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Once considered a fringe movement, circular fashion is rapidly becoming a mainstream business reality. The linear model of ‘take, make, dispose’ that has long dominated the apparel industry is no longer sustainable, as evidenced by the staggering statistic that global garment production has doubled since the year 2000. Forward-thinking brands are proving that growth doesn't have to come at the expense of the planet, or profit.
From Mumbai to Vancouver, brands like I Was A Sari, Lucy & Yak, and tentree are showcasing a circular approach, one that designs out waste and keeps materials in use is not only ethical but also financially sound. These brands are setting a new standard for the industry, showing that circularity is not a charity-driven experiment but a viable business model with healthy margins, strong brand equity, and a head start on looming regulations.
Here is a look at more brands and startups that are weaving circularity into the very fabric of their business.
More than a trend, case studies in circularity
These companies are rewriting the rules of fashion, proving that waste can be transformed into valuable resources.
For Days (US): For Days has built its entire business around the concept of a closed-loop system. Their model is simple yet revolutionary: customers buy their high-quality organic cotton basics, and when they're done with them, they can send the items back to be recycled. In return, they get a SWAP credit to purchase new items from the brand. This unique system eliminates textile waste and encourages a more mindful approach to consumption. The company's innovative take-back program not only reduces landfill waste but also creates a continuous supply of recycled materials, proving that a brand can be both profitable and planet-friendly.
Pangaia (UK): Pangaia is a materials science company that uses its fashion line as a platform to showcase its innovations. The brand's focus is on creating textiles from sustainable and recycled sources, such as their C-Fiber, a material made from seaweed and eucalyptus pulp, and their Flwrdwn, a down alternative made from wildflowers. Pangaia also offers a take-back program for its products, ensuring that materials are either recycled or composted at the end of their life. This brand shows that investing in research and development for sustainable materials can be a powerful engine for a circular business model.
re-inc (US): Founded by soccer stars Megan Rapinoe, Tobin Heath, Christen Press, and Meghan Klingenberg, re-inc is a purpose-driven lifestyle brand that challenges the status quo. Their business model is a great example of upcycling, where they transform deadstock fabrics and vintage garments into new, unique pieces. This approach not only prevents textile waste but also celebrates creative reuse. By giving new life to forgotten materials, re-inc creates a product that is both environmentally conscious and artistically distinct, appealing to a consumer who values originality and sustainability.
The Renewal Workshop (US): This B Corp is a prime example of a business that enables other brands to become more circular. The Renewal Workshop partners with apparel companies to take their unsellable returns and damaged inventory, repair them, and then resell them as ‘renewed’ products. By rescuing these garments from landfill, they help brands recover value from what would otherwise be considered waste. The company also provides detailed data to their brand partners, giving them insights into their supply chain and product durability, which helps them design for circularity from the very beginning.
The bigger picture, from challenge to opportunity
The success of these brands highlights a clear shift in consumer values. Shoppers are no longer just looking for a good price; they are seeking transparency, ethical production, and a positive environmental impact.
As the EU and other regulatory bodies prepare to implement stricter rules on textile waste and producer responsibility, brands with established circular models like those mentioned above will have a significant competitive advantage. They have already built the infrastructure and consumer trust necessary to thrive in this new landscape. For business leaders, the message is clear: circularity is not just a moral imperative, but a strategic one.
The question is no longer ‘if’ your business should embrace circularity, but ‘how’. What part of your value chain can you rewire to reduce waste and unlock value?
In a defining move for India’s sustainable fashion ecosystem, H&M Group Ventures has made its first textile investment in the country, backing AltMat, an innovative materials startup that converts agricultural residues into natural cellulose fibers. The round also drew participation from Rainmatter by Zerodha, Turbostart, and Fashion for Good, reinforcing a growing global consensus: sustainability is not an accessory—it’s the future of fashion’s supply chain.
This investment marks a turning point in the global race to decarbonize textiles, placing India squarely at the forefront of next-generation material innovation. H&M’s participation underscores its evolving role from a high-street fashion giant to a strategic catalyst for circular material ecosystems.
