Closed-loop model in sustainable fashion

Against the backdrop of the climate crisis, resource depletion, and mounting global waste pressures, the concept of sustainable development is no longer a moral choice but has become an essential requirement for economies and businesses. According to designer Iris van Herpen, microorganisms and materials will inspire high-end fashion in the future. The online resale platform ThredUp recently published its annual "Resale Report", revealing that the global secondhand fashion market is projected to reach $393 billion by 2030, accounting for about 10% of total global apparel expenditures. Meanwhile, a GlobalData study shows that the secondhand market is moving beyond a temporary trend and capturing a meaningful share from traditional retailers. The study finds that the U.S. secondhand market grew nearly four times faster than the overall clothing retail sector in 2025, signaling a structural shift in how consumers shop and value fashion. “The resale fashion market is even directly taking market share,” said James Reinhart, co-founder and CEO of ThredUp. “The next phase of this market will be shaped by which companies can use AI to connect inventory with consumers.” Based on market modeling, a survey of over 3,200 American consumers and information from 50 fashion brands indicate the global resale market is expected to grow at a rate twice that of the overall fashion industry over the next five years. Gen Z and Millennial consumers are expected to account for about 71% of total market growth by 2030. The secondhand market is moving beyond a trend and gaining a substantial share. Technology is emerging as a key factor enabling scale, with artificial intelligence used to automate pricing, verify products, and improve search/recommendation systems, helping reduce the frictions of buying used items. The report also identifies that simplifying resale processes could unlock an additional $23.3 billion in market value in the United States. A Boston Consulting Group report published last year notes that less than 1% of all clothing discarded globally is recycled into new fibers. The problem lies in blended fabrics. A shirt made from recycled polyester with elastane, or a linen-cotton fabric with modal, must have fibers separated before any recycling begins. Although some companies are researching this, current processing technology largely cannot meet industrial-scale needs. In this context, Patagonia’s Worn Wear program—one of the oldest programs in the industry—prioritizes repair, resale, and recycling of items returned. Meanwhile, some brands have avoided recycling by designing products to biodegrade. Kent, a basic fashion brand based in California founded by Stacy Grace, produces garments certified to biodegrade within 90 days when properly composted—no synthetic materials, no plastics, and no blends requiring separation. With volatile oil prices pushing up polyester costs, climate change harming cotton production, and a raft of sustainability regulations coming into force, fashion industry leaders—including Vogue Business Young Creator Award winner Genaro Rivas—predict that science and technology will impact the global fashion industry, starting with the earliest stages. From bio-inspired disco beads to 18-carat gold jewelry made from electronic components, to dyes from seaweed… Sustainable fashion technology has never been more ready to be deployed in supply chains, according to the creative director of DyeRecycle, a subsidiary of Imperial. In design, London-based Peruvian fashion designer Genaro Rivas—who previously won the Visa x Vogue Business Young Creator Award—has used plant-based substitutes for leather and fur in his most recent London Fashion Week collection. Children’s and maternity wear from Petit Pli allows size adjustment to growth; Sequinova, a company producing biodegradable sequins, is collaborating with Stella McCartney for the Spring/Summer 2027 collection… Biodegradable sequins have also joined the closed-loop cycle of fashion. It is evident that one of the major approaches now attracting strong attention is closed-loop design, where products and materials are not “disposed of” after use but are continuously reused, recycled and reintroduced into the value chain. According to ASTM International, closing the loop is not only about end-of-life waste processing but, more importantly, must begin at the product design stage. At the very initial stage, key decisions related to materials, structure, repairability, reuse, or recycling are formed, thereby largely determining the environmental impact of the product throughout its life cycle. Unlike the traditional linear economy “take – make – use – dispose,” closed-loop design requires designers and manufacturers to think more holistically, where every design choice has environmental, economic and social implications. For consumers, the most effective way to participate in the closed-loop model is to completely avoid putting clothes into the recycling system—through repair, resale on platforms such as ThredUp or Poshmark, or direct donations to organizations capable of sorting for others to reuse. Waste costs are very large. We are wasting billions of dollars of value while missing a huge opportunity to make the fashion industry more sustainable and resilient, says Catharina Martinez-Pardo, CEO and partner at BCG and co-author of the report. “This is the time to convert the textile industry’s circularity from a niche area into a standard.”