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| Global Circular Fashion Market Scope |
The global circular fashion market involves reusing clothes and fabrics to
minimize waste and promote sustainability. Circular fashion involves recycling
old clothes and fabrics to produce new apparel or designing clothes that can be
worn repeatedly in different ways. It aims to reduce fabric waste and promote
environment protection.
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 3.5% over the forecast period 2023
to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Reduction of sustainable fabric waste presents a key opportunity for growth in
the circular fashion market. Traditional linear fashion model focusess on
take-make-waste approach which leads to huge amount of fabric waste globally
every year. It is estimated that over 100 billion garments are produced
annually worldwide yet majority of clothes are discarded within a year ending
up in landfills. Circular fashion aims to reduce textile waste by recycling old
clothes to produce new apparel and promote longer use of fabrics through
innovative design approaches. Transitioning to circular fashion principles can
help reduce millions of tons of fabric waste annually. This presents an
opportunity for circular fashion brands to promote sustainability and cater to
growing consumer demand for eco-friendly apparel options.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the global
circular fashion market as it requires high investment to establish recycling
facilities and to build brand awareness. New companies will also have to
compete with the existing well-established brands.
Bargaining power of buyers: The bargaining power of buyers is high due to the
presence of multiple clothing brands providing circular fashion products.
Buyers can easily switch between brands based on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate
since suppliers of recycled material operate in a fragmented manner. However,
key suppliers hold strong positions in their respective materials.
Threat of new substitutes: The threat of substitutes is moderate as
alternatives such as fast fashion are available at lower prices. However,
circular fashion appeals to environmentally conscious customers.
Competitive rivalry: The competitive rivalry is high among leading clothing
brands promoting circular fashion due to intense competition.
SWOT Analysis
Strength: Circular fashion helps reduce environmental pollution and plays a key
role in sustainability. Some leading brands have build expertise in recycling
operations.
Weaknesses: High production costs make circular fashion more expensive than
fast fashion. Limited collection sizes restrict consumer choice.
Opportunities: Growing concerns about sustainability and waste reduction are
driving demand for circular fashion globally. Emerging markets offer new
potential for industry growth.
Threats: Unorganized recycling may compromise on quality standards. Strict regulations
around recycling can increase compliance costs.
Key Takeaways
Global
Circular Fashion Market Scope is expected to witness high growth led by
rising environmental consciousness. 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 3.5% over the forecast period 2023 to 2030.
Europe
currently dominates the market due to stringent regulations and initiatives by
leading fashion brandsbased in the region. The Asia Pacific region is expected
to grow at the fastest pace during the forecast period led by China, India and
other developing countries with large fashion industry. Countries such as
Germany, Italy, and the UK have established take-back programs and advanced
recycling facilities. The Asia Pacific region is emerging as a major market
with India and China having a strong fashion industry and growing middle-class
population.
Key players: Key players operating in the global circular fashion market are
H&M Group, Zara, Stella McCartney, Kering, Eileen Fisher, and Reformation.
H&M Group has invested significantly in sustainability and aims to use only
recycled or sustainably sourced materials by 2030. Zara has implemented garment
collecting programs across major markets.
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