[pageLogInLogOut]

#Recycling / Circular Economy

Circular business models in the fashion industry - new study identifies USD 700 billion opportunity

Launched today, Circular Business Models: Redefining growth for a thriving fashion industry explores how circular business models offer significant potential for greater revenue, while cutting the volume of new clothing and accessories produced.

Following on from the Foundation’s first fashion report A New Textiles Economy: Redesigning fashion’s future and following Vision of a circular economy for fashion -  the study takes a deep dive into fashion industry sectors such as rental, resale, repair, and remaking which represent a USD 73 billion market.

“Not only do circular business models have massive potential to become mainstream, they provide new and better growth for the fashion industry. Clothing production doubled between 2000 and 2015, while the time we use clothes fell by more than a third. Circular business models can help turn this around and create a thriving industry that takes a lead on tackling global challenges such as climate change and biodiversity loss.”

- Marilyn Martinez, fashion initiative project manager, Ellen MacArthur Foundation.

These models are expected to continue growing as customers become increasingly motivated by affordability, convenience, and environmental awareness and additionally, sectors such as rental and resale, have the potential to claim 23% of the global fashion market by 2030 and grasp a USD 700 billion opportunity.



However, highlighted in this study is also the notion that these models do not always lead to environmental benefits, particularly, if they are seen purely as ‘add-ons’ to a traditional wasteful model as opposed to central to all business activities. 

For example, incentivising product take-back for resale, remaking or recycling by offering vouchers for new products may fuel more production. Rental models that offer clothes not designed to withstand many wears and cleaning cycles increase the chances of that model being economically and environmentally unviable. Ultimately, if not designed to be part of the system in which it sits, clothing will end up in landfill after very few uses.  

To maximise the positive outcomes of circular business models and realise their full potential for better economic growth and environmental impacts the Foundation has recommended four key actions:

• Rethink performance indicators, customer incentives, and customer experiences

• Design products that can be used more and for longer

• Co-create supply networks able to circulate products locally as well as globally

• Scale a wider range of circular business models


Take a look at our circular business model case studies and read the full study on our website.



More News from TEXDATA International

#Recycling / Circular Economy

textile.4U publishes special edition “Top 100 Textile Recycling Companies 2025”

With a comprehensive 176-page special edition, textile.4U is dedicating its latest issue entirely to one of the most dynamic and influential topics in today’s textile industry: textile recycling. The new issue, published exclusively in high-quality print, presents the Top 100 textile recycling companies researched and selected by TexData – organizations that already play a key role in the transition to circular textiles or are expected to have a significant impact in the near future.

#Recycling / Circular Economy

Responsible Textile Recovery Act of 2024 signed by Governor

Senator Josh Newman (D-Fullerton) is proud to announce that Senate Bill 707 (SB 707), the Responsible Textile Recovery Act of 2024, has been signed into law by the Governor of California, Gavin Newsom. This groundbreaking legislation establishes the country’s first Extended Producer Responsibility (EPR) textile recycling program, marking a significant step forward in the state’s efforts to combat waste and promote sustainability.

#Textiles & Apparel / Garment

Modtissimo promotes sustainability with 28 coordinates in the Green Circle

Modtissimo is proving more and more to be a textile and clothing show that delivers the latest innovations in the area of sustainability, with the iTechStyle Green Circle being the main showcase for companies' creations. In this 60+4 edition, taking place on 12 and 13 September, 28 coordinates will be exhibited in a section organised by CITEVE and curated by Paulo Gomes.

#Europe

The EU and Egypt team up to mobilise private sector investments at Investment Conference and sign a Memorandum of Understanding underpinning €1 billion in macro-financial assistance for Egypt

At the EU-Egypt Investment Conference, co-organised by the EU and the Government of Egypt on 29-30 June, the EU and Egypt are teaming up to intensify private sector investments in Egypt. They are also signing a Memorandum of Understanding (MoU) for the disbursement to Egypt of up to €1 billion in Macro-Financial Assistance.

More News on Recycling / Circular Economy

#Research & Development

Innovation center for textile circular economy inaugurated

Just over eight months after the foundation stone was laid, the new Innovation Center for Textile Circular Economy was officially inaugurated today at TITK Rudolstadt. Thuringia's Minister President Mario Voigt, TITK Director Benjamin Redlingshöfer, and other guests of honor cut the ribbon to the modern building complex and viewed the premises, which are now ready for occupancy. The “DICE – Demonstration and Innovation Center for Textile Circular Economy” is TITK's largest single investment to date. The Free State of Thuringia supported the total cost of €11.5 million with €8 million in GRW and FTI funding.

#Associations

Waste2Fashion: FTTH Committed to advancing Circular Fashion in the Mediterranean

As an official partner of the Waste2Fashion project, the Tunisian Federation of Textile and Apparel (FTTH) participated in the Kick-off Meeting held on 10–11 December in Spain. The event brought together project partners from across the Mediterranean, including Spain, Italy, Egypt, Lebanon, and Tunisia, to align on a shared vision and initiate the first implementation steps.

#Recycled_Fibers

Leading fashion brands step up to unlock the next chapter of Circulose

Since 2024, under new ownership and leadership, Circulose has set a renewed strategic direction focused on securing long-term commitments with partner brands to bring CIRCULOSE® back to market at scale. This strategy has proven successful.

#Recycled_Fibers

Recycling mixed-fibre garments becomes a reality: RadiciGroup, The LYCRA Company and Triumph take circular fashion a step forward

The process, which is both economically and environmentally sustainable, has enabled the production of an underwear set made from 100% recycled nylon and LYCRA® fibre in a closed-loop system.

Latest News

#Research & Development

Sustainable design of Geosynthetics and roof underlayments made from recyclates

Is it possible to recover plastic recyclates from previously unused waste streams in order to produce high-quality fibers and films? How can bio-based polymer fibers be manufactured so as to allow adjustable biodegradability? These are the questions being addressed by researchers from the Fraunhofer Cluster of Excellence Circular Plastics Economy CCPE in the Zirk-Tex project.

#Associations

AATCC announces 2025 Herman & Myrtle Goldstein Graduate Student Paper Competition winners

The American Association of Textile Chemists and Colorists (AATCC) recognized the winners of the 2025 Herman & Myrtle Goldstein Graduate Student Paper Competition. Founded in 1982 to give student members the chance to conduct and present original research, the competition was renamed in 1994 in honor of Herman and Myrtle Goldstein, following their US$60,000 endowment. Their gift is a lasting remembrance of their dedication to young people in the textile industry.

#Nonwoven machines

Yanpai expands nonwovens capacity with two new ANDRITZ needlepunch lines

Zhejiang Yanpai Filter Technology Co., Ltd. (hereinafter referred to as “Yanpai”) has placed an order with international technology group ANDRITZ for two high-performance needlepunch lines. The equipment will be installed at Yanpai’s headquarters facility in Tiantai County, China. Commissioning is scheduled for the third quarter of 2026.

#Natural Fibers

Dr. Jane Dever inducted into the 2025 Cotton Research and Promotion Hall of Fame

Dr. Jane K. Dever, a recognized leader in cotton breeding and fiber quality research, was inducted into the 2025 Cotton Research and Promotion Hall of Fame during the joint Cotton Incorporated/Cotton Board Annual Meeting held on December 9 in New Orleans, LA.

TOP