08 June 2023, Mumbai

The narrative of Track & Traceability; The apparel and footwear industry recognizes the importance of transparency and traceability in addressing key challenges such as value chain management, labor rights, counterfeits, and sustainability. However, many businesses still lack a comprehensive understanding of their extended value chain. 

What all you need to know

Addressing Sustainability in the Textile Industry

The importance of tracking and tracing in the end-of-life phase of product lifecycle management lies in reducing costs and environmental impacts throughout the manufacturing process. 

Traceability aims to integrate value chain partners, enabling transparent tracking and tracing of articles across the textile supply chain. 

Simply put, it allows for tracing the entire lifecycle of a product, from raw materials to end-consumers, including waste disposal and recycling. The Textile Tracer Assessment offers a comprehensive guide to physical tracer technologies applicable to the textile supply chain.

Consumer Demand for Supply Chain Transparency

To bridge this gap, a global initiative led by UNECE and UN/CEFACT has been launched, aiming to establish a policy platform, develop traceability standards, and provide implementation guidelines. From 2019 to 2022, the project focuses on capacity building and testing of deliverables, while UNECE's "The Sustainability Pledge" urges industry stakeholders to adopt measures that uphold environmental and ethical standards.

The Call for Change in Fashion

In the fast-paced fashion world, brands grapple with the task of producing large volumes of clothing without the certainty of sales. The ability to respond swiftly to consumer needs becomes a key determinant of success. 

Embracing the latest technologies is crucial for pushing the boundaries of production, marketing, manufacturing, and wearability. Notable technological advancements in the fashion industry include artificial intelligence (AI), mobile commerce, 3D printing, and blockchain.

Unlocking the Potential of Technology

AI plays a vital role in enhancing customer experiences, analyzing data, boosting sales, predicting trends, and offering inventory recommendations. 

In-store touchscreens and chatbots elevate customer service by providing personalized product suggestions. AI algorithms track customer journeys, matching them with suitable products. 

The potential of AI extends beyond customer service, with applications in supply chain management and trend forecasting proving highly profitable. 

Real-time inventory tracking saves time and streamlines warehouse operations, while the integration of AI's predictive data tools enables brands to access timely information for designing and producing the right styles and quantities.

Fair sex

STITCH FIX, a notable example, leverages automation and analytics to create virtual wardrobes for its female customers. By monitoring their purchases and preferences, the platform empowers women to create unique styles using their existing wardrobes and shop from a diverse array of stores.

Fashion Buyers Seek Greener Shopping

In summary, the garment and footwear industry is being shaped by the twin forces of transparency, traceability, and technological advancements. 

Achieving sustainable production and consumption patterns requires collaboration among all stakeholders, as well as the adoption of common strategies and reliable technical solutions. 

By embracing transparency, leveraging technological innovations, and prioritizing ethical and environmental considerations, the industry can navigate the ever-evolving global landscape and pave the way for a more responsible and prosperous future.

The Urgent Need for Traceability

Avery Dennison, a material science company, highlights the growing consumer demand for supply chain transparency in the fashion industry. Their survey, conducted in collaboration with GWI, reveals that over 5,000 fashion buyers across the US, UK, France, Germany, and China express a desire for a greener shopping experience. 

Consumers want to trace the journey of their purchased items throughout the supply chain, verifying their fashion circularity. To achieve this, digital labels can be attached to clothing, allowing consumers to access supply chain information and recycling instructions through an app.

Retailers who effectively communicate through smart labels can strengthen brand loyalty while actively supporting fashion circularity.

Datapoint

The survey indicates that globally, 62% of respondents expect brands and retailers to provide accessible end-of-life options for their products. Furthermore, 58% believe that fashion brands should assist consumers in repairing items, and 57% think brands should facilitate resale when customers no longer want to keep the products.

Fashion's Business Case for Traceability

Leveraging technology can bring added value to consumers, retailers, and brands, enabling them to embrace behaviors that promote circularity. 

