Sustainable Fashion Market Report 2025 (Global Edition)

Global Sustainable Fashion Market Report 2025 Market Size Split by Product Type (Apparel, Footwear, Accessories, Jewelry, Others), by End User (Men, Women, Children), by Fabric Type (Recycled Fabrics,...

Sustainable Fashion Market Report Description

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How 2025 Tariffs Are Reshaping the Consumer Goods Industry

In 2025, the global trade landscape has shifted dramatically following the U.S. introduction of sweeping tariffs under President Donald Trump’s administration. These "Liberation Day Tariffs," launched in April, aim to reduce trade deficits and boost domestic manufacturing. Tariffs range from 10% on imports from countries like the UK and Australia to 46% on Vietnamese goods, with a blanket 34% tariff on many Chinese imports and 25% on all steel, aluminum, and auto parts. This policy heavily impacts the consumer goods sector apparel, appliances, packaged foods, and personal care products due to their deep reliance on global supply chains, especially in Asia. U.S.–China trade tensions have intensified, with reciprocal tariffs reaching up to 145% on U.S. goods and 125% on Chinese exports, while China’s trade surplus with the U.S. hit USD 102.6 billion in March 2025. In response, the EU and Canada have implemented retaliatory measures, signaling a broader shift toward protectionism.

The consumer goods industry is feeling immediate effects: production costs are rising, sourcing is delayed, and inflation pressures are mounting. Apparel and footwear now face 25% tariffs, prompting brands to seek nearshoring options or raise prices. Household appliances incur 20% tariffs, complicating inventory and procurement strategies. Packaged foods and beverages are hit with 10–15% tariffs, impacting contracts and leading to supplier diversification and product reformulation. Personal care firms face higher costs for imported ingredients and packaging, leading to local sourcing efforts and delays in new product launches. Meanwhile, electronics, though temporarily exempt, are preparing for possible disruptions by diversifying suppliers and increasing inventories.

China remains the backbone of U.S. consumer goods sourcing, accounting for a large portion of imports either directly or through upstream components. This makes tariffs on Chinese goods especially disruptive. The rising input costs 15–30% in many categories combined with seasonal pressures and tight timelines, are causing delays and increased costs. Smaller brands, in particular, are struggling due to limited capital and reduced supplier leverage. Many are being forced to increase prices, cut product variety, or compromise on quality.

Market research is now critical to navigating this volatile environment. It supports supplier mapping and risk assessment, helping brands identify alternative sourcing countries with stable regulations and quality control. It also aids in cost and margin analysis, guiding decisions on pricing and sourcing changes. Optimization of product design and materials through research allows companies to reduce costs while maintaining consumer expectations. Additionally, research helps assess consumer price sensitivity, enabling strategic repositioning. Tracking regulatory changes and running scenario planning models allow firms to anticipate and adapt to future trade shifts.

To cope, companies are restructuring their global sourcing models. Major brands like Nike and IKEA are expanding operations in Vietnam, India, and Mexico, while embracing “in-market for market” strategies to reduce exposure to tariffs and logistics risks. Many are adopting AI-driven demand forecasting and automated procurement, and pushing suppliers for transparency. Product redesign and SKU rationalization are also common. The most successful firms are those using data-driven insights, operational flexibility, and strategic supplier partnerships to adapt not just survive in this new era of global trade.

Competitive Landscape of the Sustainable Fashion Market

The competitive landscape of the sustainable fashion market is evolving rapidly, characterized by increasing competition among brands to differentiate themselves based on eco-friendly practices, innovative designs, and transparent supply chains. Brands vie for consumer attention by showcasing their commitment to sustainability and ethical principles.

• In May 2021, Adidas collaborated with Allbirds to introduce performance running shoes boasting the lowest carbon footprint. These shoes utilize renewable and natural materials, representing a milestone in the sportswear industry's journey towards carbon neutrality. This partnership exemplifies the potential when competing brands unite to innovate, leveraging each other's expertise and resources. By co-creating and sharing knowledge and capabilities, such as Allbirds' expertise in carbon calculation and natural materials, and Adidas' proficiency in manufacturing and performance footwear, the collaboration sets a precedent for other brands to follow suit.

