Circular Fashion Market Size, Share, Analysis, Trends, Growth, 2032

Circular Fashion Industry Prospective:

The global circular fashion market size was worth around USD 5.99 billion in 2023 and is predicted to grow to around USD 12.39 billion by 2032, with a compound annual growth rate (CAGR) of roughly 8.42% between 2024 and 2032.

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Circular Fashion Market: Overview

Circular fashion is an evolving approach in the fashion industry that minimizes waste and reuses existing products in the market. The current fashion infrastructure follows an extremely linear path focusing on the mass production and consumption of clothes, accessories, footwear, and other items categorized in the fashion category.

However, it is also a leading cause of textile waste. Governments and environmental agencies across the globe are encouraging companies operating in the fashion segment to reduce waste and reuse existing materials to launch new products in the commercial market.

The three main parameters defining circular fashion include producing long-loop items, incorporating closed-loop systems across the production & consumption chain, and improving resource efficiency.

Moreover, the circular fashion industry extends its application to the packaging segment of the fashion market. It deals with recapturing each aspect of fashion products, including packaging solutions.

The demand for circular fashion is likely to witness higher growth during the forecast period. However, technical limitations will impact the smooth transition to circular fashion.

Key Insights:

• As per the analysis shared by our research analyst, the global circular fashion market is estimated to grow annually at a CAGR of around 8.42% over the forecast period (2024-2032)
• In terms of revenue, the global circular fashion market size was valued at around USD 5.99 billion in 2023 and is projected to reach USD 12.39 billion by 2032.
• The circular fashion market is projected to grow at a significant rate due to the rising waste generated by the fast fashion industry.
• Based on consumer group, the Generation Z segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on distribution channel, the online segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Circular Fashion Market: Growth Drivers

Rising waste generated by fast fashion industry drives demand for sustainable solutions

The global circular fashion market is expected to grow due to the rising waste generated in the fast fashion industry. It refers to the mass production of easily disposable goods, including footwear, clothes, and accessories.

However, the fast fashion industry is a leading producer of textile waste, which in turn is a front-runner in terms of environment-polluting factors. The fast fashion industry relies heavily on cheap, non-biodegradable materials such as polyester and nylon. These materials survive in the environment for decades after use, leading to environmental damage.

The global fast fashion industry produces 92 million tonnes of textile waste every year, according to Earth.Org. These materials end up in landfills, causing soil, water, and air pollution.

Moreover, one of the pressing concerns associated with textile waste is its impact on the marine ecosystem. According to a study conducted by the European Environment Agency, around 8% of European microplastics released into the ocean originate from synthetic textiles. As more such statistics get highlighted on a global platform, the demand for circular fashion is expected to rise.

Rising initiatives undertaken by governments to prevent environmental pollution will fuel revenue in the industry

Governments across the globe are increasingly holding companies and brands responsible for the environmental impact of business operations.

For instance, in March 2024, France witnessed the approval of a new law from the lower house of parliament. The law seeks to penalize ultra-fast-fashion companies to reduce the environmental impact of business.

According to the new law, the fine is expected to gradually increase to EUR 10 per individual item of clothing by 2030. The lawmakers are expected to seek a ban on advertising such products in France. Similarly, other countries have intensified rules against pollution caused by the fashion sector.

In May 2022, the US introduced the Fashion Accountability and Building Real Institutional Change (FABRIC) Act, which discusses in detail the social and environmental impact of outsourcing garment production. Such measures are expected to promote faster adoption of solutions in the global circular fashion market.

Circular Fashion Market: Restraints

Limited infrastructure supporting the mass adoption of circular fashion will limit the industry’s expansion rate

The global industry for circular fashion is projected to be restricted due to the limited infrastructure supporting the mass-scale deployment of closed-loop fashion. For instance, the industry requires extensive use of sustainable raw materials which are not readily available.

Moreover, end-consumers are more accustomed to already available products in the fashion industry, especially the fast-fashion segment. These products are available at reasonable costs and offer an extensive range of options.

