#Recycling / Circular Economy

2021-11-25

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.

Texprocess 2026: Automation, digitalisation and AI redefine textile processing

Making investment decisions in textile processing has become significantly more demanding. Increasing energy costs, a shortage of skilled labour and ongoing geopolitical uncertainties are compelling companies to focus on technologies that deliver clear gains in efficiency and process reliability. This applies equally to apparel manufacturing and to the processing of technical textiles and high-performance materials. As a result, modernisation initiatives are assessed more carefully – even as the need to upgrade production systems continues to intensify.

Techtextil 2026: Between innovation pressure & market reality

From 21 to 24 April 2026, Techtextil in Frankfurt am Main will once again become the central meeting point for the international technical textiles and nonwovens industry. Running in parallel, Texprocess will focus on the industrial implementation of textile processing technologies as the leading platform in this field. Together, the two trade fairs form a closely integrated presentation and working platform along the entire textile value chain – from material development to finished applications.

Between geopolitical pressure and industrial resilience

In this interview, Dr. Janpeter Horn (VDMA) discusses the current challenges facing textile machinery manufacturers, shaped by geopolitical tensions, regulatory developments and subdued investment. He also outlines why innovation strength, integrated solutions and strategic positioning remain key to global competitiveness.

RE&UP contributes to Global Fashion Summit 2026 circularity discussion

RE&UP contributed to the global conversation on textile circularity at Global Fashion Summit 2026 in Copenhagen, where Fatih Konukoğlu, Chairman of RE&UP and Vice Chairman of Sanko Holding, took part in both the keynote session “The New Rules” and the panel discussion “A Reckoning and Renewal for Circular Horizons”, alongside leaders from H&M Group, Looper Textile Co. and Sourcing Journal.

Europe’s textile future at a turning point: New 2030 Circularity Blueprint aims to scale recycling and unlock investment opportunities

The EU textile system is at a critical crossroads. Today, less than 1% of discarded garments are recycled into new garments, despite EU-wide obligations for separate collection. In response, Global Fashion Agenda (GFA) is launching the 2030 Circularity Blueprint, in partnership with ReHubs. This ambitious initiative is designed to support the transformation of the EU textile ecosystem to advance textile-to-textile recycling and drive the transition to a circular economy.

Circulose and CTA announce collaboration to enable lyocell fibers using CIRCULOSE® pulp

Circulose has announced an agreement with China Textile Academy Green Fibre (CTA) to offer lyocell fibers produced using CIRCULOSE® pulp. Producing lyocell from recycled pulp at commercial scale is an important step in making textile-to-textile recycled materials available across a wider range of textile applications.

STFI highlights textile circular economy and alternative fibres at INDEX™ 2026

From 19 to 22 May 2026, INDEX will invite visitors to Lake Geneva for the world's leading nonwovens trade fair. The Centre of Excellence in Nonwovens at the Sächsisches Textilforschung- sinstitut e.V. (STFI) will be in attendance to present the latest developments in nonwovens research. In the field of the textile circular economy, the STFI will present acoustically effective nonwovens made from chemical recycling residues. The range also includes innovations aimed at replacing conventional raw materials, such as the biobased and biodegradable polymer polybutylene succinate (PBS) and Kendyr as an alternative to cotton.

FET’s revolutionary gel spinning system wins Techtextil Innovation Award

FET has received the prestigious Techtextil Innovation Award 2026 in the New Production Technology category. The Techtextil Innovation Award honours outstanding ideas in textile technology, sustainability, AI and the creation of technical textiles, selected by an international jury of experts. Ranging from new materials to new production technologies, this award recognises progressive ideas that are driving forces for numerous industries, such as automotive, medical and construction.