What: The activewear market is reaching saturation, with evolving consumer preferences and digital-first journeys reshaping how brands compete and connect with customers.

Why it is important: This shift reflects the urgent need for brands to embrace digital innovation and generational insights, as confirmed by recent industry analyses.

Activewear’s era of effortless growth is ending as the market approaches saturation, with annual sales growth slowing to 3–5% through 2029. Brands face mounting pressure from challenger labels, economic volatility, and tariffs, eroding the dominance of established players and forcing a rethink of strategy, inventory, and pricing. Generational shifts are redefining demand: Gen Z drives trends through self-expression and digital engagement, Millennials blend wellness and identity, while Gen X and Boomers prioritize comfort and premium upgrades for everyday use. The consumer journey is now digital-first, with over half of purchases starting online and GenAI and social commerce rapidly transforming discovery and evaluation. Influencer marketing is increasingly precise, with brands balancing reach, trust, and authenticity across celebrity, macro, and micro influencers. To remain competitive, brands must differentiate sharply, tailor offerings to generational needs, and invest in agile, AI-driven engagement. The future of activewear will be defined by those who understand not just what consumers wear, but why, and who can adapt swiftly to a fragmented, tech-driven landscape.

IADS Notes: The activewear market’s slowdown and intensifying competition are reflected in Lululemon’s recent struggles (The Economist, Sep 2025) and the NRF’s slower retail forecasts (WWD, Apr 2025). Economic headwinds and inventory challenges, as noted by Forbes (Sep 2025), are driving leaner, more agile strategies. Generational shifts, especially Gen Z’s demand for personalization (Vogue Business, Nov 2024), are reshaping product and marketing approaches, while Millennials and Boomers bring distinct priorities (BCG, Sep 2025; WWD, May 2025). The rise of challenger brands (Fashion Network, Nov 2024; Retail Gazette, Nov 2024), digital-first journeys (BoF, May 2025; Vogue Business, Feb 2025; WWD, Oct 2024), and the evolution of influencer marketing (BCG, Apr 2025; Financial Times, Sep 2025; Vogue Business, Oct 2024) all underscore the sector’s need for agility and innovation.

Walk, lounge, sweat: How the generations are redefining activewear

BCG Activewear Trends report