Sustainable Fashion Market Statistics (2024) | NovaTomato (2024)

Sustainable fashion isn't just a trend in today's clothing landscape – it's a priority for consumers and businesses alike. For decades, the fashion market has stood as one of the fastest-growing and most profitable sectors worldwide.

Currently, the fashion space benefits from a 5.5% annual growth rate, and is worth around $2.4 trillion globally. However, changing customer preferences, and increased insights into the impact the certain raw materials and processes have on our planet, is prompting a change in the industry.

Every year, the fashion industry produces over 1.2 million metric tons of CO2 while simultaneously consuming huge volumes of crucial resources, from water to plant material.

As consumers become more ethical, eco-conscious, and keen to reduce their carbon footprint, the sustainable fashion market is gaining increased attention. Here's your behind-the-scenes insight into this market's growth, and potential.

What Is the Sustainable Fashion Market?

The sustainable fashion market is a growing subsection of the clothing industry, defined by companies who take an ethical approach to producing fashion items and garments.

Key players in the eco-friendly and sustainable fashion market are often defined by their use of unique natural materials, commitment to reducing carbon emissions, and ethical approach to business.

In the eco-friendly market, businesses in the apparel industry balance the creation of high-quality products with business strategies that protect and nurture the environment.

While "fast fashion" still makes up a large part of the apparel landscape, sustainable fashion is gaining increased attention.Around 67% of consumers now say they consider sustainability to be important when choosing which brands, they want to buy from.

Additionally, the ethical fashion market is growing at a faster rate than the wider industry. The market size for ethical fashion in 2022 was $7,548.2 million, and it's forecasted market growth rate was 6.5%.

The Defining Elements of Sustainable Fashion Companies

Major players in the ethical fashion market all take their own unique approach to apparel production. Some companies focus on animal protection, using materials like animal-free leather and vegan inks. Others concentrate on ethical supply chain conditions, ensuring the conditions of laborers adhere to industry and federal standards.

Primarily, however, the focus of sustainable fashion companies is on reducing greenhouse gasses, carbon emissions, and the production of waste that could damage the environment. These companies elevate their market positioning with:

• A commitment to sustainable materials: Rather than relying exclusively on synthetically created fabrics and cotton, sustainable fashion brands utilize innovative new materials to create eco-friendly clothing. They may choose materials that may consume fewer resources.
• Reduced waste: Many companies in this fast-growing segment commit to reducing waste on a significant scale. Fast fashion trends can lead to huge amounts of waste in landfills. However, eco-friendly brands create clothes that are biodegradable, recyclable, or longer-lasting.
• The preservation of resources: The fashion industry uses around 98 million tons of crucial resources each day, from oil for producing synthetic fibers to fertilizers for cotton and even water. Using ethical methodologies, sustainable fashion companies reduce their use of natural and crucial resources to protect the earth.
• Unique business models: Increasingly, fashion brands are exploring innovative new business models to help reduce waste, such as fashion and print on demand. This strategy allows companies to produce garments only when orders are placed by customers, reducing the need for excessive production and warehouse storage.

Sustainable Fashion Market Statistics

While the sustainable fashion market is still in its nascent stages today, it's growing at a phenomenal rate. Studies show that not only are companies investing more heavily in sustainable strategies, but consumers value brands with a better environmental footprint, spending more money with eco-friendly vendors. This suggests companies can actively improve their customer base and revenue simply by taking a more eco-friendly approach to fashion.

Let's explore some of the crucial statistics highlighting the growth of the sustainable fashion landscape in 2024 and beyond.

Ethical Fashion Market Size and Forecast

Today's statistics show that the sustainable and ethical fashion landscape is growing at an exceptional rate. According to Research and Markets, the ethical fashion space reached a value of $7,548.2 million in 2022. By 2027, this market is expected to grow at a CAGR of 8.1%, through the forecast period, reaching a value of $11,122.2 million by 2027 and $16,819 million by 2032.