(Source: https://news.adidas.com/running/a-unique-collaboration-with-allbirds-to-create-futurecraft.footprint--the-brands--first-shoe-with--3/s/f0f9adb9-dbbe-4c0c-af97-a3023b52535f)   

Top Companies Market Share in Sustainable Fashion Industry: (In no particular order of Rank)

• Patagonia
• Stella McCartney
• Eileen Fisher
• Reformation
• People Tree
• Allbirds
• Pact
• Veja
• Others
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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In terms of revenue, the North American Sustainable Fashion Market share was 40% of the total market

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue due to heightened consumer awareness of environmental issues, coupled with strong advocacy for ethical production practices. Additionally, government regulations promoting sustainability drive market growth. The region's affluent consumer base values quality over quantity, favouring sustainable fashion options. Collaborations between sustainable brands and mainstream retailers also expand market reach. Moreover, the rise of influencer culture amplifies sustainable fashion trends, further boosting sales.

Asia-Pacific is the fastest-growing region. Rapid urbanization and changing lifestyles drive demand for sustainable and stylish clothing. Moreover, a growing number of eco-conscious millennials and Gen Z consumers prefer brands with transparent supply chains and ethical practices. Government initiatives supporting sustainable fashion industries and rising investments in renewable energy further stimulate market expansion. Additionally, the region's diverse cultural influences inspire innovative designs, attracting global attention and driving sales growth.

The current report Scope analyzes Sustainable Fashion Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Sustainable Fashion Market Analysis

According to Cognitive Market Research, the global sustainable fashion market size was estimated at USD 7915.2 Million out of which North America held the major market of around 40% of the global revenue with a market size of USD 3166.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.7% from 2024 to 2031. Sustainable fashion sales are set to increase due to heightened consumer awareness and preference for eco-friendly products. Influential celebrity endorsements and collaborations with sustainable fashion brands drive market growth. Moreover, government initiatives promoting sustainable practices encourage adoption among businesses. Additionally, the rise of rental and resale platforms offers consumers affordable access to sustainable fashion. The apparel segment is expected to dominate sales in North America, driven by the region's fashion-forward consumer base and emphasis on quality and style.

• According to Cognitive Market Research, The United States sustainable fashion market had a market share of USD 2498.04 million in 2024 and is projected to grow at a CAGR of 21.5% during the forecast period. Increasing consumer awareness and demand for eco-friendly alternatives drive sales. Influential celebrities endorsing sustainable fashion and government initiatives supporting sustainable practices contribute to market growth.
• Canada sustainable fashion market had a market share of USD 379.93 million in 2024 and is projected to grow at a CAGR of 22.5% during the forecast period. Growing emphasis on environmental sustainability and ethical production practices fuels sales. Collaborations between sustainable fashion brands and indigenous communities promote cultural preservation and support local economies.
• Mexico sustainable fashion market had a market share of USD 288.11 million in 2024 and is projected to grow at a CAGR of 22.2% during the forecast period.

Europe Sustainable Fashion Market Analysis

According to Cognitive Market Research, with a market value of USD 7915.2 million in 2024 and projected to expand at a compound annual growth rate (CAGR) of 22.0% from 2024 to 2031. Europe accounted for a share of around 30% of the global market size of USD 2374.56 million. Sales of sustainable fashion in Europe will rise due to stringent environmental regulations and consumer demand for ethically produced clothing. Innovative initiatives such as clothing rental services and circular fashion models gain traction, fostering market growth. Furthermore, sustainable fashion events and exhibitions showcase eco-friendly designs, attracting a diverse audience. The accessories segment is poised to lead in Europe, driven by the region's penchant for unique and stylish accessories that complement their sustainable lifestyle.

