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United States Sustainable Fashion and Circular Economy Market

The US Sustainable Fashion and Circular Economy Market, valued at USD 115 billion, is growing due to rising eco-awareness, government regulations, and innovations in materials like organic cotton.

Region:North America

Author(s):Shubham

Product Code:KRAB3214

Pages:94

Published On:October 2025

About the Report

Base Year 2024

United States Sustainable Fashion and Circular Economy Market Overview

  • The United States Sustainable Fashion and Circular Economy Market is valued at USD 115 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer awareness regarding environmental sustainability, the rise of eco-conscious brands, and a shift towards circular business models that prioritize recycling and upcycling of materials.
  • Key players in this market include New York, Los Angeles, and San Francisco. These cities dominate due to their strong fashion industries, innovative startups, and a high concentration of consumers who prioritize sustainable practices and products, making them hubs for sustainable fashion initiatives.
  • In 2023, the United States government implemented the Fashion Sustainability and Social Accountability Act, which mandates that fashion brands disclose their environmental impact and labor practices. This regulation aims to promote transparency and accountability in the fashion industry, encouraging brands to adopt more sustainable practices.
United States Sustainable Fashion and Circular Economy Market Size

United States Sustainable Fashion and Circular Economy Market Segmentation

By Type:The market is segmented into various types of sustainable materials, each catering to different consumer preferences and environmental considerations. The subsegments include Organic Cotton, Recycled Polyester, Tencel, Hemp, Upcycled Materials, Biodegradable Fabrics, and Others. Among these, Organic Cotton is gaining significant traction due to its natural properties and lower environmental impact compared to conventional cotton. Consumers are increasingly opting for organic options, driven by health consciousness and sustainability concerns.

United States Sustainable Fashion and Circular Economy Market segmentation by Type.

By End-User:The end-user segmentation includes Women’s Apparel, Men’s Apparel, Children’s Apparel, Accessories, Footwear, and Others. Women’s Apparel is the leading segment, driven by a growing demand for sustainable fashion among female consumers who are more likely to prioritize eco-friendly options. This trend is further supported by the rise of brands that focus on women’s sustainable clothing, making it a significant driver in the market.

United States Sustainable Fashion and Circular Economy Market segmentation by End-User.

United States Sustainable Fashion and Circular Economy Market Competitive Landscape

The United States Sustainable Fashion and Circular Economy Market is characterized by a dynamic mix of regional and international players. Leading participants such as Patagonia, Inc., Eileen Fisher, Inc., Reformation, Inc., Allbirds, Inc., Everlane, Inc., Stella McCartney Ltd., Toms Shoes, LLC, Outerknown, LLC, Amour Vert, Inc., Veja, S.A., Tentree International, Inc., PACT Apparel, LLC, Thought Clothing, Nisolo, Inc., Girlfriend Collective, Inc. contribute to innovation, geographic expansion, and service delivery in this space.

Patagonia, Inc.

1973

Ventura, California

Eileen Fisher, Inc.

1984

New York, New York

Reformation, Inc.

2009

Los Angeles, California

Allbirds, Inc.

2016

San Francisco, California

Everlane, Inc.

2010

San Francisco, California

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Market Penetration Rate

Customer Retention Rate

Pricing Strategy

Product Diversification Index

United States Sustainable Fashion and Circular Economy Market Industry Analysis

Growth Drivers

  • Increasing Consumer Demand for Sustainable Products:The U.S. sustainable fashion market is witnessing a surge in consumer demand, with 70% of shoppers indicating a preference for eco-friendly brands. This trend is supported by a report from the World Bank, which highlights that 60% of consumers are willing to pay a premium for sustainable products. The growing awareness of environmental issues is driving this shift, leading to increased sales in sustainable apparel, which reached $13 billion.
  • Government Initiatives Promoting Circular Economy:The U.S. government is actively promoting circular economy initiatives, with over $1.2 billion allocated for sustainable fashion programs. This includes funding for recycling facilities and grants for brands adopting circular practices. The Environmental Protection Agency (EPA) reported a 15% increase in funding for textile waste reduction initiatives, encouraging brands to innovate in sustainable practices and materials, thus fostering market growth.
  • Technological Advancements in Sustainable Materials:Innovations in sustainable materials are propelling the market forward, with investments in research and development reaching $600 million. Companies are increasingly adopting bio-based fabrics and recycled materials, which have seen a 30% increase in usage among major brands. This technological shift not only reduces environmental impact but also enhances product appeal, attracting eco-conscious consumers and driving sales growth.

Market Challenges

  • High Production Costs:One of the significant challenges facing the sustainable fashion market is the high production costs associated with eco-friendly materials and processes. The average cost of producing sustainable apparel is estimated to be 35% higher than conventional clothing. This cost disparity can deter brands from fully committing to sustainable practices, limiting market growth and accessibility for consumers seeking affordable options.
  • Supply Chain Complexity:The complexity of sustainable supply chains poses a significant challenge, with 45% of brands reporting difficulties in sourcing sustainable materials. The industry report indicates that 65% of companies face delays due to the fragmented nature of sustainable sourcing. This complexity can lead to increased lead times and operational inefficiencies, hindering the ability of brands to meet consumer demand for sustainable products.

