GLOBAL CIRCULAR FASHION MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Global Circular Fashion Market size is expected to reach US$ 11 billion by 2030, from US$ 6.09 billion in 2023, at a CAGR of 8.8% during the forecast period. Circular fashion refers to clothes, shoes, accessories and textiles that are designed, sourced, produced and provided in a sustainable way, minimizing waste and pollution. It involves recycling old clothes into new, renting outfits and trading second-hand. Key drivers of the market include rising environmental concerns, advancements in textile recycling and strict government policies promoting sustainability.

The Global Circular Fashion Market is segmented by product type, end-use, distribution channel, textile source and consumer group. By product type, the market is segmented into apparel, accessories, footwear and others. The apparel segment accounted for the largest share in 2022 due to high demand for recycled and upcycled clothing.

Global Circular Fashion Market Regional Insights

• North America is expected to be the largest market for Global Circular Fashion Market during the forecast period, accounting for over 35% of the market share in 2023. The growth of the market in North America is attributed to rising awareness about sustainability and presence of major fashion brands.
• The Europe market is expected to be the second-largest market for Global Circular Fashion Market, accounting for over 25% of the market share in 2023. The growth of the market in Europe is attributed to stringent government regulations around circularity.
• The Asia Pacific market is expected to be the fastest-growing market for Global Circular Fashion Market, with a CAGR of over 9% during the forecast period. The growth of the market in Asia Pacific is attributed to increasing consumer awareness and rapid economic growth in the region.

Figure 1. Global Circular Fashion Market Share (%), by Region, 2023

Global Circular Fashion Market Drivers

• Increasing awareness of sustainability issues among consumers is driving the growth of the global circular fashion market. More consumers, especially millennials and Gen Z, are concerned about the environmental impact of fast fashion and looking for sustainable alternatives. This has led many major fashion brands to adopt circular models, use recycled materials, and promote clothing rental and resale. Consumer demand for eco-conscious apparel and footwear is propelling market growth.
• Stringent government regulations regarding textile waste and sustainability are catalyzing the shift towards circular fashion. Many countries have passed legislation to reduce textile waste going to landfills. For instance, France banned incineration and landfilling of unsold clothes. The EU strategy for sustainable textiles aims to boost clothing utilization rates through recycling and reuse. Such regulations are compelling fashion companies to incorporate principles of circularity.
• Advancements in textile recycling technologies are driving greater adoption of recycled fibers and materials in apparel and footwear. With innovations in chemical textile recycling, more clothing and other items can be broken down at the polymeric level to produce recycled fibers. Enzymatic processes can separate cotton and polyester blends for recycling. Such technological developments allow high-quality recycled textiles to be created from waste.
• Celebrity endorsers and influencers promoting sustainable fashion labels and eco-conscious clothing are raising awareness. Circular brand partnerships with high-profile names like Emma Watson, Jane Fonda and Rosario Dawson leverage their star power and expand reach to millennial and Gen Z audiences. Influencers on social media also help shift perceptions around pre-owned and upcycled fashion. Their advocacy provides an impetus to circular fashion.

Global Circular Fashion Market Opportunities

• The use of blockchain, RFID tags and other digital technologies offers huge potential to advance transparency and traceability in the circular fashion system. Recording information like fiber content, dyes, factory origin etc. on blockchain ledgers can facilitate effective reuse and recycling. Digital ID tags and QR codes allow clothing life cycles and supply chains to be tracked. Adopting these emerging technologies is a key opportunity for the market.
• Developing innovative bio-based materials and textiles made from agricultural waste presents an opportunity to expand circular materials. For instance, fabrics derived from milk, pineapple leaves, crab shells and grape skins provide environmentally friendly alternatives to mainstream textiles. Advances in material science can help produce lower-impact vegan leathers, silk and cotton to supply circular brands.
• Partnerships and collaborations between clothing brands and textile recycling firms provide growth opportunities and can alleviate scaling challenges. Joint innovation allows development of new products like hybrid recycled cotton-poly fabrics. Strategic partnerships also help brands incorporate recycled textiles in products and meet sustainability targets through access to recycling infrastructure.
• Expanding resale, rental and subscription-based business models for apparel and accessories provides a major opportunity for market expansion. Online platforms like Rent the Runway, Nuuly and Style Lend which offer temporary access to clothes are gaining popularity, especially among young consumers. Resale through thrift marketplaces is also rising. Scaling these alternative circular models will boost market growth.

