Circular Fashion Market Global Report 2026

The circular fashion market size has grown strongly in recent years. It will grow from $6.47 billion in 2025 to $7.09 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to growing environmental consciousness among consumers, increasing generation of textile waste, early adoption of sustainable fashion practices, expansion of environmentally responsible fashion brands, and growing second-hand clothing markets.

The circular fashion market size is expected to see strong growth in the next few years. It will grow to $10.11 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increasing regulatory efforts to reduce textile waste, rising investments in circular supply chains, growing consumer demand for sustainable clothing, expansion of digital resale platforms, and technological advancements in textile recycling processes. Major trends in the forecast period include increasing use of recycled and reused textiles, rising preference for durable and long-lasting apparel, growing adoption of resale and fashion rental models, expansion of closed-loop apparel manufacturing systems, and greater emphasis on supply chain transparency and traceability.

The increasing demand for gene therapies is expected to drive the growth of the cell therapy manufacturing automation market in the coming years. Gene therapy is a medical treatment approach that involves modifying or replacing defective genes to prevent or treat diseases. Demand for gene therapy is increasing due to improvements in genetic sequencing and diagnostic technologies, which facilitate the accurate identification of disease-causing genes and support targeted therapeutic interventions. Cell therapy manufacturing automation enables gene therapy production by automating, standardizing, and streamlining complex manufacturing activities, thereby supporting consistent quality and scalable production. It contributes to therapeutic development by minimizing human errors, improving operational efficiency, and facilitating dependable large-scale manufacturing of genetically modified cells. For instance, in December 2024, according to the American Society of Gene & Cell Therapy (ASGCT), a US-based nonprofit medical and scientific organization, the Food and Drug Administration (FDA) approved six gene therapy products in 2023, compared with five approvals in 2022. Therefore, the growing demand for gene therapies is driving the growth of the cell therapy manufacturing automation market.

Leading companies operating in the circular fashion market are focusing on developing advanced products using recycled polyester to minimize environmental impact and promote sustainable, closed-loop production processes. Recycled polyester is a sustainable fabric produced by repurposing discarded plastic materials, such as polyethylene terephthalate (PET) bottles, into fibers for use in clothing and textiles, thereby reducing waste and conserving resources compared to the production of virgin polyester. For example, in April 2024, Lululemon, a Canada-based manufacturer of athletic apparel and accessories, launched the Packable Anorak jacket, manufactured using enzymatically recycled polyester. The anorak is produced using a combination of materials, including mixed plastic waste, Lululemon apparel that has reached the end of its lifecycle, and carbon emissions captured from industrial processes. This innovative approach represents a significant advancement toward textile-to-textile recycling.

In May 2025, MySize Inc., an Israel-based provider of AI-powered retail solutions and omnichannel e-commerce platforms, acquired New Percentil, S.L. for approximately €610,000 ($679,000). Through this acquisition, MySize sought to establish and expand its presence in the circular fashion and re-commerce market by incorporating resale infrastructure, providing a premium second-hand marketplace, and developing a “Circularity as a Service” solution for fashion brands. New Percentil, S.L. is a Spain/Europe-based managed marketplace for second-hand fashion that provides a logistics-supported platform for quality-screened pre-owned clothing and re-commerce services across European markets, including Spain, France, Germany, and Italy.

Major companies operating in the circular fashion market are Nike Inc., Industria de Diseno Textil S.A., Adidas Group, H&M Group, Fast Retailing Co. Ltd., Gap Inc., Hermes International S.A., VF Corporation, Guccio Gucci S.p.A., PUMA SE, Lululemon Athletica Inc., Ralph Lauren Corporation, Levi Strauss & Co., Prada S.p.A., Everlane Inc., Reformation, Eileen Fisher Inc., Patagonia Inc., Rothy’s Inc., Ecoalf Recycled Fabrics, SL, Stella McCartney Ltd., Outerknown LLC, LANIUS GmbH, MUD Jeans International B.V.

North America was the largest region in the circular fashion market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the circular fashion market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the circular fashion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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