United States Sustainable Fashion and Circular Economy Market Future Outlook

The future of the U.S. sustainable fashion market is poised for significant transformation, driven by evolving consumer preferences and technological advancements. As awareness of environmental issues continues to rise, brands are expected to adopt more sustainable practices, leading to increased transparency in supply chains. Additionally, the integration of digital solutions for sustainability will enhance operational efficiency. The market is likely to see a shift towards local production, reducing carbon footprints and fostering community engagement, ultimately reshaping the fashion landscape.

Market Opportunities

  • Expansion of E-commerce Platforms:The growth of e-commerce platforms presents a significant opportunity for sustainable fashion brands. Online sales of sustainable apparel are projected to reach $10 billion, driven by increased consumer preference for convenient shopping. Brands can leverage digital marketing strategies to reach eco-conscious consumers, enhancing visibility and sales potential in this expanding market segment.
  • Growth in Second-Hand and Rental Markets:The second-hand and rental markets are experiencing rapid growth, with a projected value of $35 billion. This trend is fueled by consumers seeking affordable and sustainable options. Brands can capitalize on this opportunity by offering rental services or partnering with second-hand platforms, thereby promoting circular economy practices and attracting a broader customer base.

Scope of the Report

SegmentSub-Segments
By Type

Organic Cotton

Recycled Polyester

Tencel

Hemp

Upcycled Materials

Biodegradable Fabrics

Others

By End-User

Women’s Apparel

Men’s Apparel

Children’s Apparel

Accessories

Footwear

Others

By Sales Channel

Online Retail

Brick-and-Mortar Stores

Pop-Up Shops

Subscription Services

Others

By Price Range

Premium

Mid-Range

Budget

Others

By Material Source

Recycled Materials

Organic Materials

Conventional Materials

Others

By Brand Positioning

Luxury Sustainable Brands

Mass Market Sustainable Brands

Niche Sustainable Brands

Others

By Consumer Demographics

Millennials

Gen Z

Gen X

Baby Boomers

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Environmental Protection Agency, Federal Trade Commission)

Manufacturers and Producers

Distributors and Retailers

Textile Waste Management Companies

Fashion Brands and Designers

Non-Governmental Organizations (NGOs) focused on sustainability

Recycling and Upcycling Firms

Players Mentioned in the Report:

Patagonia, Inc.

Eileen Fisher, Inc.

Reformation, Inc.

Allbirds, Inc.

Everlane, Inc.

Stella McCartney Ltd.

Toms Shoes, LLC

Outerknown, LLC

Amour Vert, Inc.

Veja, S.A.

Tentree International, Inc.

PACT Apparel, LLC

Thought Clothing

Nisolo, Inc.

Girlfriend Collective, Inc.

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. United States Sustainable Fashion and Circular Economy Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 United States Sustainable Fashion and Circular Economy Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. United States Sustainable Fashion and Circular Economy Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Consumer Demand for Sustainable Products
3.1.2 Government Initiatives Promoting Circular Economy
3.1.3 Technological Advancements in Sustainable Materials
3.1.4 Rise of Eco-Conscious Brands

3.2 Market Challenges

3.2.1 High Production Costs
3.2.2 Limited Consumer Awareness
3.2.3 Supply Chain Complexity
3.2.4 Regulatory Compliance Issues

3.3 Market Opportunities

3.3.1 Expansion of E-commerce Platforms
3.3.2 Collaborations with Influencers and Celebrities
3.3.3 Development of Innovative Recycling Technologies
3.3.4 Growth in Second-Hand and Rental Markets

3.4 Market Trends

3.4.1 Shift Towards Minimalism and Timeless Fashion
3.4.2 Increased Transparency in Supply Chains
3.4.3 Adoption of Digital Solutions for Sustainability
3.4.4 Focus on Local Production and Sourcing

3.5 Government Regulation

3.5.1 Extended Producer Responsibility (EPR) Laws
3.5.2 Sustainable Apparel Coalition Guidelines
3.5.3 Textile Waste Reduction Initiatives
3.5.4 Eco-labeling Regulations

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. United States Sustainable Fashion and Circular Economy Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. United States Sustainable Fashion and Circular Economy Market Segmentation

8.1 By Type

8.1.1 Organic Cotton
8.1.2 Recycled Polyester
8.1.3 Tencel
8.1.4 Hemp
8.1.5 Upcycled Materials
8.1.6 Biodegradable Fabrics
8.1.7 Others