Scaling up circular practices not only benefits the environment and reduces waste but also provides consumers with more product information and deeper engagement with brands. Unfortunately, a report by Planet Tracker reveals that only 11% of brands disclosed their raw materials suppliers in 2022, with an overall traceability score of just 19% in 2021. 

Planet Tracker collaborated with Segura, a digital supply chain company, to assess the financial risks and opportunities associated with supply chain traceability. Opportunities for mitigating impact include reducing air freight, consolidating suppliers, and minimizing production.

Planet Tracker's Report on Supply Chains

Planet Tracker's report, titled "Lifting the Rug," emphasizes the business case for supply chain traceability in the fashion industry, addressing environmental and human rights concerns. 

The nonprofit also assesses the financial risks of maintaining the status quo in the plastics sector, which is particularly relevant given upcoming legislation.

Among the 52 publicly listed retail companies analyzed by Planet Tracker, only 37% disclosed a supplier list, with just 21% publishing suppliers beyond Tier I. Noteworthy approaches to supply chain traceability from companies such as Patagonia and LVMH are documented in the report.

Update

The report showcases the level of transparency displayed by major apparel producers in disclosing their supply chains. 

By implementing industry-wide traceability, the researchers estimate that apparel companies can improve net profit by an average of 3% to 7%, based on Segura's retail return on investment calculations and Planet Tracker's textile data points, totaling over 14,000.

In terms of funding, apparel companies have invested less than $200 million in supply chain traceability technology over the past decade. This figure pales in comparison to the $3.5 billion raised in public and private capital for the secondhand clothing market since 2015.

Latest Textile Events

05 June  2023, Mumbai

Quick background; A significant portion of the transactions inked at the China Clothing Textile Accessories Expo 2022, which was held in Melbourne from Tuesday to Thursday, indicate that Chinese and Australian businesses perceive a better potential for collaboration in the primary sector of bilateral trade of textiles. 

What all you need to know

152 businesses participated in the three-day expo, which was co-hosted by the Jiangsu Department of Commerce and the China Chamber of Commerce for Import and Export of Textiles (CCCT). 

During the first two days of the event, up to 2,810 business people attended, the majority of them being Australian clients, according to CCCT. 

Business & economic ties

The event was declared successful by Cao Jiachang, the chairman of the CCCT, based on the feedback from exhibitors and the active engagement of the attendees of the expo.

Deals were closed during the event in large numbers, and more are anticipated. For instance, a company from Shaoxing, a center for the textile industry in East China's Zhejiang Province, signed contracts worth a combined total of roughly $6.5 million on the first day.

Ma Ying, general manager of the domestic textile and fashion company HBT Garment, was one of the event's busiest attendees. Ma discussed potential business transactions with Australian clients frequently, as she had in earlier meetings. Ma's partners have made up the majority of the clients throughout time.

Due to an outbreak, they were unable to meet for three years, but it did not prevent them from agreeing on orders, which, according to Ma, demonstrates the confidence Australian customers have in China's high-quality products.

Global supply chains 

Australians are becoming more familiar with Chinese textiles, not only because we are pioneers in the development and use of sustainable and recyclable fabrics, but also because of China's seamless supply chain and effective business practices, which are more competitive than those of many other nations, according to Ma. 

Following high-level conversations at the G20 Summit in Indonesia, tense bilateral relations will start to loosen up. 

Dialogue 

Regular high-level discussions between the two nations have resulted in a major improvement over the impasse that has existed since 2019, according to experts. 

After reaching a low point, China-Australia relations are now steady and improving, which inspires tremendous confidence in the two nations' business and commercial communities, according to Cao. 

Reality check 

Australia is a net importer and consumer of goods that require a lot of labor because of its enormous landmass and small population. 

For instance, Australia imports apparel and textiles worth more than $10 billion annually. 

China is the greatest source, making up around 60% of the total, much exceeding its share of the global market by value, which is 38%, according to Cao. 

Trade dynamics 

Despite the epidemic, the trend remained relatively unchanged. Australia imported clothing and textiles worth $6.82 billion from China in 2021, a 13.3 percent rise from the previous year.

