Athleisure clothing demand is booming due to the rise of remote work, active lifestyles, social media and a generational shift. As a result, many brands are prompted to expand from online platforms into physical stores, a recent CBRE report reveals.
According to CBRE’s report named ‘Fitness Becomes Fashion,’ Australian retail trade has remained resilient in the face of continued economic uncertainty and low consumer confidence, with total sales going up by 9.5 percent since 2022.
Australia’s fitness and athletic apparel market was valued at $4.2 billion in 2024. In 2025, sports apparel is expected to generate $2.3 billion in revenue, making up 55 percent of the market. Footwear is projected to follow with $1.5 billion or 37 percent of total revenue, while accessories are anticipated to contribute $308.6 million, representing 7.5 percent of the market.
The report highlights that increasing demand for activewear worn as streetwear has significantly contributed to industry revenue growth, with the market recording a compound annual growth rate (CAGR) of 3.0 percent from 2019 to 2024. This upward trend is expected to continue, with revenue forecast to grow at a 3.4 percent CAGR between 2025 and 2030.
Charlotte Fordyce, Senior Research Analyst at CBRE and author of the report, said that the transition to remote work fast-tracked by the pandemic was among several trends driving athleisure wear’s growing appeal.
“In recent years, there has been an increasing shift towards health and wellness with more people pursuing an active lifestyle. Consumers are opting for more versatile and functional clothing which supports their exercise activities and daily routines without compromising style,” said Fordyce.
“Gen Z and Millennials have been keen drivers of activewear market growth. This age group tends to be heavily influenced by fashion trends and have a high use of social media, such as Instagram and TikTok, which features celebrities and influencers aligned with activewear brands. Additionally, this age group are more health-conscious, prioritising fitness and wellness, so that is also influencing consumer behaviour.”
Anna Strzelczykowski, Head of Property & Retail Development at Lorna Jane, said in the report that athleisure has transformed from purely functional performance wear into a form of personal expression, confidence, and connection.
“As a brand, we’ve adapted alongside our community: introducing innovations like our Shop The Look concept, where retail spaces feel like curated style guides, and partnering with initiatives like parkrun to deepen our commitment to movement and community,” said Strzelczykowski.
“Today, athleisure isn’t just about what women wear—it’s about how it makes them feel. Our growth reflects that shift: elevated in-store experiences, community-driven activations, and product designed for the way women live now. We’re proud to be leading the future of athleisure—not just through the product itself, but through the meaningful, intentional experiences built around it.”
Sheree Griff, CBRE’s Head of Retail Property Management and Leasing – Pacific, stated that the continued rise in athleisure’s popularity is expected to drive an increase in physical store openings.
“Many brands that have built a strong online presence are now seeking to further elevate their brand visibility and create a deeper connection with consumers by opening standalone stores in premium shopping districts,” said Griff.
Griff observed that more athleisure brands are opting for locations near luxury boutiques and other athleisure retailers, indicating the trend of emerging athleisure precincts.
“The emergence of retail athleisure precincts, such as Armadale in Melbourne, featuring brands including Lululemon, Nimble, Style Runner and 2XU, are particularly attractive to tenants as they benefit from increased foot traffic of their target demographic. These athleisure precincts also provide significant opportunities for landlords to secure high quality activewear brands,” said Griff.
“In addition, we are increasingly seeing prominent brands with an existing physical presence occupy larger floorspaces. We expect athleisure brands to continue to expand their floorspace to refresh fit outs and incorporate more experiential retail.”