[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

#ITM 2026

ITM 2026: The new geography of textile production

New production hubs are emerging across North Africa and Central Asia, while Türkiye is accelerating its transformation toward higher-value, technology-driven and more sustainable textile manufacturing.

#Research & Development

“Production is a product”

From technical textiles and AI-driven robotics to the limitations of textile circularity: Professor Dr Thomas Gries looks back on more than two decades of development at ITA Aachen. In the interview, he explains why production technology remains a decisive success factor, discusses international collaborations and innovation ecosystems, and shares his views on the transformation of production landscapes and the challenges facing an increasingly regulated industry.

#Knitting & Hosiery

“We need to move away from the price trap and return to a value-driven mindset.”

With its new Textile Innovation Center, KARL MAYER is sending a strong signal for innovation, collaboration, and the future of textile applications. In this interview, Karl Josef Mayer discusses new opportunities in warp knitting, the processing of staple fibres, recycling, the changing role of machinery manufacturers, and why the textile industry must once again focus more strongly on the value of textiles. by Oliver Schmidt

#Associations

“Innovation, resilience and international experience remain the great strengths of the Swiss textile machinery industry”

Geopolitical uncertainty, growing competitive pressure from China, new free trade agreements and the shift towards a circular economy are currently reshaping the global textile industry. In this interview, Cornelia Buchwalder discusses the current mood within the Swiss textile machinery sector, the industry’s distinctive innovative strength, new market opportunities in India and Asia, and the technological trends that could shape the upcoming trade fair cycle leading up to ITMA 2027.

More News on Recycling / Circular Economy

#Recycling / Circular Economy

HKRITA signs MoU with Jeanologia and Looptworks to establish the Green Machine Circular Textile Ecosystem

The Hong Kong Research Institute of Textiles and Apparel (HKRITA) yesterday officially signed a landmark Memorandum of Understanding (MoU) with two key global partners, Jeanologia and Looptworks, to establish the Green Machine Circular Textile Ecosystem – a first-of-its-kind collaboration to accelerate the large-scale recycling of blended textiles.

#Spinning

Object Carpet tests production of rPET BCF yarn on Neumag BCF line

In a joint project with Object Carpet GmbH, Denkendorf; the Institute for Textile Technology (ITA), Augsburg; and Next Generation Recyclingmaschinen GmbH (NGR), Feldkirchen, Austria, Barmag investigated the processing of recycled polyester for BCF yarn. The goal was to evaluate the fundamental suitability of 100% recycled carpet material for reuse in carpet yarn production to create a closed-loop system in carpet manufacturing. To date, commercial rPET BCF processes have been based solely on rPET from bottle pellets.

#Recycling / Circular Economy

Albany International reports progress with Cyclezyme on industrial textile recycling project

Albany International Corp. (NYSE:AIN) reports continued progress in the ongoing project with Cyclezyme AB, a leader in advanced enzyme-based plastic recycling, based in Sweden. The project exemplifies leading edge innovation in materials science, focusing on the development of enzyme-based recycling of industrial textiles primarily consisting of polyester and polyamide, where there is currently a significant lack of effective solutions for circular material flows. The objective of the project is to establish enzymatic processes for depolymerization and recycling of technical textiles and high-performance industrial materials.

#Recycling / Circular Economy

The textile industry in transition

Recycling, traceability, eco-design and digitalisation are among the key future challenges facing the European textile industry. The Erasmus+ project Skills4Circularity, involving 21 partners from twelve countries, is investigating the skills required to address these challenges. As the German industry partner, the Industry Association for Finishing – Yarns – Fabrics – Technical Textiles (IVGT) is bringing the industry’s perspective to the project.

Latest News

#Research & Development

2026 general meeting of the Friends and Supporters of RWTH Aachen at ITA

The Friends and Supporters of RWTH Aachen e. V. (proRWTH) looked back on a successful year of support at their 2026 general meeting. The meeting took place at Institut für Textiltechnik (ITA) of RWTH Aachen and was combined with a joint session of the Executive Board and the Administrative Board. Before the general meeting began, participants were given a guided tour of ITA, providing them with fascinating insights into current research and development topics in textile engineering.

#Natural Fibers

Cotton ConneXions Insight to Impact brings supply chain leaders together around cotton innovation

Cotton Incorporated’s Cotton ConneXions Insight to Impact brought together more than 300 industry leaders from 140 companies across 10 countries, including more than 45 top global brands and sourcing organizations, underscoring strong global interest in cotton-rich product development, sourcing and supply chain collaboration.

#Knitting & Hosiery

Footwear innovation enabled by warp knitting technology– insights from New Balance

The future of the athletic shoe is increasingly being shaped on warp knitting machines. For KARL MAYER, the footwear industry is one of the most important growth markets – and one of the sectors where innovative textiles can realize their full potential. In his keynote address at the opening of KARL MAYER’s TEXTILE INNOVATION CENTER in Obertshausen in April, Vishnu Prakash Muthusamy, Senior Textile and Materials Engineer at New Balance, explained the opportunities that warp knitting technology opens up for performance, sustainability, and faster development processes, and why textile manufacturers are transitioning from suppliers to development partners.

#Natural Fibers

Cashmere specialist joins AbTF Board of Trustees

The Aid by Trade Foundation (AbTF) is pleased to welcome Brian Yu, the chief executive officer of the Artwell Group, to its board of trustees. As CEO, Brian Yu developed Artwell into the world’s largest supplier of responsibly produced cashmere knitwear.

TOP