Australia imported $6.02 billion worth of goods from China in the first three quarters of the year 2022, up around 22% over the same period last year. According to Cao, this year's imports are predicted to be significantly higher than those of 2021. 

Construct

Wool and cotton, the primary raw materials for textiles and apparel, are two of Australia's largest exports, demonstrating the resource-based economy of both nations, according to Cao. 

Give & take

Always, breaking something is simpler than making it. 

Who will gain

Someone loss is someone gain; The Economic Cooperation and Trade Agreement between India and Australia came into effect on December 29, 2022. 

The two nations' business relations as well as the full range of goods and services are set to profit from this agreement, which is the first trade agreement between India and a developed nation in recent memory.

India-Australia trade can hit $50B in 5 years

Sam appreciated the Ministry for finalizing the Indo-UAE trade and Indo-Australian trade agreements within a short span of time. 

Such agreements reflect the trust created by India amongst various trade partners such as the UK, Canada, and other countries. The estimated bilateral trade of $50 billion between the two countries in five years would enable India to import high-quality cotton from Australia and export high-value-added textiles and clothing products to the country.

Kickers 

He also appreciated allowing duty-free import of around three lakh bales having staple lengths 28 mm and above from Australia under the ECTA. 

Earlier, an industry delegation comprising Members of the National Committee on Textiles and Clothing (NCTC) had requested the textile ministry to allow duty-free cotton imports to enhance cotton textile export to $16.963 billion and total textiles and clothing exports by 6 percent to $47.029 billion during the financial year 2022-23.

However, significant progress can be made rapidly as long as both parties/Australia-China are sincerely eager to mend the relationship, according to Chen as after all there are no permanent friends or foes in business and trade.

Latest Textile Events

01 June 2023, Mumbai

The global textile industry is a sizable, important one. The textile market soared to a worth of USD 1,695.13 billion in 2022 and is projected to achieve a revenue CAGR of 7.6% from 2023 to 2030, manifesting substantial growth opportunities.

What all you need to know

In addition to the conventional fashion markets, emerging economies like China and India are expanding quickly. In the near future, they are anticipated to dominate the textile industry. 

Logistics takes a center stage

The logistics sector has been and will continue to be vital to the textile industry. Without the proper transfer of goods from one location to another, no enterprise can endure. 

The textile sector is not an exception! Transporting raw materials and textile equipment to production facilities is made easier by textile logistics. Additionally, it aids in the finished goods' distribution to the intended market.

Growing logistics sector

Textile logistics is a rapidly developing industry. Manufacturers and merchants are aware of how crucial transportation is for getting products to their customers.

They will spend any amount of money to obtain high-quality services, however, price does not totally control the process. They make sure that their final products and raw materials are transported precisely on time. 

Textile logistics place a high value on timeliness. If one of the two parties consistently fails to deliver the items by the scheduled date, its market reputation will undoubtedly deteriorate. 

If the assignment is not finished and delivered on time, the deal might not produce the expected results. The development of a textile firm depends heavily on timeliness.

Key to staying competitive

This issue is of vital importance to any organization involved in textile logistics. It must always keep time, regardless of the nation, state, city, or area it is in. If not, it might not be successful in the market. 

Customers pay them mostly to ensure that their items get to the specified location on time. 

Numerous events illustrate the value of timeliness in textile logistics. When products were delivered late, a logistics company with headquarters in China was sued by the client. All of the company's couriers' responsibilities were placed in its capable hands. 

Due to internal staff inefficiencies, a key courier carrying documents arrived after the scheduled time. As a result, the client organization suffered significant losses because an essential message could not be delivered.

Can make a difference between success & failure

Another instance included a textile manufacturing company that experienced losses due to the late delivery of raw materials. It contacted an unreliable UK textile shipping business and could not get its cargo of raw materials on schedule. 

This incident caused its final goods delivery to be delayed, which had an impact on the company's profitability. The cost has some bearing on timeliness in the logistics of textiles. The planet has many different forms of transportation. 

