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The 10th Edition of the Hot Button Report by Canopy demonstrates the massive transformation in the global man-made cellulosic fiber (MMCF) supply chain since 2016.
The industry's most trusted tool for evaluating MMCF fiber sourcing, the Hot Button Report shows, the sector has moved from having zero low-risk Green Shirt producers in 2016 to 21 in 2025. It also went from having no commercial-scale Next Gen fiber lines to 16 available today. These findings prove that significant change in the fashion industry can happen in years, not decades.
Released in Lisbon, the 2025 Hot Button Report offers the most comprehensive look at how MMCF producers are eliminating sourcing from the world’s ancient and endangered forests while speeding up the shift to low-carbon, circular Next Gen alternatives. The report rates 98 per cent of global MMCF production using Canopy's recognizable ‘shirt’ system. The results show, almost 70 per cent of producers now earning Green, Partial Dark Green, or Dark Green status - a sharp improvement from just nine years ago.
The top spots in the ratings are shared by Lenzing and Tangshan Sanyou, with Aditya Birla close behind in second place. Other producers achieving Dark Green Shirt status include Jilin Chemical Fiber, Yibin Grace, and Xinxiang Chemical Fiber Co. (Bailu), all of whom made major strides in Next Gen integration last year, along with other industry leaders.
This year’s Report includes contributions from 30 global MMCF producers, including two new companies, bringing the total of Green Shirt-rated production to 54% in 2025.
According to Nicole Rycroft, Founder and Executive Director, Canopy, the leaders in the Hot Button are proving that investing in Next Gen solutions is essential for building resilient, low-carbon supply chains to meet brand expectations, reduce volatile raw material supply, and deliver long-term business value.
While all leading companies showed unique strengths, they all invested in advancing Next Gen fiber alternatives, which is crucial for reducing reliance on forests and improving supply chain resilience.
MI Demo and Saolon (formerly Mitsubishi) have moved up from Light Green to Partially Dark Green Shirts while Yibin Grace opened the first recycled dissolving pulp mill in China. Xinxiang Chemical Fibre (Bailu) launched a direct textile-to-textile MMCF facility, while Tangshan Sanyou debuted a testing facility for the same technology. Jilin Chemical Fiber introduced Reboocel, a new recycled bamboo pulp line. On the other hand, Tangshan Sanyou advanced the development of Next Gen Lyocell and Xinxiang Chemical Fiber opened a juncao grass MMCF facility.
In total, 16 individual Next Gen MMCF product lines, from 12 producers, are now commercially available.
The ‘Italia è Moda – Italian Fashion Days in the World’ (Giornate della Moda Italiana nel Mondo – GMIM) series is being held from October 10 to November 14, 2025. It will include events in Belo Horizonte, Rio de Janeiro, and São Paulo. Launched by the Minister of Foreign Affairs and International Cooperation, Antonio Tajani, within the framework of the Diplomacy for Growth, this initiative represents a key element in promoting Italian excellence abroad. Through its network of Embassies, Consulates, Italian Cultural Institutes, and Italian Trade Agency Offices, the Ministry of Foreign Affairs supports these efforts to enhance Made in Italy and foster its internationalization.
On this occasion, the MAECI (Ministry of Foreign Affairs and International Cooperation) – ICE (Italian Trade Agency) presented its ‘OpportunItaly’ campaign in Brazil for the first time. Part of the Export Action Plan, it promotes business connections between Italian companies and foreign operators through digital business matching services and content focused on strategic sectors of Made in Italy.
Following its earlier stages at the Italy Pavilion at Expo Osaka 2025 and in Dubai, as well as numerous promotional events organised by the Italian diplomatic-consular network over the past months (beginning with the Embassy in Athens), GMIM is now being held in Brazil.
