Ethical Fashion Market Size, Share, and Industry Analysis, By Product (Apparel, Footwear, Bags, and Others), By Material (Recycled/Regenerated, Organic, Natural, and Others), By End-user (Male and Female), By Distribution Channel (Online and Offline), and Regional Forecast, 2025-2032

Ethical fashion includes clothing, footwear, and accessories designed, sourced, and manufactured to minimize societal environmental impact. Their manufacturing techniques prioritize sustainable practices, fair labor conditions, and ethical materials sourcing. Nowadays, consumers have become more conscious of the environmental and social impact of their purchases, contributing to a higher demand for sustainable and ethically produced fashion. Therefore, ethical fashion brands focus on reducing their ecological footprint, ensuring fair wages, and using sustainable materials in their production processes.

• For instance, in February 2024, Miu Miu, an Italian fashion brand, launched a series of upcycled denim collections and introduced upcycled jeans. The range mainly consists of bra tops, trucker jackets, wide-legged jeans, shorts, and other sustainable fashion accessories made from recycled materials.

The COVID-19 pandemic had a severe effect on the market of ethical fashion. Factory shutdowns and restrictions led to production and distribution delays, impacting ethical fashion product availability. Moreover, travel restrictions and multiple lockdowns made it difficult to conduct inspections and ensure compliance with ethical standards. Therefore, obtaining and renewing certifications for ethical practices was delayed, affecting the companies' profit margins.

• For instance, according to the annual report of Compagnie Financière Richemont S.A., the revenue of the company reached USD 15.42 billion in 2020, from USD 15.74 billion in 2019, experiencing a decline of ~2%, owing to the impact of the pandemic.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Parent/Related Market
• Industry SWOT Analysis
• Porter’s Five Forces Analysis
• Supply Chain & Regulatory Analysis
• Recent Technological Advancements

Analysis by Product

By product, the market is segmented into apparel, footwear, bags, and others. The apparel segment accounts for the largest major share. This segment includes various products, from casual wear to formal attire, attracting a wide consumer base. Major fashion brands increasingly adopt ethical practices and launch sustainable clothing collections to cater to consumers' growing demand. Moreover, developing new sustainable materials, such as recycled polyester, organic cotton, and biodegradable fabrics, has fueled growth in this segment.

Analysis By Material

By material, the market is segmented into recycled/regenerated, organic, natural, and others. The recycled/regenerated segment leads the global market. The concept of a circular economy, which puts a strong emphasis on recycling and reusing materials to minimize waste, has gained popularity in recent times. Recycled/regenerated fashion aligns with this concept, attracting eco-conscious consumers. Furthermore, technological advancements have enhanced the efficiency and quality of recycling processes, making it easier to produce high-quality regenerated fibers and boosting segment growth.

Analysis By End-user

By end-user, the market is segmented into male and female. The female segment is anticipated to dominate the global market throughout the forecast period. Women are increasingly shifting toward valuing quality over quantity, opting for durable, sustainably sourced fashion accessories. Besides, the growing emphasis on health and wellness also considers women's clothing, favoring natural and non-toxic materials that align with an ethical lifestyle.

Analysis By Distribution Channel

By distribution channel, the market is segmented into online and offline. The offline segment dominates the global market. Physical store staff can provide personalized assistance, style advice, and detailed information about the ethical sourcing and production of the products. Moreover, retail stores serve as community hubs where brands can get involved with local consumers and foster a sense of community around ethical fashion, fostering segment growth.

Regional Analysis

To gain extensive insights into the market, Download for Customization

The global market is geographically segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North American companies are at the forefront of developing innovative materials and sustainable production techniques, making it feasible to produce ethical fashion at scale. Besides, the region's well-developed e-commerce infrastructure makes it easier for ethical fashion brands to reach a large consumer base through online channels, leading to the region's development.

• For instance, in March 2023, H & M Hennes & Mauritz AB, a global fast-fashion retailer, launched a resale program in collaboration with ThredUp, an online consignment platform in the U.S. ThredUp has collaborated with numerous fashion brands to facilitate their used clothing sales. Therefore, this partnership has marked H&M's first resale marketplace in the U.S. market.

Key Players Covered

The report includes key players, such as H & M Hennes & Mauritz AB, Adidas AG, LVMH Moët Hennessy Louis Vuitton,  Eileen Fisher, and Levi Strauss & Co.

Key Industry Developments

• May 2024:  Fusion Clothing, an Indian fashion apparel manufacturer, launched a range of sustainable clothing products produced with organic kapok and Cotton blends.
• September 2020: ASOS, a global leader in online fashion retail, launched its first circular collection. This collection includes trendy, fashion-forward clothing and accessories. These products are designed and made according to industry-leading circularity principles without compromising product quality or price.