Europe’s fashion industry accelerates shift towards circularity & nearshoring in 2024

The European fashion scene, long admired for its elegance and trendsetting innovations, is facing a shift towards circularity. Driven by environmental concerns, shifting consumer values, and forward-thinking policy, the continent’s textile and apparel industry is shedding its linear “take-make-dispose” model and embracing a closed-loop approach that promises to benefit both people and planet.

At the same time, for some years now the fashion industry has been moving away from an outdated sourcing model ‘characterized by long lead times, maximizing order sizes, and low flexibility.’ Adopting a new method known as ‘nearshoring.’ Especially the pandemic has accelerated fashion companies in Europe and North America to produce clothes closer to home.

This transformation is fueled by a potent cocktail of factors. The environmental footprint of the fashion industry is staggering. Textile production alone accounts for roughly 10% of global carbon emissions and 20% of wastewater discharge. Mountains of discarded clothing, often laden with harmful chemicals, end up in landfills or incinerators, releasing potent toxins and microplastics into the environment. Consumers are increasingly aware of these impacts and demand more sustainable options.

European policymakers are heeding the call. The EU’s 2022 Strategy for Sustainable and Circular Textiles, coupled with national regulations like France’s Extended Producer Responsibility (EPR) scheme, are pushing brands to take accountability for the entire lifecycle of their products. This includes designing for durability, promoting reuse and repair, and investing in efficient recycling technologies.

But the real change is happening on the ground, where innovative minds are redefining the possibilities of circularity. Textile engineers are pioneering bio-based materials derived from mushrooms or waste food, while others are developing revolutionary recycling methods capable of transforming old clothes into pristine new fibers. Machines equipped with artificial intelligence are sorting and grading used garments with unprecedented accuracy, paving the way for efficient reuse and recycling streams.

Brands, from high-end labels to fast-fashion giants, are adapting their models. Some offer take-back programs, inviting customers to return unwanted clothes for refurbishment or recycling. Others are experimenting with rental and subscription services, extending the lifespan of garments and encouraging responsible consumption. Design itself is being rethought, with a focus on timeless silhouettes, durable materials, and modularity that allows easy repair and customization.

This shift towards circularity is not without its challenges. Infrastructure for textile recycling is still nascent, and scaling up innovative technologies takes time and investment. Consumer behavior also needs to evolve, with a move away from the disposable mentality ingrained in fast fashion.

However, the momentum is undeniable. Experts predict that by 2030, circular models could account for up to 20% of the European textile and apparel market. This translates to substantial reductions in waste, emissions, and water consumption, not to mention the creation of new green jobs and a more resilient industry.

The European fashion industry’s shift towards circularity isn’t merely a change in mindset; it’s a technological reimagining of the entire value chain. At the heart of this transformation lies a vibrant realm of innovation, where scientists and engineers are weaving magic with machines that breathe new life into textiles.

One revolutionary concept is biofabrication. Imagine clothes spun from the threads of mushrooms, pineapple leaves, or even food waste. Bio-based materials offer a sustainable alternative to petroleum-derived synthetics, significantly reducing the carbon footprint of production. Companies like Mycotex and Bolt Threads are pioneering this field, crafting leather-like fabrics from fungal mycelium and silky yarns from cellulose extracted from agricultural waste. These materials boast impressive sustainability credentials, often biodegradable and compostable, while offering luxurious textures and performance qualities.

Next comes the realm of mechanical alchemy. Innovative sorting and recycling technologies are transforming mountains of discarded clothing into a valuable resource. AI-powered robots like those developed by SORTER can identify fiber blends, colors, and conditions with remarkable precision, directing garments towards specific recycling pathways. This level of accuracy allows for high-quality recycled fibers that can be rewoven into new textiles, minimizing the need for virgin materials.

Companies like Re:newcell and Infinited Fiber are pushing the boundaries of fiber regeneration. Their cutting-edge processes break down used cotton and polyester into their molecular components, essentially creating virgin-quality fibers from old clothes. This closed-loop approach significantly reduces water and energy consumption compared to traditional cotton production, marking a major step towards circularity.

