PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1757676
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1757676
Global Circular Fashion Market to Reach US$11.4 Billion by 2030
The global market for Circular Fashion estimated at US$7.6 Billion in the year 2024, is expected to reach US$11.4 Billion by 2030, growing at a CAGR of 7.1% over the analysis period 2024-2030. Apparel, one of the segments analyzed in the report, is expected to record a 6.6% CAGR and reach US$5.9 Billion by the end of the analysis period. Growth in the Accessories segment is estimated at 6.2% CAGR over the analysis period.
The U.S. Market is Estimated at US$2.0 Billion While China is Forecast to Grow at 6.9% CAGR
The Circular Fashion market in the U.S. is estimated at US$2.0 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$1.8 Billion by the year 2030 trailing a CAGR of 6.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.5% and 6.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.8% CAGR.
Global Circular Fashion Market - Key Trends & Drivers Summarized
Why Is Circular Fashion Gaining Strategic Importance in Sustainability, Consumer Responsibility, and Industry Transformation?
Circular fashion is rapidly emerging as a transformative model within the global apparel industry, aimed at minimizing waste, maximizing resource efficiency, and extending the lifecycle of garments. Unlike the traditional linear model of “take, make, dispose,” circular fashion promotes reuse, repair, resale, rental, and recycling to close material loops and reduce environmental impact. As awareness of the fashion sector’s contribution to pollution, landfill burden, and resource depletion grows, circular fashion is becoming a strategic priority for brands, regulators, and consumers alike.
Driven by shifting consumer values, particularly among younger demographics, and rising regulatory pressure to meet climate and waste reduction targets, circular fashion is being integrated into core business strategies. From design for durability and modularity to post-use garment recovery and fiber-to-fiber recycling, the industry is embracing a systemic shift aimed at reducing dependency on virgin raw materials while creating new value streams from discarded clothing.
How Are Business Models, Material Technologies, and Digital Platforms Advancing the Circular Fashion Ecosystem?
The evolution of circular fashion is being fueled by innovations in both product design and business operations. Design-for-circularity principles-such as mono-material construction, detachable components, and recyclability-are enabling easier disassembly and repurposing. Regenerative materials, closed-loop synthetics, and biodegradable fibers are gaining ground as alternatives to resource-intensive textiles like conventional cotton and petroleum-based synthetics.
Business models centered on resale, rental, refurbishment, and product-as-a-service are redefining how apparel is consumed. Peer-to-peer resale platforms, white-label recommerce services, and subscription-based clothing rental models are scaling quickly, supported by changing attitudes toward ownership and increasing demand for affordability and novelty. Take-back programs and digital product passports are further enabling traceability, transparency, and circular lifecycle tracking.
Technologies such as AI for inventory optimization, blockchain for supply chain verification, and RFID for reverse logistics are making circular operations more viable at scale. As data systems mature, fashion companies are better positioned to measure circularity, optimize recovery flows, and reduce environmental footprints through intelligent design and logistics.
Which Market Segments and Regional Initiatives Are Leading the Adoption of Circular Fashion?
Adoption is strongest in mid-to-premium and luxury fashion segments, where brand equity, customer loyalty, and product longevity align with the economics of resale and repair. Activewear, denim, outerwear, and accessories are categories seeing accelerated circular innovation due to their higher material value, frequent use, and potential for refurbishment. Younger consumers are also driving resale and rental growth, particularly in urban centers with high digital engagement.
Europe leads the global transition to circular fashion, supported by the EU’s Circular Economy Action Plan, Extended Producer Responsibility (EPR) policies, and national initiatives promoting textile waste reduction. North America is showing strong momentum through consumer-driven resale platforms and sustainability commitments from major retailers. In Asia-Pacific, interest is growing rapidly in Japan, South Korea, and China, with circular fashion emerging as part of wider green consumerism and tech-enabled retail transformation.
What Are the Factors Driving Growth in the Circular Fashion Market?
The circular fashion market is gaining momentum as environmental, social, and economic factors converge to reshape the apparel value chain. The urgency to reduce textile waste, decarbonize supply chains, and meet consumer expectations for ethical and sustainable products is fueling rapid adoption of circular principles and practices.
Key growth drivers include rising consumer awareness of fast fashion’s environmental toll, regulatory frameworks mandating extended responsibility and waste recovery, increased digitalization enabling reverse logistics and secondary markets, and cost-saving opportunities in materials recovery and product lifecycle extension. Investors and retailers are also recognizing circularity as a lever for long-term resilience and brand differentiation in a resource-constrained future.
As fashion evolves from a linear consumption model to a regenerative and circular ecosystem, could circular fashion redefine how value, style, and sustainability coexist in the global apparel economy?
SCOPE OF STUDY:
The report analyzes the Circular Fashion market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Product Type (Apparel, Accessories, Footwear, Other Product Types); Distribution Channel (Online, Offline, Other Distribution Channels); Textile Source (Organic, Recycled, Reused, Natural Materials, Other Textile Sources); Consumer Group (Millennials, Generation X, Generation Z, Baby Boomers, Other Consumer Groups); End-Use (Men, Women, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
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