Circular Fashion Market: Opportunities

Increasing innovation in the textile industry in terms of fabric and technology will generate growth opportunities

The global circular fashion market is projected to generate growth opportunities due to rising innovation in the textile industry. This can be seen in the increasing investments in textile manufacturing technology and final results.

In June 2024, India's leading textile companies, JayaShree Textiles and DuPont, announced the launch of a new range of fabric collections made using Sorona®. It is a partly bio-based and sustainable polymer produced using DuPont Biomaterials.

Some of the promising advantages of Sorona include exceptional elasticity & recovery, superior softness, and stain resistance without requiring any topical treatment. Similarly, market players are increasingly focusing on materials that can substitute leather. One such rising material is Mirum, which is made using plant-based oil.

In addition, the rising introduction of new fashion product manufacturing technologies such as 3D printing, digital fabric printing, and others will help the industry sustain exceptional growth during the projection period. In September 2024, Adidas, a leading producer of sports apparel, launched a new 3D-printed sneaker under the name Climamog.

Circular Fashion Market: Challenges

Scalability of sustainable fashion remains a cause of primary concern for the industry players

The global circular fashion industry is projected to be challenged by the concerns over scalability of sustainable fashion. The absence of a robust supply chain, production line, and raw material suppliers is likely to impact the overall manufacturing and adoption of circular fashion items. Generating higher profits using recycled materials can be difficult leading to limited industry revenue.

Circular Fashion Market: Segmentation

The global circular fashion market is segmented based on consumer group, product type, distribution channel, and region.

Based on the consumer group, the global market segments are baby boomers, generation Z, generation X, millennials, and others. In 2023, the highest growth was witnessed in the Generation Z segment, led by increased demand for fashion products among people born between 1997 and 2012.

Additionally, at present times, the Generation Z population has a higher spending capacity in several countries, as per market findings, which is an essential market growth driver.

Based on product type, the global circular fashion industry is divided into footwear, accessories, apparel, and others.

Based on the distribution channel, the global market divisions are online, offline, and others. In 2023, the highest demand was listed in the online segment led by growing sales of fashion products through online portals.

The rising introduction of new portals with user-friendly interfaces and the advantages offered, such as ease of shopping, refund & return policies, door-step delivery, and others, are essential to segmental growth. According to the market study, around 270 million people shopped for clothes online in the US in 2022.

Circular Fashion Market: Report Scope

Circular Fashion Market: Regional Analysis

North America to register the highest growth rate during the forecast period

The global circular fashion market will be led by North America during the projection period. In 2023, the region held control over 35.01% of the global revenue. The presence of major fashion brands across the US and Canada is critical to higher revenue generated by North America.

In addition to this, consumer awareness around the concept of circular fashion, along with an increased sense of environmental responsibility among buyers, is expected to shape North America’s growth trajectory in the future.

Europe is the second-largest market, offering substantial growth opportunities for the industry players. In 2023, it dominated nearly 25.05% of the global revenue, led by countries such as France, the United Kingdom (UK), Italy, Spain, and others. European nations are world renowned for housing major fashion companies ranging from affordable brands to luxury items.

Additionally, fashion is an integral part of regional culture attracting global attention. The proactive measures undertaken by regional governments to promote sustainable fashion across Europe will help the region gain growth momentum in the long run.

Circular Fashion Market: Competitive Analysis

The global circular fashion market is led by players like:

• Levi's
• AG Jeans
• Patagonia
• Deadwood
• H&M
• Girlfriend Collective
• TrusTrace
• Eileen Fisher
• Coach (Coachtopia line)
• MUD Jeans
• Nudie Jeans
• The North Face
• Ecoalf
• TeeMill
• Tentree.

The global circular fashion market is segmented as follows:

By Consumer Group

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

By Product Type

• Footwear
• Accessories
• Apparel
• Others

By Distribution Channel

• Online
• Offline
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa