Circular Fashion Market Size, Share, Industry Trends Segmentation Analysis by Type (Apparel, Accessories, Footwear, Others) by Application (Men, Women, Kids, Unisex) Growth Outlook, Demand, Regional Insights, and Forecast (2024-2032)

Segmentation Analysis

The worldwide circular fashion market is categorized according to product type, end-user, distribution channel, textile origin, and target audience. Product types include apparel, accessories, footwear, and other items. End-users are divided into men, women, children, and unisex categories. Distribution channels consist of online and offline platforms. Textile sources are classified as organic, recycled, reused, and natural materials. Consumer groups include millennials, generation X, generation Z, baby boomers, and other demographics.

Based On Product Types, The Accessories Segment Emerged as The Dominant Category. 

Accessories Segment: The accessories segment is the leading category in the circular fashion market, expected to hold a significant share in 2023. Accessories enhance personal style and provide numerous outfit options, making them essential wardrobe items.

Among the product types, the accessories segment is the major contributor to the Global Circular Fashion Market. It is expected to hold a significant global market share in 2023. Accessorizing increases one’s sense of style, taste, and preference. Additionally, accessories provide a limitless array of dress options, allowing you to make the most of every piece in wardrobe. While garments take up more room in the wardrobe, accessories are the finishing touches that make an outfit genuinely personal.

The Natural Materials Segment Is Expected to Register the Highest Growth.

Natural Materials Segment: The natural materials segment, including recycled polyester, organic cotton, and responsibly harvested wood pulp, is anticipated to experience the highest growth. This aligns with environmental conservation efforts and the sustainability goals of organizations in various countries.

The natural materials industry, which includes recycled polyester, organic cotton, and responsibly harvested wood pulp, is expected to experience rapid growth. Doing so aids in preserving natural habitats and ecosystems, which aligns with the aims of environmental conservation groups that plant trees, especially in countries like the US, Germany, the UK, China, and India.

Competitive Landscape

Key players in the global circular fashion market include:

• H&M
• Inditex (Zara)
• EILEEN FISHER
• Patagonia
• Levi Strauss & Co.
• The North Face
• Nike
• Adidas
• Pact
• Everlane
• Reformation
• Rent the Runway
• ThredUp
• The RealReal
• Vestiaire Collective
• Depop
• Poshmark
• Etsy
• eBay
• Tradesy

Recent Developments

• In September 2022, H&M launched a new conscious collection made from recycled materials like polyester and organic cotton. This supports the company’s circularity goals. H&M, also known as Hennes & Mauritz AB, is a multinational clothing company based in Sweden that focuses on fast-fashion clothing. H&M has taken significant steps to become a more sustainable company and is committed to making sustainable fashion an everyday option for all. As of June 2022, H&M Group operated in 75 geographical markets with 4,801 stores under various brands. The company offers a wide range of fashion, home, beauty, and kids’ products, and it is known for making fashion and design accessible to people around the world. H&M is also available as an online shopping destination, offering fashion, homeware, and kids’ clothes with a focus on quality and affordability.

• In June 2021, Levi’s launched its most sustainable jean yet, made with organic cotton and circular techniques to reduce water waste. It reflects the brand’s commitment to sustainability. Levi’s is a clothing brand that has been around for over 50 years and is known for its denim products. The company has made a commitment to sustainability and has launched several initiatives to reduce its environmental impact.

• In April 2022, Adidas partnered with Allbirds to design a 100% carbon-neutral shoe. This sustainable sneaker aims to reduce environmental impact. Adidas AG is a German athletic apparel and footwear corporation headquartered in Herzogenaurach, Bavaria, Germany. It is the largest sportswear manufacturer in Europe and the second largest in the world, after Nike. The company’s official website, adidas.com, emphasizes that Adidas is about more than just sportswear and workout clothes. It partners with the best in the industry to co-create, offering a wide range of sporting goods for various activities, including running, basketball, soccer, fitness, yoga, and hiking. Adidas designs for athletes of all kinds and creates sports apparel. Allbirds, Inc. is a New Zealand and American company that sells footwear and apparel. The company claims to keep its products as eco-friendly as possible and is a certified B Corporation.

Market Dynamics

Drivers

• The global circular fashion market is expanding as a result of customers’ growing consciousness of sustainability concerns. Growing numbers of consumers are searching for sustainable alternatives to fast fashion because they are worried about its effects on the environment, particularly millennials and Gen Z. The use of recycled materials, the adoption of circular models, and the promotion of garment rental and resale have all resulted from this for many large fashion firms. The growing market is being driven by consumer demand for eco-friendly clothing and shoes.

