Australia Sportswear Market 2026: Industry Growth and Analysis Report to 2034
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Market Overview
The Australia sportswear market is propelled by rising awareness about health and fitness among consumers, growing popularity of athleisure fashion, increasing participation in sports and recreational activities, expansion of e-commerce and online retail channels, and technological developments in material innovation. The market size reached USD 2.4 Billion in 2025 and is projected to reach USD 3.9 Billion by 2034, growing at a compound annual growth rate (CAGR) of 5.58% from 2026 to 2034.
The market is strategically important to Australia's economy as it supports local manufacturing and retail, creates jobs, promotes active lifestyles, and aligns with the growing consumer preference for health, wellness, and sustainable fashion.
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Australia Sportswear Market Summary
The Australia sportswear market encompasses a system where sports apparel, sports footwear, and sports accessories are manufactured, distributed, and sold through online and offline channels (sporting goods retailers, supermarkets/hypermarkets, exclusive brand outlets) to men, women, and children.
These sportswear products are valued for their role in supporting physical activity, providing comfort and performance during exercise, enabling athleisure fashion for everyday wear, and promoting health and fitness lifestyles.
The ecosystem includes sportswear manufacturers, brands, retailers (online platforms, sporting goods stores, department stores), athletes and celebrity endorsers, fitness influencers, and consumers across Australian regions.
Major segments identified in the market include category (sports apparel, sports footwear, sports accessories), distribution channel (online, offline: sporting goods retailers, supermarkets and hypermarkets, exclusive brand outlets, others), end user (men, women, children), and region (Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, Western Australia).
The market is benefiting from rising awareness about health and fitness (15% of Australian citizens have a gym subscription per Gitnux), increasing popularity of athleisure fashion (blending athletic wear with casual clothing), expansion of e-commerce and online retail channels (e-commerce industry reached US$ 32.3 Billion in 2024, 15.5% yearly growth per ITA), rapid urbanization, sustainability focus (recycled materials, organic textiles, eco-friendly dyes), and celebrity and athlete endorsements.
On 9 September 2024, S-Trend Sportswear (STR) extended its partnership with Motorsport Australia to support talent overseas at the Scuderia Ferrari Driver Academy (FDA) Asia Pacific and Oceania Selection Program and FIA Motorsport Games.
PORTER'S FIVE FORCES ANALYSIS — AUSTRALIA SPORTSWEAR MARKET
Bargaining Power of Suppliers — Moderate
Sportswear suppliers include fabric and material providers (performance fabrics, recycled materials, organic textiles), component manufacturers (zippers, tags, soles), and contract manufacturers. The rising interest in eco-friendly products is leading brands to implement sustainable practices, giving suppliers of recycled and sustainable materials moderate bargaining power.
Technological developments in material innovation (moisture-wicking, breathable fabrics, compression technology) mean that specialized material suppliers have leverage.
However, the presence of multiple suppliers across different material categories gives manufacturers options, reducing dependency on any single supplier.
Bargaining Power of Buyers — Moderate to High
Buyers include individual consumers (men, women, children), fitness enthusiasts, athletes, and casual wearers. The expansion of e-commerce has completely altered the way consumers purchase sports gear, offering convenience, a bigger selection, and competitive pricing.
Consumers seek clothing that offers both functionality and style, with many opting for sportswear that can transition from the gym to casual outings. The rise of athleisure fashion means buyers have more options for versatile attire.
Celebrity and athlete endorsements build trust and generate affinity, influencing consumer purchasing decisions. However, the availability of multiple brands and online price comparison gives buyers negotiating power.
Threat of New Entrants — Moderate
The sportswear market has moderate barriers to entry. New entrants can enter through niche segments (sustainable activewear, size-inclusive lines, gender-neutral collections) or through direct-to-consumer online models.
The expansion of e-commerce allows new brands to reach consumers without significant physical retail presence. The rise of social media and fitness influencers provides marketing channels for new entrants.
However, established brands with celebrity endorsements, athlete partnerships, and strong distribution networks have significant advantages. The partnership between S-Trend Sportswear and Motorsport Australia (September 2024) demonstrates how endorsements create competitive differentiation.
Threat of Substitutes — Low
Sportswear has no direct substitute for performance athletic activities (running, training, team sports). Regular casual wear is a substitute for athleisure in everyday settings, but cannot provide the performance features needed for exercise.
The popularity of athleisure fashion means sportswear is increasingly worn in non-athletic settings, reducing substitution with traditional casual wear.
The cultural shift in Australia embracing fitness as a lifestyle choice supports sustained sportswear demand regardless of fashion cycle fluctuations.
