Socks Business Overview

Did you know that over 21 million pairs of socks are made every year worldwide? And on average, a person loses 15 socks annually (never in pairs, of course!).  Socks are an essential item of clothing, and their demand is always high. Whether it’s woolly socks, sport and high-performance socks, quirky socks, or the staple black office socks, most people will need to buy socks at some point. 

There are several ways to set up a business to sell socks, from manufacturing, distributing, or reselling socks. The most common business models in the socks industry include:

• Manufacturing Model: Production of socks using specialized knitting machines and materials, selling to wholesalers or retailers
• Wholesale Distribution Model: Purchasing socks in bulk from manufacturers and selling to retailers
• Direct-to-Consumer Retail Model: Selling socks directly to customers through physical stores, online platforms, or through dropshipping arrangements with manufacturers
• Subscription Service Model: Delivering curated sock selections to customers on a recurring basis

Related: Checklist to Start a Business

How Do Socks Businesses Make Money?

Sock businesses generate revenue primarily by selling socks to consumers, whether directly through e-commerce platforms, retail stores, or specialty shops. These businesses cater to consistent demand for everyday essentials such as casual, athletic, and dress socks. Some sock companies expand their revenue streams by selling in bulk to retailers or offering private-label production for other brands, which allows them to secure larger orders and stable income.

Industry Statistics

Sock businesses operate across manufacturing, wholesale, and retail segments, providing footwear accessories to consumers and businesses. The industry falls under NAICS code 315190: Hosiery and Sock Mills. Here are some statistics that showcase the current state of the sock industry.

Sock Business Industry Size & Growth: The sock industry generated $47.08 billion in revenue last year. The industry has shown consistent expansion, with a projected annual growth of 6.8% through 2030. Growth is driven by increasing health consciousness among consumers seeking specialized athletic and medical socks, along with rising demand for premium comfort-focused products (Grand View Research).

Number of Sock Businesses: The market includes a mix of large manufacturers, regional distributors, and specialized retailers. Major companies like Nike Inc., Puma S.E., and Adidas A.G. control significant portions of the market through their comprehensive athletic sock lines. These leading companies, along with other major players like Hanesbrands Inc. and Under Armour, Inc., collectively hold the largest market share in the industry (Grand View Research).

Sock Business Profit Margin: Profit margins vary based on business model and market positioning. Manufacturing operations typically see gross margins between 50% and 300%, with premium and specialized products commanding higher margins. The net profit margin for socks can vary depending on the type of socks, distribution channel, and other factors; however, it generally ranges from 8% to 15%.

Costs To Start a Sock Business

Starting a sock business can range from $2,500 for a small home-based retail operation to over $500,000 for a manufacturing facility. This includes all initial purchases and setup costs needed to begin operations.

Here are some of the main costs to consider when starting a sock business:

Equipment and Machinery: A small retail operation needs basic shipping supplies, storage solutions, and inventory tracking software ranging from $500 to $2,000. For manufacturing operations, knitting machines can cost between $50,000 to $200,000 per machine.

Initial Inventory: Stock purchases for a small online retail business might start at $1,000 to $5,000, covering a selection of basic styles and sizes. Larger retail operations or specialty sock shops might require $15,000 to $25,000 for a broader inventory selection.

Storage and Organization: Home-based businesses need proper storage solutions, including shelving units, bins, and packaging. These organizational supplies could cost between $500 to $2,000 depending on the scale of operations and storage needs.

Website and E-commerce Platform: An online presence with shopping capabilities will need a website hosting, domain registration, and e-commerce platform setup, ranging from $500 to $3,000.

These estimates represent general ranges, and actual costs will vary based on location, size, and business model chosen.