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The Rise of Sustainable and Circular Fashion

Sargundeep Kaur by Sargundeep Kaur
August 7, 2026
in Lifestyle
Reading Time: 14 mins read

For years, fashion has trained us to believe that the value of clothing lies in its newness. A new season meant a new collection, a new trend meant a new purchase, and an old outfit could suddenly feel irrelevant simply because it had been seen too many times.

But that equation is beginning to change.

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The most interesting shift in fashion today is not simply that consumers are asking brands to use organic cotton or recycled polyester. It is that the entire idea of what happens to a garment after it is bought is becoming part of the product itself. Repair, resale, rental, upcycling and take-back programmes are moving from niche experiments to serious retail strategies.

And I think this is where sustainable fashion becomes much more interesting. It is no longer only an environmental conversation. It is becoming a business-model conversation.

Fashion’s Biggest Problem Is Not Just What We Buy

The fashion industry has a fundamental problem: it produces enormous volumes of clothing in an economic system designed around constant replacement.

UNEP estimates that the textile industry is responsible for around 2-8% of global greenhouse-gas emissions, while using water on a massive scale. The organisation also highlights overproduction and overconsumption as central problems in the sector.

The waste problem is equally difficult to ignore. UNEP says around 92 million tonnes of textile waste are generated globally every year.

But simply telling consumers to “buy less” is unlikely to transform a multibillion-dollar industry.

The more important question is: Can fashion companies make money from keeping clothes in use for longer?

That is the real test of circular fashion.

Circular Fashion Is Changing the Meaning of Ownership

Circular fashion works on a surprisingly simple principle: instead of producing a garment, selling it and eventually throwing it away, brands try to keep that garment or its materials in use for as long as possible.

That can happen through repair, resale, refurbishment, rental, recycling or upcycling.

The difference sounds small, but commercially it is enormous.

Imagine buying a jacket from a brand and, instead of the relationship ending at checkout, the brand later repairs it, resells it through its own platform, refurbishes it or takes it back for recycling. The company is no longer simply selling a product. It is building multiple revenue opportunities around the same product.

That is why I believe circular fashion deserves to be viewed as more than an environmental trend. The garment itself is becoming an asset that can generate value more than once.

The Ellen MacArthur Foundation’s Fashion ReModel initiative is already bringing fashion companies together to explore business models that can generate revenue without relying entirely on the production of new clothes. That may eventually be one of the biggest disruptions to fashion retail: selling more does not necessarily have to mean producing more.

Resale Is Turning “Second-Hand” Into a Business

Perhaps the clearest evidence of this change is the rise of resale.

Second-hand clothing was once associated largely with thrift stores, bargain hunting or vintage enthusiasts. Today, it is becoming a sophisticated retail category, supported by digital platforms, social commerce, better product discovery and even AI.

ThredUp’s 2026 Resale Report estimates that the global second-hand apparel market could reach $393 billion by 2030, representing roughly 10% of total apparel spending. It also projects that the market will grow twice as fast as overall apparel retail. That statistic matters because it changes the conversation around resale.

Consumers are not necessarily choosing second-hand only because they want to make a sustainable choice. They may want something unique, cheaper, vintage, accessible or simply different from what everyone else is wearing.

Sustainability becomes much more powerful when it is not the only reason to buy something.

This is one of my biggest takeaways from the circular-fashion movement. If sustainable choices feel like sacrifices, they will struggle to become mainstream. But if they offer better value, individuality or convenience, sustainability becomes almost a side effect of a better shopping experience.

Repair Could Become the Most Underrated Fashion Business

There is another part of circular fashion that receives much less attention: repair.

For decades, fashion retail has focused on persuading people to replace damaged or outdated clothing. Circular fashion asks the opposite question: What if the garment is worth fixing?

That requires brands to think differently about product quality.

A company that offers repair services has an incentive to make garments durable enough to repair. It also creates another point of interaction with customers long after the original purchase.

This could eventually change the meaning of brand loyalty. Instead of loyalty being created through discount codes and endless new collections, it could be created because a brand takes responsibility for what it sold.

The European Union is already pushing the industry in this direction. Its textile strategy includes requirements designed to make textiles last longer and become easier to repair and recycle, alongside measures supporting reuse and repair businesses.

That tells me something important: circularity is gradually moving from a voluntary brand initiative towards a structural expectation from regulators.

Upcycling Makes Waste a Design Problem

Upcycling takes the idea one step further.

Instead of treating discarded fabric as waste, designers can treat it as a raw material. Old denim can become a new garment. Fabric scraps can become accessories. Damaged clothing can be redesigned instead of discarded.

Interestingly, this is not entirely new for India. India has a long tradition of reusing textiles. From quilts made from old fabrics to household items created from leftover cloth, the idea of extending a material’s life has existed long before “circular fashion” became a global buzzword.

Even the Indian government has highlighted this cultural knowledge as an opportunity for the modern textile industry. At Bharat Tex 2025, Prime Minister Narendra Modi pointed to traditional practices such as making Godhadis from old clothes and encouraged the industry to bring such forms of reuse and upcycling into global markets.

And this is where I think India has an interesting advantage.

The country does not have to invent circularity from scratch. It can combine traditional knowledge of reuse with modern design, technology and organised retail.

That combination could be far more powerful than simply copying Western sustainability trends.

The Consumer Is Becoming More Suspicious of “Green” Labels

There is, however, a major problem that the industry cannot ignore: sustainability has become a marketing word.

A green label, recycled-fabric tag or “conscious collection” does not automatically make a business circular. Consumers are becoming more interested in what happens behind the label. Where was the garment produced? How durable is it? Can it be repaired? What happens when the consumer no longer wants it? Can its materials actually be recycled?

This is why transparency will become increasingly important.

The European Commission is developing a Digital Product Passport under its Ecodesign for Sustainable Products Regulation. It is intended to provide information about products, including sustainability and durability characteristics, helping consumers and businesses make more informed decisions.

To me, this is a major shift. The future consumer may not just ask, “How does this look?”

They may ask, “What is this made of, how long will it last, and what happens to it afterwards?”

That makes sustainability measurable rather than merely fashionable.

The Real Challenge: Circularity Has to Make Financial Sense

There is still a significant obstacle.

Repair networks cost money. Collecting used clothes is complicated. Sorting textiles is difficult. Recycling blended fabrics can be technically challenging. Reverse logistics can erase margins. And resale requires brands to build systems that are very different from traditional retail.

This is why I do not think every brand will suddenly become circular.

The winners will probably be the companies that figure out how to make circularity commercially attractive, rather than treating it as an expensive sustainability department.

A successful resale programme, for example, can bring customers back to a brand without requiring the company to manufacture another completely new garment. Repair can strengthen customer relationships. Durable products can build reputation. Take-back programmes can create valuable information about how consumers use products.

In other words, circularity can reduce waste but the bigger opportunity may be reducing the distance between a brand and the entire life cycle of its product.

What Happens to Fast Fashion?

This is where the future gets complicated.

Fast fashion will not disappear simply because consumers suddenly become environmentally conscious. Price, convenience and trend cycles remain powerful forces.

But the industry may become more divided.

At one end, there will still be businesses built around speed, low prices and frequent purchases. At the other, brands will increasingly compete on durability, resale value, repairability, traceability and longevity.

And the most interesting companies may sit somewhere in between. They could still release new designs while creating systems that ensure old products do not immediately become waste.

That is why I think the future of fashion is unlikely to be “new versus sustainable.”

It will be about new plus reusable, repairable, resellable and recyclable.

The Next Fashion Statement Could Be Longevity

The biggest change in fashion may ultimately be psychological.

For a long time, repeating an outfit was almost treated as a fashion failure. Social media intensified this pressure by constantly putting new looks in front of consumers.

But the definition of fashion value is slowly expanding.

A jacket that lasts five years can become more valuable than one that looks exciting for five weeks. A vintage piece can become desirable precisely because nobody else has it. A repaired garment can carry a story that a brand-new one does not.

And personally, I think this is the most exciting part of circular fashion.

The future may not belong to the person who owns the most clothes. It may belong to the person who gets the most value out of each one. That does not mean fashion will stop being aspirational or trend-driven. It means the aspiration itself could evolve.

The next generation of fashion retail will not be judged only by how quickly it can create something new. It will increasingly be judged by how intelligently it can keep something valuable in circulation.

If brands can make repair desirable, resale convenient, upcycling fashionable and durability profitable, sustainability will stop being a separate category of fashion.

It will simply become how fashion works.

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