Each has a different charge and speed. The delivery methods by air, water, and land vary. The fastest is air. It, therefore, costs extra. Additionally, goods can be transported via road, rail, goods ships, and other forms of transportation.

Metric has been consistently been followed

Many textile logistics service providers consider timeliness to be a quality indicator. If they can consistently deliver the requested goods or materials on time, they offer great quality. Their quality is bad if they are unable to provide the goods to their client on schedule. 

Timeliness is the face of quality in the logistics sector of the textile industry. This method is used to evaluate the service providers' quality. Everything is transient in the textile and fashion industries. Anything that is popular today might not be available tomorrow. 

The raw materials must be moved quickly and processed. Any logistics company may fail to fulfill its objective if it is not prompt in the transfer of goods and raw materials.

Time Vs Money

Additionally, under the "list of importance in textile logistics," timeliness now has a point added. The bulk of the time, the costs of the raw materials utilized in the textile industry are very volatile. For instance, cotton has a price that varies greatly. 

The company will be obliged to offer the finished goods at a cheap price if it purchases cotton at a higher price and later sees cotton prices decline. Without a doubt, textile logistics place less emphasis on timeliness than the edible goods sector does. 

Punctuality is critical

In the textile industry, raw materials virtually never deteriorate. They can be kept for a long time in go-downs. They are not edible, hence they don't have a shelf life or expiration date.

However, the textile logistics sector also takes punctuality into grave account. It is absolutely impossible to disregard the value of timeliness in textile logistics. 

Actually, punctuality is crucial in every area of logistics. But it occupies a unique position in the textile sector. Making a concession in this area is absolutely detrimental to the company. Because of this, textile logistics service providers take extra care to complete all tasks on time.

Transforming India's Logistics: Tech-Enabled Solutions for Efficient Delivery

Rise of E-Commerce: Fueling Logistics Growth

India's e-logistics sector is experiencing an impressive compound annual growth rate of 35 percent, making it one of the largest and fastest-growing logistics markets globally.

The surge in e-commerce has played a significant role in this growth, with e-commerce logistics shipments expected to quadruple in the next five years. 

The convenience factor and accelerated online adoption, driven by the COVID-19 pandemic, are propelling the overall online gross merchandise value (GMV) to reach $49-52 billion, a 37 percent increase from last year. Tier-II-plus cities and towns are emerging as key drivers of growth, representing a significant portion of the total shopper base.

Super Apps and D2C Market Thrive

India's direct-to-consumer (D2C) market is thriving, thanks to the emergence of super apps introduced by major companies like the Tata Group and Reliance Group.

These super apps consolidate various services and offerings, providing consumers with a seamless experience. This innovation is reshaping the e-commerce landscape and further fueling the demand for efficient logistics solutions.

Streamlining Interior Logistics and Geopolitical Tensions

In India, e-invoicing and the implementation of the goods and services tax have streamlined interior logistics processes. Meanwhile, global shipping and logistics have faced significant challenges due to geopolitical tensions and disruptions. However, recent data from Container xChange indicates that trade is starting to see relief, with a persistent downward trend in container prices, making businesses more competitive.

Digital Adoption and National Logistics Policy

The availability of multiple payment options and the growing popularity of digital commerce, such as UPI, no-cost EMI, and buy now, pay later (BNPL), are driving the adoption of e-commerce logistics.

The National Logistics Policy 2022, formulated by the commerce ministry, aims to improve India's trade competitiveness by reducing logistics costs.

The goal is to bring down logistics costs from the current 14 percent of GDP to less than 10 percent within the next 4-5 years.

Tech-Enabled Solutions and Investment Opportunities

Tech-enabled logistics service providers are addressing multiple segments of the Indian logistics market, offering full-stack solutions. With the rise of e-commerce and increased awareness of the industry's challenges and growth opportunities, investors are funding new ventures in the logistics sector.

Promising Growth in Adjacent Segments

Tech-enabled logistics players are venturing into adjacent segments, such as hyperlocal delivery, express delivery, trucking, and more. This expansion opens up further avenues for growth and innovation within the industry.