Competitive Rivalry — High
The Australia sportswear market features intense competition among international brands and local players across sports apparel, footwear, and accessories segments.
Differentiation occurs through performance technology (moisture-wicking, compression, breathability), sustainability credentials (recycled materials, eco-friendly dyes), design and fashion appeal, celebrity and athlete endorsements, and distribution reach.
On 9 September 2024, S-Trend Sportswear (STR) extended its partnership with Motorsport Australia to support talent overseas, demonstrating how brand partnerships and endorsements are key competitive strategies.
MARKET GROWTH DRIVERS
Rising Awareness about Health and Fitness
The growing awareness and prioritization of health and fitness among Australian citizens is strongly influencing the Australia sportswear market. There is a positively changing sentiment toward health and wellness. More individuals are engaging in physical activity regularly and pursuing healthier habits in their daily lives. The expanding emphasis on preventive healthcare and overall well-being is supporting this trend substantially.
The cultural shift in Australia is embracing fitness as a lifestyle choice rather than just a hobby. The popularity of gyms, fitness classes, and outdoor recreational activities is evidence of this. According to Gitnux, an estimated 15% of Australian citizens have a gym subscription. Due to this, there is more requirement for sports gear that supports numerous physical activities. As a result, manufacturers are developing more products designed for performance, comfort, and style, serving both casual exercisers and serious athletes. The rise of fitness influencers and social media platforms has immensely popularized active lifestyles.
Increasing Popularity of Athleisure Fashion
The rise of the athleisure trend is substantially influencing the growth of the sportswear market in Australia. This style of apparel features clothes that are a blend of athletic wear with casual clothing. It has become increasingly popular as consumers seek versatile attire that can transition seamlessly from workouts to everyday activities.
The convenience and style of athleisure allows individuals to wear sports attire in a variety of settings beyond the gym, broadening the appeal of such apparel to a wider audience. Those who may not engage in regular exercise but are attracted to the versatility, comfort, and aesthetic of athletic clothing are choosing to purchase such apparel. Manufacturers are creating more lines of fashionable and useful sports attire that serve fitness enthusiasts and fashion-conscious consumers. Due to the recent adoption of work-from-home facilities and relaxation of formal corporate dress codes, athleisure gear is receiving more attention
.
Expansion of E-commerce and Online Retail Channels
The expansion of e-commerce is a significant driver of the Australian sportswear market. Online shopping has completely altered the way consumers purchase sports gear as it offers convenience, a bigger selection, and competitive pricing. E-commerce platforms provide easy access to many sports apparel brands and products that allow consumers to compare options and make informed purchases from the comfort of their homes.
According to the International Trade Administration, the e-commerce industry in Australia reached US$ 32.3 Billion in 2024, recording a 15.5% yearly growth. Sports apparel companies are also able to build stronger connections with their customers due to the rise of direct-to-consumer sales models, enabling brands to offer exclusive products or limited editions. Advancements in online shopping technology have improved the online shopping experience, expanding market reach and catering to the rising preference for digital retail experiences.
Sustainability Focus
The rising interest in eco-friendly products is having a significant impact on the demand within the Australian sportswear market. Shoppers are increasingly aware of the environmental implications of their purchases, which is leading brands to implement sustainable practices in both production and sourcing. Numerous sportswear companies are now incorporating recycled materials, organic textiles, and environmentally friendly dyes into their offerings in an effort to lower their carbon emissions.
This emphasis on sustainability particularly appeals to younger, environmentally conscious consumers, encouraging a trend towards brands that emphasize ethical manufacturing. Sustainable packaging and transparent supply chains are becoming more valued, aligning brands more closely with the principles of their customers. Consequently, the Australian sportswear market demand is increasingly influenced by consumers who are looking for products that perform well and support a more sustainable future.
Celebrity and Athlete Endorsements
Celebrity and athlete endorsements are now an important aspect of the Australian sportswear market, increasing brand recognition and credibility. Partnering with well-known names and professional athletes increases the reputation of a brand, making it more desirable to consumers, particularly those who tend to follow these idols for style and performance inspiration.
These endorsements tend to produce trust and generate an affinity, which are powerful influences on consumer purchasing decisions. Sportswear brands employ such collaborations to expand their audience, particularly on social media sites where celebrities and sportspersons have huge followings. On 9 September 2024, S-Trend Sportswear (STR) extended its partnership with Motorsport Australia to support brightest talent overseas at the Scuderia Ferrari Driver Academy (FDA) Asia Pacific and Oceania Selection Program and FIA Motorsport Games.
