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The Sustainable Fashion Market (BPO) will reach USD 15.14 Bn by 2032. The Sustainable Fashion Market is Driven by Innovations in Sustainable Materials and Production Processes.
Sustainable Fashion Market to Hit USD 15.14 Bn by 2032
The Sustainable fashion Market was USD 8.06 Bn in 2024 and is expected to expand at a CAGR of 8.2 % from 2025 to 2032, reaching USD 15.14 Bn by 2032. An Australian business, Samsara Eco, invented enzymatic recycling technology that can recycle polyester forever. Samsara is an example of technology advancements towards sustainability, working with companies such as Lululemon to turn waste plastics into clothing. The U.S. Environmental Protection Agency (EPA) recently deregulated the fashion sector, which has sparked worries about possible setbacks to the industry’s sustainability objectives.
Growing consumer awareness of environmental issues, especially among Gen Z and millennials, has increased the demand for eco-friendly and ethically made fashion products. Advancements in material science have led to the creation of textiles made from recyclable, biodegradable, and renewable resources. Greener practices are encouraged by government laws and regulations that support environmental sustainability in the fashion industry. In the United States, over 70% of consumers consider sustainability when purchasing clothing, indicating a strong domestic demand for sustainable fashion.
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Sustainable Fashion Market Segmentation
By Product Type: The clothing segment held a significant share of the sustainable fashion market, accounting for approximately 46.3 % of the market in 2023. The accessories segment, such as jewellery, belts, and purses, is also moving toward more environmentally friendly solutions. The sustainable footwear segment is gaining momentum, particularly in athletic and casual categories.
By Consumer Demographics: Eco-Conscious Consumers may struggle to identify values-aligned sustainable choices, revealing a disconnect between intention and behavior. Mainstream Consumers include a wide age range, with Millennials (25–39) and Gen Z (18–24) making up a sizable portion. Brands and Organizations have a significant influence on the development of the sustainable fashion industry through their marketing plans, product lines, and policies.
Sustainable Fashion Market Regional Analysis
United States: Sustainable fashion items in the US showed potential for more adoption since they accounted for just 4.3% of the overall apparel market in 2022, up from 2.83% in 2017. More than 70% of American consumers take sustainability into account when making clothing purchases, and 60% think it’s at least slightly important. The goal of companies like Eileen Fisher and Patagonia is to generate a profit from their resale operations.
Germany: The Sustainable Fashion market in Germany was valued at $176.5 million in 2024 and is projected to grow at a CAGR of 8% from 2025 to 2032. A 2023 survey revealed that 49% of German consumers value sustainability while making fashion purchases, but only 25% purchase more sustainable clothing. 40% of people recognize the Green Button label, which is used by around 80 German businesses.
China: The Sustainable fashion market in China is expected to generate around $276.42 billion by 2032, growing at a CAGR of 6.86% from 2025 to 2032. Approximately 78% of Chinese shoppers now follow eco-friendly buying habits. Companies like Shein, which offers up to 600,000 goods, use artificial intelligence to quickly adjust to consumer demand.
Sustainable Fashion Market Competitive Landscape
Stella McCartney: In January 2025, LVMH Moët Hennessy Louis Vuitton sold Stella McCartney the 49% minority ownership in her fashion brand. Despite the change in ownership, McCartney will stay on as LVMH’s Global Ambassador on Sustainability.
H&M Group (H&M Conscious Collection): In December 2024, the Swedish retail technology platform Voyado was acquired by the H&M Group for a minority stake. In August 2024, the global off-price fashion marketplace Secret Sales acquired Afound, a digital fashion store owned by H&M Group.
Levi’s: In December 2023, Expofaro, one of the top manufacturing companies in Colombia, sold some of its assets to LS&Co. This agreement covered the running of 50 franchisees and 40 Levi’s brand stores across Colombia. In August 2021, Yoga was acquired by LS&Co for approximately $400 million.
Recent Developments:
- Swiss company QWSTION has introduced Bananatex, a sustainable substitute for traditional textiles that is created from the fibers of the Abacá banana plant.
- MyloTM, a vegan substitute for animal leather created from renewable mycelium obtained from fungus, was developed by Bolt Threads.
Conclusion
- The future of sustainable fashion is bright, with prospects for expansion, increased inclusion, and less environmental impact, as long as technology, innovation, and consumer awareness keep improving.
- Fashion firms can guarantee long-term prosperity, improve the environment, and set the standard for more ethical and responsible fashion in the future by putting sustainability first.
Related Reports:
Fashion Accessories Market size was valued at USD 1640.06 Billion in 2024 and the total Fashion Accessories revenue is expected to grow at a CAGR of 14.56% from 2025 to 2032, reaching nearly USD 4865.47 Billion.
Jewelry Market size was valued at USD 274.21 Billion in 2024 and the total Jewelry revenue is expected to grow at a CAGR of 5.28% from 2025 to 2032, reaching nearly USD 413.86 Billion.
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