The report tells us direct investments in sustainable fashion have been fueled by various factors. Consumers are becoming more aware of the problems with the traditional manufacturing process.

New customer segments, such as millennials (the largest segment for most companies) and Gen Z have new purchasing priorities. Additionally, research into the fashion supply chain and it's impact on the planet has inspired the introduction of new government and federal initiatives.

Regulatory groups are actively encouraging companies to invest in sustainable fashion trends, to reduce the impact of fashion production on the planet.The Asia Pacific region is currently the largest market for ethical fashion vendors, accounting for a 33% market share.

Elsewhere, the FactMR team found the sustainable apparel market achieved a value of $11.2 million in 2023, and is expected to grow at a rate of 9.3% CAGR in the following years to reach a value of $27.2 million by the end of 2033.

This report also draws attention to rising awareness of environmental safety and recycling as a core driver for the industry. Notably, the study also found certain locations are gaining traction faster than others, with two-thirds of customers in India willing to pay more for sustainable fashion.

Customer Profiles

While interest in sustainable fashion is increasing everywhere, the majority of this market's growth is being pushed by certain consumer segments.

Market research reports indicate ethical clothing is more appealing to female consumers. According to one report, women under 35 are currently the biggest target market for fast fashion retailers.

However, the growth outlook is positive for companies targeting fashion customers in all regions and of all genders. As noted above, younger consumers, such as millennials and Gen Z consumers, are particularly interested in ethical clothing initiatives.

These consumers are more aware of the problematic business operations of fast fashion brands, and they're more in tune with the environmental concerns facing the planet. Fortunately, this means many online consumers are actively searching for apparel by entities committed to eco-friendly processes.

Notably, the growth potential of the sustainable fashion market is enhanced by the fact that consumers are willing to pay more for products that adhere to their values. Market reports show 25% of customers have spent more on

sustainable fashion made with eco-friendly materials in recent years.

The growth of the creator economy, and the influencer landscape is also helping to drive more considerate purchasing decisions. Today's consumers want to be seen supporting ethical fashion companies. This is particularly true among younger audiences.

Around 75% of Gen Z consumers even said they've purchased used clothing in the past to reduce their environmental impact.

Insights into sustainable fashion demographics have also revealed:

• 72% of consumers are now aware of the sustainable fashion concerns and are making decisions based on a company's environmental impact.
• 73% of millennials are willing to pay extra to purchase items from sustainable brands.
• 55% of US consumers are interested in purchasing sustainable clothing, but around 48% say they don't know where to find sustainable brands.
• 68% of Vogue readers consider sustainability to be an important consideration when making fashion purchases, and 38% buy as much sustainable fashion as possible.
• Around 38% of consumers say reducing their impact on the environment is one of their main concerns when choosing fashion products.

Sustainable Fashion Market Challenges

While global companies and fashion brands are becoming increasingly aware of the demand for sustainability, creating a high-growth sustainable fashion company isn't without its challenges.

Today's businesses still need to figure out how to overcome roadblocks like:

• Production and operational challenges:

  Even in the fastest-growing markets like Asia and North America, sourcing sustainable materials for ethical clothing can be complex. Companies need to focus on working with innovative fashion partners, like NovaTomato, to access recycled polyester, unique environmentally friendly materials, and eco-friendly inks. Additionally, working with a POD or fashion-on-demand provider can also help companies outsource some of the production process for clothing to other market experts.

• Building brand awareness:

  Although consumers are growing more interested in the concept of sustainable fashion, there are still many who don't fully understand the impact fast fashion has on the current landscape. What's more, many consumers don't know how to effectively find sustainable clothing brands. Businesses need to double down on telling their story, sharing their insights on the sustainable market with customers, and generating excitement for each product launch with the right promotional activities.

• Geopolitical restraints:

  Geopolitical issues can have a resounding impact on virtually every industry, from the fashion landscape to the technology sector. Wars, lockdowns, and supply chain issues over the last few years have hampered the growth of many sectors. To continue delivering sustainable product options in the years to come, brands will need to commit to carefully planning ways of avoiding geopolitical concerns. Working with reputable partners could be a great way to minimize risks.