• The United Kingdom sustainable fashion market had a market share of USD 398.93 million in 2024 and is projected to grow at a CAGR of 22.8% during the forecast period. Rising concern for environmental conservation and fair labour practices boosts sales. Popularity of vintage and second-hand clothing markets and government support for sustainable fashion initiatives drive market growth.
• France sustainable fashion market had a market share of USD 218.46 million in 2024 and is projected to grow at a CAGR of 21.2% during the forecast period.
• Germany sustainable fashion market had a market share of USD 470.16 million in 2024 and is projected to grow at a CAGR of 22.2% during the forecast period. Strong consumer preference for eco-friendly products and strict environmental regulations drive sales. Thriving eco-conscious culture fosters demand for sustainable fashion, while innovative circular fashion initiatives gain popularity.
• Italy sustainable fashion market had a market share of USD 204.21 million in 2024 and is projected to grow at a CAGR of 21.4% during the forecast period.
• Russia sustainable fashion market had a market share of USD 368.06 million in 2024 and is projected to grow at a CAGR of 21.0% during the forecast period.
• Spain sustainable fashion market had a market share of USD 194.71 million in 2024 and is projected to grow at a CAGR of 21.1% during the forecast period.
• Luxembourg sustainable fashion market had a market share of USD 73.61 million in 2024 and is projected to grow at a CAGR of 22.1% during the forecast period.
• Portugal sustainable fashion market had a market share of USD 49.87 million in 2024 and is projected to grow at a CAGR of 21.8% during the forecast period.
• Greece sustainable fashion market had a market share of USD 28.49 million in 2024 and is projected to grow at a CAGR of 22.3% during the forecast period.
• Rest of Europe sustainable fashion market had a market share of USD 368.06 million in 2024 and is projected to grow at a CAGR of 20.7% during the forecast period.

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Asia Pacific Sustainable Fashion Market Analysis

According to Cognitive Market Research, the global sustainable fashion market size was estimated at USD 7915.2 Million out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 1820.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.5% from 2024 to 2031. Sustainable fashion sales in Asia Pacific are on the rise due to increasing disposable income and changing consumer preferences. Collaborations between sustainable fashion brands and local artisans promote traditional craftsmanship and heritage textiles, driving market expansion. Additionally, the influence of social media influencers advocating for sustainable fashion encourages consumer adoption. Moreover, government support for sustainable initiatives and investment in eco-friendly manufacturing processes propel market growth. The children's segment is expected to flourish in Asia Pacific, reflecting the region's emphasis on family values and nurturing the next generation's environmental consciousness.

• According to Cognitive Market Research, China sustainable fashion market had a market share of USD 819.22 million in 2024 and is projected to grow at a CAGR of 25.0% during the forecast period. Increasing disposable income and urbanization lead to rising demand for sustainable fashion. Government initiatives promoting green consumption and sustainability drive market growth, along with collaborations between local and international sustainable brands.
• Japan sustainable fashion market had a market share of USD 251.23 million in 2024 and is projected to grow at a CAGR of 24.0% during the forecast period.
• India sustainable fashion market had a market share of USD 218.46 million in 2024 and is projected to grow at a CAGR of 27.3% during the forecast period. Growing awareness of environmental issues and cultural emphasis on sustainable living fuel sales. Traditional textile craftsmanship and innovative use of organic and natural fibres contribute to market growth.
• South Korea sustainable fashion market had a market share of USD 182.05 million in 2024 and is projected to grow at a CAGR of 24.6% during the forecast period.
• Australia sustainable fashion market had a market share of USD 94.67 million in 2024 and is projected to grow at a CAGR of 25.2% during the forecast period.
• South East Asia sustainable fashion market had a market share of USD 125.61 million in 2024 and is projected to grow at a CAGR of 26.5% during the forecast period.
• Rest of Asia Pacific sustainable fashion market had a market share of USD 129.26 million in 2024 and is projected to grow at a CAGR of 25.3% during the forecast period.

