The Global Circular Fashion Market focuses on sustainable clothing rental and resale business models. Clothes rental and resale help reduce textile waste and promote sustainable consumption. With growing environmental concerns, consumers are increasingly interested in renting and reselling apparel instead of fast ownership and disposal trends associated with linear fashion. The global Circular Fashion Market is estimated to be valued at US$ 6.09 billion in 2024 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 key trends:
The sustainable consumption trend is expected to drive significant growth in the circular fashion market over the forecast period. Growing environmental awareness among consumers has increased the adoption of sustainable and eco-friendly business models. Clothing rental and resale help address issues related to fast fashion like increased textile waste and microplastics pollution. The attractive millennials and Gen Z demographics are particularly interest in sharing platforms that promote sustainability. This trend is influencing major apparel retailers and brands to invest more resources toward developing circular business strategies. Furthermore, innovative technologies are enabling easy rental, resale and traceability of garments, fueling the circular fashion consumption behaviour
SWOT Analysis
Strength: Circular fashion follows sustainable practices that help reduce the environmental impact of textile production such as reducing waste, pollution and using less resources.
Weakness: Consumers have low awareness about the benefits of circular fashion and higher costs associated with circular models limit mass adoption.
Opportunity: Growing millennial demand for sustainable fashion presents an opportunity for circular brands to target this demographic and increase market share.
Threats: Unorganized recycling infrastructure and lack of standardization across collection make the scaling of circular processes challenging.
Key Takeaways
The Global circular fashion market growth is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: Europe currently dominates the circular fashion market owing to stringent regulations and policies promoting sustainable practices. Countries like France and Italy have a strong presence of circular fashion brands and recycling infrastructure.
Key players operating in the circular fashion market are D€TMA, RE-HOOPS, REDRESS, HEREN TODAY, HOPEFULCLOTHES. The rising awareness about fast fashion’s environmental impact is driving consumers towards more sustainable options offered by circular brands. To retain customers, circular companies are focusing on expanding their offerings, improving technologies for recycling textiles, standardizing collection processes and scaling operations across regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it