Measuring the State of Circularity in the UK Fashion Industry
Introduction
Executive Summary
12
Part 2
Part 3
Conclusion
Part 1
About this research
The market for circular fashion
To explore and gain insights into the current state of circularity in the UK fashion industry and identify how businesses can capitalise on opportunities in circular innovation, CFIN partnered with Newton to conduct an in-depth study on the adoption, scaling, and implementation of circular business models.
UK fashion retailers are engaged in various initiatives aimed at reducing the industry’s environmental impact, Textiles 2030, managed by WRAP, and Fashion ReModel, led by the Ellen MacArthur Foundation. While these initiatives have driven positive change, the industry has historically faced challenges in sustaining progress towards circularity, hindered by consumer preferences for newness and the constant pressure to prioritise profit. However, as more government bodies issue legislation to enforce sustainability, the benefits of being a first-mover are becoming difficult to ignore. The Circular Fashion Innovation Network (CFIN), is in place to embed circular fashion ecosystems in the UK. As part of this effort, CFIN partnered with Newton – experts in helping organisations deliver complex change – to gather insights on the current state of circularity in the UK fashion industry, including barriers faced by organisations and support required for a more circular ecosystem. With the findings and recommendations from this research, we hope to empower fashion businesses across the UK to successfully implement circular operations, to build a more prosperous and sustainable future for the industry.
Below are notable examples of mature circular fashion ecosystems globally, highlighting a need for international collaboration across the industry. The EU Strategy for Sustainable and Circular Textiles by 2030 4 contains 16 pieces of environmental fashion legislation with the first coming into force in 2024. In France, the Anti-Waste for a Circular Economy Law (AGEC) 5 bans ‘eco-friendly’ and ‘biodegradable’ claims from product information and gives customers visibility of how garments are made and how easy they are to recycle. France also has a € 154m fund to provide discounts to customers repairing apparel and footwear, and is introducing a ‘Fast Fashion’ surcharge and further marketing regulations in 2025. In Sweden, the Extended Producer Responsibility (EPR) 6 target aims for a 70% reduction in textile waste sent to landfill by 2028, and the government has cut VAT rates for repaired items.
The research included:
o Survey responses from 49 fashion businesses, representing approximately one-third of the UK market by annual revenue.
o Over 20 qualitative interviews with leaders spanning boutique brands to multi-billion-pound companies.
o Extensive desk research into existing literature, international regulations, and retailer strategies.
o Analysis of circular initiatives, including repair, rental, resale, remake, take-back schemes, and circular design.
This report serves as a foundational guide for organisations seeking to advance their circular initiatives. By analysing current practices, scaling strategies, and growth opportunities, it offers practical insights to support the UK fashion sector in achieving both economic success and environmental sustainability.
Developing markets:
o The UK’s Best Available Techniques (BAT) 7 framework guides organisations on available techniques to reduce environmental impact. o In the USA, the Americas Trade and Investment Act 8 proposed $14bn in incentives for circular innovation, reuse and recycling as part of a wider bill promoting US manufacturing over China’s.
Immature markets:
China is an example of an immature market as it has no legislation or support for circularity in the fashion industry.
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