Latin America Poised to Become $156 Billion Fashion Powerhouse by 2029: Report

Latin America's fashion industry is drawing heightened interest from global brands as new estimates project the sector could reach $156 billion by 2029, according to reporting from Montenapo Daily.

The projection marks a sharp acceleration from current levels and reflects long-term structural shifts, including population growth, urbanization, rising disposable income, and expanding digital access across the region.

Import demand for premium and luxury goods continues to strengthen in Brazil, Mexico, and Colombia. In Brazil, luxury sales increased 26% between 2022 and 2024, significantly outpacing global growth rates. The Brazilian market now totals roughly €15.4 billion, with demand extending across fashion, accessories, real estate, and automotive categories.

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European brands—particularly Italian ones—are attempting to capitalize on this momentum by emphasizing craftsmanship and design. One example cited by Montenapo Daily is the "Exporting the Dolce Vita" initiative, backed by Italy's Ministry of Foreign Affairs and the Italian Trade Agency, to reinforce the presence of Italian-made fashion in Brazil.

Regional trade developments may also reshape market access as progress on the pending EU-Mercosur agreement, if finalized, is expected to simplify product flows, investment, and cross-border industrial collaboration, potentially easing market entry for European brands.

Despite the opportunity, companies face hurdles. Geopolitical volatility, tariff uncertainty, and a cooling luxury market in parts of Asia are pressuring global supply chains. A Deloitte survey referenced by Montenapo Daily found that 80% of fashion-sector investors view tariffs as a significant risk, though the majority do not plan to scale back activity.

Broader economic trends reinforce Latin America's strategic importance. A recent Boston Consulting Group report estimates that the "Global South" could generate $14 trillion in trade by 2033, with growth nearly double that of advanced economies. For European producers grappling with contractions—Italy's leather sector saw an 8.6% decline in 2024 and expects another drop in 2025—Latin America is increasingly positioned as a diversification outlet.

Additional market context from an HTF Market Insights report, published in October, shows parallel growth on the consumer and design side, estimating that the Latin fashion market alone—which includes apparel, accessories, and footwear from Latin American designers—was valued at $28.5 billion in 2024 and could reach $53.7 billion by 2033.

The report also noted rising global demand for culturally infused products, expansion of online retail channels, and increased collaboration between Latin American designers and international luxury houses.

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