Global Circular Fashion Market Trends

• Supply chain transparency enabled through blockchain, AI and other emerging technologies is a key trend shaping market growth. Solutions integrate blockchain to track clothing origins along with data analytics for monitoring environmental and ethical manufacturing practices. This provides brands verifiable sustainability claims.
• The use of sustainable materials like organic cotton, recycled polyester and regenerated cashmere is rising significantly. Consumers increasingly prefer products made using recycled textiles or environmentally friendly materials. This drives fashion companies to incorporate such fabrics into their collections.
• Rental, resale and subscription-based business models are gaining prominence globally. Younger demographics are moving away from fast acquisition and disposal of clothing. The growing 'closet in the cloud' trend will provide an alternative revenue stream for fashion brands.
• Circular innovations in packaging like biodegradable wrap and recyclable polymailers reduce waste in apparel e-commerce and delivery. Returns and damaged items can be upcycled into new clothing tags and hangers. Sustainable packaging is an emerging trend led by start-ups.

Global Circular Fashion Market Restraints

• Lack of adequate recycling infrastructure and capabilities is a major barrier, especially in developing countries. Sorting, cleaning and processing diverse used textile waste streams requires advanced equipment and technology, which demands heavy investment. This constrains recycling adoption.
• Limited availability and high cost of recycled textiles compared to virgin polyester and cotton restraints its uptake. Producing recycled fabrics like rPET and rCotton is a complex, multi-stage process resulting in higher prices. This deters many clothing brands from scaling their use despite sustainability benefits.
• Difficulty in scaling upcycling of post-consumer textile waste into high-quality apparel grade fabrics limits growth potential. Upcycling utilizes existing materials so has less environmental impact compared to recycling. But inconsistent waste quality and lack of technology pose adoption challenges.

Recent Developments

New product launches

• In September 2022, H&M launched a new conscious collection made from recycled materials like polyester and organic cotton. This supports the company's circularity goals.
• In June 2021, Levi's launched its most sustainable jean yet, made with organic cotton and circular techniques to reduce water waste. It reflects the brand's commitment to sustainability.
• In April 2022, Adidas partnered with Allbirds to design a 100% carbon-neutral shoe. This sustainable sneaker aims to reduce environmental impact.

Acquisition and partnerships

• In September 2022, H&M partnered with The Renewal Workshop to improve transparency in its supply chain and make circularity measurable.
• In April 2021, Levi's acquired Beyond Yoga, a sustainably-focused athleisure brand. This supports Levi's goal to lead in premium apparel.
• In January 2020, Nike acquired Traceablee, a start-up focused on improving transparency through blockchain. This strengthens Nike's digital supply chain.

Figure 2. Global Circular Fashion Market Share (%), by Textile Source, 2023

Top companies in Global Circular Fashion Market

• H&M
• Inditex (Zara)
• EILEEN FISHER
• Patagonia
• Levi Strauss & Co.
• The North Face
• Nike
• Adidas
• Pact
• Everlane
• Reformation
• Rent the Runway
• ThredUp
• The RealReal
• Vestiaire Collective
• Depop
• Poshmark
• Etsy
• eBay
• Tradesy

*Definition: The Global Circular Fashion Market refers to the global market for clothes, apparel, footwear and accessories that are produced, sourced and recycled in environmentally sustainable ways. This involves using recycled materials, upcycling old clothes, developing compostable textiles, renting outfits and reselling used clothing. The circular fashion market aims to reduce textile waste and the environmental impact of the fashion industry. Key players are fashion brands that incorporate principles of circularity into their products, operations and business models.

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