Growing Awareness Regarding Environmental Protection Drives Demand in Global Circular Fashion Market
The global circular fashion market refers to a system of design, production and sales of clothing, footwear and accessories based on principles of sustainability. It promotes recycling and reusing of resources in order to minimize waste and environmental pollution. Clothing made through circular process uses techniques like upcycling pre-consumer waste materials or recycled post-consumer textiles. It helps extend useful life of garments and diverts waste from landfills. With rising awareness about impacts of fast fashion, consumers are increasingly opting for sustainable and eco-friendly apparel. The global circular fashion Market is estimated to be valued at US$ 6.09 Bn or Mn 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:
One of the key drivers behind the growth of Global circular fashion market growth is growing awareness among consumers regarding environmental protection and sustainable fashion. Changing attitudes towards over-consumption and throwaway culture has driven demand for ethically produced garments. Circular fashion offers solutions to issues of water scarcity, pollution and greenhouse gas emissions caused by traditional linear system of 'take-make-dispose'. It promotes closing of resource loops by recycling fibers, yarns and scraps to manufacture new textiles. Rising adoption of recycling practices by leading apparel brands and retailers is influencing other small companies to follow circular business models. However, lack of standards and certifications for circular fashion still act as a challenge along with high costs involved in reverse logistic system and fiber recovery processes.
SWOT Analysis
Strength: This market has gained tremendous traction in recent years as sustainable fashion gains popularity. Many fashion brands and retailers are investing in circular business models to reduce waste. Circular models like renting, resale and recyclability are appealing to environmentally conscious consumers.
Weakness: Establishing circular supply chains poses significant operational challenges. Coordination is needed across different players like brands, retailers, recyclers etc. Return, collection and sorting of used garments require efficient reverse logistics. Not all materials can be recycled infinitely and downcycling remains an issue.
Opportunity: Emerging technologies around textile recycling, fiber-to-fiber recycling and chemical recycling offer new opportunities. Collaboration platforms can help brands and retailers better coordinate their circular programs. Growth regions like Asia and Africa present large addressable markets as sustainability becomes a priority.
Threats: Consumers may continue preference for low prices over sustainability which threatens uptake of circular options. Legacy linear business models dominate and wield substantial competitive advantages over new circular entrants. Regulatory changes around extended producer responsibility could increase compliance costs.
Key Takeaways
The global Circular Fashion market is expected to witness high growth over the forecast period of 2023 to 2030 supported by growing sustainability consciousness. The market size is projected to reach US$ 6.09 Bn by 2024, registering a CAGR of 3.5% during the forecast period.
Regional analysis: Europe currently dominates the global circular fashion market owing to stringent regulations around waste management and sustainability. Countries like Germany and Italy have established extensive collection and sorting infrastructure to support circular business models. However, Asia Pacific is expected to emerge as the fastest growing regional market driven by growing adoption in China, India and Southeast Asia as reducing waste and pollution gains national priorities.
Key players: Key players operating in the Circular Fashion market are H&M Group, Zalando, Eileen Fisher, EVRYTHNG, Reformation, Ecoalf. H&M Group has pioneered clothing rentals and resale with its rental and resale programs. Zalando champions circularity through resale partnerships and take back programs across Europe.
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