SUSTAINABLE FASHION MARKET REPORT OVERVIEW

At a compound annual growth rate (CAGR) of 9.49%, the worldwide sustainable fashion market is expected to reach USD 20 billion by 2033 from its anticipated USD 9 billion in 2024. In terms of market share for sustainable fashion, Europe has been at the forefront.

A movement and style of thinking in the fashion industry, sustainable fashion—also known as eco-fashion or ethical fashion—aims to lessen the detrimental effects that apparel and accessories have on the environment and society over the course of their entire lifecycles.  Reducing the negative environmental effects of the fashion business, such as pollution, resource depletion, and waste generation, is the aim of sustainable fashion. This means employing products that are beneficial to the environment, saving energy, and using as little water as possible while producing goods. It emphasizes treating employees fairly and ethically across the fashion supply chain. This means maintaining workers' rights, providing safe working environments, and paying fair wages.

In addition to reducing the environmental impact of long-distance shipping, supporting local artisans and small manufacturers helps maintain traditional craftsmanship. Promoting the usage of vintage clothing and second-hand stores reduces the need for fresh production and makes clothing that has already been made more usable. Educating customers on the consequences of their clothing choices and encouraging more deliberate purchasing decisions are essential elements of sustainable style.

COVID-19 IMPACT

Increased Demand for Comfort and Versatility to Boost Market Growth

In comparison to pre-pandemic levels, demand has been lower than expected in all regions due to the unprecedented and overwhelming COVID-19 pandemic. The market's expansion and demand reaching pre-pandemic levels are the reasons for the abrupt increase in CAGR.

The pandemic highlighted the connections between public health and environmental sustainability, among other global issues. As a result, consumers began to think more carefully about the things they purchased and grew more conscious of and interested in ethical and sustainable fashion practices. The disruptions to global supply networks caused by the epidemic forced several fashion companies to reevaluate their production methods. Some resorted to locally sourced, small-scale manufacturing, which reduces the carbon footprint of long-distance shipping and aligns with sustainable style goals. As physical stores either closed or worked under severe guidelines, fashion companies and merchants stepped up their attempts to transition to digital platforms. Manufacturers of sustainable fashion were able to reach a wider audience by advertising their products online thanks to this shift in e-commerce.

LATEST TRENDS

Transparency and Traceability to Enhance Market Growth

The idea of "circular fashion," which emphasises reuse, repair, and recycling in the design of products, was picking more steam. Take-back initiatives were being used by brands to entice customers to recycle or upcycle their unwanted clothing. Transparency in the fashion supply chain was becoming a more important consumer demand. As a response, brands gave thorough information regarding the location of materials, the methods of manufacturing, and the working conditions. Additionally, blockchain technology was being investigated to improve traceability. Sustainable and environmentally friendly materials including organic cotton, recycled polyester, Tencel, and cutting-edge fabrics created from trash from farms or ocean plastics are being used increasingly frequently.

SUSTAINABLE FASHION MARKET SEGMENTATION

By Type

Based on type market is classified as mass and premium.

By Application

Based on application market is classified as shirt, yoga pant, leggings, shorts and others.

DRIVING FACTORS

Consumer Awareness and Demand to Augment Market Growth

The need for sustainable and ethical fashion items is rising as customer awareness of environmental and ethical challenges in the fashion industry increases. More and more customers are looking for brands that share their beliefs. Consumers and brands are looking for more environmentally friendly options as they become more conscious of the negative effects the fashion sector has on the environment, such as problems with water contamination, chemical use, and waste generation. Within the fashion supply chain, worries about working conditions, worker rights, and social justice have compelled firms to embrace more moral procedures and guarantee equitable treatment of employees.

Innovation in Materials to Propel Market Growth

Governments and international organisations have established rules and guidelines for the fashion industry's sustainability. Many fashion companies now base their decisions on their ability to comply with these laws. More environmentally friendly products may now be produced thanks to advancements in sustainable materials and fabrics including organic cotton, recycled fibres, and eco-friendly substitutes like Tencel and Piatex. The adoption of circular fashion ideas, in which goods are made to last a long time and be recyclable, has picked up steam. Take-back initiatives are being implemented by brands, and they are looking into ways to shut the manufacturing cycle.

RESTRAINING FACTORS

Cost of Sustainable Production to Impede Market Expansion

The greater price of eco-friendly materials and ethical labour practises is one of the main obstacles for sustainable fashion. As a result, sustainable clothes may have higher price points and be less affordable for some consumers. It's possible that sustainable materials, particularly cutting-edge textile substitutes, won't be widely accessible. This may limit the ability of firms that produce sustainable clothing to produce. Unaware of the importance of lifespan and ethical production, some consumers continue to associate sustainable fashion with a lack of style or higher price. With several brands joining the market, the sustainable fashion industry is getting more and more competitive. For newer or smaller sustainable style businesses, this saturation may make it challenging to stand out from the competition and capture market share.

SUSTAINABLE FASHION MARKET REGIONAL INSIGHTS

Europe to Dominate the Market Due to Cutting-Edge and Environmentally Concerned Designs

With nation’s various sustainable fashion firms and programmes, Europe has been a leader in the field of sustainable fashion market share. Regulations from the European Union as well as consumer awareness have contributed to the promotion of sustainability. The sustainable style industry has grown significantly in the US and Canada, with many new sustainable brands appearing in cities like New York, Los Angeles, and Vancouver. Consumer interest in eco-friendly and ethical fashion options has increased in these nations. Scandinavian nations like Sweden and Denmark, which are known for their cutting-edge and environmentally concerned designs, have a significant presence in the sustainable fashion industry.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Top Sustainable Fashion Companies

• PANGAIA (U.K.)
• EILEEN FISHER (U.S.)
• Outerknown (U.S.)
• Pact, LLC (U.S.)
• Adidas AG (Germany)
• Vuori (U.S.)

REPORT COVERAGE

The study expects a thorough examination of market share, segmentation market growth, and worldwide market size at the regional and national levels. The main goal of the study is to assist the user in comprehending the market's definition, potential, impacting trends, and difficulties. The topics covered in the research include a sales analysis, the influence of market participants, recent advancements, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations.