Changing Styles Drive Demand for Innovation

The men's underwear segment in the U.S. has seen tremendous growth over the past decade, outpacing sales in other clothing categories. Driving this demand are changing preferences among consumers that are pushing brands to introduce new styles, fabrics and fits that go beyond basic essentials. According to market research firm Technavio, the American men's underwear industry was valued at $7.87 billion in 2019 and is projected to expand at a compound annual growth rate of 6% through 2023.

Comfort Takes Priority Over Tradition

Men are increasingly prioritizing comfort in their underwear choices and are turning away from tightly-fitting briefs in favor of looser boxers and boxer briefs. A survey by underwear giant Hanes found that over 75% of American men now own at least one pair of boxer briefs, compared to just 25% a decade ago. The rise of athleisure has also influenced underwear trends, increasing acceptance of moisture-wicking, breathable fabrics made from materials like modal and bamboo that keep men dry. Players in the sport underwear category, like Duluth Trading and Mack Weldon, have capitalized on this appetite for enhanced comfort.

Environmentally- conscious options gain traction.

Another factor expanding the U.S. Men's Underwear Market is the demand for sustainable products. Millennial and Gen Z consumers in particular are conscious of a brand's environmental and social impact when making purchases. Early entrants like Tommy John and Sensical established their brands on ecologically responsible-ssourced fabrics like organic cotton and recycled polyester. Recent surveys reveal that one-third of American men are willing to pay more for underwear made from environmentally-friendly materials. With customers demonstrating growing affinity for conscious consumption, major players like Calvin Klein and Jockey are now spotlighting their commitment to ethical manufacturing and reducing plastic usage.

E-Commerce Revolutionizes Shopping Habits

The rapid growth of online retail has upended traditional channels for purchasing underwear. A 2019 study found that nearly 60% of men prefer shopping for underwear online versus in physical stores due to increased privacy, cheaper prices and more options. Direct-to-consumer brands established exclusively on e-commerce platforms are a huge driver of this trend. Companies like MeUndies, MyPakage and Freshboxers target digitally native customers with subscription models, exclusive online assortments, faster delivery and lower costs, cutting out middlemen. As a result, online channels now account for over 40% of underwear sales in the U.S.—a share that is only expected rise. Traditional brick-and-mortar retailers like JC Penney and Kohl's have responded by amplifying their own e-commerce presence to keep pace.

Innovation Through Technology and Design

To stay ahead of competition in such a dynamic market, brands are investing heavily in product innovation. New developments in fabric technology make underwear more temperature-regulating, moisture-wicking and odor-resistant. Design innovations include slimming or enhancing contours, convenient features like phone pockets and fly-less styles that eliminate buttons and zippers. Manufacturer fruits of love recently launched a line of "smart" boxer briefs embedded with sensors to track vitals and send alerts for potential health issues. While still a niche concept, it points to the integration of technology in future underwear offerings. On the design front, fashion labels like Calvin Klein and Emporio Armani are bringing Italian luxury sensibilities to elevated underwear collections with sophisticated prints, patterns and fits for men seeking style statements under their clothing.

Supply Chain Woes From COVID-19

While the long-term outlook remains bright, the underwear industry faced unforeseen challenges from the COVID-19 pandemic. Factories in Asia that produce the bulk of the world's underwear supply shut down for months in 2020 due to lockdowns. Port congestion and shortages of raw materials like cotton and elastane led to months-long delays and shortages. Companies struggled to meet surge in demand from customers stocking up during lockdowns. While suppliers have scaled up since, lingering effects include price increases passed down to consumers. Underwear imports to the U.S. in 2021 were up only 6% compared to pre-pandemic levels, far lower than anticipated growth. Speedier adoption of advanced manufacturing technologies may help insulate future supply chains from global disruptions.

Consolidation Activity Heats Up Competition

Established brands are responding proactively to competitive threats from agile direct-to-consumer players. Fruit of the Loom, the largest manufacturer globally, acquired e-commerce brands Bali and Jockey in 2021 to bolster their D2C channels. HanesBrands spent over $400 million acquiring Champion, expanding into the rapidly growing activewear segment. Calvin Klein took its women's intimates business in-house after decades with licensing partner Warnaco. Private equity interest is also reshaping the industry; Victoria's Secret was taken private in a $1.1 billion deal to rehabilitate brands and adapt strategy. As popular new brands scale up, further consolidation can be expected as large conglomerates strategize to maintain market share in the digitally disrupted underwear sector.

With social trends prioritizing wellness, comfort and sustainability while e-commerce transforms shopping habits, the U.S. Men's Underwear Market shows no signs of slowing its momentum. Continued innovation in fabrics, fits and experiences resonating with changing consumer preferences will determine which brands are most likely to capture growth opportunities in the coming years.

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