Turning crop waste into circular wealth
Founded by Shikha Shah, hailed as a ‘superstar entrepreneur’ in sustainable innovation circles, AltMat is pioneering a process that transforms crop residues such as banana stems, hemp oil seed stalks, and pineapple leaves into fibers that mimic the look and feel of linen and cotton. AltMat’s proprietary process is 99 per cent more water-efficient than cotton, avoids toxic chemical use, and operates at a fraction of conventional energy requirements. Its fibers are fully biodegradable and microplastic-free, answering one of fashion’s most persistent environmental challenges: fiber pollution.
Equally critical, AltMat’s system is designed to be circular from the ground up. The by-products of fiber production traditionally waste are redirected into bio-energy and sustainable packaging materials, completing a closed-loop model that not only minimizes waste but also creates a secondary revenue stream for farmers. “When I first met Shikha Shah, I was blown away by her tenacity, energy to drive change, and conviction in what AltMat can achieve,” says Laura Coppen, Head of Sustainability Investments at H&M Group Ventures. “AltMat is a very promising material solution, and we’re thrilled to collaborate more closely ahead.” Tackling twin crises of textile waste and crop burning
India’s apparel sector faces a double-edged environmental problem: mounting textile waste and agricultural residue burning, the latter being a major contributor to seasonal air pollution across northern India. By sourcing its raw material directly from farm waste, AltMat provides a sustainable alternative to crop burning one that puts money back in the hands of farmers. This creates a synergistic solution to both climate and livelihood challenges.
Table: AltMat’s circular solution for the textile industry
|
Problem |
Traditional outcome |
AltMat’s circular solution |
|
Agricultural waste (e.g., banana stems, hemp stalks) |
Burned, causing air pollution |
Collected and transformed into textile-grade fiber |
|
Textile fiber production |
High water and chemical use |
99% water-efficient and chemical-free process |
|
Fiber waste |
Discarded |
Converted into bio-energy and eco-packaging |
|
Farmer participation |
None |
New income stream for residue collection |
Scaling sustainable textiles from India to the world
With this infusion of capital, AltMat aims to expand its grassroots supply chains, accelerate R&D, and enhance global scalability. The company plans to partner with leading fashion and home textile brands to integrate its fibers into mainstream production.
AltMat’s mission aligns closely with the H&M Group’s broader sustainability goals, which include achieving net-zero emissions by 2040 and sourcing 100 per cent recycled or sustainably produced materials by 2030. This investment is also expected to open new opportunities for Indian material innovators seeking to tap into the global sustainable fiber market, projected to exceed $65 billion by 2030.
The Next-Gen fiber boom
As per joint Fashion for Good and Boston Consulting Group report, next-generation fibers derived from plant waste, algae, agricultural by-products, and lab innovations are expected to grow from just 1 per cent of the global fiber market today to 8 per cent by 2030. That translates to nearly 13 million tons of new sustainable fibers, reshaping the raw material base of global apparel production.
Table: Growth and drivers for Next-Gen fibers
|
Metric |
Estimate 2025 |
Projection 2030 |
Growth drivers |
|
Market Share of Next-Gen Fibers |
1% |
8% |
Consumer demand, tightening regulation, and material innovation. |
|
Volume of Next-Gen Fibers |
1.6 million tons |
13 million tons |
Supply chain scaling and unlocking economies of scale. |
|
Brand Adoption Rate |
5% of major fashion brands |
>35% of global brands |
Brand commitment to sustainability, financial incentives (e.g., cost reduction), and industry-wide collaboration. |
Beyond environmental benefits, the report estimates that integrating next-generation fibers could reduce brands’ cost of goods sold by up to 4 per cent within five years, thanks to resource efficiency and waste minimization.
India’s emerging role in the global fiber shift
India is fast becoming a hotbed for biomaterial innovation, hosting startups like AltMat, Banofi (banana fiber leather), and Phabio (bioplastic fibers). With abundant agricultural residues, a strong textile base, and rising investor interest, the country is well-positioned to lead the sustainable fiber revolution. The H&M-AltMat partnership is not just an investment, it’s a signal to the global industry that material transformation can begin at the source, with farmers and innovators working together to rewrite the environmental footprint of fashion.