8.2 By End-User

8.2.1 Women’s Apparel
8.2.2 Men’s Apparel
8.2.3 Children’s Apparel
8.2.4 Accessories
8.2.5 Footwear
8.2.6 Others

8.3 By Sales Channel

8.3.1 Online Retail
8.3.2 Brick-and-Mortar Stores
8.3.3 Pop-Up Shops
8.3.4 Subscription Services
8.3.5 Others

8.4 By Price Range

8.4.1 Premium
8.4.2 Mid-Range
8.4.3 Budget
8.4.4 Others

8.5 By Material Source

8.5.1 Recycled Materials
8.5.2 Organic Materials
8.5.3 Conventional Materials
8.5.4 Others

8.6 By Brand Positioning

8.6.1 Luxury Sustainable Brands
8.6.2 Mass Market Sustainable Brands
8.6.3 Niche Sustainable Brands
8.6.4 Others

8.7 By Consumer Demographics

8.7.1 Millennials
8.7.2 Gen Z
8.7.3 Gen X
8.7.4 Baby Boomers
8.7.5 Others

9. United States Sustainable Fashion and Circular Economy Market Competitive Analysis

9.1 Market Share of Key Players(Micro, Small, Medium, Large Enterprises)

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Market Penetration Rate
9.2.5 Customer Retention Rate
9.2.6 Pricing Strategy
9.2.7 Product Diversification Index
9.2.8 Sustainability Index
9.2.9 Brand Equity Score
9.2.10 Supply Chain Efficiency

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis(By Class and Payload)

9.5 Detailed Profile of Major Companies

9.5.1 Patagonia, Inc.
9.5.2 Eileen Fisher, Inc.
9.5.3 Reformation, Inc.
9.5.4 Allbirds, Inc.
9.5.5 Everlane, Inc.
9.5.6 Stella McCartney Ltd.
9.5.7 Toms Shoes, LLC
9.5.8 Outerknown, LLC
9.5.9 Amour Vert, Inc.
9.5.10 Veja, S.A.
9.5.11 Tentree International, Inc.
9.5.12 PACT Apparel, LLC
9.5.13 Thought Clothing
9.5.14 Nisolo, Inc.
9.5.15 Girlfriend Collective, Inc.

10. United States Sustainable Fashion and Circular Economy Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Sustainable Procurement Policies
10.1.2 Budget Allocation for Sustainable Fashion
10.1.3 Collaboration with Sustainable Brands

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Sustainable Practices
10.2.2 Budget for Eco-Friendly Materials
10.2.3 Funding for Circular Economy Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Cost of Sustainable Products
10.3.2 Availability of Eco-Friendly Options
10.3.3 Consumer Education on Sustainability

10.4 User Readiness for Adoption

10.4.1 Awareness of Sustainable Fashion
10.4.2 Willingness to Pay a Premium
10.4.3 Accessibility of Sustainable Brands

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Sustainability Impact
10.5.2 Expansion into New Markets
10.5.3 Long-term Cost Savings

11. United States Sustainable Fashion and Circular Economy Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development

1.3 Value Proposition Canvas

1.4 Competitive Landscape Analysis


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Segmentation

2.4 Communication Strategy


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

3.3 Online Distribution Channels

3.4 Partnerships with Retailers


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments Analysis

5.3 Emerging Trends


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service

6.3 Customer Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Unique Selling Points


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging Strategies

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from sustainable fashion organizations and circular economy think tanks
  • Review of academic journals and publications focusing on sustainability in the fashion industry
  • Examination of government and NGO reports on waste management and recycling initiatives in the U.S.

Primary Research

  • Interviews with sustainability officers at leading fashion brands and retailers
  • Surveys targeting consumers to understand attitudes towards sustainable fashion and circular economy practices
  • Focus groups with industry experts and stakeholders to gather insights on market trends and challenges

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including consumer surveys and industry reports
  • Triangulation of qualitative insights from interviews with quantitative data from market analysis
  • Sanity checks through expert panel reviews to ensure the reliability of the data collected

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the sustainable fashion market size based on overall apparel market data and growth rates
  • Segmentation of the market by product categories, including clothing, accessories, and footwear
  • Incorporation of trends in consumer spending on sustainable products and circular economy initiatives

Bottom-up Modeling

  • Collection of sales data from key players in the sustainable fashion sector
  • Estimation of market penetration rates for circular economy practices among fashion brands
  • Analysis of pricing strategies and consumer willingness to pay for sustainable products

Forecasting & Scenario Analysis

  • Development of growth projections based on historical data and emerging trends in sustainability
  • Scenario analysis considering regulatory changes, consumer behavior shifts, and economic factors
  • Creation of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Sustainable Fashion Retailers150Brand Managers, Sustainability Coordinators
Consumer Attitudes towards Circular Fashion200Fashion Consumers, Eco-conscious Shoppers
Textile Recycling Programs100Recycling Program Managers, Waste Management Experts
Supply Chain Sustainability Practices80Supply Chain Managers, Procurement Specialists
Fashion Industry Experts50Academics, Industry Analysts, Consultants

Frequently Asked Questions

What is the current value of the United States Sustainable Fashion and Circular Economy Market?

The United States Sustainable Fashion and Circular Economy Market is valued at approximately USD 115 billion, reflecting a significant growth driven by consumer awareness of environmental sustainability and the rise of eco-conscious brands.

What are the main drivers of growth in the sustainable fashion market?

Which cities are leading in the sustainable fashion market in the U.S.?

What is the Fashion Sustainability and Social Accountability Act?

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