July 25, 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 fashion market has been witnessing significant growth in the use of sustainable and eco-friendly fabrics. There is a rising trend of reuse, reduce and recycling of pre-owned clothing and accessories. Consumers are now more aware of the environmental impact of fast fashion and want companies to offer sustainable options. The circular business models adopted by leading brands involving clothing rental, resale of used garments and fabric recycling are gaining widespread popularity.

SWOT Analysis

Strengths: Growing consumer demand for sustainable options, Lower costs by recycling existing materials
Weaknesses: Limited scale compared to linear systems, Collection and sorting of used garments is complex
Opportunities: Partnerships with major fashion brands for circular collections, Expand into new regions
Threats: Resistance from existing supply chains, Competition from alternatives like upcycling

Key Takeaways

The global circular fashion market is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period 2023 – 2030, due to increasing environmental concerns around textile waste. The market size is projected to reach US$ 6.09 Billion In 2023.

Regional analysis: North America dominates the circular fashion market currently due to presence of major resale platforms. Asia Pacific is estimated to be the fastest growing region supported by rise of e-commerce companies and growing middle class in countries like India and China looking for affordable sustainable options.

Key players: 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 are some of the key players operating in the circular fashion market globally. Major brands are launching specialized collections that use recycled fabrics to meet the rising demand.

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