May 25, 2024
Sustainable Fashion Market

Global Sustainable Fashion Market Poised to Grow at Significant Rate owing to Rising Environmental Concerns

The global sustainable fashion market is characterized by various product categories including apparel, footwear, accessories and denim. Sustainable fashion utilizes eco-friendly raw materials and implements ethical practices during production to minimize environmental footprint. Sustainable materials such as organic cotton, recycled polyester, reused fabrics etc are gaining popularity in clothing and accessories manufacturing. The rising cognizance about the negative environmental impacts of fast fashion has boosted the demand for sustainable alternatives.

The Global sustainable fashion market is estimated to be valued at US$ 11.07 BN in 2024 and is expected to exhibit a CAGR of 23.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global sustainable fashion market are Hexion Inc., Dow Chemical Company, Aditya Birla Chemicals Co. Ltd., Huntsman Corporation, BASF SE, Royal DSM N.V., Eastman Chemical Corporation, Conren Limited, Gellner Industrial LLC, and AllCoat Technology Inc. The key players are investing in research & development of innovative sustainable materials and technology-driven manufacturing processes.

The growing awareness among consumers about ethical shopping and responsibility towards environment has opened lucrative opportunities for sustainable brands. Increasing adoption of circular business models focusing on recover, reuse and recycle is another key trend in the industry.

With the mounting plastic pollution and carbon emission concerns, many apparel companies are rapidly expanding their sustainable product portfolio and supply chains globally. Strict government regulations along with subsidies and tax benefits are further encouraging sustainable fashion companies for international expansion.

Market drivers

Rising consumer environmental concerns regarding plastic waste, pollution and global warming are the major factors spurring the demand for sustainable fashion. Changing lifestyles and increasing health consciousness have prompted people to prefer apparels made from natural, renewable and biodegradable materials. The advent of social media is enabling easy information exchange about alarming plastic pollution issues and benefits of eco-friendly options, thus driving more consumers towards sustainable buying decisions.

PEST Analysis
Political: The government policies and regulations play a major role in the growth of the sustainable fashion market. Some governments promote and encourage sustainable practices through policies and subsidies.
Economic: Factors like increasing consumer spending on eco-friendly products along with rising environmental concerns are positively impacting the economic growth of this market.
Social: Growing environmental awareness among consumers especially youth and their willingness to pay premium for sustainable products are driving the social change needed for this industry.
Technological: Innovation in sustainable materials and manufacturing processes allow brands to offer fashion with reduced environmental footprint. Blockchain is being implemented to trace sustainability credentials of fabrics.

The geographical regions where the global sustainable fashion market in terms of value is concentrated are North America and Europe. These developed regions have more consumers adopting sustainable fashion driven by increasing environmental awareness and prospering economies which allow discretionary spending on sustainable premium brands.

The Asia Pacific region is projected to be the fastest growing market for sustainable fashion during the forecast period. This is attributed to rising incomes, burgeoning middle class, changing lifestyle preferences and increasing health and environmental concerns of consumers especially in emerging countries like China and India. Manufacturers are also shifting their production bases to Asia Pacific which will further propel regional market growth.

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