Bengaluru, July 2 : Driven by millennials and Gen Z population, the Indian fast fashion industry is projected to reach a massive $50 billion market by FY31, a report showed on Tuesday.

In FY24, the fast fashion sector (currently valued at $10 billion) saw a remarkable growth rate of 30-40 per cent in the country, according to data from Redseer Strategy Consultants.

In contrast, the broader fashion sector in India saw a modest 6 per cent (year-on-year) growth.

The fast fashion sector provides affordability, combined with constant access to trendy styles, making it a game-changing experience.

"Despite a year of sluggish consumption, fast fashion stood out as one of the few thriving sectors in India's retail market,' said Kushal Bhatnagar, Associate Partner, Redseer.

However, India's fast fashion market, while substantial, remains comparably smaller than global giants like Shein, which is 3 times larger.

The industry can be classified into three segments based on price point: ultra-value, mid-value and premium. Each segment requires distinct business model strengths.

According to the report, the mid-value brands segment will see the maximum proliferation of brands, leveraging low-entry barriers and experimental consumer behaviour to drive growth.

Further, brands with unique and value-adding positioning are expected to appeal strongly to customers, the report mentioned.

/IANS