In Belo Horizonte, Alessandro Cortese, Italian Ambassador to Brazil, inaugurated the exhibition ‘Italian SportDesign and more,’ organized by the Consulate General in collaboration with ICE-ITA Brazil (Italian Trade Agency – Brazil office), the Sportsystem Foundation, ANFAO (National Association of Italian Optical Manufacturers), and the Design School of the State University of Minas Gerais (UEMG).
In Rio de Janeiro, the Consulate General and ICE-ITA Brazil will organize the talk ‘Exporting La Dolce Vita – Beautiful and well-made: the potential of high-quality Italian products in the international arena’, in collaboration with the Federation of Industries of Rio de Janeiro (FIRJAN), hosted at the Palácio da Cidade.
The initiative is supported by Italian Trade Agency and in partnership with the main sector associations, including ANFAO, Camera Nazionale della Moda Italiana, Confapi Uniontessile, Confartigianato Moda, Confartigianato Orafi, CNA Federmoda, CNA Orafi, Confindustria Accessori Moda, Confindustria FEDERORAFI, Confindustria Moda – Federazione Tessile e Moda, Cosmetica Italia, and Altagamma.
The recent job cuts announced by Lenzing, a pioneer in sustainable cellulosic fibers, are a stark reflection of the complex challenges facing Europe's textile industry. While the global fiber market is growing, this growth is overwhelmingly driven by low-cost, high-volume production of synthetic fibers, primarily polyester, in Asia. Lenzing's struggles are a wake-up call, highlighting a fundamental disconnect between consumer aspirations for sustainability and the economic realities of a market dominated by fast fashion and price competition.
A tale of two realities
The global textile fiber market is projected to reach approximately $63.42 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of about 4.5 per cent from 2025. This growth is led by rising populations and incomes in emerging economies. However, this growth is not evenly distributed. The market is bifurcated into two distinct segments:
Synthetic fibers: This segment, led by polyester, holds the largest market share. In 2024, polyester production reached an estimated 78 million tons, accounting for nearly 60 per cent of all textile fibers. Its dominance is due to its low cost, versatility, and durability, making it the material of choice for the fast fashion industry.
Man-Made Cellulosic Fibers (MMCFs): This category, which includes Lenzing's flagship products like Lyocell (Tencel), is a smaller, more specialized market. While the Lyocell market is growing, due to a desire for sustainable alternatives, its market size was only about $1.12 billion in 2024. The high production costs of these fibers limit their large-scale adoption, particularly in price-sensitive markets.
The disparity in market share and scale between these two categories is profound. While Lyocell is celebrated for its eco-friendly credentials (derived from wood pulp, a renewable resource, and produced in a closed-loop system), it struggles to compete on price with polyester. This price gap is a major barrier for consumers and brands alike.
Lenzing's financial tightrope
Lenzing's financial performance showcases the pressure from this market dynamic. While the company has seen some recovery, it continues to face headwinds.
Table: Lenzing group financial data (2024-2025 H1)
Indicator H1 2024 H1 2025 Revenue €2.66 bn €1.34 bn EBITDA €395.4 mn €268.6 mn Net Result after Tax -€138.3 mn €15.2 mn Employees (FTE) 7,816 7,712
Despite a positive net result in the first half of 2025 and a successful performance program, the company’s need for further measures to respond to the lack of market recovery and the intense competition in Asia points to a deeper systemic issue. The announced layoffs of up to 500 jobs at its Austrian headquarters underscore the company's efforts to optimize its cost structure and remain competitive.
The outsourcing of administrative functions to countries like the Czech Republic and India further demonstrates the need to cut costs to an extent not previously seen, even for a company with a strong brand and a reputation for sustainability.
The rise of China and the challenge of industrial policy
China's role in the global textile landscape is an important factor in Lenzing's predicament. China is not only the world's largest exporter of textiles but has also become a major producer of chemical fibers, including viscose, a direct competitor to Lenzing's products.
Manufacturing prowess: China has developed a complete and vertically integrated textile supply chain, from raw materials like cotton and chemical fibers to finished garments.
