Global Circular Fashion Market - 2024-2031

Global Circular Fashion Market - 2024-2031

Global Circular Fashion Market reached US$ 6.39 billion in 2023 and is expected to reach US$ 12.59 billion by 2031, growing with a CAGR of 8.85% during the forecast period 2024-2031.

The current fashion industry operates under a linear economy paradigm, which assumes that resources are limitless, hence subjecting the fashion industry to environmental hazards. This conventional linear system operates on a 'take-make-waste' paradigm, resulting in excessive consumption and frequent disposal, hence being highly wasteful. Notwithstanding environmental concerns, numerous initiatives continue to expedite the linear system.

The circular fashion trend in the fashion industry seeks to minimize textile and garment waste by establishing a closed-loop system that prolongs their utility. The fashion and footwear industries are progressively utilizing recycled fibers and materials due to advancements in textile recycling technologies. Advancements in chemical textile recycling have enabled the decomposition of a greater quantity of textiles and garments at the polymeric level, hence enhancing the yield of recycled fibers.

Several nations and regions are endeavoring to restructure their economies by embracing the principles of a circular economy. In 2020, the European Commission released a new circular economy action plan, targeting a cleaner and more competitive Europe, with textiles (clothing and fabrics) designated as a priority product due to its environmental impact and potential for circularity.

Dynamics

Driving Sustainability and Innovation Through Subscription-Rental

The subscription-rental model is propelling the expansion of the circular fashion market by altering the interaction between merchants and consumers in the fashion industry. This strategy cultivates customer loyalty for retailers by offering individualized services that beyond conventional shopping experiences. It offers critical insights into consumer preferences and fashion trends, facilitating data-driven decisions for enhanced production efficiency and less waste. Moreover, subscription-rental enables businesses to engage with younger consumers who value access over ownership and desire variety, so providing a competitive advantage in a dynamic industry.

Subscription-rental offer customers economical access to premium fashion, a variety of styles and convenience, rendering it an attractive alternative to conventional purchases. The concept fosters material conservation and minimizes waste by properly replacing new acquisitions. Nonetheless, it is imperative to scale this strategy judiciously to guarantee that it complements rather than supplants traditional consumption since this could otherwise result in heightened output and environmental repercussions.

Blockchain and Digital Technologies

Blockchain technology is revolutionizing the tracking and management of fashion supply chains, providing transparency and traceability that align with the objectives of circular fashion. Blockchain facilitates the monitoring of a product's complete lifecycle, assisting brands and consumers in recycling, resale and repurposing efforts. A garment's Blockchain record may have information like its materials, care guidelines and methods for recycling or repurposing. This fosters circularity by incentivizing consumers to return products for recycling or resale.

Radio Frequency Identification (RFID) tags and other digital technologies have significant promise to enhance transparency and traceability inside the circular fashion system. Documenting details such as fiber composition, dye usage and manufacturing provenance on blockchain ledgers might enhance efficient reuse and recycling. Digital identification tags and QR codes facilitate the tracking of apparel life cycles and supply chains. Embracing these emerging technologies presents a significant opportunity for the market.

Circular ID collaborated with 30 leading fashion labels, including H&M and PVH Corp. By 2023, they issued 500,000 digital passports for the resale of clothing, as reported by the World Economic Forum. This nascent sharing model, wherein consumers resell or rent branded goods, has the potential to disrupt the linear take-make-waste paradigm, thereby substantially enhancing the sustainability of the fashion industry.

Difficulty in Recycling

The insufficiency of proper recycling infrastructure and competencies constitutes a significant obstacle, particularly in developing nations. Sorting, cleaning and processing various used textile waste streams necessitates sophisticated equipment and technology, which requires substantial investment. This limits the uptake of recycling.

A 2022 assessment by the United Nations Environment Programme indicates that merely 9% of materials utilized by the fashion sector are presently recycled. The primary obstacles consist of clothing designs that hinder recycling, insufficient EU-wide sorting systems and an absence of economic incentive frameworks for the sector to transition from linear production models to reuse and recycling.

Segment Analysis

The global circular fashion market is segmented based on product, distribution channel, soruce, consumer, end-user and region.

