Circular fashion: European market estimated at 100 billion euros by 2030

The European circular fashion market could surpass the 100 billion euro (116 million dollars) mark by 2030. This figure, revealed this Thursday by the Fédération de la mode circulaire (FMC) and KPMG, demonstrates the economic power of a market that was once a niche but is now a priority for companies in the sector.

A massive economic impact

The projection of 100 billion euros for circular fashion in 2030 represents more than 58 percent of the current turnover of the entire European textile industry (170 billion, according to EURATEX data). The economic weight of the four pillars of circular fashion – reinvent, reuse, repair and recycle – therefore represents more than just opportunities; it represents the future.

Currently accounting for around 6 percent of the European fashion market, eco-designed products could reach a share of nearly 15 percent by 2030, driven by regulatory changes. They could generate around 71 billion euros on their own. As the FMC points out, the design phase determines nearly 80 percent of an item's environmental impact. This stage is therefore essential to ensure the large-scale development of repair, reuse and recycling models.

European legislation: a catalyst for investment

Above all, the report highlights the decisive role of emerging regulations in supporting demand and investment. The harmonisation of extended producer responsibility (EPR) schemes appears to be one of the most powerful levers for structuring the market.

Europe generates approximately 12.6 million tonnes of textile waste each year, but only about 20 percent is currently collected separately. By transferring end-of-life costs to producers, EPR helps finance the necessary infrastructure for collection, sorting and recycling. In addition, the digital product passport (DPP) and circular VAT projects are expected to increase traceability, transparency and competitiveness in the sector.

A strategic reorganisation of value chains

Supporting local repair and recycling services helps to strengthen the resilience of strategic textile supply chains and create long-term value. Mina Bishop, senior circular economy manager at KPMG, explains the importance of this transition: “For years, circular fashion was treated solely 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 circular fashion.” He notes that appropriate tax measures, such as a circular VAT, would help make repair and resale more financially attractive, allowing the European market to capture a significant share of the 104 billion euros in opportunities identified for 2030.

This article was translated to English using an AI tool.

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