The circular fashion market refers to clothing, footwear, and accessories that are collected, recycled, repaired, and reused in an eco-friendly manner. Circular fashion seeks to reduce waste and extend product lifecycles by promoting recycling and utilizing renewable resources. Key products in this market include vintage clothing, upcycled apparel, vintage clothing rental services, repair services, clothing resale platforms, and clothing collection bins. The rising need for sustainable fashion consumption and the growing awareness around fast fashion's environmental impact have boosted demand for circular business models.
The Circular fashion Market size was valued at US$ 6.09 Billion in 2023 and is expected to reach US$ 11 Billion by 2030, growing at a compound annual growth rate (CAGR) of 8.8% from 2023 to 2030.
Key Takeaways
Key players - Key players operating in the global circular fashion are 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.
Key opportunities - Growing thrift and rental markets present lucrative opportunities. The thrift market is projected to reach $32 billion by 2024. Rental services allow sharing resources and reducing individual ownership.
Global Expansion - Major retailers are expanding their global used clothing collection programs. H&M group aims to collect 25,000 tons of used garments annually globally by 2025. Eileen Fisher renewed its global garment collection initiative to expand to new locations.
Market Drivers
Growing environmental concerns - The Global Circular Fashion Market Demandis rising due to increasing pollution from fast fashion supply chains and growing fiber and textile waste, driving consumer demand for sustainable alternatives.
Increasing reuse and recycling policies- Regulatory support for circular business models through extended producer responsibility laws and landfill bans on textile waste are major drivers.
Market Restrainst
Higher costs of operations - Collection, sorting, repairing and reselling of used clothing involves more costs than direct manufacturing. This poses initial challenges.
Limited adoption in developing nations - Awareness about sustainability is comparatively low in developing countries where fast fashion still dominates. This acts as a restrain for circular models in such regions.
Segment Analysis
The global circular fashion market is dominated by recyclable textiles, which holds around 30% market share. Recyclable textiles comprises any unused or discarded fabrics that can be collected, sorted and reprocessed into new raw materials or products. It is the dominating segment as recycling helps reduce landfill waste and reuse valuable textile resources. The rental segment holds around 25% market share and has been growing rapidly. Rental fashion allows customers to rent high-quality garments for special occasions and events through subscription services without needing to purchase them. This increases affordability and accessibility of latest designs. The resale segment has around 20% share and has also witnessed strong growth. Resale marketplaces allow individual customers to sell pre-owned garments and apparel through online portals, benefiting both sellers and buyers.
Global Analysis
The Asia Pacific region presently holds the largest share in the global circular fashion market due to growing awareness around sustainability. China, India and other developing countries generate huge amounts of post-consumer textile waste which is dominantly recycled into new products. Asia Pacific is expected to continue dominating the market in coming years. North America is the second largest region and the rental segment has been gaining wide acceptance there. Presence of leading rental platforms and growing fashion-conscious millennial population are driving market growth. Western Europe follows next, where circular business models are highly encouraged by governments and consumers. Countries like Germany and UK are rapidly adopting clothing rentals and resale. Initiatives to extend garment lifespan are helping reduce environmental footprint significantly.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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