Government support: State-driven initiatives, such as the "Made in China 2025" plan, have prioritized the development of high-end, intelligent, and green manufacturing, further boosting the sector.
Cost advantage: Lower labor costs, economies of scale, and efficient supply chains give Chinese manufacturers a significant competitive edge in global markets.
This has created a challenging environment for European producers like Lenzing. While brands in Europe and North America increasingly demand sustainable materials, the vast majority of textiles are still produced and consumed within a system that prioritizes speed and low cost, a model China has perfected.
The aspiration-action gap
A study by GlobeScan in Europe found a gap between consumer aspirations for sustainable fashion and their actual purchasing behavior. While 71 per cent of consumers expressed a desire to shop more sustainably, the primary barrier was the higher cost of sustainable fashion (cited by 41 per cent of respondents).
|
Barrier to Sustainable Fashion in Europe |
% of Consumers (Aspirants) |
|
Higher cost |
41% |
|
Difficulty identifying sustainable items |
27% |
|
Not knowing where to shop |
24% |
|
Lack of knowledge |
21% |
|
Skepticism about claims (greenwashing) |
19% |
Source: GlobeScan, 2025. Based on a survey of Gen Z and Millennial consumers in France, Germany, Italy, Sweden, and the UK.
This data reveals the core issue, the ‘green premium’. Consumers want to make better choices but are often unwilling or unable to pay the higher price required to support sustainable production models like Lenzing's. This puts companies like Lenzing in a difficult position, caught between high operating costs in Europe and the pressure to compete with a global market that values affordability above all else.
A wake-up call or the end of an era?
Lenzing’s situation is more than a simple business downturn; it's a symptom of a larger systemic failure. It’s a wake-up call for Europe. The continent cannot simply rely on green marketing and consumer goodwill to sustain its industrial base. What's needed is a concerted effort that combines:
New business models: Companies must innovate beyond the linear model of fast fashion. This includes embracing circularity, product-as-a-service, and on-demand manufacturing to reduce waste and create value in new ways.
Real transformation: The entire value chain, from raw material sourcing to retail, needs to be re-evaluated for sustainability and efficiency, rather than just relying on marginal improvements.
Industrial policy: Governments must play a role in creating a favorable environment for sustainable production. This could involve targeted subsidies, favorable regulations that penalize unsustainable practices, and investments in research and development to reduce the cost of eco-friendly materials.
Without such a strategic shift, Lenzing's predicament could very well be the beginning of the end for European fiber production, ceding the market entirely to low-cost Asian competitors. It poses a fundamental question: can Europe's commitment to sustainability translate into a viable economic model, or is it destined to be a niche luxury, disconnected from the realities of the global marketplace? The clocks are indeed ticking.
Labor leaders in Bangladesh are protesting against a proposal by the apparel trade body to raise garment workers' wages by only 20 per cent.
The proposal was presented by Arshad Jamal Dipu, representing the Bangladesh Garment Manufacturers and Exporters' Association (BGMEA), during the fifth meeting of the Wage Board. The BGMEA's plan sets the minimum monthly wage at Tk 3,600 (approximately $43 USD), which includes a basic pay of Tk 2,400, a house rent of Tk 960, and a medical allowance of Tk 240. This figure falls far short of the workers' demand for a minimum wage of Tk 8,114 (approximately $96).
Sirajul Islam Rony, Representative, Garment Workers, called the BGMEA's proposal ‘illogical and inhumane.’
The laborers had expected, garment owners would offer higher wages taking into consideration the rising cost of living, added Rony
Echoing this sentiment, Fazlul Haque Montu, Executive President, Jatiya Sramik League, stated, the massive gap between the workers' demand and the owners' offer was unacceptable given the current cost of living.
Defending the owners' position, Dipu said the proposal was calculated based on the general inflation rate since November 2010, the rising production costs, raw material prices, and the industry's capacity. When questioned about the logic of a 20 per cent hike, he pointed out, while there are roughly 3,174 factories nationwide, about 1,000 to 1,500 are in the small category, suggesting a need for caution. He did, however, leave open the possibility for further negotiations on other allowances.