As India's logistics sector undergoes significant transformation driven by technology, it is becoming increasingly efficient and accessible for businesses, particularly small- and medium-sized enterprises, to transport goods.

The convergence of e-commerce growth, digital adoption, favorable policies, and tech-enabled solutions is shaping a promising future for India's logistics industry.

Latest Textile Events

07 June  2023, Mumbai

Indian apparel brands are experiencing promising global prospects as the industry continues to thrive.

According to IMARC Group, the Indian textile and apparel market was valued at $133 billion in 2021, with a projected compound annual growth rate (CAGR) of 13.8 percent from 2021 to 2026. 

What all you need to know

This growth is fueled by various factors, including the increasing prevalence of high-speed internet, which has facilitated the rapid expansion of online retailing in India.

Growth levers

The industry's growth can also be attributed to shifting lifestyle trends, favorable demographics, rising disposable incomes, and the convenience offered by online portals. These platforms provide a wide selection of products and multiple payment methods, enhancing the overall shopping experience for consumers. 

Rising competition

However, the apparel business has become more competitive over time, with rival brands emerging from neighboring countries such as Pakistan, China, Bangladesh, Korea, and Japan, which all have thriving apparel markets.

Snapshot

One notable Indian apparel brand making waves in the industry is Saundh India, founded in 2019 by Sarabjeet Saluja, also known as Sabby. Saundh India offers a range of clothing items, including tops, Kurtis, jackets, sewn and unstitched kurta sets, loungewear, scarves, and masks. 

With its headquarters in Surat, Saundh India initially established its presence in Mumbai and later expanded to Delhi, with ten independent stores in northern India. 

Sabby's inspiration for entering the industry came from observing his father's hard work in establishing Sahiba Limited, a well-known garment firm. However, he aimed to create something new that would benefit the larger community, leading to the launch of Saundh India with a budget of Rs 10 crore.

In the ever-evolving world of marketing, brands now prioritize providing a seamless customer experience across multiple channels. While traditional multi-channel marketing aimed to reach a wide audience, the focus has shifted towards quality over quantity in omnichannel approaches. 

Growing Role of Social Media

This strategy allows brands to dominate their marketing campaigns on platforms like Instagram and e-commerce websites. Marketers are now concentrating on fewer platforms but enhancing the user experience by providing scrollable content and quick access to information about their clothing. 

This approach has proven effective in the post-pandemic "back to work" period, where women's formal attire is in high demand. Brands showcase their office attire on social media accounts, giving viewers a glimpse of their offerings and creating a sense of connection with potential customers.

Influencers, particularly micro-influencers, play a crucial role in the success of apparel brands. 

Stickiness

Their relatability and ability to produce logical and resonant content have earned them a loyal following that values their fashion and lifestyle opinions. 

Brands recognize the significance of this relationship and seek to establish a genuine presence in the social media community where they can directly engage with their customers. 

Social media platforms facilitate this direct connection and enable brands to become more consumer-friendly while generating new product ideas.

Shifting lifestyle paradigm

The global prospects for Indian apparel brands are promising, driven by factors such as shifting lifestyle trends, favorable demographics, rising disposable incomes, and the convenience of online shopping. Saundh India is an example of an Indian apparel brand that has capitalized on these opportunities. Additionally, brands are focusing on providing a seamless customer experience on select platforms, emphasizing quality over quantity. The influence of micro-influencers and the power of social media further contribute to the success of Indian apparel brands in the global market.

Reliance Retail's Fast Fashion Venture Aiming for Global Recognition

India's fast fashion market is rapidly growing, as evidenced by the immense success of international brands like Zara and H&M. Reliance Retail, internally nicknamed Regalia, is poised to challenge these brands and establish its presence in the global fast fashion scene.

The Market Potential and the Reliance Advantage

Fast fashion is the fastest-growing segment in India's apparel and lifestyle sector. While international brands enjoy an advantage in terms of cachet and prime retail locations in major cities, there is still room for more fashion brands to thrive. 

