Australia’s lingerie market is entering a high-growth phase, with analysts forecasting sustained near double-digit expansion over the next decade.
Mobility Foresights projects the market to grow from US$3.8 billion recorded in 2025 to US$6.4 billion by 2031, at a compound annual growth rate (CAGR) of 9.2 per cent. IMARC Group is projecting a 9.7 per cent CAGR to 2034, while TechSci Research calculated an 8.35 per cent CAGR lift in the local lingerie market to 2030.
They all generally think that the lacy market has evolved from a niche fashion category into a mainstream apparel staple that commands strong brand loyalty and steady year‑round demand.
But there’s a more telling signal of the category’s strength: the influx of new entrants.
Over the last year, billionaire Brett Blundy launched his new, affordable lingerie and sleepwear brand Leays in Australia, scaling it to nine stores nationwide in just several months.
British retailer Marks & Spencer debuted in Australia last year, too, launching a curated edit across lingerie and sleepwear at David Jones stores nationwide.
And Victoria’s Secret launched its first Australian-dedicated e-commerce platform, offering a full range of lingerie, sleepwear and beauty products.
They join a range of established players here, including Honey Birdette, Bonds, Berlei, the Bendon Group, Cotton On Body, Modibodi and Nala, all targeting different cohorts. We should also include the likes of Kmart, Target, Big W, Shein and Temu in the budget-friendly space.
Euromonitor International research manager Julia Illera tells Ragtrader that this investment surge in intimates retailing is because the need for underwear is more likely to trump the need for a new dress.
“Intimates benefit from frequent replacement cycles and functional necessity,” Illera says. “Consistent with Euromonitor’s global consumer research, shoppers are increasingly prioritising value, longevity and practicality in everyday categories, even as they remain selective elsewhere.
“This supports continued investment in lingerie despite broader pressure on discretionary spend.”
The local push by overseas players like M&S and Victoria’s Secret also comes amid a growing sector-wide polarisation across pricing, products and place, alongside a growing demand for seamless experiences, transparency and brand accountability.
“In response, brands are strengthening direct relationships to improve data visibility, localisation and fulfilment performance,” Illera says, noting that Victoria’s Secret’s Australia‑dedicated e‑commerce platform enables tighter control over pricing, assortment and delivery standards, aligning with expectations for speed and reliability.
Alongside the overseas incumbents are entirely new entrants jumping in, including Sweet Peach, which was launched this year by Nelson Tuncks. The brand is aiming to have the luxury aesthetic without the high price tag. One of its higher-priced products, a bra and bottom set, is selling for $169.
Similar two-piece lingerie sets from Australian-born premium brand Honey Birdette tend to sell from around $245.
“It's the best quality that I can get with the affordable price point that the average consumer can splash that little bit extra and get a high quality product,” Tuncks says.
“I went to crazy lengths to ensure that I had the actual lace custom-made, that all of the hardware is custom-made and branded, all of the stitching, every aspect of the garment. It’s not just pulled off a shelf.”
Illera from Euromonitor says lower-priced offers are strengthening across core essentials in the lingerie space. Demand is holding up best in functional, repeat-purchase lines such as everyday bras, briefs and multipacks.
“In a higher cost environment, consumers are more deliberate: they consolidate purchases, lean into promotions and increasingly prioritise unit value over brand variety,” Illera says.
Honey Birdette faced this demand for discounts, which it fell into and then spent the last few years pulling its products back to full price, now focusing on highly stylised ranges. Meanwhile, Leays is pushing more into mid-range pricing, selling bras and bottoms separately in the double-digits.
Illera says premium is leaning on price integrity to protect profitability. She says higher-priced brands are increasingly using tighter promotional control, curated assortments and selective network optimisation to defend margin.
“Honey Birdette’s recent margin uplift, despite softer sales, illustrates a shift towards full price discipline and a more productivity-led store strategy,” she says.
But she says the most contested space is ‘better’ and ‘affordable premium’.
“Mid-tier brands face the greatest burden of proof. They need to justify price through tangible product and service levers, including fit consistency, higher performing materials, inclusive sizing architecture and frictionless exchanges,” Illera says.
“Newer entrants are also widening the proposition beyond lingerie into adjacent categories (sleepwear, shapewear and wellness-linked products) to increase frequency and basket size.”
The overall implication here is that the lingerie category in Australia is becoming more polarised: “Value wins replenishment, premium competes on brand and experience, and mid-tier players compete on verifiable quality and service.”
Global trends also show growing overlap between apparel, comfort, wellness and self-care, Illera says, with lingerie brands responding by broadening into adjacent categories to increase relevance, frequency and basket size.
For example, Léays has adopted a lifestyle-led positioning spanning lingerie, sleepwear and wellness adjacencies, while local brand Nala has extended from everyday bras into performance and sports-oriented intimates, reflecting demand for multifunctional products.
Step One, which began selling bamboo underwear to men, has since launched women's intimates and socks.
As for Tuncks at Sweet Peach, he is focusing on ultra-tight ranges. The website currently lists six lingerie sets. Four of these have suspenders, which can be bought separately.
Tuncks says his new business is entirely self-funded, with no external investors. This is also not the first product brand he has launched.
His goal is to ride out the current challenging retail environment, with a hopeful target of $1 million in its first year, and with a plan to launch a new small range online every quarter, with no plans to shift into other channels.
According to Illera at Euromonitor, online remains the primary driver of incremental growth in Australia’s lingerie market. Euromonitor’s recent Passport channel insights indicate that consumers increasingly prioritise convenience, range breadth and speed across apparel purchases.
“In lingerie, these dynamics are amplified by wider assortment availability online, improved discovery and comparison tools, and growing comfort with repeat purchasing once fit confidence is established.”
As for store-based lingerie retailing, Illera says this is becoming more specialised. Physical stores are evolving away from volume-led selling toward roles centred on reassurance, expertise and experience, she says.
Euromonitor research highlights that fit-sensitive categories continue to benefit from in-person guidance, particularly for bras and higher consideration items. As a result, stores increasingly function as fitting hubs, service touchpoints and brand-building environments rather than primary transactional channels.
“Over the medium term, store networks are likely to rationalise, with fewer but more productive locations,” Illera says. “Online channels are expected to drive acquisition, assortment expansion and repeat purchasing, while physical retail supports confidence building, service delivery and premium brand positioning.”
In this environment, the winners won’t just sell lingerie – they’ll define where value, experience and price truly meet.