by The global circular fashion market refers to recycling and reusing of clothing post consumption to make new products. Circular fashion aims to reduce the environmental impact of fast fashion by reusing textiles and keeping old clothes in use longer. Major products in this market include clothing rental, resale of second hand clothes, recycling and upcycling of textile waste. The clothing rental business model allows customers to rent individual pieces or entire outfits for special occasions through monthly subscription or pay-per-use basis. The resale market includes thrift and consignment stores as well as online resale platforms where individuals can buy and sell used clothes. The recycling and upcycling process collects post-consumer textile waste and converts it into new materials.
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 Dynamics:
The increasing demand for sustainability in fashion is driving the growth of the global circular fashion market. As highlighted in the heading, consumers are increasingly looking for sustainable and eco-friendly fashion options due to rising environmental concerns of fast fashion. One driver refered from the heading is increasing demand for sustainability in fashion. This demand is encouraging fashion brands and retailers to adopt more sustainable business models focused on recycling, reusing, and renting of clothes. The second driver is government regulations around waste management. Many countries have implemented stringent regulations regarding disposal of textile waste to landfills which is boosting investment in circular business models that reuse and upcycle old textiles. However, lack of standard processes for garment collection and sorting continues to be a challenge for the industry.
Segment Analysis
The global circular fashion market is dominated by the apparel renting segment which holds around 30% share of the overall market. The apparel renting segment allows users to rent high fashion apparel and accessories for a short period of time at affordable prices. This emerging trend enables users to stay updated with latest fashion trends without spending much and prefer sustainable option over fast fashion. The resale segment is another fast growing segment in the circular fashion market as users are increasingly adopting thrifting and reselling pre-owned garments through various online and offline channels.
PEST Analysis
Political: Various government initiatives promoting sustainability and circular economy are positively impacting the market. Regulations around extended producer responsibility are encouraging brands to focus on take-back and recycling programs.
Economic: Increasing disposable incomes and spending on premium and conscious products is fueling demand. However, high initial costs of operations poses challenges for new entrants.
Social: Rising environmental consciousness and preference for sustainable brands is a key driver. Social media promotion of thrift shopping and renting is increasing popularity among younger consumers.
Technological: Advancements in e-commerce, blockchain, and logistics are enabling new business models in resale and renting. Brands are leveraging technologies to improve traceability and transparency.
Key Takeaways
Global Circular Fashion Market Scope is expected to witness high growth over the forecast period supported by growing millennial interest in sustainable fashion and increasing investments by major brands. 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.
The Asia Pacific region dominates the market currently due to large presence of resale platforms and affordable renting and subscription services targeting price-sensitive customers in countries like India and China. China, India and Japan represent major growth opportunities due to large populations and rapid expansion of domestic online resale platforms. The presence of leading global resale companies like Xianghu and RenRenren in China along with affordability-focused renting startups will accelerate regional market growth.
Key players
Key players operating in the global circular fashion market are Rent the Runway, Lending Luxury, Rotaro, Envoy Now, Girl Meets Dress and Cocoon. Rent the Runway is currently the market leader with largest collection of high-end designer apparel and accessories for rent globally. Lending Luxury focuses on luxury handbag and accessories rentals and sees maximum demand from Middle Eastern markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
