The European circular economy market in fashion could exceed €100 billion by 2030. This figure was published on Thursday by the Fédération de la mode circulaire (FMC). It highlights the economic strength of a market that was once niche but is now a priority for companies in the sector.
An enormous economic weight
The forecast of 100 billion euros for the circular economy in fashion in 2030 represents more than 58 percent of the current turnover of the entire European textile industry. According to data from Euratex, this is 170 billion euros. The economic weight of the four pillars of the circular economy – reinvent, reuse, repair and recycle – represents more than just an opportunity, but the future.
Eco-design products currently make up around six percent of the European fashion market. Driven by regulatory developments, their share could rise to almost 15 percent by 2030. With this they could generate around 71 billion euros alone. The FMC reminds that the design phase is responsible for almost 80 percent of an item’s environmental impact. Therefore, this step is crucial to ensure the large-scale development of repair, reuse and recycling models.
European legislation: a catalyst for investment
Above all, the report highlights the crucial role of new regulations in driving demand and investment. The harmonization of extended producer responsibility (EPR) systems is proving to be one of the most effective levers for structuring the market.
Europe produces around 12.6 million tonnes of textile waste every year. However, only around 20 percent of this is collected separately today. By transferring the disposal costs to the manufacturers, the EPR enables the financing of the necessary infrastructure for collection, sorting and recycling. There is also the digital product pass DPP and projects for a circular VAT. These are intended to increase the traceability, transparency and competitiveness of the industry.
A strategic realignment of the value chains
Supporting local repair services and recycling strengthens the resilience of strategic textile supply chains and creates long-term value. Mina Bishop, senior manager of circular economy at KPMG, explains the importance of this shift: “For years, circular economy in fashion was treated exclusively as a sustainability issue. Our study shows that it is also a strategic and industrial issue.”
Maxime Delavallée, President of the Fédération de la mode circulaire, confirms the key role of public institutions: “Our study shows that regulation can be a powerful accelerator for the circular economy in fashion.” He notes that adapted tax measures, such as a circular VAT, would help make repair and resale more financially attractive. This would allow the European market to capture a significant part of the €104 billion worth of opportunities identified for 2030.
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