nine-piece collection targeting extreme heat conditions. This new product line, inspired by the challenging Badwater marathon, included items such as hooded anoraks, compression shorts, and tights. The collection incorporated technical features like UV-shielding, breathable mesh, and temperature-regulating capabilities. These products, designed to enhance performance and comfort in harsh environments, ranged from $69.99 USD to $649.99 USD. This collaboration showcased 2XU's continued innovation within the Australian activewear market.
• In July 2024, Lorna Jane, a prominent Australian women's activewear brand, announced a significant two-year partnership with parkrun Australia and parkrun New Zealand. This collaboration aimed to encourage greater female participation in regular exercise events across both countries, specifically focusing on over 500 weekly 5 km parkrun activities. As one of Australia's largest women's activewear retailers, Lorna Jane’s involvement directly supported promoting active lifestyles and community engagement within the Australian activewear market.
• In April 2024, Under Armour introduced its new "Live in UA" brand platform, specifically developed for the Australian market. This strategic launch expanded the company's offerings with a comprehensive range of apparel, footwear, and accessories. The collection was designed to seamlessly integrate into the active lifestyles of Australians, providing versatile pieces suitable for various physical activities and everyday wear. This initiative demonstrated Under Armour's focus on catering to the distinct needs and preferences of consumers within the growing Australian activewear market.

Key Market Players

• Nike Inc.
• Adidas AG
• Puma SE
• Lululemon Athletica Inc.
• Under Armour Inc.
• ASICS Corporation
• Gymshark Ltd.
• New Balance Athletics Inc.
• Fila Holdings Corp.
• Columbia Sportswear Company

By Product Type	By Gender	By Distribution Channel	By Region
Ready to Wear Fashion Outer Pants & T-Shirts Rash Guard Wet Suit & Swim Wear Others	Men Women Kids	Offline Online	Australia Capital Territory & New South Wales Northern Territory & Southern Australia Western Australia Queensland Victoria & Tasmania

Report Scope:

In this report, the Australia Activewear Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Australia Activewear Market, By Product Type:

• Ready to Wear
• Fashion Outer
• Pants & T-Shirts
• Rash Guard
• Wet Suit & Swim Wear
• Others

• Australia Activewear Market, By Gender:

• Men
• Women
• Kids

• Australia Activewear Market, By Distribution Channel:

• Offline
• Online

• Australia Activewear Market, By Region:

• Australia Capital Territory & New South Wales
• Northern Territory & Southern Australia
• Western Australia
• Queensland
• Victoria & Tasmania