The UK apparel manufacturing sector is witnessing a significant revival as retailers prioritize supply chain resilience over low-cost offshore alternatives. At the latest Source Fashion edition at Olympia London, visitor numbers increased by 16 per cent, reflecting a broader industry trend toward ‘nearshoring.’ With the UK clothing retail market projected to reach £50 billion in 2026, major players like Marks & Spencer and Next are increasingly engaging with the British Pavilion to mitigate global logistics disruptions. This shift is substantiated by recent data showing a 31 per cent reduction in lead times for firms utilizing local ‘just-in-time’ production models, a critical advantage as retailers navigate volatile consumer demand.
Navigating the 2026 regulatory landscape
Beyond speed-to-market, the event highlighted a fundamental transition toward mandatory transparency. For the first time, exhibitors reported that sustainability is no longer a peripheral marketing tool but an operational necessity driven by the upcoming EU and UK Digital Product Passport (DPP) requirements. Under the Ecodesign for Sustainable Products Regulation (ESPR), the destruction of unsold textiles will be banned starting July 2026, forcing brands to adopt circular business models. The energy this year is focused on textile science and traceability," noted Safia Minney, MBE. As businesses face potential fines of up to 10 per cent of global turnover for misleading environmental claims under the Digital Markets Act, the focus has shifted toward verified site-level data and climate-adaptive materials that align with new planetary boundaries.
Source Fashion is the UK’s premier gateway for responsible end-to-end garment manufacturing. Serving Tier-1 retailers and independent designers, the platform facilitates high-quality sourcing across international and domestic markets. Following record attendance in 2025, the initiative expects sustained growth as brands seek climate-resilient textiles. Established to bridge the gap between ethical producers and volume buyers, it remains a cornerstone for UK retail strategy.
