Ethical Fashion Market Report 2024

The ethical fashion market size has grown strongly in recent years. It will grow from $8.17 billion in 2023 to $8.83 billion in 2024 at a compound annual growth rate (CAGR) of 8%. The expansion observed in the historical period can be credited to the growth of emerging markets, an increase in foreign direct investments, and a growing customer emphasis on sustainable fashion.

The ethical fashion market size is expected to see strong growth in the next few years. It will grow to $12.05 billion in 2028 at a compound annual growth rate (CAGR) of 8.1%. The anticipated growth in the forecast period can be linked to increasing awareness, the influence of social media, government initiatives, the environmental repercussions of fast fashion, and the expansion of e-commerce. Noteworthy trends expected in the forecast period involve presenting customers with captivating and tangible narratives, adopting recycling and upcycling practices to reduce waste and mitigate the environmental impact in the manufacturing process, incorporating animal-free leather to address animal cruelty concerns, utilizing natural materials, making investments in vegan fashion, and engaging in partnerships and collaborations.

Increasing awareness of the environmental impact of the textile industry is prompting consumers to opt for materials aligned with ethical fashion. The cultivation of raw materials used in fabric production, such as cotton, flax, and hemp, often requires substantial water usage, with up to 20,000 liters needed to produce just 1 kg of cotton. Additionally, the protection of these crops sometimes involves the heavy use of pesticides and herbicides, contributing to environmental contamination. The manufacturing process of rayon, an artificial fabric derived from wood pulp, has led to the depletion of many old-growth forests. In the transformation of pulp into fabric, hazardous chemicals are employed, further impacting the environment. In response to these environmentally harmful processes, there is a notable shift towards eco-friendly materials, fostering the growth of the ethical fashion market.

The expansion of the e-commerce industry is expected to drive the growth of the ethical fashion market in the foreseeable future. E-commerce, involving the electronic buying and selling of products and services over the Internet, provides consumers with convenient access to ethical fashion brands and products globally. E-commerce platforms streamline the shopping experience, facilitating easy browsing and checkout processes for customers interested in purchasing ethical fashion products. For example, according to the United States Census Bureau, e-commerce sales accounted for 15.4% of total sales in the U.S. during the second quarter of 2023, with U.S. retail e-commerce sales estimated at $269.5 billion. This marked a 6.6% increase from the first quarter of 2023. Hence, the expansion of the e-commerce sector is a key driver behind the growth of the ethical fashion market.

Prominent companies in the ethical fashion market are forging strategic partnerships to enhance customer service and advance sustainability goals. Collaborative efforts enable ethical fashion companies to advocate for sustainability in the fashion industry, minimize environmental impact, and establish new benchmarks for a more responsible fashion supply chain. An example of this is seen in the actions of Sheep Inc., a UK-based ethical fashion manufacturer, which, in June 2023, introduced the world's first naturally negative carbon footprint t-shirt. Constructed from super-fine Merino wool with self-cleansing fibers, the t-shirt promotes extended wear and reduced washing compared to cotton. This initiative involved collaboration with suppliers and manufacturers, and the t-shirt features an NFC-enabled tag for complete transparency, aiming to drive sustainability and lessen the environmental impact in the fashion industry.

As an alternative to chemical-intensive textiles, the ethical fashion market is witnessing a shift towards the use of natural resources. Addressing the toxicity associated with chemicals such as chromium used in leather tanning, Carmen Hijosa, the founder of Ananas Anam, developed 'Pinatex,' a natural leather alternative derived from cellulose fibers extracted from pineapple leaves. This innovation not only provides a sustainable alternative but also yields biomass in the industrial process, convertible into fertilizer for agricultural use in growing the next pineapple harvest. The adoption of natural and sustainable materials is a prevailing trend in the ethical fashion market.

In July 2022, Delta Galil, an Israel-based textile firm, completed the acquisition of Organic Basics for an undisclosed sum. With this strategic move, Delta Galil aims to introduce the Organic Basics brand, expanding its product line to include items for infants and children, along with new offerings for both women and men. Organic Basics, a Denmark-based company, specializes in creating ethical and sustainable underwear, t-shirts, and essentials.

Major companies operating in the ethical fashion market report are Eileen Fisher, LVMH Moët Hennessy Louis Vuitton (LVHM), Levi Strauss & Co, H&M Concious (H&M Group), Reformation, Everlane, Tentree, Patagonia, Inc., Wear Pact LLC, United By Blue, Brass Clothing, Ellie Kai, Fake Natoo, No Nasties, Hoomanwear, Maati, Hemp Kari, Maito, NEEMIC, People Tree Ltd., Tonlé, Shekudo, Boden, Sézane, Alternative Apparel, Thought Clothing, Ninety Percent, allSisters, Armed Angels, Beaumont Organic, Bibico, Finisterre, Gudrun Sjoden, Kitty Ferreira, Lowie, Madia & Matilda, Mud Jeans, Rêve en Vert, Organic Basics, HOPE Made in the World, Buki Akomolafe, Mayamiko, SOLEREBELS, Ksenia Schnaider, Only Me, Tennen, Amour Vert, Outerknown, Kotn, Hackwith Design House, Fair Trade Winds, Fair Indigo, Back Beat Co., Encircled, La Causa, Whimsy and Row, MATE The Label, Sotela, Ecologyst, Cariuma, Santista Jeanswear, Animaná, Splash Fashion, Retold Dubai, Asmaraia, LISA FOLAWIYO.

Ethical fashion involves the design, production, and distribution of clothing with a primary focus on minimizing harm to both people and the environment. In the ideal scenario, it aims to benefit all participants in the supply chain, fostering an improved future for everyone rather than solely benefiting the top tier. The ethical principles and social impact associated with a brand's label play a crucial role in ethical fashion. It addresses both the social and environmental aspects of the fashion industry, striving to enhance the working conditions of laborers.

The key categories of ethical fashion include fair trade, animal cruelty-free, eco-friendly, and charitable brands. Brands or lines that actively seek to reduce their impact on the environment, prioritize consumer health, and improve the working conditions of garment workers are recognized as part of the eco-friendly fashion movement. Various products falling under this category include organic, manmade/regenerated, recycled, and natural materials, catering to men, women, and children alike.

The ethical fashion market research report is one of a series of new reports that provides ethical fashion market statistics, including ethical fashion industry global market size, regional shares, competitors with an ethical fashion market share, detailed ethical fashion market segments, market trends and opportunities, and any further data you may need to thrive in the ethical fashion industry. This ethical fashion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the ethical fashion market in 2023. Western Europe was the second largest region in the global ethical fashion market share. The regions covered in the ethical fashion market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

The ethical fashion market includes revenues earned by entities by organic, natural, biodegradable, recycled or repurposed fabrics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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