Circular fashion refers to an alternative to fast fashion that utilizes methods like clothing rental, resale, repair, donation, and recycling to extend the life cycle of clothing. Key aspects of circular fashion include designing clothing for durability, reuse, and recyclability. Growing awareness about material and water wastage associated with clothing production as well as increasing focus on sustainability have boosted the popularity of circular business models in the fashion industry. Circular fashion seeks to make the clothing supply chain more environmentally responsible by reducing emissions, waste, and the usage of virgin resources. Clothing rental and resale platforms have emerged as an alternative for consumers who want to access a variety of clothing options without the landfill impact of fast disposables. The extended lifespan of circular fashion clothing lowers respective carbon, water, and pollution footprints.
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 key trends: One of the major trends driving growth in the circular fashion market is the growing adoption of rental and resale business models by both startups and established retailers. Popular rental platforms allow subscribers frequent clothing changes without the bulk of an extensive personal closet. Meanwhile, resale platforms help extend product lifecycles by enabling used clothing to get a ‘second life’ rather than ending up in landfills. The rental market is expected to grow at a higher CAGR compared to traditional retail due to its appeal as a sustainable and budget-friendly alternative to fast fashion among millennials and Gen Z consumers who are more ecologically conscious.
Porter’s Analysis
Threat of new entrants: The global circular fashion market requires major investment in establishing facilities for recycling, upcycling, repairing and refurbishing worn apparel. This poses as a barrier for new players venturing into this space.
Bargaining power of buyers: Buyers have high bargaining power as there are many clothing brands that follow linear model providing low cost new apparel. But awareness about sustainability is increasing the buyer inclination towards circular brands.
Bargaining power of suppliers: Suppliers of recycled fibers and fabrics have moderate power due to availability of alternatives. The suppliers are dependent on volume of returned worn apparel.
Threat of new substitutes: No direct replacement exists for circular fashion. But alternatives like thrift stores and donations pose a threat by diverting used apparel away from formal collection channels of circular brands.
Competitive rivalry: The market has presence of small regional players alongside global giants. Intense competition exists on expanding collection and refurbishing infrastructure.
Key Takeaways
The Global Circular Fashion Market Size is expected to witness high growth. North America and Europe currently dominate the circular fashion market owing to high adoption of sustainable fashion trends in these regions. Key players operating in the global 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.
Regional analysis: Asia Pacific is expected to be the fastest growing region in circular fashion market during the forecast period. Developing economies like India and China are witnessing growth in secondary fashion sales through thrift and rental platforms. This is expected to drive collection volumes in these countries.
Key players: Key players operating in the global 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. The leading companies are focusing on partnerships with major fashion retailers and brands to strengthen their service offerings across collection, refurbishment and redistribution of pre-owned apparel.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it