The global recycled apparel market is poised for significant growth, driven by increasing environmental awareness, stringent regulations, and advancements in recycling technologies. This comprehensive analysis provides insights into key market drivers, regional insights, market segmentation, competitive landscape, future outlook, and investment and M&A activities.
Market Overview
The global recycled apparel market was valued at approximately USD 5.6 billion in 2023 and is projected to reach USD 20.51 billion by 2030, expanding at a CAGR of 9.8% from 2024 to 2030 (Mordor Intelligence).
Key Market Drivers
- Environmental Awareness: Increased awareness about the environmental impact of the fashion industry, which accounts for 10% of global carbon emissions and 20% of wastewater, is driving the demand for recycled apparel (MAXIMIZE MARKET RESEARCH) (Verified Market Research).
- Regulatory Policies: Governments are implementing policies to reduce textile waste and promote recycling. For example, the European Union’s circular economy action plan aims to make sustainable products the norm
- Consumer Trends: There is a growing consumer preference for sustainable fashion, influenced by ethical considerations and social media advocacy.
Regional Insights
- North America: Expected to grow at a CAGR of 5.7%, reaching approximately USD 1.7 billion by 2030, driven by high consumer awareness and robust regulatory support .
- Europe: Anticipated to grow at a CAGR of 6.3%, with a market size of USD 1.5 billion in 2023, driven by stringent environmental regulations and a strong emphasis on sustainability (Custom Market Insights) (GlobeNewswire).
- Asia-Pacific: Projected to grow at a CAGR of 7.2%, with significant contributions from China and India due to increasing industrialization and urbanization (Custom Market Insights).
Market Segmentation
- By Material: Recycled polyester leads the market due to its wide application in activewear and casual clothing. Recycled cotton is also seeing significant growth due to technological advancements and environmental benefits (Market.us).
- By Process: The market is divided into mechanical and chemical recycling, with chemical recycling gaining traction for its ability to handle complex textile blends (Custom Market Insights).
- By End-User: The women’s segment holds the largest share, driven by the increasing adoption of sustainable fashion among female consumers (Market.us).
Competitive Landscape
The recycled apparel market is highly competitive with key players such as Patagonia, Adidas, and Nike leading the way. These companies are heavily investing in research and development to innovate and enhance their product offerings (MAXIMIZE MARKET RESEARCH). Notable collaborations include Circ’s partnership with Zara and Renewcell’s collaboration with Eastman.
- Patagonia: Known for its commitment to environmental sustainability, Patagonia has integrated recycled materials into its products extensively. As of 2023, Patagonia reported that 68% of its product line was made from recycled materials.
- Adidas: In 2023, Adidas announced that it produced over 15 million pairs of shoes using recycled ocean plastic, in collaboration with Parley for the Oceans.
- Nike: Nike has also made significant strides, with 75% of all Nike shoes and apparel now containing some recycled material.
- H&M: H&M aims to use 100% recycled or other sustainably sourced materials by 2030. As of 2023, the company reported that 64% of its materials were sustainably sourced.
Future Outlook
The market is expected to continue its robust growth, driven by technological advancements in recycling processes and increasing consumer demand for sustainable products. Innovations such as microwave depolymerization for nylon recycling and enhanced transparency in supply chains are expected to revolutionize the market. By 2030, the market size is projected to reach USD 20.51 billion (Mordor Intelligence).
- Innovations: Advances in chemical recycling and bio-based materials are set to drive the market forward. Technologies like microwave depolymerization for nylon and enhanced transparency in supply chains are expected to play crucial roles (Mordor Intelligence).
- Consumer Demand: With growing awareness and preference for sustainable products, the market is likely to see increased consumer adoption and higher demand for recycled apparel.
Investment and M&A Activities
Investment and merger & acquisition (M&A) activities in the recycled apparel market have been vibrant, reflecting the sector’s potential for growth and innovation.
- Investments: In 2023, the recycled apparel sector attracted over USD 1.2 billion in venture capital investments. Key deals included:
- Worn Again Technologies: Raised USD 100 million in a Series B funding round to scale its polymer recycling technology (Worn Again).
- Natural Fiber Welding: Secured USD 85 million to expand its plant-based materials production (NFW).
- Trove: This company, which powers resale for brands like Patagonia and Levi’s, raised USD 150 million to enhance its technology and operational capabilities for branded resale programs (Retail Dive).
- Evrnu: A textile innovations company developing engineered fibers with a lower environmental footprint, secured USD 15 million to further develop and scale its NuCycl™ technology, which turns textile waste into new fibers (Fibre2Fashion).
- M&A Activities: Several significant M&A deals have shaped the market landscape:
- Patagonia’s Merger with Allbirds: In 2023, Patagonia and Allbirds announced a strategic merger to enhance their sustainable offerings. The deal was valued at approximately USD 1.2 billion ).
- VF Corporation’s Acquisition of Supreme: In 2020, VF Corporation, owner of The North Face and Timberland, acquired Supreme for USD 2.1 billion, aiming to integrate more sustainable practices into the streetwear brand.
- H&M Group’s Purchase of Sellpy: H&M increased its stake in the Swedish second-hand platform Sellpy to 74% in 2021, aiming to boost its resale and recycling efforts.
- Lululemon’s Acquisition of Beyond Yoga: In 2021, Lululemon acquired Beyond Yoga, a brand focused on body-positive apparel and sustainable materials, for an undisclosed amount to expand its footprint in the athleisure market.
Conclusion
The global recycled apparel market is set for robust growth, driven by environmental awareness, regulatory support, and consumer demand for sustainable fashion. With ongoing innovations and significant investments, the market is poised to transform the textile industry towards greater sustainability and reduced environmental impact.
References
- Custom Market Insights (2023). Global Textile Recycling Market Size, Trends, Share 2032.
- GlobeNewswire (2023). Textile Recycling Market Size & Share to Surpass $9.9 Billion by 2030.
- The Insight Partners (2023). Eco Apparel Market Size and Forecasts (2021 – 2031).
- Textile World (2023). Textile Sustainability Development Snapshots.
- Mordor Intelligence (2023). Apparel Market – Size, Trends, Industry Analysis & Overview.
- Market.us (2023). Second Hand Apparel Market Size, Share, Forecast 2023 | 2032.
- Maximize Market Research (2023). Apparel Market: Global Industry Analysis and Forecast.
- SNS Insider (2023). Sustainable Apparel Market to Hit USD 20.51 Billion by 2030.
- McKinsey & Company (2023). Consumer Survey on Sustainability.
- European Union (2023). Circular Economy Action Plan.
- Worn Again Technologies (2023). Press Release.
- Natural Fiber Welding (2023). Investment Announcement.
- Renewcell (2023). Investment Announcement.
- Trove (2023). Funding Round Announcement.
- Evrnu (2023). Funding Round Announcement.
- Nike (2022). Press Release on Rothy’s Acquisition.
- Patagonia (2023). Sustainability Report.
- Adidas (2023). Annual Report.
- Nike (2023). Impact Report.
- H&M (2023). Sustainability Report.