Integrating Biodegradable Polymers And Natural Fibers For Sustainable Design

The natural source highlights developments that integrate biodegradable polymers with natural fibers. These materials are engineered for total biodegradability, enabling discarded clothes to reintegrate into the biological cycle without causing environmental damage. This guarantees that each component of a product possesses identical molecular composition, facilitating sustainable end-of-life management. Partnerships with accredited suppliers enhance progress in recyclable materials, fostering a resilient ecosystem for circular fashion.

Furthermore, novel product designs, such as jackets engineered for disassembly, underscore the interplay between material and product-level advancements. The outfits are made with biodegradable sewing threads and dual-layer fabrics that can be disassembled for composting and recycling. It illustrates the capability to merge stable synthetic materials with the visual and tactile attributes of natural fibers. Instruments such as the circular design software enhance access to material data, enabling further fashion enterprises to embrace sustainable methodologies and establish new standards in textile innovation.

Geographical Penetration

Growing Sustainable Clothing Demand In North America

The circular fashion sector in North America is gaining traction because to heightened consumer awareness regarding sustainability and the environmental consequences of fashion. Brands and merchants in the region are increasingly embracing circular ideas, prioritizing waste reduction via recycling, upcycling and the production of durable, reusable items.

The market is bolstered by innovative business models, like as rental services, resale platforms and take-back programs, which collectively enhance the lifespan of clothes. Government laws and regulations are increasingly fostering sustainable practices in the business, alongside technical breakthroughs like blockchain for improving transparency and AI for optimizing supply chains.

Prominent companies like Patagonia, ThredUp and Rent the Runway are spearheading this transformation, establishing industry benchmarks and showcasing the feasibility of circular fashion. This move tackles ecological issues while generating new economic opportunities, signifying a notable trend in the North American fashion and apparel sector.

Competitive Landscape

The major global players in the market include Gerresheimer AG, Stevanato Group, NIPRO Corporation, SGD SA, Alphial S.r.l., Bormioli Pharma S.p.A., Ardagh Group, Beatson Clark, Vitro SAB and Stoelzle Glass Group.

Russia-Ukraine War Impact Analysis

The persistent Russia-Ukraine conflict has precipitated considerable disturbances in global markets, particularly influencing the logistics and commodity sectors, hence hurting the circular fashion business. Escalating costs of vital commodities such as crude oil, food and petrol are propelling inflation in significant economies, especially in Europe. The prevailing economic uncertainty is exerting pressure on textile enterprises in Asia that depend on raw resources from these areas.

Prominent textile-exporting nations, like India, Bangladesh and China, which provide significant quantities of textiles to Russia, are anticipated to experience a reduction in exports owing to sanctions and trade restrictions, resulting in less revenue and heightened production costs. The garment retail industry has been significantly impacted, with numerous international brands, including as H&M, Zara and Nike, halting operations in Russia. It has led to diminished demand for textile products in the region, creating a ripple effect across global supply chains and affecting the distribution of sustainable fibers in the circular fashion sector.

Product
• Apparel
• Accessories
• Footwear
• Others

Distribution Channel
• Online
• Offline

Source
• Organic
• Recycled
• Reused
• Natural Materials
• Others

Consumers
• Millennials
• Generation X
• Generation Z
• Baby Boomers
• Others

End-User
• Men
• Women
• Children

By Region
• North America
US
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In April 2022, Adidas collaborated with Allbirds to create a completely carbon-neutral shoe. This eco-friendly footwear seeks to minimize environmental effect. Allbirds, Inc. company asserts that it maintains its products as environmentally sustainable as possible and holds certification as a B Corporation.
• In September 2022, H&M collaborated with The Renewal Workshop to enhance supply chain transparency and quantify circularity. The Renewal Workshop is an apparel enterprise that collaborates with various apparel brands to reclaim the value of their unsellable returns and damaged goods, enabling resale and fostering a circular economy within the apparel sector.

Why Purchase the Report?
• To visualize the global circular fashion market segmentation based on product, distribution channel, source, consumers, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the circular fashion market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global circular fashion market report would provide approximately 76 tables, 78 figures and 202 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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