• Government rules that are strict when it comes to sustainability and textile waste are driving the trend towards circular fashion. Many nations have enacted laws to limit the amount of textile waste that ends up in landfills. For example, France outlawed the burning and disposal of unsold clothing. By recycling and reusing clothing, the EU’s sustainable textiles strategy seeks to increase rates of clothing utilisation. Fashion companies are being forced by such rules to adopt circularity concepts.

• The use of recycled fibres and materials in clothing and footwear is increasing due to technological advancements in textile recycling. The advancements in chemical textile recycling allow for the polymerisation of a greater number of garments and other materials to yield recycled fibres. Cotton-polyester mixtures can be separated for recycling using enzymatic procedures. Recycled textiles of superior quality may now be produced from waste thanks to technical advancements.

Opportunities

• Expanding the use of circular materials is possible through the development of novel bio-based materials and textiles generated from agricultural waste. For instance, eco-friendly substitutes for conventional textiles include materials made from milk, grape skins, pineapple leaves, and crab shells. Material science breakthroughs can be used to create vegan leather, silk, and cotton that are less harmful, supplying circular brands.

• Clothing brands and textile recycling companies can work together to overcome scaling obstacles and create growth opportunities. Collaborative innovation enables the creation of novel goods such as blended recycled cotton and polyester textiles. By providing access to recycling infrastructure, strategic alliances also assist firms in meeting sustainability targets and incorporating recycled fabrics into their goods.

• Growing the rental, subscription, and resale markets for clothing and accessories offers a significant chance to grow the industry. Online stores that provide short-term access to clothing, such as Rent the Runway, Nuuly, and Style Lend, are becoming more and more popular, particularly with younger customers. Thrift store resale is likewise increasing. Growing these alternate circular business models will accelerate market expansion.

Restraints

• Counterbalance: Establish trustworthy partnerships with recycling companies to offer end-of-life apparel options. Aim to retain the materials in the production cycle by ensuring that they can be easily recycled into new fibres and apparel.

• Recycled fabrics are less widely available and more expensive than virgin polyester and cotton, which limits their adoption. The complicated, multi-stage process of producing recycled fabrics, such as rPET and rCotton, results in increased costs. Even if scaling up is beneficial for sustainability, this discourages many apparel manufacturers from doing so. For example, according to the United Nations Environment Programme’s 2022 report, post-consumer textile waste collection and recycling rates worldwide range from 15 to 20%, which is significantly less than the suggested levels.

• Growth potential is limited by the challenge of scaling up the recycling of post-consumer textile waste into premium garment grade materials. Upcycling is less harmful to the environment than recycling because it makes use of pre-existing materials. Adoption is hampered, however, by uneven waste quality and a lack of technology. For example, a 2020 United Nations Environment Programme research states that one of the main obstacles limiting the growth potential of the circular apparel business is the absence of convenient return and resale options available to customers at scale.

Regional Analysis

North American global circular fashion market is expected to register the highest market share in revenue in the near future. This is because people are starting to pay more attention to the qualities of fabrics made of fibers. In addition, the Asia Pacific region is projected to increase in the global circular fashion market due to the region’s fast economic expansion and rising consumer awareness.

The circular fashion movement in the fashion industry aims to reduce textile and garment waste by creating a closed-loop system that extends their useful life. Fashion and footwear industries are increasingly using recycled fibers and materials thanks to innovations in textile recycling technologies. Improvements in chemical textile recycling have made it possible to decompose more textiles and apparel at the polymeric level, which increases the yield of recycled fibers. There are enzymatic methods to recycle cotton and polyester mixes. These technological innovations produce recycled textiles of excellent quality. Furthermore, the rise of fast fashion as an industry has led to an increased desire for new fashion collections in a shorter period. This trend drives sales and demand in the worldwide circular fashion sector.

Segments Covered in the Circular fashion market Report

By Product Type

• Apparel
• Accessories
• Footwear
• Others

By End-Use

• Men
• Women
• Kids
• Unisex

By Distribution Channel

• Online
• Offline

By Textile Source

• Organic
• Recycled
• Reused
• Natural Materials

By Consumer Group

• Millennials
• Generation X
• Generation Z
• Baby Boomers
• Others

Conclusion

The Circular Fashion Market is set for substantial growth, driven by technological innovations in textile recycling, rising consumer awareness, and the sustainability movement. This market will continue to play a crucial role in the fashion industry, promoting sustainable practices and reducing textile waste.