The fashion, textile, and apparel industries have long been criticised for their significant contribution to pollution and resource depletion. Apparel production and logistics generate substantial waste and greenhouse gases, while frequently relying on cheap labour in developing countries. These industries are heavily resource-intensive, consuming large amounts of electricity, water, and chemicals, thereby exacerbating environmental degradation. Growing awareness among companies, consumers, manufacturers, and suppliers of these impacts on climate change and human lives is driving a shift in industry practices.

Most fashion products have short life cycles, with businesses often seeking market differentiation through rapid style changes. Moreover, many fashion, apparel, and textile brands operate fragmented global supply chains, increasing complexity and environmental burden.

According to research by Hopkins et al. (2023), the textile manufacturing sector consumes approximately 79 trillion litres of water annually, contributing around 20 per cent of global industrial water pollution. Millions of litres of untreated wastewater from dyeing and printing units are discharged into sewage systems, with colouring agents that are toxic and not readily biodegradable. The sector also accounts for about 35 per cent of ocean microplastic pollution and 7–10 per cent of global industrial air pollution. Over time, the industry has impacted all life forms through soil, air, and water pollution, biodiversity loss, landfill growth, and ocean waste accumulation.

To address these issues, fashion, textile, and apparel companies must enact comprehensive, lasting change. Research indicates that the adoption of decarbonisation technologies, circular economy principles, and scientific innovations can significantly alter the sector’s impact. Companies are increasingly working to reduce carbon emissions across their supply chains (Brydges, 2021). Many are shifting from linear to circular business models, creating longer-lasting products (Kazancoglu et al., 2020), with companies such as Patagonia leading the way.

Another study highlights that small and medium-sized fashion and apparel companies comprise 90 per cent of the sector globally. Yet, due to limitations in knowledge, technology, and finance, they contribute approximately 70 per cent of industry pollution (Bartl & Ipsmiller, 2023). These businesses require practical, accessible solutions to minimise their environmental impact.

Key Drivers Accelerating Circularity in Fashion and Textiles
Industries today are propelled by a range of internal and external drivers towards adopting circular practices. Textile organisations in the UK clothing sector, for instance, face mounting pressure from governments and NGOs to integrate circular design practices that account for environmental and social impacts. National and international regulations are becoming significant motivating factors.

The rise of social media and the rapid dissemination of information have made consumers increasingly aware of fast fashion’s environmental and human costs. Particularly, younger consumers are demanding higher ethical standards and transparency from brands (Karaosman and Marshall, 2023).

To remain competitive and cultivate an eco-friendly image, companies are adopting circular economy processes, including:

  • Sustainable material selection.
  • Waste reduction and compostable packaging.
  • Adoption of low-energy and waste-reuse production methods.
  • Use of recycled PET bottles and repurposing old clothes and fabrics.

Collaboration among stakeholders, shortening supply chains, and implementing efficient production methods such as Just-in-Time and lean manufacturing further support these initiatives.

Technological advancements, such as carbon capture, green energy systems, and automated supply chain tools, are facilitating the transition. Blockchain technology is also gaining traction, helping to ensure traceability (Keßler et al., 2021).

Challenges Hindering Circularity Adoption in the Textile Industry
Despite growing momentum, the fashion and textile sectors, especially in developing countries like Bangladesh, Sri Lanka, and Vietnam, face considerable sustainability challenges. These include inadequate wastewater treatment, gaseous emissions, poor waste management, and worker health and safety issues.

Significant barriers stem from entrenched mindsets prioritising profitability over sustainability. Many small and medium manufacturers lack awareness of circularity practices and possess outdated infrastructure. Enhancing production efficiency requires not only technological upgrades but also more resource-efficient agricultural practices for raw materials.

Governmental and policy-related barriers further complicate matters. Limited regulatory clarity, taxation on sustainable energy, and lack of organised support for circularity initiatives inhibit progress.

Technical challenges, such as recycling fabrics, persist. Recycling is water-intensive and often results in inferior material quality when using more than 40 per cent recycled cotton. Separating blended fibres like cotton-polyester remains complex and costly. Moreover, in some cases, consumers’ reluctance to pay higher prices for sustainable products poses an economic hurdle.

The high capital and operational costs associated with fabric recycling, wastewater treatment, and adopting greener production technologies discourage many manufacturers. Although brands increasingly push suppliers towards sustainability compliance, they rarely offer financial support to ease the burden.

Circularity initiatives often involve higher energy consumption, specialised training, atypical production methods, and supplier preparedness. Recycling infrastructure remains limited, further hindering progress.

The global and fragmented nature of textile supply chains makes coordination difficult. Transparency and traceability across suppliers, manufacturers, brands, retailers, and recyclers are often lacking.

Additionally, products sold in flea markets without material labels also contribute significantly to landfill waste, complicating recycling efforts. Moreover, sorting textiles by fibre type, dyes, and finishes remains an ongoing challenge. Recycling technologies are yet to become fully scalable or cost-effective, and quality consistency in recycled products remains difficult to achieve.

Regulatory inconsistencies across countries further complicate matters, with limited incentives for adopting circular practices. Cultural resistance to changing linear production models and a lack of collaboration among stakeholders undermine circularity efforts.

Stakeholder Benefits: How Circularity Redefines Industry Opportunities
Embracing circularity can reshape the roles and opportunities for stakeholders across the fashion, textile, and apparel sectors.

  • Suppliers could see increased demand for sustainable materials such as organic cotton, biodegradable fibres, and recycled polyester, opening new market opportunities.
  • Brands may achieve competitive advantages, attract eco-conscious consumers, enhance brand loyalty, and meet growing regulatory requirements like EPR laws. Although R&D and production costs may initially rise, the long-term gains in sustainability-driven markets could be substantial.
  • Manufacturers can create long-term business opportunities through innovation and partnerships, navigating operational and cost complexities more effectively.
  • Consumers stand to benefit through access to durable, high-quality products that can be repaired, resold, or recycled—although a cultural shift towards valuing quality over quantity will be essential.