Circular fashion refers to an alternative to fast fashion that incorporates design, production, and reuse strategies to minimize textile waste and resource consumption across the fashion supply chain. It involves collecting used garments and textiles, sorting and grading them, and either reselling or recycling them into new products or materials. Key circular strategies include reuse, repair, redesign, resell, rental, and recycling. The global circular fashion market mainly caters to eco-friendly consumers seeking sustainable apparel and accessories. As people become more aware of fashion's environmental impact, the demand for circular solutions is rising.

The global Circular Fashion Market is estimated to be valued at US$ 6.09 Bn 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 Dynamics:
The Circular Fashion market is expected to witness high growth owing to sustainability. Sustainability has become a key concern for both customers and brands. Customers are increasingly aware of fashion's environmental footprint and seeking greener options. On the other hand, brands are under pressure to adopt more eco-friendly practices to reduce waste and carbon footprint. Circular fashion provides a sustainable solution by recovering valuable materials from used clothes and keeping them in use for longer.
Another driver for the growth of circular fashion market is resource scarcity. Traditional linear production heavily relies on virgin materials and freshwater. However, resources are becoming scarce and irregular in supply. Circular fashion helps tackle this challenge by recovering existing textiles instead of constantly demanding new raw materials. It enhances resource security for the fashion industry in the long run.

SWOT Analysis

Strength: One of the key strength is growing consumer awareness about sustainability issues. More people are looking for brands with an environmental focus. Repairing clothes helps extend the lifecycle of garments instead of being thrown away, which is better for the environment. Another strength is opportunities for recycling. Recycling used clothing conserves natural resources and promotes a circular economy.

Weakness: One challenge is used clothes may not always be in wearable condition depending on previous usage. Additional costs are involved in recycling worn fabrics into new materials or products. Consumer acceptance is also still evolving and many prefer buying new fashion over pre-used clothing.

Opportunity: Younger generations especially are driving demand for sustainable fashion choices. There is an opportunity to attract millennial and generation Z customers who are more conscious about their environmental footprint. Partnerships can be explored with retailers and brands to set up take-back programs and facilitate recycling of old apparel.

Threats: Fast fashion retailers promote low cost, high turnover business models encouraging disposability. Their low prices remain very appealing to cost-conscious customers. Stringent quality standards and certifications in recycled materials also pose compliance challenges for circular brands.

Key Takeaways

Global Circular Fashion Market Scope is expected to witness high growth over the forecast period driven by rising environmental consciousness. The global Circular Fashion Market is estimated to be valued at US$ 6.09 Bn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030.

The regional analysis shows that Europe currently dominates the market due to stringent regulations against textile waste and landfill disposal. Countries like France and Italy have established extensive collection and recycling infrastructure encouraging reuse of materials. however, the Asia Pacific region is expected to be the fastest growing market for circular fashion led by China, Japan and India. With growing domestic demand and manufacturing capabilities, many key industry players are expanding R&D and production facilities in Asia.

Key players operating in the global circular fashion market include H&M Group, Zara, Nike, Stella McCartney, Adidas AG. H&M launched its garment collecting program in 2013 called 'H&M garment collecting' which allows customers to drop off used clothing at its stores worldwide. The collected clothes are then sorted and recycled into new fibers through various chemical and mechanical processes. Similarly, brands like Zara and Adidas have take-back initiatives in place and focus on circular design principles to use recycled polyester and other regenerative materials in new collections.

 

 

Get More Insights On This Topic: https://www.newsanalyticspro.com/global-circular-fashion-market-size/