The future is regenerative
As sustainability moves from a trend to a license to operate, material innovation is becoming the new competitive frontier for global fashion brands. H&M’s investment in AltMat is emblematic of this transition a tangible commitment to building a regenerative, low-impact textile economy. For Shikha Shah and her team, this milestone is more than a funding success it’s a validation of their vision to turn agricultural residue into a resource, textile waste into opportunity, and the future of fashion into something truly sustainable.
South Korea’s apparel imports declined by 1.0 per cent to $9.1 billion in the January–September 2025 period, reflecting overall weak retail demand and slower consumer spending across the country.
This decline was uneven, as knitted apparel imports rose marginally while non-knitted categories fell. Concurrently, South Korean textile exports of man-made filaments and knitted fabrics dropped, as local producers wrestled with rising costs and stiff competition from major manufacturing hubs like China and Vietnam.
Imports of knitted apparel and clothing accessories (Chapter 61) were valued at $4.06 billion in the first nine months of 2025, a slight increase from $4.02 billion in the corresponding period of 2024. This marginal rise suggests stable demand for lightweight and casual knitwear, a segment strongly supported by South Korea’s powerful athleisure and fast-fashion markets.
Imports of non-knitted apparel and clothing accessories (Chapter 62) declined by 1.7 per cent to $5.04 billion from $5.13 billion in January–September 2024. This fall signals weaker orders for formalwear and outerwear, categories impacted by shifting consumer preferences toward versatile, comfortable, and less structured apparel.
Overall, the data highlights a clear divergence in consumer spending: South Koreans are prioritizing comfort and casual wear (knits) while pulling back on purchases of more traditional, tailored garments (non-knits).
In discussions with India’s largest hub for recycled textiles and circular manufacturing – the Panipat Recycling Cluster, a high-level delegation from the European Parliament’s Committee on International Trade (INTA) discussed strategies to boost textile circularity, trade competitiveness, and alignment with upcoming EU sustainability laws, including the Ecodesign for Sustainable Products Regulation (ESPR) and Extended Producer Responsibility (EPR) frameworks.
The EU delegation included seven Members of the European Parliament (MEPs) and two senior representatives from the INTA Secretariat. They were on a study tour to understand India’s evolving sustainability ecosystem and explore collaboration opportunities between India and the European Union (EU) in circular textiles and the upcoming Free Trade Agreement (FTA).
Parvinder Kadyan, Chairman, Global Alliance for Textiles Sustainability (GATS), welcomed the delegation, along with leading industrialists, sustainability pioneers from Panipat, and representatives from the Foundation for MSME Clusters.
Often called India’s ‘recycling capital,’ Panipat processes thousands of tons of textile waste daily and is recognized globally for its ability to transform waste into high-quality fibers, yarns, and garments. The visit highlighted how India’s textile MSMEs (Micro, Small, and Medium Enterprises) are upgrading technology, compliance, and traceability systems to meet international standards and contribute meaningfully to the global circular economy.
The delegation also toured a leading spinning facility in the region, where they witnessed firsthand the process of converting post-consumer textile waste into recycled fibers and yarns—showcasing how Indian innovation is enabling cost-neutral, low-impact, and fully traceable circular solutions for global fashion brands.
Speaking at the event, Kadyan stated, Circularity is a global concept - it cannot be achieved in silos. Everyone has to play their part. With the right India–EU collaboration, we can build the world’s most responsible and resource-efficient textile ecosystem - creating green jobs, conserving resources, and proving that sustainability and profitability can grow together.”
The MEPs praised the proactive approach of India’s textile industry and reaffirmed their commitment to strengthening cooperation in sustainability, trade, and circular-economy innovation between the European Union and India.
The Council of Fashion Designers of America (CFDA) and the Bezos Earth Fund have entered into a $6.25 million partnership to launch The Next Thread Initiative, a three-year program designed to accelerate innovation and education in sustainable fashion.
The initiative aims to support independent designers and emerging talent who are redefining how clothing is created, produced, and consumed. It will provide funding for designer awards, student scholarships, and storytelling projects intended to showcase the creative and commercial opportunities within sustainable fashion.
