The ethical fashion market is projected to experience a compound annual growth rate (CAGR) of 8.0%, increasing from $7.57 billion in 2022 to $8.17 billion in 2023. However, the ongoing Russia-Ukraine war has disrupted the global economic recovery from the COVID-19 pandemic, resulting in economic sanctions, supply chain disruptions, and increased commodity prices, which have caused inflation across various markets worldwide. Despite these challenges, the ethical fashion market is expected to grow at a CAGR of 8.0%, reaching $11.12 billion by 2027.
Ethical fashion encompasses clothing designed, produced, and distributed, focusing on minimizing harm to people and the environment. This market includes revenues generated by entities using organic, natural, biodegradable, recycled, or repurposed fabrics and related goods sold by the service provider or contained within the service offering. Only goods and services traded between entities or sold to end consumers are included. Ethical fashion also aims to improve the working conditions of laborers and focuses on both the social and environmental impact of fashion.
In 2022, the Asia-Pacific region was the largest market for ethical fashion, followed by Western Europe. The market report covers areas such as Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa. The main types of ethical fashion include fair trade, animal cruelty-free, eco-friendly, and charitable brands. Products include organic, manmade/regenerated, recycled, and natural fabrics men, women, and children use.
Growing awareness of the adverse effects of the textile industry on the environment has led to increased demand for ethical fashion materials. However, the high cost of producing clothing ethically remains a challenge. Ethically run sewing facilities pay their employees well and offer fundamental human rights for a safe working environment, significantly driving up costs for ethical fashion brands. To address concerns with toxic chemicals, some companies use natural and sustainable materials as alternatives to chemically-based textiles.
In July 2022, Israel-based textile firm Delta Galil acquired Denmark-based ethical and sustainable underwear, t-shirts, and essentials company Organic Basics to expand its product line for both women and men and products for infants and children. The ethical fashion market report covers countries such as Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified). The revenues for a defined geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the selected market, irrespective of where they are produced. It does not include revenues from resales further along the supply chain or as part of other products.
The ethical fashion market research report provides comprehensive market statistics, including global market size, regional shares, competitors with a market share, detailed market segments, market trends and opportunities, and any other relevant data needed to thrive in the industry. The report delivers a complete perspective of the current and future scenario of the industry.