Global Circular Fashion Market Size and Trends

The Circular fashion Market size was valued at US$ 6.09 Billion in 2023 and is expected to reach US$ 11 Billion by 2030, growing at a compound annual growth rate (CAGR) of 8.8% from 2023 to 2030. Circular fashion refers to clothes, shoes, accessories, and textiles that are designed, sourced, produced, and provided in a sustainable way, minimizing waste and pollution. It involves recycling old clothes into new ones, renting outfits, and trading secondhand. Key drivers of the market include rising environmental concerns, advancements in textile recycling and strict government policies promoting sustainability.

Global Circular Fashion Market Trends

Supply chain transparency enabled through block chain, Artificial intelligence (AI), and other emerging technologies is a key trend shaping market growth. Solutions integrate blockchain to track clothing origins along with data analytics for monitoring environmental and ethical manufacturing practices. This provides brands with verifiable sustainability claims. For instance, a 2022 study by the non-profit Fair Labor Association found that 75% of apparel factory audits conducted globally still reported issues related to transparency in supplier relations and subcontracting without permission.
The use of sustainable materials like organic cotton, recycled polyester and regenerated cashmere is rising significantly. Consumers increasingly prefer products made using recycled textiles or environmentally friendly materials. This drives fashion companies to incorporate such fabrics into their collections. For instance, Roadmap To Climate-Neutral And Circular Textiles And Clothing report by the European Commission published in 2022, Europe faces significant challenges in scaling up technologies and processes required for low-carbon fiber production from industrial waste streams, agricultural residues and recycled textiles.
Rental, resale, and subscription-based business models are gaining prominence globally. Younger demographics are moving away from the fast acquisition and disposal of clothing. The growing 'closet in the cloud' trend will provide an alternative revenue stream for fashion brands.
Circular innovations in packaging, like biodegradable wrap and recyclable polymailers, reduce waste in apparel e-commerce and delivery. Returns and damaged items can be upcycled into new clothing tags and hangers. Sustainable packaging is an emerging trend led by start-ups.