Outlook ’25: Denim Industry Braces for Tariffs, Green Legislation

The global denim industry will have to navigate the complexities of sustainability, innovation, and economic pressures in 2025. From the demand for more sustainable production practices to the rising influence of emerging markets, there are multiple forces at play that will redefine the denim landscape.

Rivet spoke to key players from across the denim supply chain—from manufacturers to trend forecasters—to get their take on what 2025 will bring. Some predict a major resurgence of denim as a global fashion staple, fueled by its versatility and sustainability potential. Others caution that the path forward will require navigating a volatile economic environment, rising material costs, and geopolitical uncertainties. Yet, one thing is clear: in 2025, the denim industry will have to evolve rapidly to remain relevant and resilient.

More from Sourcing Journal

Dive into what’s next for one of the world’s most enduring fabrics.

Rivet: In terms of business, how do you think the denim industry will fare in 2025?

Haya Iqbal Ahmed, Artistic Fabric Mills director: The denim industry in 2025 will be shaped by sustainability, comfort, and digital innovation. Consumers will continue to demand eco-friendly practices, such as using organic cotton, recycled fibers, and circular business models like resale and repair services. Emerging markets in Asia and Latin America are most likely to drive growth, while mature markets in Europe and North America will prioritize premium, sustainable products. Issues like rising cotton prices, geopolitical tensions, and logistical challenges will pressure profit margins for both manufacturers and brands while inflation and fluctuating consumer spending may make the landscape harder to navigate. I believe strong storytelling and innovation will create the point of difference and help build loyalty and resilience. Overall, agility and a clear narrative will be essential for success in this evolving industry.

Haya Iqbal Ahmed, Artistic Fabric Mills director
Haya Iqbal Ahmed, Artistic Fabric Mills director

Beyza Baykan, founder and managing director of Baytech-HMS (Hand Made Stone): I believe 2025 will be a year of resurgence for the denim industry, following a period of stagnation. Denim is increasingly becoming an essential part of everyday wardrobes, transcending seasons and occasions. This growing demand will likely translate into increased orders from brands, benefiting manufacturers and raw material suppliers alike.

Steven Bethell, co-founder of Beyond Retro/Bank & Vogue: The denim industry is set for a major resurgence in 2025. Denim has been dominating global runways and fashion weeks, and at Beyond Retro, our trend forecasters are confident in its revival as a staple for the upcoming year. Over the past year, we’ve been preparing tirelessly for this anticipated “denim boom.” We’ve curated our largest-ever collection of vintage denim, offering every style, wash, size, and color imaginable. Sifting through an ocean of second-hand denim, we’ve hand-selected each piece for its trend relevance and enduring quality, ensuring our customers find pieces they’ll cherish year after year.