AUSTRALIA SPORTSWEAR MARKET SEGMENTATION
Category Insights:
Sports Apparel
Sports Footwear
Sports Accessories
Distribution Channel Insights:
Online
Offline
Sporting Goods Retailers
Supermarkets and Hypermarkets
Exclusive Brand Outlets
Others
End User Insights:
Men
Women
Children
Regional Insights:
Australia Capital Territory & New South Wales
Victoria & Tasmania
Queensland
Northern Territory & Southern Australia
Western Australia
COMPETITIVE LANDSCAPE
The Australia sportswear market features intense competition among international brands and local players across sports apparel, footwear, and accessories segments. Leading players differentiate through performance technology, sustainability credentials, design and fashion appeal, celebrity and athlete endorsements, and distribution reach. The rise of direct-to-consumer sales models and e-commerce platforms is intensifying competition.
Key players mentioned in the report include various sportswear manufacturers and brands. Notable industry developments include:
9 September 2024: S-Trend Sportswear (STR) extended its partnership with Motorsport Australia to support brightest talent overseas at the upcoming Scuderia Ferrari Driver Academy (FDA) Asia Pacific and Oceania Selection Program and FIA Motorsport Games. This represents a further expansion of STR's ongoing partnership as Official Merchandise and Apparel Partner to now provide team kits for both the scouting camp in Malaysia, Sepang, as well as for Team Australia in Valencia, Spain.
REGIONAL ANALYSIS
Australia Capital Territory & New South Wales: As the region containing Sydney and the national capital Canberra, NSW and ACT represent a significant sportswear market driven by high population density, urban lifestyle, and concentration of sporting goods retailers and exclusive brand outlets. Sydney's active outdoor culture and fitness community drive demand for performance apparel and athleisure wear.
Victoria & Tasmania: Victoria, anchored by Melbourne, is a key sportswear market with strong sporting culture (Australian Rules Football, cricket, Melbourne Marathon). Melbourne's reputation as Australia's sporting capital drives demand for team sports apparel, running gear, and fitness wear. The region's fashion-conscious consumers also drive athleisure demand.
Queensland: Queensland's sportswear market is driven by the state's outdoor lifestyle, beach culture, and warm climate. Brisbane, the Gold Coast, and Sunshine Coast have high participation in outdoor activities (surfing, running, cycling, swimming), driving demand for performance and casual activewear. Tourism also supports sportswear retail.
Northern Territory & Southern Australia: In the Northern Territory and South Australia, the sportswear market is smaller but growing, driven by outdoor recreational activities and fitness participation. Adelaide's active lifestyle and event participation (City-Bay fun run) support demand. The Northern Territory's warm climate drives demand for lightweight, breathable activewear.
Western Australia: Western Australia's sportswear market is driven by Perth's active outdoor lifestyle, beach culture, and fitness community. The state's outdoor recreation opportunities (surfing, running, cycling) and warm climate drive demand for performance apparel and footwear. Resource-sector wealth supports premium sportswear consumption.
RECENT INDUSTRY DEVELOPMENTS
June 2026: Swiss sportswear brand On accelerated its expansion in Australia, with the company reporting 56.5% growth in apparel sales during Q1 2026. Australia remained a key market in the Asia-Pacific region, where the brand is expanding through more than 70 retail partner outlets and new flagship stores, reflecting strong demand for premium sportswear and performance apparel.
June 2026: Major sportswear brands intensified marketing activity around the FIFA World Cup 2026. Nike sponsored 12 national teams, while Adidas sponsored 14 teams and remained the tournament's official sponsor. The event boosted demand for jerseys, training apparel, and licensed sportswear products across markets including Australia.
June 2026: Australia's fitness and athletic clothing retail industry reached an estimated value of AUD 4.6 billion, with 279 businesses operating nationwide. The industry recorded a 3.6% CAGR between 2021 and 2026, supported by increasing participation in fitness activities and growing athleisure adoption.
May 2026: Australian football star Mary Fowler signed a record-breaking AUD 10 million endorsement deal with Adidas, one of the largest sponsorship agreements ever secured by a female footballer. The partnership highlights the growing influence of women's sports on sportswear sales and brand marketing strategies in Australia.
May 2026: Sportswear company On raised its 2026 profitability outlook after reporting 26.4% year-over-year sales growth in Q1 2026 to CHF 831.9 million, driven by strong demand for performance footwear and apparel. The company also reported 61.4% growth in Asia-Pacific sales, making the region one of its fastest-growing markets.
January 2026: Australia's sportswear market remained supported by strong consumer demand for activewear and athleisure products. Industry estimates valued the broader Australian activewear market at approximately USD 8.12 billion, with growth driven by health-conscious consumers and increasing fitness participation.
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