GLOBAL SUSTAINABLE FASHION MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Global Sustainable Fashion Market Size and Trends

Global Sustainable Fashion Market size was valued at US$ 7.80 Billion in 2023 and is expected to reach US$ 33.05 Billion by 2030, growing at a compound annual growth rate (CAGR) of 22.9% from 2023 to 2030.

Sustainable fashion refers to clothing, shoes, accessories, and jewelry created in an ethical and environmentally friendly manner. It promotes fair wages, safe working conditions, and reduced environmental impact through measures like efficient use of resources and waste reduction, and the use of organic or recycled materials. The market is driven by rising consumer awareness about sustainability, government regulations, and incentives promoting eco-friendly products.

The global sustainable fashion market is segmented by product type, fabric type, end user, and sales channel. By product type, the market is segmented into apparel, footwear, accessories, jewelry, bags, and others. The apparel segment accounted for the largest share in 2022. The rising demand for sustainable clothing like t-shirts, dresses, and trousers made from organic cotton, recycled polyester, and regenerated fabrics is driving the growth of the eco-friendly apparel market.

Global Sustainable Fashion Market Drivers:

• Increasing consumer awareness and demand for eco-friendly products: The growing environmental consciousness and rising demand for ethically produced fashion are major drivers for the global sustainable fashion market. Consumers, especially millennials and Gen Z, are increasingly looking for brands that embed sustainability across their value chain and products that have a lower carbon footprint. Social media and technology have enabled greater transparency into production processes and supply chains, empowering consumers to make informed choices. The market has seen rising sales of products made from recycled, organic, and regenerated fibers. Consumers are also opting for environmentally responsible packaging and supporting brands committed to circular fashion.
• Favorable government policies and regulations: Governments across the world are introducing regulations and policies to promote environmental sustainability in the fashion industry. The European Union’s Strategy for Sustainable Textiles aims to boost competitiveness and innovation in the sector through circularity. The U.S. Federal Trade Commission’s Green Guides help marketers make credible eco-friendly claims. The guidelines by the UN Alliance for Sustainable Fashion address sustainability across the entire fashion cycle. Such regulations are encouraging brands to integrate sustainability through eco-design principles, resource efficiency, waste reduction, and disclosure. Mandates around the use of recycled plastic, organic cotton, and other materials are also catalyzing the adoption of sustainable materials. For instance, India's policy think tank, NITI Aayog, released the India Textiles and Apparel Report in 2021, providing a roadmap to transition the industry towards sustainability by 2030. It focuses on areas like increasing use of organic cotton, zero discharge of hazardous chemicals, and 100% recycling rate.
• Technological advances enabling supply chain transparency and circularity: Emerging technologies like artificial intelligence, blockchain, the Internet of Things (IoT), and big data analytics are promoting transparency across fashion supply chains while enabling circularity. Blockchain facilitates traceability, from raw material sourcing to inventory management. Smart manufacturing optimizes use of resources. Digital solutions like virtual sampling and 3D design minimize waste generation. Increased adoption of sustainable materials like bio-based and recycled fibers is being enabled by innovation across polymer chemistry and synthetic biology. Sorting and recycling technologies allow effective end-of-life management of clothing. Such technological advances are critical to the shift towards a closed-loop, transparent, and sustainable fashion sector. For instance, fashion rental platforms have seen surging consumer interest over the past year with reduced environmental footprints. The number of rental transactions globally grew by over 25% between 2020 and 2021, according to a UN report.
• Commitments by leading fashion brands and emergence of new players: Large fashion companies like Nike, Adidas, H&M, and Inditex are increasing their sustainability targets and commitments. They are launching new product lines made from recycled nylon, polyester, and organic cotton, introducing innovations like plant leather and re-commerce, and heavily investing in circular capabilities. New players like Allbirds, Everlane, Reformation, Christy Dawn, etc. are building sustainability into their business models from scratch. The market is also seeing acquisitions like Gap’s acquisition of Janie and Jack to expand into eco-friendly kidswear. The increasing participation from large and small players in embracing sustainable fashion bodes well for market growth.

Sustainable Fashion Market Trends:

• Material innovation for eco-friendly fabrics: There is a growing shift towards the use of recycled, organic, and regenerated fibers in the textile industry. Compared to virgin polyester, recycled polyester manufactured from PET bottles uses less energy and water.  Regenerated fibers, like lyocell, are made from wood pulp. Fabric innovations include bio-based leather alternatives, pineapple leaf and apple skin, natural dyes, and wool alternatives from plant sources. Adoption of environmentally responsible materials is being driven by consumer demand as well as collaborative initiatives like Canopy’s Pack4Good. Technology innovations in synthetic biology promotes the development and scalability of Next-Gen green materials. For instance, according to data from the Organic Trade Association's 2021 Organic Industry Survey, the sales of organic cotton apparel and home textiles grew by 8% in North America from 2020 to 2021.
• Supply chain transparency and localization: Consumers increasingly want to know where and how their clothes are made. Fashion brands are leveraging digital traceability solutions to map tier-1 and tier-2 suppliers across spinning, dyeing, and manufacturing. Made in Green by the OEKO-TEX label certifies environmentally responsible supply chains. Radio frequency identification (RFID) tags allow inventory tracking. Localized production and near shoring minimize miles traveled. Blockchain facilitates data sharing across supply chain partners. These trends promote transparency while reducing carbon emissions related to global shipping and logistics. For instance, according to a 2021 study by the World Benchmarking Alliance, over 75% of top 50 fashion retailers globally now publish details like supplier lists and audit reports on their websites or in sustainability reports. Greater transparency in raw material sourcing too, like organically grown cotton or recycled polyester, is appealing to the growing base of eco-friendly shoppers.
• Rental, resale, and recommerce gaining traction: Sharing economy models like rental subscriptions and resale platforms are seeing increasing adoption among eco-conscious consumers. Renting allows temporary use without the environmental costs of manufacturing. Recommerce sites like ThredUp, Depop, and TheRealReal have reported surging sales. Retailers like H&M and Patagonia provide repair services to extend the life of garments. Luxury brands like Gucci and Stella McCartney are entering resale, acknowledging its potential to make fashion more circular. Consumers also increasingly prefer environmentally responsible packaging for delivery using recycled and biodegradable materials. For instance, the European Commission reported that in 2021, EU textile waste amounted to more than 5 million tons annually and that extending the lifetime of clothing by just 9 months of active use per item could reduce the environmental footprint of the EU’s fashion consumption by around 5-10%.
• Digital solutions for sustainability: Emerging digital solutions provide critical capabilities for enabling transparency, promoting circularity, and minimizing waste in the fashion value chain. Digital product passports using QR codes allow monitoring of sustainability credentials. Virtual sampling and 3D design software reduce material waste. Blockchain facilitates data sharing with suppliers and customers. Big data analytics aids demand planning and inventory optimization to prevent overproduction. Internet of Things sensors enable tracking goods in transit and optimizing logistics. AR/VR can enrich shopping experience and provide trial options, reducing returns. AI recommendation engines can better match supply with consumer needs.