June 18, 2024
Global Circular Fashion Market

Global Circular Fashion Market Is Estimated To Witness High Growth Owing To Increasing Consumer Demand For Sustainable Products

The global circular fashion market involves redesigning, repairing, remaking, and recycling of used clothing and textiles. Circular fashion aims to keep clothing, textiles, and fibre products in use for longer through greater recycling. This helps reduce landfill waste and lower environmental impact. The rising environmental concerns regarding the greenhouse gas emission from textile industries and growing consumer awareness about sustainability are fuelling the demand for circular fashion globally.

The Global circular fashion market is estimated to be valued at US$12.96 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global circular fashion market are D’Addario & Co., 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. These players are adopting various organic and inorganic growth strategies such as new product launches, partnerships, and expansions to increase their circular fashion offerings and market share.

The key opportunities in the Global Circular Fashion Market Demand  include rapid advancements in recycling technologies, rising adoption of eco-friendly business models, and growing partnerships between apparel brands and recycling firms. Several companies are investing heavily in circular design approaches to reduce waste and promote sustainable fashion.

Globally, the awareness about textile waste is increasing rapidly. Many regions and countries are implementing strict regulations to minimize landfill volumes and promote recycling. This will encourage companies to shift their operations towards more circular manufacturing methods and expand their global footprint.

Market Drivers

The increasing consumer demand for sustainable clothing products due to rising environmental consciousness is a major driver for the circular fashion market. Customers, especially millennials and Gen Z, are willing to pay premium prices for apparel and textile products made from recycled or organic materials. This growing preference for eco-friendly alternatives is propelling the demand for circular fashion globally.

PEST Analysis

Political: Circular fashion industry is impacted by regulations around sustainability and reuse of materials. Stringent regulations promote reuse while lax regulations allow more waste.

Economic: Economic cycles impact consumer spending on fashion. During recession, demand rises for affordable second-hand clothes. Prosperity increases demand for high-quality new clothes.

Social: Younger consumers are increasingly mindful of environmental impact of fast fashion. Social media promotes reuse trends like thrifting, upcycling and renting clothes. This drives demand for circular business models.

Technological: Advances in material science, design and tracking technologies facilitate take-back programs and material reuse. Digital platforms help connect retailers, manufacturers and consumers to scale up circular supply chains.

The North American and European regions account for more than 60% of the global circular fashion market value. High awareness of sustainability issues and disposable income allow for premium pricing of circular collections in these regions. Efforts by leading brands and non-profits have accelerated the pace of adoption of circular business models.

The Asia Pacific region offers significant growth potential for circular fashion due to a growing middle class, rapid pace of urbanization and textile manufacturing hub status of major economies. Partnerships between international brands and local recycling firms can scale up collection volumes from the region to feed global circular supply chains. Policy push for eco-friendly industries and lifestyles will further attract investments in circular infrastructure.

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