AK Roy, Chairman, Wage Board, confirmed, a few decisions were made based on the two proposals. These include having Wage Board members visit five garment factories (three in Dhaka and two in Chittagong) to meet with both workers and owners. Additionally, the members plan to visit Thailand, Vietnam, and Cambodia by the end of the current week to study their wage fixation processes and worker benefits.
The members agreed to hold their next meeting on October 21, following their local and foreign trips and the upcoming religious festivals of Eid and Durga Puja.
A global leader in sustainable technologies for the textile industry, Jeanologia organized an exclusive press tour at its booth during Kingpins Amsterdam.
The press tour allowed attendees to explore the ‘Mediterranean Soul’ collection, a new denim proposal that combines Mediterranean inspiration, creativity, and sustainability to showcase the future of denim production.
The tour showcased how combining Laser and G2 Indra technologies allows for hyper-realistic denim finishes while simultaneously protecting the environment and workers.
Attendees also learnt bout the eDesigner platform, which connects digital design directly to real-world production, thereby speeding up processes and significantly reducing the need for physical samples.
The press tour featured live demonstrations of the technology, and provided opportunities for attendees to interview Jeanologia’s representatives.
The 23rd Vietnam International Textile and Garment Industry Exhibition (VTG 2025) officially kicked off on October 15, 2025 in Ho Chi Minh City.
Jointly organized by the Vietnam National Trade Fair and Advertising Company (Vinexad) and Yorkers Trade & Marketing Service Co, this year’s show is a major international draw. It features over 400 exhibitors spread across 750 booths from 10 countries and territories, including China, India, Malaysia, Pakistan, Singapore, South Korea, and Thailand.
The three-day event is focused on the future of the industry, spotlighting the latest advancements in automated, digitalized, and advanced machinery. These innovations are crucial for advancing factory digitalization, directly supporting Vietnam's national digital transformation goals and efforts toward product diversification. Attendees will get a comprehensive look at the industry’s future, spanning everything from cutting-edge machinery and next-generation fabric and footwear solutions to quality control and auxiliary equipment for both domestic and international buyers.
More than just a trade show, VTG 2025 serves as a key platform for business networking, cooperation, and investment promotion, offering visitors a chance to explore new technologies, connect with global industry leaders, and update their market trend knowledge to shape their business strategies.
In a nod to global environmental concerns, VTG 2025 is also heavily emphasizing sustainability. According to Pham Dang Khanh, Deputy General Director of Vinexad, the exhibition includes a series of thematic seminars focused on circularity, functionality, and sustainability. These sessions bring together leading experts, pioneering manufacturers, and academic researchers. Their goal is to share insights on developing green supply chains and low-carbon production models, ultimately striving to foster a more sustainable and competitive future for Vietnam’s textile, apparel, and footwear sectors.
Retailers project, 15.8 per cent of their annual sales, worth a staggering $849.9 billion- will be returned this year, according to the 2025 Retail Returns Landscape report by the National Retail Federation (NRF) and Happy Returns, a UPS company.
The report estimates, 19.3 per cent of all online sales will be returned in 2025.
Katherine Cullen, Vice President-Industry and Consumer Insights, NRF, notes, returns are now a key strategic area. They provide an opportunity for retailers to create a positive experience for customers and can translate to brand loyalty, she adds.
Gen Z is also driving volume. Consumers between the ages of 18 and 30 averaged 7.7 returns of online purchases over the past year - more than any other generation.
Consumer expectations for the returns process are sharply increasing:
Around 82 per cent of shoppers now cite free returns as a major consideration when buying something, a significant rise from 76 per cent last year. Almost 76 per cent of them are more likely to choose a return option that offers an instant refund or exchange, valuing immediacy.