South America Sustainable Fashion Market Analysis

According to Cognitive Market Research, the global sustainable fashion market size was estimated at USD 7915.2 Million out of which Latin America market of around 5% of the global revenue with a market size of USD 395.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 22.9% from 2024 to 2031. Sales of sustainable fashion in Latin America are increasing due to a growing middle class and rising awareness of environmental issues. Fashion brands leverage indigenous textiles and craftsmanship, creating unique and culturally rich sustainable products. Moreover, sustainable fashion events and campaigns raise awareness and promote eco-conscious consumer behaviour. Additionally, government incentives for sustainable practices drive adoption among businesses. The footwear segment is anticipated to thrive in Latin America, reflecting the region's vibrant culture and emphasis on footwear as a fashion statement.

• According to Cognitive Market Research, Brazil sustainable fashion market had a market share of USD 169.39 million in 2024 and is projected to grow at a CAGR of 23.5% during the forecast period. Rising environmental consciousness and appreciation for sustainable lifestyle choices drive sales. Influence of Brazilian eco-fashion designers and government incentives for sustainable initiatives propel market expansion.
• Argentina sustainable fashion market had a market share of USD 66.49 million in 2024 and is projected to grow at a CAGR of 23.8% during the forecast period. Growing interest in eco-friendly alternatives and concern for environmental conservation boost sales. Emphasis on local craftsmanship and traditional textile techniques contributes to market growth.
• Colombia sustainable fashion market had a market share of USD 35.22 million in 2024 and is projected to grow at a CAGR of 22.7% during the forecast period.
• Peru sustainable fashion market had a market share of USD 32.45 million in 2024 and is projected to grow at a CAGR of 23.1% during the forecast period.
• Chile sustainable fashion market had a market share of USD 28.49 million in 2024 and is projected to grow at a CAGR of 23.2% during the forecast period.

Middle East Sustainable Fashion Market Analysis

According to Cognitive Market Research, the global sustainable fashion market size was estimated at USD 7915.2 Million out of which Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 158.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 23.2% from 2024 to 2031. Sustainable fashion sales in the MEA region are rising due to increasing urbanization and awareness of environmental sustainability. Luxury fashion brands integrate sustainable materials and ethical production practices into their offerings, catering to discerning consumers. Moreover, collaborations between sustainable fashion brands and local designers promote cultural exchange and diversity. Additionally, growing tourism drives demand for sustainable fashion souvenirs and local artisanal products. The jewellery segment is expected to lead in the MEA region, reflecting the region's rich heritage and appreciation for craftsmanship in adornment.

• According to Cognitive Market Research, GCC Countries sustainable fashion market had a market share of USD 67.75 million in 2024 and is projected to grow at a CAGR of 24.0% during the forecast period. Increasing focus on sustainable development and luxury fashion drives sales. Rising demand for premium sustainable fashion among affluent consumers and government initiatives promoting sustainability contribute to market growth.
• Egypt sustainable fashion market had a market share of USD 16.62 million in 2024 and is projected to grow at a CAGR of 23.5% during the forecast period.
• South Africa sustainable fashion market had a market share of USD 25.01 million in 2024 and is projected to grow at a CAGR of 24.2% during the forecast period. Rising awareness of environmental issues and ethical production practices fuel sales. Emphasis on fair trade and support for local artisans and sustainable fashion brands drive market expansion.
• Turkey sustainable fashion market had a market share of USD 13.61 million in 2024 and is projected to grow at a CAGR of 22.7% during the forecast period.
• Nigeria sustainable fashion market had a market share of USD 16.62 million in 2024 and is projected to grow at a CAGR of 22.3% during the forecast period.
• Rest of MEA sustainable fashion market had a market share of USD 18.68 million in 2024 and is projected to grow at a CAGR of 22.2% during the forecast period.