How NovaTomato Supports the Sustainable Fashion Market

While there are still challenges to overcome before sustainable fashion overtakes fast fashion in the current industry, the landscape is moving in the right direction. The rise of new material options and product development processes has opened up new opportunities for growing brands.

At NovaTomato, we pride ourselves on being one of the leading pioneers in empowering global companies to invest in the power of sustainable fashion. We built our entire fashion-on-demand business model to minimize waste, and reduce each company's impact on the planet, while also ensuring entrepreneurs can take a low-risk approach to growth.

Unlike other POD companies, we don't just reduce waste for the fashion industry by producing products only when they're ordered. We also leverage a host of different strategies to provide companies and consumers with the eco-friendly products they deserve, such as:

• Sustainable fabrics and eco-friendly inks:

  At NovaTomato, we work with world-leading production partners to utilize the most exciting innovations in fabric and ink development. Our sustainable fabrics are on the cutting edge of the industry, combining environmental protection with comfort and versatility. Plus, thanks to our unique printing techniques, we can create designs and all-over prints other POD companies can't offer.

• Eco-friendly packaging and shipping:

  Our eco-friendly packaging is free from plastic, and fully compostable, so companies can reduce their environmental impact through every step of the fulfillment journey. We even work specifically with logistics companies committed to minimizing their impact on the planet, to make your logistics process greener than ever.

• Intelligent partnerships:

  We believe we're defined by the companies we work with. That's why we choose only the most sustainable, eco-friendly, and ethical manufacturers around. Our partners have worked with some of the top brands in the world, have their own GRS certificates, and utilize state-of-the-art production processes to reduce waste.

• Eliminating production waste:

  At NovaTomato, we don't just provide companies with white labelled products to print on. We create items from scratch according to the needs of our customers, only when an order is placed. Knitting products are produced from yarn, for a more ecological result, and our production teams follow the highest sustainability guidelines to reduce water waste, and minimize resource consumption.

Join the Growing Sustainable Fashion Market

Sustainable fashion presents significant growth opportunities to businesses. With an eco-friendly approach, companies can adapt to changing consumer behavior, evolving priorities in the fashion landscape, and transforming expectations.

Our commitment to helping companies build a sustainable, eco-friendly, and cost-effective business model has marked us as an innovator in our field – a fact we're particularly proud of. Here at NovaTomato, we ensure everyone has an opportunity to join the growing sustainable print-on-demand fashion market, no matter who you are, or how much money you have to invest in your business.

We work alongside fashion and lifestyle brands, members of the creator economy, influencers, associations, and individuals, to build phenomenal companies from scratch. With our sustainable practices, amazing product options, and intelligent design tools, anyone can bring their creative spirit to life in the fashion world without harming the environment.

Reach out to NovaTomato today to find out how we can help you create clothes that delight your audience, transform your revenue, and protect the planet.

FAQs

Still, have questions about the sustainable fashion industry?

Let's see if we can answer some of your top queries.

How Big Is the Sustainable Fashion Industry?

The sustainable fashion industry is growing at an incredible rate. By the beginning of 2023, the sustainable fashion industry was worth around $11.2 million globally, and it's expected to reach a value of $27.2 million in the next 10 years. Additionally, Statista reports show that by 2026, sustainable apparel will make up around 6.14% of the overall fashion market.

Which Consumers Care about Sustainable Fashion?

Consumers in virtually every market segment are becoming increasingly interested in sustainable fashion. However, for the time being, the biggest segment of the market belongs to young and older men, as well as millennials, and the Generation Z group.

Is Sustainable Fashion Becoming a Trend?

In the last 10 years, demand for sustainability has grown significantly as consumers have become more aware of the impact the fashion space has on our world. Additionally, as sustainable fashion companies continue to work with influencers and content creators to build brand awareness, interest in the segment is growing. The sustainable fashion industry is gaining exceptional popularity.