According to Steven Kolb, President and CEO, CFDA, this collaboration will equip designers and students with practical tools to help shape a more sustainable fashion industry. He specifically highlighted the instrumental leadership of Lauren Sánchez Bezos at the Bezos Earth Fund in turning ideas into action and fostering innovation. Kolb emphasized, the initiative aligns with the CFDA’s long-standing commitment to advancing sustainability in American fashion.
Those pioneering work in sustainable materials, circular design, and low-impact manufacturing will be eligible for grants ranging from $50,000 to $500,000.
Undergraduate and postgraduate students pursuing sustainable fashion design will receive scholarships between $25,000 and $75,000.
The CFDA plans to showcase the recipients' work through curated exhibitions, events, and digital storytelling campaigns to engage both industry professionals and the wider public.
Tom Taylor, Bezos Earth Fund President and CEO, noted, having reflected cultural shifts for long, the fashion industry now has the potential to become a catalyst for environmental change. In partnership with the CFDA Foundation, the Fund is investing in the next generation of designers and innovators who are shaping a more sustainable future for the industry, he noted.
Rocky Brands, Inc. (RCKY) delivered higher sales and improved profitability in Q3 FY25. Supported by a strong demand across its brand portfolio, the company’s net sales improved by 7.1 per cent Y-o-Y to $122.5 million.
Its net income soared by 36.6 per cent to $7.2 million, translating into a strong diluted Adjusted Earnings Per Share (EPS) of $1.03, which exceeded expectations.
The company’s gross margin expanded by 210 basis points to 40.2 per cent, primarily driven by successful full-price selling and favorable channel mix. Strategically, it saw growth across both its distribution channels, with wholesale sales rising by 6.1 per cent and retail (e-commerce) sales increasing by 10.3 per cent.
Looking forward, Rocky Brands is proactively increasing its inventory and leveraging its diversified sourcing, including facilities in the Dominican Republic and Puerto Rico, to manage costs and sustain momentum into 2026.
Falling under the Consumer Goods and Retail category, the global Organic Clothing market is projected to achieve a market size of $3.5 billion by 2031. The market is forecasted to grow at a CAGR of 10.5 per cent between 2025-31, building on an estimated $1.5 billion valuation in 2024. This highlights significant growth potential throughout the forecast period due to rising industrial adoption and continuous innovation in retail applications.
The Organic Clothing Market is currently experiencing robust expansion, primarily fueled by increasing consumer awareness regarding sustainable fashion and environmental impact. Rising demand for garments that are eco-friendly, chemical-free, and ethically produced is driving adoption across diverse demographics.
Manufacturers are actively innovating, using materials such as organic cotton, bamboo, hemp, and recycled fibers to enhance product comfort, durability, and style. Furthermore, the growing influence of social media, fashion influencers, and ‘green lifestyle’ trends is rapidly accelerating the acceptance of organic clothing worldwide.
By 2031, the Organic Clothing Market is expected to expand significantly as brands intensify their focus on transparency, supply chain sustainability, and certification standards.
To improve accessibility and consumer engagement, companies are integrating online retail channels, offering customization options, and launching limited edition collections. Demand is further boosted by the rising interest in slow fashion, eco-conscious gifting, and corporate sustainability initiatives. Continuous innovation in material sourcing, production processes, and eco-friendly packaging is positioning the market for long-term growth and widespread adoption globally.
The 5th China Chaoshan International Textile and Garment Exhibition (CTGE 2026) will be held on March 18, 2026, at the Shantou International Convention & Exhibition Center.
The exhibition will be organized across over 150,000 sq m - a significant jump from 130,000 sq m in its last edition. The event will showcase the latest technologies, products, and business models in the textile and apparel industry.
The exhibition will gather more than 1,200 enterprises from over 19 intimate apparel industrial clusters across China. For the first time, the event will feature a dedicated brand zone.
Over 50 activities are scheduled, including fashion shows, industry summits, youth entrepreneur forums, cultural festivals, and B2B matchmaking sessions, all emphasizing innovation and global collaboration.
