Australia Sportswear Market 2026: Set for Strong Growth as Active Lifestyles Take Hold

Australia Sportswear Market Overview

The Australia sportswear market size is experiencing robust expansion as fitness culture, fashion trends, and digital retail adoption reshape consumer demand. According to the latest research by IMARC Group, the market was valued at USD 2.4 billion in 2025 and is forecast to grow to USD 3.9 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 5.58% from 2026 to 2034.

This growth trajectory underscores the increasing importance of sportswear not only for athletic performance but also as lifestyle apparel. The category encompasses sports apparel, sports footwear, and sports accessories, and is distributed via both online and offline channels catering to men, women, and children alike.

Why the Market Is Growing So Rapidly

1. Health and Fitness Awareness Driving Demand

A foundational driver of market growth is the rising awareness of health, fitness, and well-being among Australians. Consumers are increasingly engaging in physical activity — from gym workouts and outdoor fitness classes to running and cycling — and are seeking high-performance apparel that supports these activities. This heightened focus on preventive healthcare and active lifestyles directly stimulates demand for sportswear products that combine comfort with technology-driven performance features.

2. Athleisure as Everyday Wear

The boundary between traditional sportswear and casual fashion has blurred, with athleisure emerging as a dominant lifestyle trend. What was once apparel reserved for workouts is now commonly worn in everyday settings — from work-from-home attire to social outings. This shift has expanded the addressable market for sportswear brands, enabling them to appeal to a wider base of consumers seeking versatile, stylish clothing that meets both fashion and function needs.

3. Expansion of E-Commerce Channels

The rapid expansion of e-commerce and digital retail platforms has transformed how sportswear products are marketed and sold. Online shopping offers unparalleled convenience, wider product selection, and competitive pricing — all of which lower barriers to purchase. Brands are also leveraging e-commerce to launch exclusive collections, engage directly with consumers, and gather data-driven insights to refine offerings. This channel growth is particularly appealing to younger, tech-savvy shoppers who value seamless digital experiences.

4. Urbanization and Lifestyle Shifts

Urbanization has reshaped consumer preferences in major Australian metros, where sportswear transcends utility and becomes part of everyday life. Urban dwellers increasingly adopt active lifestyles that incorporate fitness into daily routines, elevating demand for apparel that works for both exercise and casual wear. The sportswear market benefits from this convergence as brands respond with products that emphasize comfort, style, and versatility.

5. Sustainability and Ethical Consumption Trends

Sustainability is also gaining traction within the sportswear segment. Consumers — especially younger demographics — are prioritizing eco-friendly and ethically sourced products. Sportswear brands that incorporate recycled materials, sustainable production processes, and transparent supply chains are increasingly resonating with environmentally conscious shoppers. This shift towards sustainable consumption is creating product differentiation opportunities and helping drive brand loyalty.

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What the Opportunities Are

1. Performance-Driven Apparel Innovation

Brands that invest in advanced fabric technologies — such as moisture-wicking, compression, and temperature-regulating materials — can capture premium segments of the market seeking both performance and comfort.

2. Expansion of Online-First and Direct-to-Consumer Models

E-commerce penetration presents a major opportunity for brands to build direct relationships with consumers, reduce dependency on third-party retailers, and optimize margins.

3. Athleisure and Everyday Wear Integration

Designing products that transition seamlessly between fitness settings and everyday life can help brands tap into the large segment of consumers embracing athleisure as a lifestyle choice.

4. Female Consumer Segment Growth

There is a growing opportunity to tailor offerings specifically for women, leveraging increased female participation in fitness and sports, and addressing unmet needs with inclusive sizing and style options.

5. Sustainable and Ethical Product Lines

Brands authenticating sustainability — from recycled materials to transparent supply chains — can differentiate themselves and appeal to environmentally conscious buyers.

6. Youth and Millennial Demographics

Targeted marketing and brand experiences that resonate with younger consumers, especially via social media, can help sportswear brands secure long-term loyalty and advocacy.

7. Offline-Online Hybrid Retail Experiences

Integrating digital touchpoints with physical retail through omnichannel strategies can enhance customer engagement and offer personalized shopping experiences.

Recent News & Developments

January 2025: Government Policy Action

In early 2025, Australian health authorities launched a national initiative promoting physical activity among youth, including incentives for community sports participation and public fitness programs. The initiative aims to reduce lifestyle-related health issues and indirectly support increased demand for sportswear products across age groups.

April 2025: Company Expansion

In April 2025, Frasers Group announced a strategic expansion into the Australian market through its Sports Direct brand, including plans to open 100 stores and invest approximately £29 million in partnerships with local retailers. This expansion is expected to enhance sportswear accessibility and retail competition within Australia’s apparel sector.

July 2025: Milestone Adoption Metrics

By mid-2025, digital retail platforms reported a 15.5% year-over-year growth in online sportswear purchases, reflecting strong consumer adoption of e-commerce channels and signaling rising comfort with online apparel shopping across demographics.

Why Should You Know About Australia Sportswear Market?

The Australia sportswear market represents a dynamic intersection of lifestyle, health, fashion, and digital commerce. With its strong projected growth — approaching USD 3.9 billion by 2034 — the sector offers compelling opportunities for investors, brands, and policymakers alike. Consumers are increasingly prioritizing health and comfort, while digital channels continue to reshape purchase behaviors. Brands that innovate in product design, embrace sustainability, and engage consumers across digital and physical channels are poised to thrive. For investors and businesses, understanding these trends is critical to navigating a market that is not only growing but redefining how apparel intersects with everyday lifestyles.