July 14, 2024
Circular Fashion Market

The Circular Fashion Market Poised for Strong Growth with Increased Consumer Focus on Environmental Sustainability

The Global Circular Fashion Market is estimated to be valued at US$ 6.09 Billion In 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The circular fashion market involves recycling of clothing waste and used apparel. It helps reduce textile waste and promotes reuse of garments through rental, resell and repair models. Popular brands are experimenting with new business models to achieve circularity in fashion supply chains.

Market Dynamics:

Increased environmental consciousness : Consumers are increasingly aware about the negative environmental impact of fast fashion such as water pollution, greenhouse gas emissions and waste generation. This is driving the demand for more sustainable circular fashion brands and models.

Popularity of rental and resale models : New business concepts like clothing rentals, clothing resale platforms and brand take-back programs are gaining traction. They allow multiple users for the same products and extend the lifecycle of garments, promoting circularity in the fashion industry. This factor is expected to propel market growth over the forecast period.

Market Key Trends:

The global Circular Fashion Market is dominated by the luxury and designer apparel segment. This segment accounts for over 30% of the total market share owing to the growing popularity of premium and high-quality pre-owned clothing among affluent consumers who want sustainable fashion without compromising on style. Moreover, luxury brands now also promote resale and recycling of their products through buyback programs and in-store collections which is encouraging more customers to participate in the circular economy.

PEST Analysis

Political: Governments across regions are launching initiatives to reduce textile waste and promote sustainable fashion. For instance, the European Union has set recycling targets for member countries to meet by 2025.

Economic: The increasing disposable incomes and growing health and environment concerns are driving people to spend more on circular fashion compared to fast fashion. This presents new business opportunities.

Social: Younger consumers especially millennials and Gen Z are more aware about sustainability issues and want to make responsible purchase decisions. Social media is playing a major role in raising awareness.

Technological: Technologies like blockchain, IoT sensors and mobile apps are enabling traceability of raw materials and improving authentication processes in the used goods market. This is increasing trust among customers.

Key Takeaways

The global circular fashion market is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period, due to increasing focus on sustainable consumption and waste reduction globally. The market was valued at US$ 6.09 Billion In 2023.

North America accounted for the largest share of over 30% in the circular fashion market in 2023 led by strong presence of resale platforms and favorable regulations. It is also expected to witness fastest growth during the forecast period supported by growing eco-consciousness among Gen Z.

Key players operating in the circular fashion market are 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. These companies are focusing on strategies like buyback programs, in-store donations, exclusive collaborations to encourage more customers to participate in the circular model.

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