However, a bad experience can severely impact future business. Approximately 71 per cent of consumers say they are less likely to shop with a retailer after a poor return experience, and four out of five will share that negative story with family and friends.
Retailers are struggling to meet these high customer expectations while grappling with rising operational costs and external pressures like tariffs. Returns fraud remains a major issue, accounting for 9 per cent of all returns. Retailers report increases in costly incidents, including overstated quantity of returns, empty box or ‘box of rocks’ returns and decoy returns, such as sending back counterfeit items.
To combat this, 85 per cent of retailers are now employing Artificial Intelligence (AI) to detect or prevent fraud.
Meanwhile, around two-thirds consumers admit to ‘wardrobing’ (wearing and returning) or ‘bracketing’ (buying multiple sizes/colors to return what doesn't fit), and 45 per cent believe ‘bending the truth’ is acceptable when making a return.
Looking ahead, retailers anticipate, 17 per cent of holiday sales will be returned. To manage the spike and potential fraud, they plan to increase focus on third-party logistics, hire seasonal staff, and extend return windows.
A circular technology company, RE&UP highlighted its innovative circular textile solutions at the Textile Exchange 2025 Conference.
RE&UP is a key participant at Textile Exchange 2025, an event that gathers a global community of innovators, brands, and changemakers. The conference theme, ‘Shifting Landscapes: Connecting Environmental Adaptation and Systems Transformation,’ focuses on how the fashion industry can adapt, innovate, and speed up the transition to circularity.
On Day 1 of the event, Ebru Ozkucuk Guler, Chief Sustainability Officer, RE&UP participated in a panel discussion titled ‘Toward Impactful Textile-to-Textile Recycling Systems.’ She was joined by Suhas Khandagale, H&M and Cyndi Rhoades, Circle-8 Textile Ecosystems. The interactive session addressed the current and future supply of feedstocks for textile recycling, looked at new legislation, discussed sorting issues, and explored practical solutions to accelerate circularity.
Emphasizing on the need for ongoing brand dedication, Guler said, to create a solution, brands must stay committed, stepping back is no longer an option.
Beyond the panel, RE&UP is showcasing its pioneering circular solutions and working with brands and suppliers to turn sustainability pledges into measurable results. By linking practical solutions with policy insights and on-the-ground innovation, RE&UP is helping the industry move from theory to action, demonstrating that circularity is a tangible path forward.
RE&UP is a circular tech company aiming to reshape the traditional textile-to-textile model. The company produces Next-Gen Cotton and Next-Gen Polyester that perform just like virgin fibers. Backed by Sanko’s decades of textile innovation knowledge, RE&UP has created a seamless circular ecosystem that transforms end-of-life textile waste into high-quality raw materials at scale. This commitment opens up a more responsible and technologically advanced future for textiles and fashion.
The Indian textile and apparel industry has shown the first clear signs of being impacted by the new US tariffs, as export data for September 2025 revealed a significant decline. The figures, compiled by CITI, indicate that the US administration's decision to impose an additional 25% penalty on Indian goods, bringing the total tariff to 50% for many products, has already begun to affect the industry. The tariffs, which came into effect on August 27, 2025, have raised concerns among exporters about a future of dwindling orders and a potential loss of market share.
Sanjay K. Jain, Chairman of the ICC National Textiles Committee, stated, "Things will worsen as pipeline order book shipments get completed as new orders are not coming. Once a customer moves out, it's not easy to get him back. Once skilled labor moves out, it's not easy to get them back."
Apparel exports take a major hit
Apparel exports, a labor-intensive sector and a key employer in India, saw a particularly sharp drop. According to the CITI data, exports for September 2025 amounted to $1,288.75 million, a decrease of 12.83% compared to $1,478.43 million in September 2024. This decline reflects a grim reality for manufacturers who are already facing stalled orders and requests from US buyers to absorb a portion of the tariff burden, as highlighted by a recent industry survey.
