What are the Historical Developments and Current Growth Metrics of the Circular Fashion Market?
The circular fashion market has seen considerable growth due to a variety of factors.
• The size of the circular fashion market has significantly increased in the past years. It's forecasted to progress from $5.98 billion in 2024, escalating to $6.53 billion in 2025, with a compound annual growth rate (CAGR) of 9.3%.
The past growth can be credited to factors such as growing environmental worries, strict government rules, a rising younger demographic, an augmentation of urban consumers, and heightened concentration on reducing waste.
What is the Forecasted Market Size and CAGR for the Circular Fashion Market?
The circular fashion market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, a robust growth is anticipated for the circular fashion market. The projected market valuation will be $9.24 billion in 2029, growing at a compound annual growth rate (CAGR) of 9.1%.
This forecasted surge is credited to factors such as celebrity endorsements and influencers, the increasing demand for environmentally friendly clothing, the implementation of sustainable production practices, eco-conscious selections, and the influence of prominent fashion brands. Notable trends during the projected period include the evolution of textile recycling techniques, the introduction of new products, the utilization of blockchain technology, automated sorting methods, and strategic alliances.
What Key Factors and Trends Are Driving The Growth Circular Fashion Market?
The escalating worry about the environmental and social ramifications of the fashion sector is projected to spur the advancement of the circular fashion market in the near future. This increasing anxiety regarding the environmental and social effects of the fashion sector stems from its extreme use of resources, creation of waste, and labor exploitation, which detrimentally affect ecosystems and communities. Circular fashion mitigates these effects by endorsing sustainable actions, such as recycling, upcycling, and elongating the lifespan of clothes, consequently lowering waste and reducing the sector's environmental and social impacts. For example, a report from Northumbria University, a public research institution in the UK, indicates that in August 2023, the fashion and textile industry accounted for 8% of worldwide greenhouse gas emissions, and 20% of wastewater production. The sector uses more energy than both the aviation and shipping industries combined, and its total environmental impact is yet to be fully comprehended due to its intricate and expansive global scope. Hence, the escalating worry about the environmental and social impacts is motivating the expansion of the circular fashion market.
What Are The Market Segments In The Circular Fashion Market?
The circular fashionmarket covered in this report is segmented –
1) By Product Type: Apparel, Accessories, Footwear, Other Product Types
2) By Textile Source: Organic, Recycled, Reused, Natural Materials, Other Textile Sources
3) By Consumer Group: Millennials, Generation X, Generation Z, Baby Boomers, Other Consumer Groups
4) By Distribution Channel: Online, Offline, Other Distribution Channels
5) By End-Use: Men, Women, Kids, Unisex, Other End Users
Subsegments:
1) By Apparel: Tops, Bottoms, Outerwear (Jackets, Coats), Activewear, Underwear And Loungewear
2) By Accessories: Bags, Jewelry, Scarves And Hats, Belts
3) By Footwear: Sneakers, Boots, Sandals, Formal Shoes
4) By Other Product Types: Swimwear, Home Textiles, Sustainable Fashion Items
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How Are Emerging Trends Reshaping The Dynamics Of The Circular Fashion Market?
Leading firms in the circular fashion market are prioritizing the creation of innovative items using recycled polyester with the goal of minimizing environmental footprint and endorsing sustainable and closed-loop manufacturing procedures. Made by reconstructing wasted plastic materials like PET bottles, recycled polyester is an eco-friendly fabric utilized in making garments and textiles, thereby limiting waste accumulation and resource depletion as opposed to standard polyester production. In a noteworthy example from April 2024, Lululemon, a Canadian athletic attire and accessories manufacturing company, introduced the Packable Anorak jacket which is comprised of enzymatically recycled polyester. The anorak's construction includes a variety of materials such as mixed plastic waste, used Lululemon clothing at the end of its lifespan, and captured carbon emissions from industrial activities. This pioneering technique symbolizes a substantial move towards textile-to-textile recycling.
Who Are the Key Players In The Circular Fashion Market?
Major companies operating in the circular fashion market are:
• Nike Inc.
• Industria de Diseno Textil S.A.
• Adidas Group
• H&M Group
• Fast Retailing Co. Ltd.
• Gap Inc.
• Hermes International S.A.
• VF Corporation
• Guccio Gucci S.p.A.
• PUMA SE
• Lululemon Athletica Inc.
• Ralph Lauren Corporation
• Levi Strauss & Co.
• Prada S.p.A.
• Everlane Inc.
• Reformation
• Eileen Fisher Inc.
• Patagonia Inc.
• Rothy’s Inc.
• Ecoalf Recycled Fabrics
• SL
• Stella McCartney Ltd.
• Outerknown LLC
• LANIUS GmbH
• MUD Jeans International B.V.
What Are The Regional Insights Into The Circular Fashion Market?
North America was the largest region in the circular fashion market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the circular fashion market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