Reliance Retail, currently the largest fashion and lifestyle retailer in India with nearly 4,000 stores, aims to create a viable product-retail mix and tap into the aspirational desires of consumers to compete with international brands successfully.

Securing Space and Finalizing Positioning

Reliance Retail is actively working to make its mark in the fast fashion market. 

While the official name for the brand is yet to be announced, preparations are underway for its brick-and-mortar stores. Selected outlets in Mumbai's High Street Phoenix and Gurugram's Airia Mall are being finalized, with plans to launch in Delhi, Hyderabad, and Bengaluru as well. However, securing suitable retail spaces in popular shopping destinations has proven challenging due to high mall occupancy rates.

Targeting the Young Consumer Segment

The new brand from Reliance Retail is expected to have mid-premium pricing, catering to the young consumer segment. It will directly compete with Zudio, a partnership between Tata and Zara that has already been launched. 

Reliance Retail likely took inspiration from Zudio's success, prompting its entry into the fast fashion market. Given that the market value of textiles and apparel in India reached USD 80 billion in 2021, with an estimated growth of USD 190 billion by 2026, it is a logical move for the retail giant.

India's Rise as a Fast Fashion Focal Point

India's fast fashion industry has become increasingly important on the global stage. A growing middle class, a robust manufacturing sector, strong economic fundamentals, and a tech-savvy population make India a key market that international brands cannot ignore. 

As incomes rise, a new class of consumers known as "gold collar" workers is emerging. These well-paid professionals have the desire and meaning to invest in looking and feeling good, leading to an expansion in consumption.

In summary

Reliance Retail's fast fashion venture, internally known as Regalia, is poised to compete with international brands like Zara and H&M in India's growing fast fashion market. 

With its extensive retail network, strong market position, and the rise of India's "gold collar" workers, Reliance Retail is strategically positioned to make a significant impact and establish its brand globally.

India's apparel industry gains global prominence as brand credibility rises, solidifying its position on the international stage.

Latest Textile Events

03 June  2023, Mumbai

The renowned Indian consulting firm, Wazir Advisors, recently published a report examining apparel imports and retail sales in four major economies: the US, the EU, the UK, and Japan. 

What all you need to know

An overview

The report also shed light on India's performance as an exporter of readymade garments. Let's dive into the key findings. 

Declining Imports in the US and UK

The report highlighted a downward trend in readymade garment imports in the US and the UK, posing a challenge for manufacturing hubs worldwide. 

In the US, imports experienced a 19% decline in the first three months of 2023, while the UK saw a slightly lower decrease of 14%. 

Notably, the sharpest decline occurred in March 2023, with a 32% drop in the US and an 18% decrease in the UK. Conversely, the EU and Japan witnessed a marginal increase of 10% and 3% respectively in readymade garment imports during the same period. 

Changing Dynamics of Apparel Imports 

Global diary; Ongoing disputes between the US and China have contributed to the downward slide of the Chinese market share. 

In the first quarter of 2023, China's market share fell to 18% in the US and 17% in the UK. Bangladesh and India, on the other hand, gained 1% each in the US, while Italy made gains in the UK. 

It is evident that the UK has diversified its sourcing options, with other countries collectively improving by 10%, reaching a total market share of 47%. 

Japan imported 5% less from China, while Bangladesh made gains in both the EU and Japan. 

Indian Apparel Exports Take a Hit 

India's apparel export industry faced significant challenges, with exports in April 2023 estimated to fall to US$ 1.2 billion—a 25% decrease compared to April 2022. Year-to-date exports were also 13% lower than the previous year. 

Within India's export basket, the UAE's share declined by 6%, while France and the UK saw an increase of 1% each since 2021. 

Store and E-commerce Performance on Track 

Despite the challenges faced by the apparel industry, both physical stores and e-commerce platforms demonstrated resilience. 

In the US, physical store sales in April 2023 were estimated at $18.6 billion, a 4% increase compared to April 2022. 

Online sales of clothing and accessories in Q1 2023 registered a 2% growth compared to the same period in 2022. 

In the UK, apparel store sales in March 2023 amounted to £4.2 billion, representing an 11% increase from March 2022. 

