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Circular fashion refers to designing and producing garments, accessories, or footwear using sustainable techniques and materials to minimize environmental impact. It promotes reuse, recycling, and waste reduction of textile products. Increasing consumer awareness about environmental concerns associated with fast fashion has driven demand for sustainable alternatives like clothing rental, resale, recycling and reuse programs.
The global Circular Fashion Market is estimated to be valued at US$ 6.09 billion in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Sustainable fashion trend is gaining immense popularity among consumers, especially youngsters and millennials. They are willing to pay premium prices for eco-friendly clothing made from reused or organic materials. Many leading fashion brands and retailers have launched dedicated circular clothing lines employing techniques like fabric recycling and material traceability. For instance, H&M unveiled its first circular fashion collection made entirely from recycled textiles in 2020. Such initiatives and growing ethical customer base are expected to drive significant growth in the global circular fashion market over the forecast period.
SWOT Analysis
Strength: Circular fashion reduces the amount of waste produced by fashion brands and minimizes the environmental impact. It also allows brands to extend the life of garments and use resources more efficiently.
Weakness: Consumers are not fully aware about circular fashion and related business models like clothing rental, resale etc. Establishing circular infrastructure and scaling operations is also costly for brands.
Opportunity: Growing awareness about sustainability and waste reduction presents an opportunity for brands to promote circular fashion. Emerging technologies in repairing, recycling and upcycling also support the growth of circular business models.
Threats: Low penetration of circular business models compared to linear fast fashion results in limited revenue currently. Strict regulations around waste management can increase operating costs.
Key Takeaways
Global Circular Fashion Market Scope is expected to witness high growth. The global Circular Fashion Market is estimated to be valued at US$ 6.09 billion in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030.
Regional analysis comprises Europe dominates the global circular fashion market currently due to regulations promoting sustainability. Countries like France and Italy have established large resale and rental businesses. The Asia Pacific region is expected to be the fastest growing market for circular fashion over the forecast period with growing adoptation in China, Japan and India.
Key players operating in the circular fashion market are H&M Group, Zalando, Eileen Fisher, Worn Again and Everlane. H&M Group runs clothing resale and rental programs through their brands to encourage circular consumption. Zalando has launched resale categories on their platform to promote pre-owned fashion purchases. Everlane focuses on durability and high-quality production to extend the lifecycle of their products.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
