According to the latest monitoring of Yiwu Index, the number of enterprises engaged in the hat industry in Yiwu market has exceeded 1600. It is expected that in 2024, the annual output value of the industry will reach more than 7 billion yuan, and the annual export value is expected to exceed 4 billion yuan. The prosperity index of hat products climbed to 1890 points in November, leading the mainstream category of Yiwu market in winter.

As the top of Yiwu's "small three" (hats, scarves, gloves) in winter, Yiwu's hats have been selling well at home and abroad with its diversity and innovation after more than 30 years of development, and Yiwu has become the largest and most concentrated hat industry circulation center in China and even in the world. Yiwu's hat has gradually captured the hearts of people around the world.

Lively international trade city four district hat market map Source: Yiwu index

01. With the historical accumulation of more than 30 years of industry development, Yiwu hat market has become the largest hat circulation center in China

Yiwu hat industry started from the end of the 1980s, from the agent sales, after more than 30 years of development, attracted from Shandong, Jiangsu, Guangdong and Zhejiang Province Taizhou, Ningbo and other places all kinds of hat industry enterprises settled.

At present, the hat industry in Yiwu market is mainly concentrated in the four districts of the International Trade City, with more than 1620 business entities and a shop area of nearly 20,000 square meters. The business households realize the coordinated development of trade and industry linkage, and the source factories are mainly distributed in Taizhou, Zhejiang, Qingdao, Shandong, Hebei, Jiangsu, Guangdong and other places.

Yiwu hat market contains a full range of hat products, fully meeting the "one-stop procurement" needs. According to the characteristics of the style, there are fashion hats, berets, caps, shawl hats, octagonal hats, bonnet and so on; According to the material type, there are fur hats, knitted hats, straw hats and so on.

"At present, the main business entities of the domestic hat industry are gradually gathering in Yiwu market. The scale of the hat industry in Yiwu market is expanding continuously, and the degree of externality is high. Hats from Europe, Asia-Pacific and other regions are all sent from us." Yiwu hat industry association Chen Xinping said.

In the early stage of the development of the industry, the concentration of the domestic hat market is relatively low. Manufacturers in Shandong and Hebei mainly export their products to Russia and Central Asia, while those in Guangzhou mainly focus on the African market. However, from 18 to 19, due to the Trump administration's imposition of 25% tariff on the export of Chinese apparel products, coupled with the tense international trade situation, enterprises and factories have reduced orders and faced sales difficulties, and manufacturers have turned their attention to Yiwu market as an important sales window. Therefore, Yiwu hat market has gradually become the largest and most concentrated hat industry circulation center in China and even the world. According to the analysis of Yiwu index data, Yiwu market accounts for more than 20% of the total sales of hats in China, and the proportion of domestic and foreign trade is about 7:3.

International Trade City four district sales of the hat map source: Yiwu index

02. "Both inside and outside", the prosperity index of Yiwu hat industry reached a new high

Chen Xinping, Yiwu Hat Industry Association, said, "The sales of hat products in the Yiwu market in the past two years are particularly good, especially last year. "While last year's high growth poses a challenge for 2024 sales, overall, the industry is on a steady upward trajectory."

According to Yiwu Index monitoring, since 2020, the cap prosperity index has grown steadily, and it has ushered in an outbreak period in 2021. In 2023, the average cap prosperity index was as high as 1883.21 points, and the year-on-year growth rate increased steadily. It can be said that the hat category is a well-deserved star category in Yiwu market.

Data source: Yiwu Index

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www.ywindex.com

The hat industry is eating the "four seasons meal", and the market procurement tide continues

Around May every year, Yiwu operators began to prepare for the autumn and winter models of the year. From the National Day until the Spring Festival, Yiwu market warm hats in the peak season of domestic sales. All kinds of animal hats, imitation rabbit hair fisherman hats, scarves and gloves three-in-one hats are this year's explosive, wool knitted hats, lazy wind pile hats, small incense wind retro hats, etc., are also welcomed by buyers, sales have increased significantly.

International Trade City four district sales of the hat map source: Yiwu index

When the procurement boom of warm hats has not dissipated, the Yiwu market is already brewing explosive models for next spring and summer. Every February, the heat of sunscreen hats such as "sunscreen hats" and "facekini" in Yiwu market remains high. "We have been producing summer sun caps since January, and domestic orders will continue until July and August," said the owner.

The outdoor sports economy is gradually rising, and sports hats and functional hats have become "dark horses". In recent years, the participation of outdoor sports in China has been increasing, and consumers' demand for sports equipment has been increasing. Sports hats and functional hats, as an important part of them, have become popular categories in Yiwu market. Some businesses specializing in swimming caps, ski caps, riding caps and other products increased significantly.

Yiwu cultural tourism explosion, four district hat products are favored by tourists holiday shopping. In 2024, Yiwu cultural tourism exploded, a large number of tourists came to the international Trade City to shop, Yiwu merchants also took the initiative to break the tradition of "only wholesale and not retail", so that tourists returned with a full load. According to the Yiwu Index visit, this year's May Day, National Day and other holidays, the average daily retail sales of some hat merchants in the four districts exceeded 10,000 yuan.

 

"Reverse output", Yiwu hat leads the global hat market

According to the analysis of export country data by the "Yiwu Index", the United States, Spain and South Korea are the main markets for international trade city hat exports. Exports to the United States account for the largest proportion, accounting for 25% of Yiwu hat business; Spain is next at 7%; South Korea was third, with 6%.

Data source: Yiwu Index

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According to the visit, the overall performance of Yiwu hat exports in different countries and regions is different.

America: Despite the challenge of tariffs, the US market is still the largest market for Yiwu's hat exports. Outdoor hat products such as baseball caps and holiday woven hats are the main demand categories in the US market. In Mexico, Brazil and other markets, thanks to the development of re-export trade, Yiwu merchants have found new market opportunities, especially in Mexico, Yiwu hats occupy about 80% of the market share, and baseball caps and flat brimmed hats are popular local categories.

Japan and South Korea: In the early years, South Korea has played a role in promoting the development of Yiwu hat industry. With the advantages of fast production, fast new and fast sales of hat products in Yiwu market becoming more and more obvious, the new rhythm of ";new every week"; has become the standard of each store, promoting the reverse export of Yiwu hat to South Korea to increase significantly. According to Yiwu Index data monitoring, from January to September 2024, China's hat exports to South Korea totaled 1.32 billion yuan. Among them, about 70% of the hats in the South Korean hat market come from Yiwu, and the rich style of baseball caps is the most popular category.

European region: The export volume of Yiwu hats to the European market has increased due to soaring energy prices, wool hats and knitted hats are popular for their thermal properties, accounting for about 30% of the local market. European customers are relatively price insensitive, and a hat can sell for 20 or 30 euros locally. "More than half of the hats exported by the company are exported to European customers, and some of the single products designed for winter are very popular in Europe, and a category can sell more than 200,000."

 

International Trade City four district sales of the hat map source: Yiwu index

03. Industrial competitiveness boosts Yiwu hat industry Changhong

Doing "spot business" is the most significant feature of Yiwu hat market, and a large number of in-store spot provides convenience for merchants to buy and pick up. Doing "spot business" can not be separated from the perfect industrial chain of Yiwu hat industry. From the supply of raw materials to the sale of finished products, all links of Yiwu hat industry are closely linked, forming the unique competitiveness of Yiwu hat industry. Specifically:

First, the source of raw materials is stable. Yiwu is located in Zhejiang Province, where textile fabric production is concentrated, and is close to Jiangsu, a major textile province. There are many raw material suppliers of cotton, chemical fiber, wool and leather. Besides, Yiwu has a huge wholesale market for accessories, which provides stable and abundant raw material sources for hat production and ensures the quality and timeliness of raw materials supply.

Second, high level of mechanized production. With the continuous subdivision of hat categories, diversified production needs have promoted the use of different machinery and equipment by merchants. As the leading market of the domestic hat industry, Yiwu merchants rely on advanced factories with multiple production lines, which can flexibly respond to the production needs of various hats to meet the diversified needs of the market.

Third, the cost is stable. Relevant operators said that in the comprehensive cost structure of cap operations, raw materials accounted for 30%, auxiliary materials accounted for 20%, labor costs accounted for 40%, and other costs accounted for 10%. The supply of raw materials and auxiliary materials is stable, the price fluctuation is small, and the operating cost is relatively stable as a whole. Air, sea and land modes of transport are interwoven into an efficient freight network, allowing merchants to achieve efficient distribution of goods at lower transport costs and a more diverse combination of transport modes.

According to Yiwu Index monitoring, since 2020, the hat price index has been stable, and the rise and fall have remained within 1%, reflecting the resilience of Yiwu hat prices.

Data source: Yiwu Index

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www.ywindex.com

In general, Yiwu hat market has gathered the advantages of high-level mechanized production, efficient logistics system, stable raw material supply mechanism, rapid market response, etc., making Yiwu operators enjoy unique competitiveness in the hat market.

