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A quiet but powerful transformation is underway in the European Union. The continent, once burdened by mounting waste, is steadily evolving into a hub of recycling innovation. The rise in recycling initiatives and increasing recognition of waste as a valuable resource are paving the way for a thriving recycling industry.
As Thomas Fischer, Deputy Director of management research at the German research institute ITA Denkendorf, explained during a recent ITMAconnect webinar, "Europe will suddenly become a region with a lot of raw material, and the more waste that is collected, the more sense it will make to establish recycling hubs."
A mountain of opportunity
This prediction seems to be coming true. The European Union generated a staggering 2.24 billion tons of waste in 2020, according to Eurostat. However, recycling rates are also rising, with 48 per cent of municipal waste being recycled or composted. This growing volume of recycled material is creating a fertile ground for the recycling industry to flourish. This waste is increasingly being viewed not as a burden, but as a valuable resource. Advanced recycling technologies are unlocking the potential to extract valuable materials from waste streams, creating new economic opportunities and reducing dependence on virgin resources.
Several factors are contributing to this positive trend. One major factor is the stringent regulations that EU has implemented and the ambitious waste management targets, pushing member states to reduce landfill and increase recycling. This regulatory pressure is stimulating investment in recycling infrastructure and technology. Meanwhile, innovations in sorting, processing, and recycling technologies are making it possible to recover more materials from waste streams, boosting the efficiency and profitability of recycling operations. And Europeans are increasingly aware of the environmental impact of waste and are demanding more sustainable products and packaging. This consumer pressure is encouraging businesses to embrace circular economy principles and invest in recycling.
Countries take the lead
Several initiatives across the EU showcase the potential of this new recycling revolution
• The Netherlands: With a recycling rate of over 50 per cent, the Netherlands stands as a beacon of success. The country has invested heavily in waste sorting and collection infrastructure, and its citizens have embraced recycling as a way of life. It is home to several state-of-the-art recycling plants, such as the ARN Recycling Plant in Weert, which processes over 200,000 tons of plastic packaging waste annually.
• Sweden: Sweden has achieved remarkable progress in waste management, with less than 1 per cent of its household waste ending up in landfills. This Scandinavian nation has taken an innovative approach to waste management, generating energy from non-recyclable waste through incineration. The heat and electricity produced are used to power homes and businesses, making Sweden a net importer of waste.
• Germany: The birthplace of the ‘Green Dot’ recycling system, Germany has a long history of waste management leadership. Germany recycles 67 per cent of municipal waste. The country's recycling initiatives are underpinned by stringent regulations and a strong emphasis on producer responsibility.
Recycling hubs for waste management
The emergence of ‘recycling hubs’ is a key trend in the EU's waste management landscape. These centralized facilities utilize advanced sorting and processing technologies to extract valuable materials from waste streams, creating high-quality secondary raw materials for use in manufacturing. The more waste collected, the more economically viable these hubs become, resulting in a positive feedback loop that drives further recycling.
As technology advances and circular economy principles gain traction, the European recycling industry is industry is expected to become more efficient and profitable, generating jobs and contributing to a more sustainable future.
The journey from a waste-burdened continent to a recycling powerhouse is a testament to the EU's commitment to environmental protection and resource efficiency. The rise of the recycling industry is not just an economic opportunity, but also a crucial step towards a greener and more resilient Europe.
The forthcoming EU Green Rules are poised to reshape the landscape for suppliers, buyers, and consumers across Europe. As the bloc strengthens its commitment to sustainability and ethical practices, a closer look at the price impacts, investment needs, and consumer implications reveals a complex picture. These regulations, such as the Corporate Sustainability Due Diligence Directive (CSDDD), mandate sustainable practices throughout the global supply chain, putting higher pressure on major international brands to ensure compliance.
Price hikes and investment demands for suppliers
The EU's ambitious environmental regulations are set to increase costs for suppliers across various industries. From stricter emissions standards to sustainable sourcing requirements, businesses face the challenge of adapting their operations to comply. The brunt of this impact will be felt most acutely by suppliers in low-income countries, like those highlighted in the clothing industry case study. Suppliers, particularly in low-income countries like Bangladesh, will likely need to secure new contracts and financial support to meet these costs. The report predicts that transitioning to green practices will require a staggering $1 trillion investment, raising questions about the financial burden on suppliers, particularly those in developing economies.
Navigating the impact on buyers
The price increases at the supplier level will inevitably trickle down to buyers, forcing them to re-evaluate their sourcing strategies and potentially absorb higher costs. This will be especially challenging for businesses operating on tight margins. As seen in the clothing sector, major brands are being urged to share the financial and logistical burdens with their suppliers to navigate this transition smoothly. The impact on global clothing brands is also notable. The new regulations will inevitably lead to increased costs, as brands invest in sustainable practices and technologies. These additional expenses may be passed on to consumers, potentially leading to higher prices for clothing.
What does it mean for the European consumer?
For European consumers, the new regulations may lead to slightly higher clothing prices. However, they can also expect to see more sustainable and ethically produced clothing on the market. Consumers are becoming increasingly conscious of the environmental and social impacts of their purchases. The EU's green rules may help drive demand for sustainable clothing, incentivizing brands to prioritize sustainability throughout their supply chains.
Thus the EU's forthcoming green regulations will undoubtedly have a significant impact on the global clothing industry. The regulations signal a shift towards a more sustainable and ethical future for the fashion industry, but also present challenges in terms of cost and investment. Collaboration between brands and suppliers will be crucial to navigating this transition successfully.
French luxury goods company Kering has strengthened the management team of its renowned label Gucci by appointing Stefano Cantino as its new CEO. To assume office in Jan’25, Cantino will succeed Jean-Francois Palus who was appointed as the CEO last year to oversee a period of transition at the label, which lagged behind rivals during the pandemic.
Having joined Gucci in May 2024 as the brand’s Deputy CEO, Cantino was earlier engaged with the LVMH-owned label Louis Vuitton for a period of five years as the head of its Image and Communications division. Armed with over 20 years of experience in the communication and marketing roles at Prada, Cantino will also join Kering's Executive Committee as its board member.
Accounting for half of the group’s sales and two thirds of its profit, Gucci is currently been revamped by Kering under the leadership of Sabato de Sarno, Art Director. However, the current downturn in the global luxury market along with the delayed rebound in China continues to pose challenges for the brand.
Lower carry-forward stocks and a potential reduction in output due to decreased cotton acreage are likely to boost India’s cotton imports during the 2024-25 crop year spanning Oct 24-Sep’25.
Traders are also likely to benefit by the lower global prices by reducing imports between November and March, says Atul Ganatra, President, Cotton Association of India (CAI). According to him, India’s cotton imports may rise to 3.5 million bales during the year.
In the 2023-24 season, India had imported 1.64 million bales of cotton by Aug’24-end, reflecting concerns about the expected drop in domestic crop production as sowing declined by 1.2-1.3 million hectare.
There are no carry-forward stocks from the 2023-24 season although farmers continue to hold 3 million bales of kapas or unprocessed cotton, notes Ganatra. Reduced harvest areas will to lead to a 7 per cent decline in India’s cotton production to 24 million bales of 480 pounds each during 2024-25 season as against 25.8 million bales recorded last year, adds Ganatra.
According to the August balance sheet of CAI, by Sep’24-end India’s closing stocks had declined to 2.332 million bales from 2.89 million bales recorded in the previous year. The industry has already contracted shipments of 700,000 to 1 million bales for the Nov’24-Mar’25 period,, adds Ganatra. With an 11 per cent customs duty, the landed cost of Brazilian 28 mm cotton for delivery in Dec’24 stands at Rs 64,880 per candy, while Australian 29 mm cotton costs Rs 69,120. West African 28.7 mm cotton, which incurs a 5.5 per cent duty, is priced at Rs 63,480 for Mar’25 shipment and Apri-May delivery.
Ganatra says, it’s too early to predict the size of the 2024-25 crop due to damage from recent rains, particularly in Maharashtra and Gujarat, where the crop has been delayed by about a month. Ramanuj Das Boob, Vice President, All India Cotton Brokers Association, adds, the industry witnessed a contraction of approximately 1 million bales when ICE futures traded at 66-67 cents per pound. However, ICE futures have since risen to 72-73 cents per pound.
According to Boob, further imports will depend on how Indian cotton prices react with the arrival of new crop, In Raichur, Karnataka, daily arrivals range between 3,000-5,000 bales, with prices ranging from Rs 7,000 to Rs 7,700 per quintal. While in Adoni, Telangana, prices range from Rs 7,000 to Rs 7,400 per quintal, though high moisture content of around 10 per cent slows purchases. The minimum support price for medium staple cotton is Rs 7,121 per quintal, while for long staple is priced at Rs 7,521. Despite the lower acreage, expectations for the crop remain optimistic, although the industry expects arrivals in Gujarat, Maharashtra, and Madhya Pradesh to be delayed.
Held from Oct 04-09, 2024, the Moscow Fashion Week showcased over 80 captivating collections by designers from around the globe. Brands from India, China, South Africa, Indonesia, Costa Rica, Brazil, the UAE, and Russia presented their collections at the event that provided a dynamic platform for both established and emerging designers.
Known for its rich display of diverse cultural influences and current trends, Moscow Fashion Week opened with a showcase by the Indian brand Nitin Bal Chauhan. The brand presented its collection at the fashion week in partnership with the Fashion Design Council of India.
Celebrated as one of the most vibrant labels in Indian fashion, Nitin Bal Chauhan is known for launching collections across the Middle East, Canada, Indonesia, and Nepal markets. It previously showcased at its offerings at prestigious events such as London Fashion Week, Tokyo, and the Tranoi Fair in Paris.
Nitin Bal Chauhan, Creative Director, says, an ideal platform, the Moscow Fashion Week helps the brand connect with the Russian market.
This year, Moscow Fashion Week also showcased collections by Russian designers like HakaMa and N 6 by Alsu M. The event followed the BRICS+ Fashion Summit, which gathered experts from over 100 countries and featured a business program, exhibitions, and educational sessions led by industry leaders, including India's Sunil Sethi, Chairman of the Fashion Design Council of India.
Piyush Goyal, Minister of Commerce & Industry, Government of India, opened the first Centre of Excellence (COE) by the Apparel, Made-ups & Home Furnishing Sector Skill Council (AMHSSC) at Kandivali in Mumbai.
Created with the cooperation of ITEES Singapore, the COE incorporates global standards into India’s skilling ecosystem. Contrary to the earlier centers established separately by AMHSSC, this COE aims to offer courses created in partnership with ITEES Singapore, a global leader in technical education. Its goal is to align India’s clothing training programs with the finest international standards, hence raising industry productivity and quality.
The COE will offer specialised courses like ‘Luxury Fashion Consultant,’ ‘Fashion Retail Merchandising,’ and ‘Sourcing Specialist,’ to meet the changing demands of the RMG industry in India.
For aspiring young, nano, and small business owners who want to start their own fashion companies, the COE also offers a course on Fashion Entrepreneurship.
Till date, AMHSSC had trained over 22 lakh people nationwide, and aims to continue building a skilled workforce to lead the industry forward with innovation and excellence, states Dr Sakhtivel, Chairman.
At the World Cotton Day 2024 celebrations, co-hosted by the Ministry of Textiles, Confederation of Indian Textile Industries (CITI), Cotton Corporation of India (CCI) and other leading industry organisations signed MoUs with Sunil Patwari, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL) to help elevate Kasturi Cotton Bharat, India’s premium cotton brand, across the cotton value chain—from sustainable farming to textile manufacturing and brand adoption.
One of the most pivotal MoUs signed during the occasion was between Rakesh Mehra, Chairman, CITI and TEXPROCIL to promote awareness and enhance the quality of Indian cotton, ensuring farmers benefit from the Kasturi Cotton mark. Through this MoU, CITI plans to optimise cotton production across hectare under the CITI-CDRA Sustainability Program.
Jyoti Kapoor, Country Director – India, Better Cotton Initiative also signed an MoU to support sustainably sourced cotton, reinforcing one of the key pillars of the Kasturi Cotton initiative.
Kinner Lakhani, Chief Operating Officer, CottonConnect, also teamed up with TEXPROCIL to help farmers align their cultivation with Kasturi Cotton's quality standards, fostering responsible growth practices and enhancing farmer livelihoods.
Dr Pradeep Kumar Agarwal, Trident Group also signed an MoU to utilise over 500,000 bales of Kasturi Cotton over the next two cotton seasons, while Vardhman Group pledged to process 21,000 bales during the upcoming season.
Furthermore, Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI), signed an MoU to promote the brand among its members, amplifying Kasturi Cotton’s presence across fashion and apparel platforms. The Brands and Sourcing Leaders Association (BSL) also plans to sign an MoU to enhance the global marketing and branding of Kasturi Cotton, using its expertise to integrate the cotton into contemporary fashion designs.
Being held from Oct 08-16, 2024, the Shanghai Fashion Week features a dynamic mix of international and local designers. The event kicked off with leading Chinese model and designer Lu Yan presenting her brand, Comme Moi, with a collection inspired by contemporary artist James Turrell, renowned for his dramatic use of light and color.
The 12-day event will feature iconic British brand Vivienne Westwood on Oct 17, staying true to its rebellious punk roots and environmental mission through the Vivienne Westwood Foundation. Joining the lineup is London-based label KNWLS, making its China debut with a KNWLS X ENG Pop-up launch at ENG Concept Store, focusing on the future of feminist fashion.
On Oct 19, luxury Italian brand Moncler will close the fashion week with its immersive Moncler Genius event, a showcase of collaboration across fashion, art, and design. A trendsetter since 2018, Moncler Genius believes in pushing creative boundaries, and continues its journey in Shanghai this year.
Designer Angel Chen will collaborate with beverage brand Change to blend traditional Chinese craftsmanship with modern aesthetics. Other notable names like Staffonly, Xiaoli, Judyhua along with emerging designers such as Ya Yi and Hanqing Ding also will present their collections during the fashion week.
Rockbund contemporary art museum will host Labelhood, featuring 16 young Chinese brands, including newcomers Rè Shuǐ, ili node, and Hengdi Wang, injecting fresh energy into the fashion scene. Glam at New Bund 31 will spotlight modern Chinese garments and international couture, with brands like Shicongjin and Amusée Moi debuting their latest creations.
Visa will launch the Visa Creator Program, supporting local talent, while Mercedes-Benz collaborates on the Stronger Than Me event at the Museum of Art Pudong, featuring Lu Yan’s Comme Moi and a special G-Class project by designer Chen Peng.
Surpassing Boohoo in Britain’s retail market for the first time, Shein reported annual revenues of £1.55 billion over the past year. Known for its low-cost clothing shipped directly from China, the Chinese fast fashion label recorded a 38 per cent increase in UK sales in the 12 months leading up to Dec 2023.
According to the accounts for Shein Distribution UK, the brand's British subsidiary, the retailer’s revenues rose to £1.55 billion during 2023, compared to £1.12 billion over the previous 16-month period. This marks a significant moment for the UK fashion industry, as Shein's annual sales have now overtaken Boohoo, and the company is rapidly closing in on Asos.
In Boohoo's most recent full-year report, the company posted UK revenues of £922 million, reflecting a 16 per cent decline from the previous year. Meanwhile, Asos reported domestic sales of £1.55 billion for the same period.
Kate Calvert, Analyst, Investec notes, driving away sales from competitors like Boohoo and Asos, Shein's growth has undoubtedly impacted other online retailers. However, the fast fashion giant's rapid growth has sparked criticism from some of Britain’s leading retailers, who have raised concerns about Shein’s tax practices.
The controversy revolves around Shein shipping items directly to customers from China, which rivals argue allows the company to pay significantly lower customs duties. However, defending its practices, Shein cites its ‘on-demand business model and flexible supply chain’ as the reason for its affordable prices, which in turn has fueled its growth.
Shein's pre-tax profit also increased to £24 million during the period, doubling from £12 million in the previous period, show its latest accounts. The company’s tax bill rose to £5.7 million from £2.34 million the year prior. In comparison, Asos received a £73 million tax credit for its last financial year, while Boohoo paid £19 million in taxes.
Focusing on heritage, Burberry has launched a new campaign focusing on the durability of the brand’s garments.
Entitled ‘It’s Always Burberry Weather,’ a slogan taken from the Burberry archive, the campaign features seven key styles including, the trench, the Harrington, the quilt, the puffer, the parka, the aviator and the duffle.
The brand’s first since the appointment of Joshua Shulman, as the new CEO, the campaign focuses on heritage and humor as a part of its future strategy. It has been shot across London and the British countryside by Alasdair McLellan.
Comprising a series of drole and charming vignettes and portraits, the campaign plays on a familiar British iconography and outdoor activity but unexpectedly and with a sense of humor. It features Academy Award- winning actor Olivia Colman in a forest green quilt jacket with plaid lining, standing among a group of sheep and before a foam green Range Rover.
With attired in a juniper green plaid purffer, Barry Koeghan, Brand Ambassador and BAFTA Award-winning Actor, plays on his sensitively gritty character by peeping warily over his forearm.
Daniel Lee, Chief Creative Officer, Burberry, says, the campaign highlights the brand’s commitment to protection, functionality, and the outdoors, drawing inspiration from Burberry's archives. It features two of England's rising football stars, Cole Palmer and Eberechi Eze, in playful fishing scenes. Palmer dons a brown duffle coat with a B shield toggle, while Eze sports a windcheater Harrington.
The cast also includes model Cara Delevingne, posing in front of Big Ben in a suede aviator jacket, actor Zhang Jingyi in a classic Burberry spy-trench, and BRIT Award-winner Simz in a short beige Harrington jacket.
This all-encompassing campaign will be promoted through cinema ads, global pop-ups, window displays, and in-store activations, underscoring Burberry’s heritage while reinvigorating its contemporary appeal.