Online sales of clothing in the UK also witnessed a positive growth of 13% in Q1 2023 compared to the previous year. 

Insights 

The Wazir Advisors report highlighted the varying performance of apparel imports and retail sales in key economies. 

While the US and the UK experienced declining imports, the EU and Japan witnessed modest growth. 

India faced challenges as an apparel exporter, but both physical stores and e-commerce platforms showcased encouraging performance. 

These insights provide valuable information for stakeholders in the global apparel industry.

Latest Textile Events

06 June  2023, Mumbai

In today's world, sustainability has become more than just a buzzword—it's a necessity. With increasing awareness about the environmental challenges we face, the demand for clothing recycling is gaining momentum.

What all you need to know

The clothing recycling market, projected to reach a valuation of US$ 16 billion by 2032, is witnessing a surge in adoption, driven by the need to reduce our carbon footprint and embrace circularity.
Embracing Sustainability
As the circular movement expands to various industries, clothing waste has emerged as a top concern. The recycling of shirts and t-shirts is expected to witness a significant rise in the coming years.

Developed economies like the U.S., the U.K., and Europe have already established designated clothing recycle bins, making it easier for people to donate their unused clothes and contribute to sustainability.
Observation

While the fashion industry is often associated with clothing recycling, there are numerous other sectors, including automotive, home décor, construction, mining, and apparel, that offer promising opportunities for recycling players. The demand for clothing recycling remains strong, driven by the desire to conserve resources, contain costs, and meet sustainability goals.
Over the years, the adoption of textile recycling has steadily increased, fueled by campaigns promoting responsible resource usage, particularly for materials like cotton and wool.

As industries evolve and prioritize environmental conservation, the demand for recycled clothing continues to grow. The clothing recycling market has seen a remarkable improvement in its growth rate, with a projected CAGR of 10.7% from 2022 to 2032, up from 6.6% in the previous period.
Paradigm shift
In this changing landscape, several key trends are shaping the clothing recycling market. The focus on textile-to-textile recycling has gained traction, as the fashion industry embraces circularity and turns used clothes into raw materials for new textiles.
Manufacturers are also exploring recycled fibers beyond traditional clothing materials, utilizing fruit pulp, wood, and wool to develop sustainable textiles.
Reshaping the Industry
The healthcare industry is making significant strides in adopting sustainable fabrics, reducing their environmental impact and carbon emissions.
Technological advancements enable the conversion of waste materials, such as PET water bottles, into textiles, reducing water consumption and carbon footprints.
Moreover, the upcycling of scraps and rags into new fabrics is eliminating the need for new resources and contributing to a circular fashion economy.
Innovative Start-ups and Established Players Reshaping the Industry
Innovative start-ups are revolutionizing the clothing recycling market, offering creative solutions to address sustainability challenges. Companies like Mini Cycle, Air Robe, and Ecohike are leveraging technology and consumer demand to promote reuse and upcycling.

These start-ups are reshaping the way we view and interact with clothing, inspiring a more conscious and environmentally-friendly approach.
Key Trends in Clothing Recycling
Leading players in the clothing recycling market, such as Blue Jeans Go Green, Circulose, and Circ, are spearheading the movement towards circular fashion. They are developing innovative processes and collaborations to transform discarded garments into insulation, circular cellulose, and raw materials for textile production.
Shifting Towards Circular Fashion
Regionally, Europe leads the clothing recycling industry, driven by campaigns against waste incineration and depletion of natural resources.

The European Commission's Textile for Textile initiative and the development of sorting technologies have further strengthened the region's position.
North America and the Asia Pacific are also embracing clothing recycling, with companies and consumers recognizing the need for sustainable practices in the textile industry.
The Growing Momentum of Clothing Recycling
As the momentum for clothing recycling continues to grow, it presents a smart option for a more sustainable future. By embracing circular fashion and investing in innovative recycling processes, we can reduce waste, conserve resources, and build a more environmentally-friendly industry.
CREDITS: Future Market Insights report.

Latest Textile Events