July 24, 2024
Global Circular Fashion Market

Global Circular Fashion Market Is Estimated To Witness High Growth Owing To Rise In Ethical Fashion Consumption

The global circular fashion market involves reusing textiles and clothing in a closed loop system where clothes are collected, sorted, repaired, reused and resold. This limits the amount of waste produced and reduces the use of virgin materials and overall environmental impact. Adopting a circular model promotes sustainable consumption. Circular clothing is becoming increasingly popular as consumers seek ethically sourced products. The growing demand for eco-friendly and sustainable options is driving more companies to offer take-back and resale programs.

The Global circular fashion market is estimated to be valued at US$ 12.96 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global circular fashion market are: D€TMAddario & Co., 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. Second-hand clothes, resale and rental platforms are presenting new opportunities for customers to access fashion affordably and sustainably. The rise of digital resale platforms and online rental services has increased the accessibility of circular fashion models. Technological advancements like RFID tags, blockchain and 3D printing are helping improve transparency, traceability and increasing the life of garments.

Market Drivers

Growing environmental awareness among consumers is a Global Circular Fashion Market Demand People are more informed about the impacts of fast fashion and want to reduce textile waste. Social media is highlighting issues like pollution, water usage and carbon emissions from conventional fashion supply chains. This is motivating buyers to opt for circular alternatives. Government regulations banning the disposal of unsold clothing and imposing taxes on virgin materials are also encouraging brands to embrace circular production methods. Availability of affordable digital solutions is propelling the trend by making circular marketplaces and rental services more mainstream.

Current Challenges in Global Circular Fashion Market

The circular fashion market is facing several challenges currently which are hampering its growth. One of the major challenges is lack of awareness among consumers about the benefits of circular fashion. Most people are still not aware about key concepts like renting, reusing, repairing and recycling of fashion products. Another challenge is the high costs associated with processes like collection, sorting and reprocessing of used garments. Setting up the required infrastructure and technology for circular processes is quite expensive for retailers and brands. Integrating circular design principles and making multi-material blends recyclable continues to be difficult. There is also a lack of standards and certifications in this emerging industry which creates confusion in the market.

SWOT Analysis

Strength: Eco-friendly nature and emphasis on sustainability helps gain consumer trust and goodwill.
Weakness: Collection and sorting of used garments at scale is difficult. Limited design flexibility in circular models.
Opportunity: Growing millennial interest in ethical fashion presents a huge market potential. Emerging technologies like artificial intelligence and blockchain can enhance circular processes.
Threats: Competing with dominant linear fast fashion business models remains a challenge. Dependence on consumer behavior change makes growth unpredictable.

Geographical Regions

Europe accounts for the largest share in terms of value in the global circular fashion market currently. Countries like Netherlands, Germany, UK, France, and Italy are frontrunners in implementation of circular economy principles in fashion industry. Asia Pacific region is projected to be the fastest growing market during the forecast period. Expanding middle class, growing fashion consumption and policy support are driving growth in countries such as India and China.

The United States represents another major geographical concentration area for circular fashion market currently. Retail giants like H&M, Gap and American Eagle are piloting various circular initiatives to engage ethical shoppers in America. According to market estimates, the U.S. market is forecasted to reach a value of over US$ 4 Bn by 2030.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.