Fashion brands are making efforts to reduce their environmental impact, but a new report shows that they still have a long way to go in embracing a circular economy. The Circularity Gap Report, funded by the H&M Foundation and authored by Circle Economy, found that only 0.3% of the 3.25 billion metric tons of materials consumed annually by the textile sector come from recycled sources. This is a small percentage compared to the 70% of raw materials used in the industry that are made from fossil fuel-based synthetic fibers.
The report also highlights the growing demand for textiles, with fiber production reaching a record high of 116 million metric tons in 2023. This is expected to continue increasing, as the global textile market is projected to grow by 7.4% annually through 2030. The rise of fast fashion, with some brands releasing up to 24 collections per year, is a major contributor to this growth. Even luxury brands have increased their output, introducing intermediate collections outside of the traditional two-season format.
However, the report also sheds light on the end-of-life fate of these garments. It found that 61.4% of discarded textiles end up in landfills or incinerators, with only 8% being reused or exported. The volume of traded secondhand clothing has also increased significantly over the past three decades, with the European Union, China, and the United States being the top exporters. These items are primarily imported to Asia, Africa, and Latin America, with Ghana’s Kantamanto Market alone processing over 150,000 metric tons of textiles annually.
The report also highlights the impact of the textile industry on climate change, with 3% of overall climate impact and 13% of impacts from global production and manufacturing being attributed to the industry. It also causes 6% of water scarcity from retail and 5% from waste management. Raw material extraction and processing contribute to the majority of greenhouse gas emissions in the textile supply chain.
This report serves as a wake-up call for the fashion industry to take more significant steps towards a circular economy and reduce its environmental impact. It also highlights the need for consumers to be more mindful of their clothing choices and the importance of proper disposal and recycling of textiles.