Li Fei, Standing Committee Member, CPC Shantou Municipal Committee, underscored the city's commitment to strengthening its textile industry. Key infrastructure projects, such as the global textile procurement center, industrial park, and exhibition center, are already operational. Furthermore, new initiatives like an advanced fabric manufacturing base and an international digital trade hub are underway to cement Shantou's global influence in textiles and apparel.
Lin Yunfeng, President, China Knitting Industrial Association, praised CTGE 2026 as a crucial platform that connects domestic and international markets while driving industrial innovation. The exhibition has become a leading global event for intimate apparel, offering a successful ‘Chaoshan model’ for high-quality industry development, he noted.
Weng Chuangjie, Chairman, Shantou Textile and Garment Industry Association, highlighted the exhibition's rapid expansion and its role in helping local brands integrate into global supply chains.
CTGE 2026 will continue to foster industry collaboration through its ‘exhibition + fashion show + livestreaming + trade’ model, reinforcing Shantou's role as a key hub for intimate apparel worldwide.
The global apparel trade continues to reflect the delicate balance between recovery and restraint, as revealed in the October 2025 ‘Global Apparel Trade & Retail Update’ by Wazir Advisors. Despite signs of retail stability in the West, uneven import demand and a cooling export momentum across Asia underscore the complexities of post-pandemic consumption patterns and global sourcing realignments.
Import markets hold mixed fortunes
The apparel import data for August 2025 paints a fragmented picture of global consumer appetite. The US, traditionally the world’s largest apparel importer, saw inbound shipments fall to $7.7 billion, marking a 3 per cent year-on-year (YoY) decline. This drop signals a continuing inventory correction cycle among American retailers, who have been trimming orders amid cautious consumer spending and subdued apparel inflation.
In contrast, the European Union maintained a more stable path, with imports rising 1 per cent YoY to $9.1 billion, driven by stronger performance in southern and eastern European markets. Retailers in Spain, Italy, and Poland reported steady sell-through rates, aided by rising domestic fashion production and renewed consumer confidence in mid-tier brands.
Japan, often considered a barometer of mature fashion markets, mirrored this marginal growth with imports touching $2.2 billion, up 1 per cent YoY. The country’s aging demographic and shift toward sustainable and functional fashion categories such as lightweight outdoor wear and home-living apparel continue to redefine its sourcing patterns, with increasing focus on Vietnam and Indonesia.
The standout performer, however, was the UK, where apparel imports rose 17 per cent YoY to $2.2 billion. This sharp rise is linked to the rebound of high-street retail and the ongoing influence of digital-native fashion labels. The UK’s import acceleration also indicates pre-winter inventory buildup and improved port logistics after months of supply disruptions.
Asian exporters face issues as global demand evens out
On the export front, the September 2025 data highlights persistent headwinds for major Asian suppliers. China’s apparel exports, while still the world’s largest at $12.0 billion, recorded an 8 per cent YoY decline, continuing its gradual downtrend as Western buyers diversify sourcing bases. Rising domestic labor costs, coupled with lingering US trade pressures and sustainability compliance costs, have eroded China’s cost advantage in basic garment categories.
Bangladesh, the world’s second-largest apparel exporter, reported shipments worth $2.8 billion, down 7 per cent YoY. While its country’s knitwear segment remains strong woven garment orders particularly from the US and Germany have slowed. Buyers are tightening lead times and increasingly demanding traceability certifications, posing challenges for mid-sized factories that are yet to digitize their operations.
India, despite its growing reputation for value-added fashion and cotton-based products, faced one of the sharper declines, with exports dropping 10 per cent YoY to $1 billion. The slowdown is attributed to lower demand from the EU and the US, along with raw material price volatility. However, industry analysts expect a rebound in the final quarter of FY26, as festive-season shipments and sustainability-linked orders pick up.
Vietnam emerged as the only bright spot among the top Asian exporters, with exports up 3 per cent YoY to $3.9 billion (as of July 2025). Vietnam’s steady growth underscores its competitive advantage in flexible manufacturing, stable policies, and preferential trade access through multiple free trade agreements (FTAs), particularly with the EU and CPTPP partners.
