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Data Insight

Data point: the case for circular and regenerative fashion

Circular business models for fashion could create a US$560bn economic opportunity

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    PUBLISHED 28 JUNE, 2022 • 3 MIN READ

      In a capitalist world where consumption is king, it is easy to get sucked into the allure of cheap, accessible fast fashion. People can get pushed into a cycle of chasing ever-changing trends—whether those trends show up on the pages of a fashion magazine or in a TikTok influencer’s “fashion haul”—without considering the true cost of the clothes they wear.

      clothing circular economy

      Fast fashion’s formidable footprint

      This behaviour is at the heart of the fashion industry and drives the demand for cheap, on-trend clothing. Between 2000 and 2015 clothing production doubled, while the number of times a garment was worn before being thrown away decreased by 36%. WRAP, a climate action NGO, estimates that 350,000 tonnes—roughly equivalent to 27,668 double-decker London buses—of clothes end up in landfill every year in the UK alone. This increased production and wastage of clothing comes with severe consequences: the fashion industry value chain—from growing raw materials for textiles and mass producing items all the way to how that clothing is disposed of—contributes between 8% and 10% of global greenhouse-gas emissions. 

      Fashion waste is of particular concern given that 62% of textiles globally are made of synthetic materials, with 52% of all clothing being composed of polyester, a petroleum-based plastic fabric. When synthetic fabrics are washed, plastic fibres enter wastewater streams and eventually end up in the ocean. According to the UN, more than one-third (35%) of microplastic found in the ocean comes from synthetic fabrics. 

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      The restoration, resale, repair, customisation and rental markets in fashion are already worth more than US$73bn, with companies such as Depop and Rent the Runway valued at more than US$1bn.

      Circular and regenerative fashion is good for the triple bottom line: planet, people, profit

      Organisations are now calling for a circular economy to urgently reduce the fashion world’s environmental impact. 

      Circular business models for fashion could create a US$560bn economic opportunity, claims the Ellen MacArthur Foundation. The restoration, resale, repair, customisation and rental markets in fashion are already worth more than US$73bn, with companies such as Depop and Rent the Runway valued at more than US$1bn. The Foundation projects that circular models could grow from 3.5% of the global fashion market today to 23% by 2030. 

      Regenerative fashion is another model that complements circularity by addressing unsustainable style at the source. Switching from synthetic to natural fabrics that are “grown” using techniques that rejuvenate agricultural land can help reduce fashion’s overall carbon footprint. Carbon-intensive farms can instead become carbon-sequestering communities. Major brands are already committing to regenerative fashion. In April 2022, brands such as Burberry, Selfridges and Stella McCartney signed a regenerative fashion manifesto as part of the Sustainable Markets Initiative.

      It’s also getting easier to understand how specific companies perform in terms of circularity and overall sustainability. Apps like Good On You grade fashion brands based on their social and environmental practices. Hyper-fast fashion giant SheIn—which produces thousands of new items daily while bringing in record profits—earned one of the lowest ratings on the platform in 2021, along with Fashion Nova, ZAFUL, Missguided, SHEIN, Nasty Gal, Boohoo, and PrettyLittleThing. Top performers included New Zealand-based brand Thunderpants, luxury-bedding company Boll & Branch, and ethical clothing company No Nasties. 

      Circular Economies