Textile exports also down, industry fears worsening situation
The broader textile sector, excluding jute, carpets, and handicrafts, also experienced a downturn. Exports in this category fell by 9.17%, from $2,135.03 million in September 2024 to $1,939.29 million in September 2025. Industry experts express concern that these figures are just the beginning. As existing orders, secured before the tariffs took full effect, are shipped, the true impact of the trade barrier will be revealed. Many fear that new orders are not forthcoming, a situation that could lead to job losses and a drain of skilled labor, which, once moved, is not easily recovered.
A survey by the Confederation of Indian Textile Industry (CITI) further reveals the "domino effect" of the tariffs. About one-third of textile and apparel exporters have reported a turnover drop of over 50% in their US business. This decline is largely due to requests for discounts from US buyers and order cancellations. As a result, around 85% of firms are experiencing an inventory build-up, while over 80% are dealing with an extended credit cycle of 3 to 6 months, which is putting a "substantial strain on liquidity". The survey also found that two-thirds of exporters have been forced to offer discounts of up to 25% to remain competitive in the US market.
The data for September 2025 is summarized in the table below:
|
Particulars |
Sep 2025 |
Sep 2024 |
Growth (%) |
|
Apparel Exports |
1,288.75 (USD Million) |
1,478.43 (USD Million) |
-12.83% |
|
Textiles Exports |
1,939.29 (USD Million) |
2,135.03 (USD Million) |
-9.17% |
Note: Figures for the textile category exclude Jute, Carpet, and Handicrafts.
Goods exports to US down, overall exports up
While the textile sector reels, overall Indian goods exports to the US also saw a significant drop of nearly 12% to $5.5 billion in September. This is the first full month since the 50% tariffs were imposed by US President Donald Trump. Despite this, India's overall goods exports for September held steady, rising 6.7% to $36.4 billion, with overall exports up 7%. This indicates that sectors like electronics, which saw exports rise over 50%, are helping offset the decline in tariff-hit sectors. However, the trade deficit with the US ballooned to $32.1 billion, a 13-month high.
Bilateral Trade Agreement: A race against time
Meanwhile, diplomatic efforts are in motion to find a long-term solution. An Indian delegation is in Washington this week for trade talks, with the goal of finalizing the first phase of a Bilateral Trade Agreement (BTA). Both nations are aiming for a fall deadline to conclude the deal. The BTA could provide much-needed relief from the high tariffs and help Indian exporters regain their competitive edge. However, with each passing day, the industry faces the risk of losing customers and skilled workforce, making a swift resolution crucial to prevent a more severe crisis.
The Textile Institute (TI) is set to celebrate a significant milestone at the ITMA Asia+CITME textile machinery exhibition in Singapore later this month.
At Booth B105 in Hall 8, TI will exhibit as a reciprocal member of the British Textile Machinery Association (BTMA), highlighting the strength of their collaboration. The two organizations' long-standing partnership has recently been cemented by the appointment of Jason Kent, CEO, BTMA as new Commercial Vice President, TI. The move brings fresh industry perspective and influence to the role.
Corporate membership of The Textile Institute gives organizations access to an international network of professionals, cutting-edge research, and strategic benefits valued at over $12,700 (£10,000) a year, says Kent
This membership provides a wide range of advantages, including global promotion and visibility, invitations to high-level networking and training events, opportunities for collaboration on industry-led research, professional recognition through chartered qualifications, and access to TI’s publications, data, and R&D resources.
As the only global professional body in this sector with a Royal Charter, the Institute drives the industry forward through high-quality events and training courses that equip professionals for the future, notes Stephanie Dick, CEO, TI. Together with their Corporate Members, the Institute tackles skills gaps, developing practical training solutions, and reaching international audiences.
The Textile Institute is uniquely positioned to help organizations stay competitive, connected, and compliant. Though it was first founded in Manchester in 1910, its mission has always been to be ‘not of Manchester, but international.’ With active sections and special interest groups across the globe, it now serves members in over 60 countries, empowering professionals across every link in the textile supply chain.
