How Much is the Green Fashion Market Worth?

The shift in the fashion consumer behavior was already in the air before the pandemic hit our lives.

Certainly, it affected our way of approaching fashion consumerism, our mindset and also our consideration of the environment and its importance. The concept of circular fashion, which is fairly new, and yet to be clearly defined, has captured the attention of the consumers.

What Happened in 2020 in the Fashion Industry?

As we have already anticipated here, the fashion industry in the last twelve months has shown an increase in the digitalization of the entire system. From the production of apparel and shoes, to the way the various fashion weeks are presented, all moving towards a business model in which the connection between the product and the final consumer evolves as a result of this trend.

Gamifaction in fact, is another trend that is shifting the way the fashion industry is targeting consumers.

How big is the green fashion industry?

As reported by a research project conducted for MFF by Pwc Italia, it is estimated that:

Statistical studies on eco-sustainable fashion show that the market should report growth up to $ 9.81 billion (8.08 billion euros) in 2025. Subsequently to about $ 15.2 billion (12.5 billion euros) by 2030, with a compounded growth rate of 9.1%.

What are the reasons behind this growth?

The research highlights how the introduction of new technologies and the availability of alternative sustainable materials are promoting the explosive growth of the green fashion industry.

Thanks to these two key factors, the fashion system will experience growth estimated to be around $ 3 trillion to $ 5.3 trillion (4.36 trillion euros). The most significant sector growth rates, in terms of sustainability, are linked to:

The most significant sector growth rates, in terms of sustainability, are linked to:

1. The use of recyclable materials, which will result in gains of around $ 350 billion (around 288.5 billion euros)
   
2. The use of ecological fibers, a segment that is worth almost $ 40.4 million today (33.3 million euros), with an annual growth of 5%, and the use of sustainable packaging.

Are governments responsible for this move towards a sustainable fashion system?

Needless to say, governments and their initiatives are crucial for the evolution of the industry in this direction.

They play an important role in setting the frameworks by which fashion companies manufacture and market their products. For example, effective government policy that is made with the aim of fostering a sustainable society does things like provide protections to workers, sets a fair wage for labor, and requires transparency in how companies manage their supply chains.

Governments also are slowly starting to push their economies to reduce carbon emissions. In 2018, China announced its Green trajectory to become carbon-neutral by 2060. In 2019, the Indian governments introduced “SU.RE”, which strands for ‘Sustainable Resolution’, a firm commitment from the industry to move towards fashion that contributes to a clean environment. The SU.RE project is a commitment by India’s apparel industry to set a sustainable pathway for the Indian fashion industry.

While the United States made a massive mistake in reducing its commitments to social and environmental policies under President Trump, the Biden Administration is trying to undo the damage, making the move for the United States to rejoin the Paris Agreement and placing environmental justice at the center of his plan to address climate change.

GEN Z and green fashion. Are they really interested in this topic?

Yes, they are!

As per Deloitte’s analysis on GEN Z consumer behavior, Gen Z will soon surpass millennials as the most populous generation , with more than one-third of the world’s population counting themselves Gen Zers.

Inclusion and diversity are critical factors Gen Zers consider when deciding whether or not to choose a company or another. They care about environmental issues and, becaue of this concern, are dramatically attracted to sustainable products. Hence, it is not surprising that brands like Nike and Gucci are shifting their communication on topics very close to this generation.