Sustainable Fashion Market Analysis

Sustainable Fashion Type Segment Analysis

According to Cognitive Market Research, apparel held the major market share over the forecast period due to growing consumer preference for sustainable clothing options. The versatility and durability of sustainable apparel appeal to a wide range of consumers seeking eco-friendly alternatives. Moreover, the increased availability of sustainable materials and advancements in manufacturing technologies drive innovation in sustainable fashion, attracting more customers. Rising awareness of the environmental impact of fast fashion encourages consumers to opt for durable and timeless sustainable apparel pieces.

Accessories are the fastest-growing category over the forecast period as consumers seek to complete their sustainable fashion ensembles. The increasing availability of eco-friendly materials such as recycled metals and vegan leather enhances the appeal of sustainable accessories. Moreover, rising interest in minimalist and timeless designs aligns with the sustainability ethos, driving sales. Collaborations between sustainable accessory brands and fashion influencers also amplify brand visibility and consumer interest, contributing to the category's rapid growth.

• Apparel
• Footwear
• Accessories
• Jewelry
• Bags
• Others

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Sustainable Fashion Industry. Request a Free Sample PDF!

Sustainable Fashion End User Segment Analysis

According to Cognitive Market Research, women hold a prominent market share due to a combination of factors. Women are traditionally more engaged with fashion trends and are increasingly drawn to sustainable options. Additionally, women's fashion is more diverse, offering a wide range of styles and designs, catering to various preferences. Influencer marketing targeting female consumers amplifies brand awareness and drives sales. Furthermore, the growing emphasis on inclusivity and diversity in fashion encourages women to support brands that align with their values.

Children is the fastest-growing category over the forecast period. Parents prioritize quality and safety when selecting clothing for their children, making sustainable options increasingly appealing. Moreover, the rising trend of mini-me fashion, where parents and children wear matching outfits, boosts sales in this segment. Growing awareness among parents about the environmental and social impact of clothing production also drives demand for sustainable children's fashion. Additionally, collaborations between children's brands and popular characters or franchises further stimulate market growth.

• Men
• Women
• Children
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Sustainable Fashion Fabric Type Segment Analysis

According to Cognitive Market Research, organic fabrics hold a prominent market share due to growing consumer awareness and concern for environmental sustainability. Consumers are increasingly seeking products made from organic materials to minimize their ecological footprint. Additionally, the health benefits associated with organic fabrics, such as hypoallergenic properties and absence of harmful chemicals, drive demand. Moreover, government regulations promoting organic agriculture and textile manufacturing further support market growth.

Recycled fabrics are the fastest-growing category over the forecast period. Increasing awareness of textile waste and its environmental impact prompts consumers to opt for recycled materials. Additionally, technological advancements in textile recycling processes make it easier for manufacturers to produce high-quality fabrics from recycled materials. Collaborations between fashion brands and recycling initiatives raise awareness and stimulate demand for recycled fabrics. Moreover, the trend of upcycling and repurposing old garments contributes to the category's growth.

• Recycled Fabrics
• Organic Fabrics
• Regenerated Fabrics
• Others

Sustainable Fashion Sales Channel Segment Analysis

According to Cognitive Market Research, online held the major market share over the forecast period due to several factors. The convenience of online shopping appeals to consumers, offering a wide selection of sustainable fashion options at their fingertips. Additionally, the global reach of online platforms enables brands to access a broader customer base. Advanced digital marketing strategies and personalized recommendations enhance the online shopping experience, driving sales. Furthermore, the COVID-19 pandemic has accelerated the shift towards online shopping, solidifying its dominance in the market.

Offline is the fastest-growing category over the forecast period. The tactile nature of offline shopping allows consumers to physically engage with products, enhancing the shopping experience. Offline stores offer opportunities for immersive brand experiences and personalized customer service, fostering loyalty and repeat purchases. Additionally, pop-up shops and sustainable fashion events create buzz and drive foot traffic to brick-and-mortar stores. Furthermore, the desire for immediate gratification and social interaction motivates consumers to shop offline, contributing to the category's growth.

• Online
• Offline

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

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I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

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