Sales of jeans in the US have been driven by the popularity of premium denim in the last few years, including the extension of premium denim brands onto kids' racks, but sales are expected to slide over the next few years a recent report says.

Denim jeans make up one of the most fragmented, but also one of the most lucrative sectors of the apparel industry, with products aimed at men, women, teens and infants.

Denim jeans accounted for US$5.2bn of the US$15bn bottoms market in 2006, according to report author Koncept Analytics, but a decline in the market in 2007 is seen as the start of a downward trend that is likely to continue in coming years.

Sales of women's jeans among 25 to 34 year-olds fell a sizeable 15.3% to US$1.09bn in the 12 months through March 2007, says the 'US Denim Jeans Market Report: 2008 Edition'.

The most significant growth is coming in the 55- to 64-year-old age group, with sales rising 15.2% to US$592.5m.

In recent years market growth has also been driven by demand for premium denim - jeans priced at more than US$100.

The worldwide premium denim market is estimated at US$4bn, with the women's segment growing at 37% in 2007 and men's up 34% in the same period.

The extension of premium denim brands onto kids' racks is part of the wider trend of luxury marketing pervading nearly every corner of the consumer marketplace. The top end of the children's market has seen the biggest sales gains over the past two years, the report says.

By age, sale of jeans wear have increased significantly in the age groups of 13-17 and 25-34 years. By volume, it is the men's/boy's jeans shipment market which is almost double when compared with that of the women's/girl's jeans shipments in US.

Growth opportunities
As well as cashing in on premium denim, many retailers and brands are looking at new ways to grow their businesses and enhance customer loyalty.

Many denim companies are adopting new technologies to improve productivity and lower environmental impact.

Others have chosen to focus on different body shapes, such as developing plus-size designs and offering a variety of fits for larger customers. In the US, nearly 62% of adult women are overweight or obese.

Another trend is that of online shopping, with the Internet serving as an important tool for both purchasing and researching apparel.

The report studies major market segments such as women's, men's and kids' denim jeans.

It also analyses the import/export pattern in the US and profiles the leading players in the US market, including VF Corp, Levis Strauss, Lee Jeans, Gap and Wrangler.