Circular Fashion Market Growth Accelerated by Sustainable...

Circular Fashion Market Growth Accelerated by Sustainable Initiatives

Posted 2024-01-31 12:42:31

Circular fashion refers to clothing designed to last longer with reuse, resale, repair, and recycling in mind. It reduces textile waste and lowers environmental impact by keeping clothes in use for as long as possible.

The global Circular Fashion Market is estimated to be valued at US$ 7.02 billion in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Adoption of sustainable practices among major fashion brands is driving growth in the circular fashion market. Top brands are implementing sustainable initiatives like take-back programs, recycling old clothes into new clothing lines, and utilizing eco-friendly materials. For example, clothing rental and resale platforms are gaining popularity as they allow consumers to rent or purchase pre-owned garments. This keeps clothes in circulation for longer instead of being thrown away after a few uses. Such sustainable business models are expected to boost the circular fashion market during the forecast period.

Segment Analysis
The global circular fashion market is dominated by resale, rental and subscription sub segments. The resale segment currently holds the largest market share owing to the increasing popularity of thrifting and reuse of pre-owned clothes. Consumers, particularly millennial and Gen Z prefer buying affordable trendy pre-loved clothes through online and offline resale channels.

Key Takeaways
The Global Circular Fashion Market Size is expected to witness high growth. Regional analysis comprised: North America currently dominates the global circular fashion market with nearly 35% share. The US and Canada are estimated to be the largest resale markets in the world supported by retail giants such as ThredUP and Poshmark. Europe is estimated to be the fastest growing market growing at over 4% CAGR. Germany and UK hold significant market shares in Europe.

Key players related content comprised: Key players operating in the global circular fashion market are Fender Musical Instruments Corporation, Gibson Brands, Ernie Ball Inc., GHS Strings, C. F. Martin & Company Inc., Dunlop Manufacturing, Inc., Dean Markley USA, Inc., Kistron Co., Ltd., Rotosound Manufacturing Ltd., and DR Handmade Strings. The major players are investing in technologies such as unique product identification codes and blockchain to track garments to promote transparency in circular fashion. Strategic partnerships are on rise between retailers, resale companies, rental platforms to drive growth.