04. Look overseas to see the global development trend of hats

China is one of the world's largest producers and exporters of hat products. Although affected by global economic fluctuations, changes in the trade environment and other factors, in 2023, China's exports of hats 42.086 billion yuan, down from the previous year, but in the long run, the global demand for hats rose steadily, and China's exports of hats will maintain a stable growth trend. From January to September this year, China's hat exports reached 32.313 billion yuan, and exports are expected to reach 43 billion yuan this year.

Data Source: General Administration of Customs, Yiwu Index

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www.ywindex.com

According to Cognitive Market Research, the global hat market is worth $8.8 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030.

Data source: Yiwu Index

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www.ywindex.com

By region, North America, Europe, and East Asia will continue to lead the cap share, accounting for more than 70% of global revenue.

North American market

The North American market share will account for more than 38% of global revenue in 2023, and its market size is expected to grow at a CAGR of 3% from 2023 to 2030. Among them, the United States is an important importer of hats in the world, and its domestic market has strong demand for all kinds of hats, whether it is fashion hats, sports hats or functional hats. From January to September 2024, China exported 7.34 billion yuan of cap products to the United States, accounting for about 20% of the local market.

Asia Pacific market

The Asia-Pacific market share will account for more than 23% of global revenue in 2023, and its market size is expected to grow at a CAGR of 6% from 2023 to 2030. Japan, South Korea is an important importer of hats, consumers have a high pursuit of fashion and quality, high frequency of replacement of hats, per capita demand is relatively large, the size of the hat market is expected to maintain strong growth momentum in the next few years.

European market

The European hat market share will account for approximately 30% of global revenue in 2023, and its market size is expected to grow at a CAGR of 3.2% from 2023 to 2030. The import countries of the European hat market are more diverse, including China, Bangladesh, Turkey and other countries, and consumers are less sensitive to price.

05. Three major trends in the development of the hat market from Yiwu

With the increasingly rich scenes of consumers wearing hats and the increasing demand for hats, the hat market is also subdivided and the scale continues to expand. With its deep insight into the industry and keen grasp of the trend, Yiwu Market not only leads the trend in appearance design, but also maps the development direction of the hat industry in functional innovation. According to the analysis of Yiwu market visits, the hat industry mainly has the following trends:

The domestic market shows great potential

With the recovery of the domestic cultural tourism market, especially the rise of the tourism boom in Northeast and other regions, it has brought new growth points for Yiwu hat market. According to merchants, since 2023, hats designed for the northern tourism market have become explosive, and sales of decorative and windproof plush hats have soared, and an upgraded version more suitable for young people has been launched this year, indicating the strong demand and younger trend of the domestic market.

Winter hats sold by business owners in the fourth district of International Trade City Source: Yiwu Index

The growth in demand for functional hats has brought new vitality to the market

Sunscreen hats and sports hats are favored by consumers because of their practicality and the popularity of healthy living concepts. With the rise of outdoor sports and the improvement of awareness of sun protection, consumers wear different hats in different sports scenes, sports hats show a trend of "special special", this trend is most obvious in children's hats, the market demand continues to grow, indicating the great potential of functional hat products.

The fashion trend is obvious, and innovative design is the core competitiveness

Exhibition + production is the daily routine of many hat people. In order to improve the competitiveness of hats in domestic and foreign markets, the independent innovation ability and brand awareness of operators continue to strengthen, many business owners act as designers from time to time, and constantly learn to independently develop and design new products to create their own brands. Walking here, you can often see the bosses holding the figure of fashion magazines, many of which are loyal viewers of major fashion shows, providing inspiration for the production and design of their own products.

Sum up

Industry: The concentration of the industry has been greatly improved, the agglomeration effect is obvious, the raw materials have a high ability to resist fluctuations, and the prosperity index has been steadily improved.

Market: The domestic market has increased significantly, and the demand for the whole category is strong; The share of hats in North America and East Asia will continue to maintain a leading position, and the market share of hats in South Asia, South America and Africa will show considerable growth.

Category: Sunscreen hat, warm hat is still just need, stable sales; The new speed of baseball caps has accelerated, and the subdivision of sports caps has increased, showing a trend of professional and refined development.

Looking forward to the future, with the increasing pursuit of personalized and quality products by consumers, Yiwu hat industry is expected to open up new market opportunities through technological innovation and brand building, and further consolidate its position as the circulation center of the hat industry, bring more high-quality hat products to global consumers, and lead the trend of the global hat industry.