Global Circular Fashion Market to Witness Significant Growth Due to Increased Emphasis on Sustainabi
Author : naufan cmi | Published On : 31 Jan 2024
The global circular fashion market involves the re-selling, renting and recycling of used clothing and apparel. Popular businesses in this space include clothing rental companies, thrift stores, upcyclers and fabric recycling companies. With an increasing focus on sustainability, many consumers are opting for circular fashion brands to reduce textile waste. The global circular fashion industry is adopting innovative business models and technologies to promote the sharing and extending of clothing lifecycles.
The global circular fashion Market is estimated to be valued at US$ 7.02 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increased Emphasis on Sustainability: The rapid growth of fast fashion has exponentially increased textile waste in recent decades. Many consumers are now focusing on sustainable brands and clothing rental/resale platforms to reduce environmental impact. The circular fashion industry addresses sustainability challenges by recovering materials from used clothing and optimizing clothing utilization through rentals and sharing models. This focus on sustainability through recycling and optimal resource-use is expected to drive significant growth of the global circular fashion market over the forecast period.
Growth of Resale and Rental Platforms: Popular resale platforms like ThredUp and Poshmark have made clothing resale/rental very convenient. Rental subscription services like Rent the Runway and Le Tote have seen rapid adoption among millennials and Gen Z consumers. The growing popularity of such platforms is likely to boost the circular fashion economy and its market size in the coming years.
SWOT Analysis
Strength: The global circular fashion market offers sustainable options for consumers. It reduces the environmental impact of clothing production by recycling and reusing existing materials. This helps lower waste and promotes eco-friendly practices.
Weakness: Adoption of circular business models by fashion brands is still at a nascent stage. Many producers lack expertise and infrastructure for recycling textiles at scale. Consumer awareness about circular fashion remains relatively low compared to traditional linear models.
Opportunity: Growing millennial interest in sustainable products presents an opportunity to promote circular brands and business models. Partnerships between textile recyclers and fashion companies can help strengthen circular supply chains. Governments support through policies and regulations can boost the market significantly.
Threats: Established linear fashion giants may resist transition which delays wider industry changes. Raw material quality tends to degrade with each reuse cycle, posing design and innovation challenges. Economic slowdowns can negatively impact circular investments and newer startup ventures in this space.
Key Takeaways
The Global Circular Fashion Market Size is expected to witness high growth over the forecast period due to rising environmental concerns about textile waste and focus on sustainable businesses worldwide. The regional analysis indicates Western Europe currently dominates the market owing to strong government support and progressive brands adopting circular models. Countries like Netherlands and UK are at the forefront with collection/sorting infrastructure and recycling initiatives.
Key players operating in the circular fashion market are Fender Musical Instruments Corporation, Gibson Brands, Ernie Ball Inc., GHS Strings, C. F. Martin & Company Inc., Dunlop Manufacturing, Inc., Dean Markley USA, Inc., Kistron Co., Ltd., Rotosound Manufacturing Ltd., and DR Handmade Strings. Western European brands have established leadership with circular-focused collections, take-back schemes, and material traceability systems. Startups in Asia Pacific are also innovating new circular design approaches and business models to capture emerging market opportunities.
The global circular fashion market is expected to witness high growth. Regional analysis related content comprises Western Europe currently dominates the circular fashion market aided by supportive policies and initiatives for closed-loop systems. Countries like Netherlands and UK have established strong reuse and recycling networks benefitting local brands and retailers with circular offerings.
Key players related content comprises Key players operating in the circular fashion market are Fender Musical Instruments Corporation, Gibson Brands, Ernie Ball Inc., GHS Strings, C. F. Martin & Company Inc., Dunlop Manufacturing, Inc., Dean Markley USA, Inc., Kistron Co., Ltd., Rotosound Manufacturing Ltd., and DR Handmade Strings. Western European brands Fender and Martin have pioneered circular collections and take-back programs. Asian companies like Kistron also support material traceability.
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