But the future isn’t limited to recycling. Upcycling is gaining traction, offering creative ways to breathe new life into pre-loved garments. Companies like MUD Jeans and Nudie Jeans offer repair and renewal services, extending the lifespan of clothes and fostering a culture of conscious consumption. Designers like Martine Rose and Gabriela Hearst are champions of upcycling, incorporating vintage pieces and reworked materials into their collections, showcasing the beauty and potential of pre-loved textiles.
These technological advancements are just the beginning. Researchers are exploring enzyme-based recycling methods, 3D printing of recycled fibers, and even nanotechnology to improve the properties of recycled materials. This constant innovation promises a future where textile waste is a distant memory, and the circular fashion loop spins tighter, fueled by ingenuity and a shared vision for a sustainable future.

Stitching Together Change: Brands and Consumers in the Circular Web

The shift towards circularity in the European textile and apparel industry is not just about technology and policy; it’s about a fundamental change in how we think about fashion. Brands are playing a crucial role in shaping this new paradigm, adopting innovative models and engaging consumers in the journey towards a more sustainable wardrobe.

Rethinking Design and Production:

Gone are the days of fast fashion and throwaway trends. Forward-thinking brands are taking a conscious approach to design, prioritizing durability, timeless styles, and modularity. Stella McCartney, for example, utilizes recycled and organic materials in her collections, while Patagonia focuses on creating garments built to last, offering repair services and lifetime warranties.

Circular design principles are gaining traction, with brands like Eileen Fisher and Filippa K incorporating features like detachable zippers and buttons, allowing garments to be easily disassembled and repurposed. This not only extends the lifespan of clothing but also simplifies recycling and upcycling processes.

Innovative business models are emerging to challenge the traditional ownership model. Clothing rental services like Nudie Jeans and Dresslender provide access to high-quality fashion without the burden of ownership, promoting responsible consumption and reducing textile waste. Subscription services like Le Tote offer curated boxes of pre-loved garments, giving them a second life and catering to the growing demand for vintage and unique pieces.

Engaging Consumers:

Consumers are at the heart of the circular fashion revolution. Brands are fostering a dialogue about sustainability, educating customers about the impact of their clothing choices and empowering them to participate in the closed-loop system.

Transparency is key. Brands like Everlane and Patagonia are showcasing their supply chains and production processes, building trust and encouraging informed consumer choices. Platforms like ThredUp and Depop democratize the secondhand market, making it easier for individuals to buy and sell pre-loved garments, extending their lifespan and promoting conscious consumption.

Reward programs and incentives play a role too. H&M and Levi’s offer in-store garment take-back programs, providing discounts for returning unwanted clothes. Such initiatives not only divert textiles from landfills but also create a valuable resource for recycling and upcycling.

Nearshoring

Over 7 out of 10, fashion brands and retailers say they are turning to nearshore because of the influence on their global supply chains instigated by the pandemic and shipping disruption, according to a new report.

Turkey is named as one of the top three most promising sourcing locations for Europe. And three-quarters of companies see shipping disruptions as the greatest threat to flexibility and speed, followed by demand volatility and the pandemic.

The study, entitled ‘Revamping fashion sourcing: speed and flexibility to the fore’ by consultants McKinsey and Company, says that 71% of fashion companies are planning to surge nearshoring by 2025.
It should be noted that fashion-making is unlikely to wholly relocate. With the growth of economies like China and India comes a higher demand for fashion, so international brands will want to keep at least some of their manufacturing operations closer to those countries than traditional markets in Europe and North America. For them, it will be more about diversifying their supply chains than simply moving them.

The Road Ahead

The European fashion industry’s shift towards circularity is still in its early stages, but the momentum is undeniable. While challenges remain, from scaling up innovative technologies to changing consumer behavior, the collaborative efforts of brands, policymakers, and consumers are paving the way for a more sustainable future.

The path ahead is woven with opportunities. Emerging technologies hold the promise of more efficient recycling and biofabrication methods, while changing consumer preferences signal a growing demand for sustainable and ethical fashion. By embracing circularity, the European textile and apparel industry can not only reduce its environmental footprint but also unlock new economic opportunities, create green jobs, and foster a more responsible and mindful relationship with fashion.

The future of fashion is circular, and the threads of change are being woven together, stitch by stitch, brand by brand, and consumer by consumer. This revolution in the making promises a future where style and sustainability are not mutually exclusive, but rather beautifully intertwined in a fabric of shared responsibility and ecological stewardship.