by Is Estimated To Be Valued At US$ 6.09 Billion In 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The circular fashion market involves the repairing, remaking, reusing, revamping, and reselling of used clothing and accessories. With an aim to reduce textile waste and promote sustainability, circular fashion helps extend the life cycle of clothing through various refurbishing processes. Circular fashion products are made from pre-owned and recycled materials as opposed to using virgin materials and implementing fast fashion practices. This preserves resources and environment while delivering trendy apparel options to consumers. The growing emphasis on environmental protection and demand for eco-friendly products is fueling the adoption of circular fashion worldwide.
Market Key Trends:
One of the key trends shaping the circular fashion industry is the emergence of resale platforms as major growing secondary markets. Companies like ThredUp, The RealReal, Vestiaire Collective and Depop have established themselves as leading resale destinations, making it easy for customers to buy and sell pre-owned items online. These platforms promote circularity by giving used clothes a new life. Another notable trend is the increasing brand focus on take-back and recycling schemes. Brands like H&M, Patagonia are now offering in-store recycling bins to facilitate collection of pre-used garments for recycling or reprocessing into new textile fibers. This is helping divert tons of waste from landfills annually.
Porter’s Analysis
Threat of new entrants: The global Circular Fashion Market is highly competitive in nature due to presence of major established players, posing a low threat for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to availability of numerous brands providing circular fashion products.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of large number of suppliers in the market providing raw materials to manufacturers.
Threat of new substitutes: Threat of substitution is low as there are no close substitutes for circular fashion products.
Competitive rivalry: The competition is high among existing players to sustain their market position.
Key Takeaways
The global circular fashion market is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period, due to increasing awareness about advantages of circular fashion products among consumers and widespread adoption of sustainable practices by fashion brands and retailers.
The US dominates the global circular fashion market owing to increasing consumer preference towards sustainable fashion brands in the region. Europe also captures a significant share due to supportive government regulations and initiatives towards environment protection in the region. The Asia Pacific is expected to register the fastest growth attributed to rising investments by leading global fashion brands into emerging economies such as China and India.
Key players operating in the circular fashion market are H&M, Inditex (Zara), EILEEN FISHER, Patagonia, Levi Strauss & Co., The North Face, Nike, Adidas, Pact, Everlane, Reformation, Rent the Runway, ThredUp, The RealReal, Vestiaire Collective, Depop, Poshmark, Etsy, eBay, Tradesy. Inditex (Zara) and H&M are the leading players in the market providing wide variety of products using sustainable fashion practices.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
