Circular Fashion Global Market Report 2026

Circular fashion represents a sustainable model for clothing production and consumption that aims to extend the life cycle of products. It emphasizes the principles of reuse, recycling, and durability in garment design, minimizing waste and environmental impact. This approach fosters a closed-loop system where materials are continuously repurposed.

The primary product categories within circular fashion include apparel, accessories, footwear, and others. Apparel encompasses all types of clothing worn by individuals, such as shirts, pants, dresses, and accessories, designed for both fashion and functionality, catering to various styles from casual to formal. Textile sources used in this model include organic, recycled, reused, and natural materials, among others. Consumer groups range across demographics, including millennials, Generation X, Generation Z, baby boomers, and others. Circular fashion products are distributed through diverse channels, including online and offline platforms, and are targeted at various end users, such as men, women, children, and unisex options.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the circular fashion market by increasing costs of imported sustainable fabrics, recycled fibers, trims, and manufacturing inputs used across apparel, footwear, and accessories. Brands in Europe and North America are most affected due to reliance on imported eco-friendly materials, while Asia-Pacific faces cost pressures in textile processing and exports. These tariffs are raising production costs and retail prices for circular fashion products. However, they are also encouraging local sourcing, regional textile recycling initiatives, and investments in domestic sustainable material production.

The circular fashion market research report is one of a series of new reports from The Business Research Company that provides circular fashion market statistics, including circular fashion industry global market size, regional shares, competitors with a circular fashion market share, detailed circular fashion market segments, market trends and opportunities, and any further data you may need to thrive in the circular fashion industry. This circular fashion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The circular fashion market size has grown strongly in recent years. It will grow from $6.48 billion in 2025 to $7.04 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to rising environmental awareness among consumers, increased textile waste generation, early adoption of sustainable fashion practices, growth of ethical fashion brands, expansion of second-hand clothing markets.

The circular fashion market size is expected to see strong growth in the next few years. It will grow to $9.84 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to growing regulatory focus on textile waste reduction, rising investments in circular supply chains, increasing consumer preference for sustainable apparel, expansion of digital resale platforms, advancements in textile recycling technologies. Major trends in the forecast period include increasing adoption of recycled and reused textiles, rising demand for durable and long-lasting apparel, growing popularity of resale and rental fashion models, expansion of closed-loop apparel production systems, enhanced focus on transparency and traceability.

The increasing awareness of the environmental and social impacts associated with the fashion industry is anticipated to drive the growth of the circular fashion market. This concern is fueled by the industry's excessive resource consumption, significant waste generation, and labor exploitation, all of which adversely affect ecosystems and communities. Circular fashion addresses these issues by promoting sustainable practices such as recycling, upcycling, and extending the lifespan of garments, ultimately reducing waste and mitigating the industry's environmental and social footprint. According to research from Northumbria University in August 2023, the fashion and textile industry is responsible for 8% of global greenhouse gas emissions and 20% of wastewater production. It consumes more energy than both the aviation and shipping sectors combined, with its full environmental impact remaining largely unknown due to its complexity and extensive global operations. Consequently, this growing concern is propelling the circular fashion market forward.

Leading companies in the circular fashion market are concentrating on developing innovative products utilizing recycled polyester to lessen environmental impact and promote sustainable, closed-loop production processes. Recycled polyester is a sustainable fabric created from repurposed plastic materials, such as polyethylene terephthalate (PET) bottles, converted into fibers for clothing and textiles. This approach reduces waste and conserves resources compared to the production of virgin polyester. For instance, in April 2024, Lululemon, a Canada-based manufacturer of athletic apparel and accessories, introduced the Packable Anorak jacket, crafted from enzymatically recycled polyester. This anorak is made from a blend of materials, including mixed plastic waste, Lululemon apparel that has reached the end of its lifecycle, and carbon emissions captured during industrial processes. This innovative strategy represents a significant advancement toward textile-to-textile recycling.

In May 2025, MySize Inc., an Israel-based provider of AI-driven retail solutions and omnichannel e-commerce platforms, acquired New Percentil, S.L. for approximately €610,000 ($679,000). Through this acquisition, MySize aims to enter and expand within the circular fashion and re-commerce market by integrating resale infrastructure to deliver a premium second-hand marketplace and develop a "Circularity as a Service" offering for fashion brands. New Percentil, S.L. is a Spain- and Europe-based managed marketplace for second-hand fashion, providing a logistics-supported platform for quality-vetted pre-owned garments and re-commerce services across several European countries, including Spain, France, Germany, and Italy.

Major companies operating in the circular fashion market are Nike Inc., Industria de Diseno Textil S.A., Adidas Group, H&M Group, Fast Retailing Co. Ltd., Gap Inc., Hermes International S.A., VF Corporation, Guccio Gucci S.p.A., PUMA SE, Lululemon Athletica Inc., Ralph Lauren Corporation, Levi Strauss & Co., Prada S.p.A., Everlane Inc., Reformation, Eileen Fisher Inc., Patagonia Inc., Rothy's Inc., Ecoalf Recycled Fabrics, SL, Stella McCartney Ltd., Outerknown LLC, LANIUS GmbH, MUD Jeans International B.V.

North America was the largest region in the circular fashion market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the circular fashion market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the circular fashion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The circular fashion market consists of sales of recycled apparel, upcycled accessories, rental footwear, secondhand clothing, and biodegradable textiles. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Circular Fashion Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses circular fashion market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for circular fashion ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The circular fashion market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product Type: Apparel; Accessories; Footwear; Other Product Types
• 2) By Textile Source: Organic; Recycled; Reused; Natural Materials; Other Textile Sources
• 3) By Consumer Group: Millennials; Generation X; Generation Z; Baby Boomers; Other Consumer Groups
• 4) By Distribution Channel: Online; Offline; Other Distribution Channels
• 5) By End-Use: Men; Women; Kids; Unisex; Other End Users
• Subsegments:
• 1) By Apparel: Tops; Bottoms; Outerwear (Jackets, Coats); Activewear; Underwear And Loungewear
• 2) By Accessories: Bags; Jewelry; Scarves And Hats; Belts
• 3) By Footwear: Sneakers; Boots; Sandals; Formal Shoes
• 4) By Other Product Types: Swimwear; Home Textiles; Sustainable Fashion Items
• Companies Mentioned: Nike Inc.; Industria de Diseno Textil S.A.; Adidas Group; H&M Group; Fast Retailing Co. Ltd.; Gap Inc.; Hermes International S.A.; VF Corporation; Guccio Gucci S.p.A.; PUMA SE; Lululemon Athletica Inc.; Ralph Lauren Corporation; Levi Strauss & Co.; Prada S.p.A.; Everlane Inc.; Reformation; Eileen Fisher Inc.; Patagonia Inc.; Rothy's Inc.; Ecoalf Recycled Fabrics, SL; Stella McCartney Ltd.; Outerknown LLC; LANIUS GmbH; MUD Jeans International B.V.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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