The Shifting Dynamics: From volume to value
A closer look at these numbers reflects a deeper structural shift in global fashion trade, from volume-led growth to value-driven resilience. Western retailers are no longer chasing low-cost bulk sourcing; instead, they are prioritizing speed, traceability, and nearshoring. This is prompting Asian producers to recalibrate their export strategies, investing in automation, recycled fibers, and digital compliance systems.
According to Wazir Advisors, retailers in major markets are likely to favor agile sourcing ecosystems that can balance cost efficiency with transparent production practices. This trend benefits countries like Vietnam and Turkey, which offer vertically integrated setups and quicker turnaround times compared to traditional export powerhouses.
Retail outlook is stabilization, not expansion
The broader implication of Wazir’s October 2025 report is that the global apparel sector is in a stabilizing phase rather than a recovery sprint. Retailers are focusing on inventory normalization, while suppliers are navigating price-sensitive yet sustainability-aware buyers. Analysts suggest that unless new trade agreements or fiscal stimuli reinvigorate consumer demand in the US and EU, the next two quarters will likely remain moderate in growth. However, as energy prices stabilize and inflationary pressures ease, apparel trade could regain momentum heading into 2026, albeit at a slower, more balanced pace.
Navigating the new normal of global fashion trade
The October 2025 ‘Global Apparel Trade & Retail Update’ reaffirms that the industry is transitioning into a new normal where agility and transparency outweigh pure scale. While short-term challenges persist, the long-term fundamentals of apparel trade remain intact, supported by evolving consumer preferences, technology-led efficiency, and sustainable material innovations. For exporters across Asia and retailers in the West alike, the key question is no longer about ‘how much’ to trade, but ‘how responsibly’ and ‘how quickly’ they can deliver fashion in a world recalibrating its consumption ethos.
EURATEX Director General pitches "New Business Model" at textile conference at Yogyakarta, Indonesia
The global textile and apparel value chain is at a critical juncture, requiring a fundamental shift in its operating philosophy. This was the core message delivered by Dirk Vantyghem, Director General of the European Apparel and Textile Confederation (EURATEX), during his presentation at the recent joint conference by the International Textile Manufacturers Federation (ITMF) and the International Apparel Federation (IAF) in Yogyakarta, Indonesia.
Vantyghem’s address, which outlined EURATEX's perspective, introduced a "new business model" as a vital guide for the industry through its current turbulent period of economic volatility and intense regulatory change.
The five pillars of change
The presentation highlighted five key takeaways that underscore the necessity for this new model, moving beyond traditional production-focused paradigms:
1. Fragile sustainability business case: Despite widespread industry investment in sustainability initiatives, the commercial viability is often undermined by global over-capacities in virgin fibres and garments, driving prices unsustainably low. Vantyghem stressed that a 'smart regulatory framework' is essential, one that is properly controlled and globally implemented to level the playing field.
2. Regulatory harmony is crucial: To avoid inefficiency and competitive distortion, the Director General called for urgent regulatory dialogue and convergence. He pointed to inconsistencies, such as the potential for two parallel Digital Product Passports (DPPs) and different definitions of textile waste, as major roadblocks. The post-conference fringes reportedly saw some positive movement on this front.
3. Fair Trade over Free Trade: While EURATEX remains committed to open markets, the call was strong for trade to be fair and reciprocal. Vantyghem argued that existing free trade agreements must be re-evaluated and re-balanced to ensure a level playing field for European manufacturers.
4. The 'Ecosystem' approach: A recurring theme across the entire conference, noted by Vantyghem, was the overwhelming consensus on the need for an "ecosystem" approach—working in broader partnerships across the value chain. Achieving this, however, requires a significant shift in existing business mentality.
5. Direct dialogue with Consumers: A strong call was made for manufacturers to engage in more direct dialogue and storytelling with the consumer. This strategy aims to reduce dependency on major brands' images and allow companies' efforts in innovation and sustainability to be directly recognised.
A renewed focus for Europe
Sharing the stage with global textile experts, Vantyghem acknowledged that the conference provided a vital perspective on the challenges facing the European industry.
The final message was clear: European manufacturers must respond to global pressures by investing in innovation, high quality, and niche products. While remaining vigilant about threats from global competition and market turbulence, the continent's industry must maintain confidence in its core strengths of advanced technology and high-value production.
