By Ayush Patodia (Associate Vice President, Avalon Consulting) & Avneet Anand (Consultant, Avalon Consulting)
The current fashion industry operates on a linear model that’s often described as “extract, produce, discard.” This approach puts immense strain on our planet’s finite resources. The process begins with raw material extraction, continues through resource-intensive manufacturing, and ends with disposal, often in landfills. This cycle depletes natural resources, consumes substantial energy and water, and generates significant pollution and waste.
The use of chemicals in textile production is particularly concerning. Various substances, including pesticides, flame retardants, biocides, and synthetic dyes, are commonly used. These chemicals often end up as effluents that pollute water sources and soil, contributing to widespread environmental degradation. Moreover, when clothes are discarded in landfills, they release greenhouse gases and toxic substances as they decompose. Beyond environmental concerns, this system also has negative social implications, such as subpar working conditions and health risks for textile industry workers.
If the textile industry continues on its current trajectory, the consequences could be severe. The environmental toll of excessive resource consumption and pollution may reach a point of no return, potentially leading to significant loss of biodiversity and exacerbating climate change. From an economic standpoint, the industry might face challenges such as resource scarcity, stricter regulations, and rising production costs, all of which could threaten profitability. Consumers also increasingly prefer sustainable, eco-friendly products, organic and recycled materials, and ethically produced items, with a growing interest in customisable fashion and tech-integrated fabrics. The social impact could also worsen, with continued poor labour conditions and health issues potentially leading to increased public scrutiny and consumer dissatisfaction. Without a shift towards more sustainable practices and a circular economic model, the industry’s future looks precarious, with potentially dire outcomes for the environment, society, and its own economic viability.
Reimagining the textile industry through a circular economy lens offers promising advancements in environmental stewardship, economic growth, and social welfare. This approach aims to eliminate harmful substances and reduce microfiber shedding, tackling pollution at its source and fostering cleaner production methods. By emphasising material reuse, recycling, and regeneration, this model significantly decreases the need for new resources, easing the burden on ecosystems and slowing resource depletion. The circular model re-imagines clothing design, marketing, and consumption patterns, moving away from the current throwaway culture. It emphasises creating long-lasting, repairable, and recyclable garments, ensuring materials cycle continuously through the production system instead of becoming waste. Improving recycling processes through innovative design, efficient collection, and advanced reprocessing techniques can substantially reduce waste generation in the industry.
Optimising resource utilisation and adopting renewable inputs helps lower the sector’s carbon emissions, contributing to climate change mitigation efforts. This approach also stimulates innovation in eco-friendly materials and manufacturing processes, enhancing competitiveness and resilience against resource scarcity and evolving regulations. Companies can leverage growing consumer interest in sustainable products to strengthen their market position and brand loyalty.
India, in particular, is well-positioned to embrace this sustainable shift, given its rich heritage of natural dyes and organic fibres. The country boasts abundant resources like indigo, organic cotton, jute, hemp, bamboo, and silk, with significant production in regions such as Tamil Nadu, Gujarat, West Bengal, and Assam. Traditional, sustainable practices like Khadi, Ayurvastra, and handloom weaving receive support from both government initiatives and non-governmental organisations. This strong foundation could potentially position India as a frontrunner in eco-conscious and ethical fashion.
From a social perspective, circular economy principles can enhance labour conditions by promoting safe and fair work environments. This model also encourages job creation in areas such as recycling, repair services, and innovative design, contributing to economic development and community prosperity. In essence, transitioning to a circular textile economy presents a comprehensive solution to the industry’s current challenges, paving the way for sustainable and equitable growth.
Creating a circular fashion system is challenged by the industry’s globalised, complex, and complex supply chain, making circular transparency difficult. With many firms having manufacturing/supply chain footprints outside Western markets, integrating them into reverse business models is a challenge. Fashion designers often cannot make sustainable decisions due to profit-driven company policies, and recycled materials remain niche and costly with quality concerns. Consumers’ focus on short-term trends and affordability, especially in fast fashion, further hinders circular practices. Workforce awareness and education on sustainability are lacking, and many businesses view waste as a cost rather than a resource, hindering waste-to-resource initiatives. Recycling is more expensive than using virgin materials, and technological limitations in material detection and sorting necessitate labour-intensive manual processes. The diverse mix of materials in textiles complicates recycling, with chemical recycling being costly and mechanical recycling yielding lower-quality products. The extensive supply chain, from raw material production to garment disposal, involves substantial resource use and environmental impact, complicating the implementation of closed-loop systems.
Shifting the textile industry towards a circular economy model necessitates a comprehensive overhaul, requiring unprecedented coordination among all participants in the value chain. This transformation calls for active involvement from diverse stakeholders, including producers, fashion brands, government bodies, consumers, and waste management companies. Innovation is key to this transition. Collaboration between inventors, fibre manufacturers, chemical companies, textile producers, and fashion labels is crucial for developing alternatives to harmful materials. One promising approach is the adoption of regenerative farming practices. These methods preserve the natural ecosystem’s balance, avoid toxic chemicals, minimise nutrient loss, and improve soil health. By reducing the need for pesticides and fertilisers, these techniques can potentially lower costs for farmers while enhancing crop quality.
To drive systemic change, a novel strategy is needed to address gaps, reinforce existing initiatives, and catalyse industry-wide transformation. This strategy should be built on a shared commitment to common objectives and open communication, ensuring all parties are working towards a unified vision of sustainability. Manufacturers and brands must reimagine their products with circularity in mind, prioritising longevity, ease of repair, and recyclability. Joint research and development efforts could lead to breakthroughs in eco-friendly materials and more efficient recycling technologies. Legislators and policymakers have a vital role in this transition. They need to craft regulatory frameworks that promote circular practices, offer incentives for sustainable production, and discourage environmentally harmful activities. Harmonising regulations across different regions can create a level playing field and facilitate global adoption of circular economy principles.
Various organisations can contribute uniquely to this transition. Consumers, as drivers of demand for sustainable products, play a pivotal role. Educating them about the benefits of a circular textile economy can foster responsible consumption habits and increase participation in recycling and product return programs. The second-hand and recycling markets are also experiencing promising growth. Consumers are increasingly recognizing the value of pre-owned clothing and luxury accessories. Brands can participate in this trend by offering repair services, launching resale platforms, or implementing clothing recycling systems. Subscription models offer stable revenue and can enhance customer loyalty. By providing recurring deliveries instead of one-time purchases, brands can strengthen their community and build direct relationships with consumers. Some companies are exploring service-based models, focusing on providing clothing services rather than ownership through options like rentals, repair services, and made-to-order clothing. Waste management entities must work together to develop efficient systems for collection, sorting, and reprocessing. Through collaboration, these stakeholders can create an integrated infrastructure that supports circularity, minimises waste, and optimises resource efficiency.
In essence, achieving a new textile economy is a complex, multifaceted challenge that requires coordinated efforts and a shared commitment to sustainability. Through collaboration and alignment, the industry can pave the way for a more sustainable and resilient future. The transition to a circular textile economy isn’t just a passing trend; it’s a necessary step towards a more sustainable future. By reimagining our approach to fashion, embracing innovative yet responsible models, and fostering industry-wide collaboration, we can create a world where clothing is part of a regenerative cycle that benefits both society and the environment.
