Upcycled and Circular Fashion

2ND YEAR ON THE LIST

Textile factories built for high-volume production have contributed to massive overproduction in fashion; in the past 25 years, the average amount of clothing Americans throw away annually has more than doubled.

KEY INSIGHT

Tens of billions of clothing items are produced each year, much of it designed for short-term use and ultimately destined for landfills. Apparel manufacturers are exploring new methods to prolong the life of their goods, repurpose used materials, and reduce the climate impact of product life cycles.

EXAMPLES

According to analytics firm First Insight, more than half of Gen Z customers surveyed prefer to buy from sustainable brands, and big name retailers have taken note. The Gucci-Up initiative is an effort from the Italian fashion house to pilot circular production models by upcycling leather, eliminating the use of virgin plastics, and generating materials from industrial waste. H&M’s Looop program disassembles old textiles to create new products without using virgin materials. Companies such as ThredUp and The RealReal have established reliable second-hand apparel marketplaces to extend the life of existing fashion products. On the manufacturing side, fiber-to-garment textile parks, like those built in India over the past decade, can reduce emissions by localizing supply chain segments.

DISRUPTIVE IMPACT

Sustainability is the single greatest challenge facing the fashion industry—and also its greatest opportunity. An investment in circular production models now may pay dividends as the purchasing behaviors of the next generation of conscientious consumers matures and shapes the industry. Digital fashion is set to play a significant role in the sustainable transformation of apparel brands, not just by providing a new revenue stream to balance lower-volume production of physical garments but also by revealing previously inaccessible post-purchase data. Virtual garments could eventually serve as digital twins to track physical garments via a digital wardrobe interface, logging usage, treatment, and end-of-life trends, and generating insights to inform new approaches to circularity. Additionally, synthetic biology could be used to develop fibers that are less resource-intensive, make for longer-lasting materials, and are more easily broken down or recycled.

EMERGING PLAYERS

• ASOS • British Fashion Council’s Institute of Positive Fashion • Ellen MacArthur Foundation • H&M Looop • Marine Serre • MUD Jeans • Napapijri • Patagonia • Platform for Accelerating the

Circular Economy • The RealReal • Reformation • ThredUp