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A new report from global management consulting firm Kearney suggests that while circular fashion has become a mainstream ambition, the industry is struggling to move from small-scale initiatives to widespread, systemic change. The fifth annual Kearney's Circular Fashion Index (CFX 2025), which evaluated 246 brands across 18 countries, shows that progress is slowing, with a gap emerging between a few leading brands and the vast majority of the market.
Sustained momentum, but at a slower pace
The CFX 2025, which analyzes brand performance across seven dimensions reflecting a product's full life cycle, found that average and median scores continue to rise, but at a decelerated rate compared to the previous year. The average score increased by 0.20 points to 3.40, and the median score rose by 0.20 points to 3.20. While this indicates sustained, positive movement, it is a slower rate of improvement than in 2024.
Over the past five years, average scores have increased by 1.4 points, and median scores by 1.6 points. "The industry has picked the low-hanging fruit," says Nora Kleinewillinghoefer, co-author of the report and partner at Kearney. "Most brands have implemented basic circularity initiatives like awareness campaigns or localized take-back programs. The real challenge now is translating these pilots into full-scale, integrated business models."
A growing divide
The report highlights a widening chasm between the leaders and the rest of the pack. More than 70 per cent of brands now fall into the ‘moderate’ zone, signaling that circularity is a priority for most companies. However, a small elite group of just 3 to 5 per cent of brands reached the ‘extensive’ implementation level, scoring above 7.0.
The top 10 list, which includes brands like Patagonia, Gucci, and Levi's, has remained largely unchanged for the third consecutive year. The bottom 80 per cent of brands, meanwhile, showed no improvement in their scores in 2025, a stark indicator of the struggles faced by the mid-tier.
Regional and category highlights
The report also reveals variations in circularity progress by region and product category.
Europe leads the way: European brands lead with an average score of 3.6, a jump of +0.4 points since 2024. This progress is largely attributed to the region's increasingly stringent regulatory environment, including the EU's Ecodesign for Sustainable Products Regulation (ESPR) and the forthcoming Digital Product Passports.
North America and Asia-Pacific: North America follows with an average score of 3.4 (+0.1 improvement), while the Asia-Pacific region recorded a score of 2.7 (+0.3 improvement). Japan showed a notable increase of +0.6 points, likely due to its culture of repair and reuse.
Top-performing categories: Underwear and lingerie saw the strongest increase in circularity scores, followed by luxury fashion, which demonstrated momentum in design, communication, and the use of raw materials.
Table: Highlights from CFX 2025
|
Region/Category |
Average score (2025) |
Year-on-year improvement |
Important drivers |
|
Global Average |
3.4 |
+0.20 |
Circular design, closing-the-loop initiatives |
|
Europe |
3.6 |
+0.4 |
Regulatory pressure (e.g., EU's ESPR, Digital Product Passports) |
|
North America |
3.4 |
+0.1 |
Consumer awareness, presence of major brands |
|
Asia-Pacific |
2.7 |
+0.3 |
Increasing consumer awareness, cultural practices (e.g., Japan) |
|
Underwear/Lingerie |
Data Not Specified |
+0.3 |
|
|
Luxury Fashion |
Data Not Specified |
+0.2 |
Design, communication, raw material use |
The report emphasizes that the primary barrier to scaled circularity is not a lack of awareness, but an execution gap stemming from systemic challenges. These include a lack of scalable infrastructure, poor system integration, and a missing clear business case for circularity. Circularity initiatives are often siloed in sustainability departments rather than being integrated into core business operations, such as product development and supply chain management.
Leaders in action
The CFX 2025 report points to several frontrunners who are successfully embedding circularity into their business models.
Patagonia and The North Face: These outdoor apparel leaders have long championed durability and repair. Their business models are built on the premise that products should last for a long time. They have extensive repair programs and actively encourage consumers to drop off old clothes for recycling, often incentivizing them with discounts on new purchases.
Gucci and Levi's: These brands, while operating in different segments, are making significant strides in "closing the loop. Gucci's luxury position allows it to offer high-quality repair services, which are supported by its high prices and margins. Levi's, known for its denim, has invested in take-back programs and is exploring new technologies to repurpose pre-consumer and post-consumer textile waste into new products.
On: The athleticwear brand is an example of a company integrating circularity from the very start. The report highlights On's use of life cycle assessment data in product development to inform its circular design principles and minimize environmental impact.
The Kearney CFX 2025 report serves as both a benchmark and a compass for the fashion industry. While the market for circular fashion is projected to grow significantly in the coming years, the report's findings are a clear call to action. As regulation moves from policy to enforcement, the industry must shift from declaring ambition to delivering evidence systematically, and at scale. The future of fashion, the report suggests, depends on a fundamental re-framing of circularity from a compliance exercise to a strategic lever for growth and innovation.
The Italian Competition Authority (AGCM) has issued a €3.5 million ($4.06 million) fine against Giorgio Armani SpA and GA Operations SpA for unfair commercial practices. The fine follows a comprehensive investigation into the fashion giant's misleading claims about its sustainability and social responsibility. The violations took place between April 22, 2022, and February 18, 2025.
According to the AGCM, these companies made ‘untruthful, unclear, and equivocal statements’ in their public communications, including their code of ethics and corporate websites like Armani Values. These platforms were used to promote the brand's ethical and social commitments, influencing consumer purchasing decisions by presenting a false image of a responsible brand.
However, investigators uncovered a significant gap between these public claims and the reality of the company's supply chain. They found a stark contrast in the working conditions at suppliers and subcontractors responsible for producing most of Armani's branded leather bags and accessories.
Reports indicated that subcontractors often removed safety devices from machinery to increase production, putting workers' health and safety at risk. Conditions were also found to be unsanitary, and some employees were working illegally.
The AGCM noted, these issues were not unknown to the Armani companies. During an inspection, a GA Operations quality control employee admitted to visiting one of these subcontractors monthly. Furthermore, an internal document from Giorgio Armani SpA dated 2024 stated, in the best of the situations observed, the working environment is at the limit of acceptability; in other cases, there are serious concerns regarding its adequacy and health standards.’ This internal admission, made before judicial proceedings began, highlights the company's awareness of the poor conditions.
India and Japan are working to boost their textile trade and investment, leveraging the existing India-Japan CEPA (Comprehensive Economic Partnership Agreement) signed in 2011. This agreement aims to reduce trade barriers and make Indian exports more competitive in the Japanese market.
According to data from the UNCOM Trade database, India's textile and apparel exports to Japan totaled $354 million in 2024, while Japan's total imports from the world were a substantial $30.87 billion.
Recently, a high-level Indian delegation invited major Japanese textile companies to invest in India. The focus was on opportunities within the PM MITRA parks, which offer modern, integrated, ‘plug-and-play’ textile infrastructure. The invitation extended to companies involved in apparel, machinery, technical textiles, and fabric processing.
To further support its textile sector, the Indian government is implementing several key initiatives including the PM MITRA Parks Scheme and the Production Linked Incentive (PLI) Scheme that encourages large-scale produciton of MMF fabrics, MMF apparel, and technical textiles.
Additionally, the Ministry of Textiles has formed an ESG (Environment, Social, and Governance) Taskforce to help the Indian textile industry transition to more sustainable and resource-efficient production models.
In a move to enhance quality standards, Japan’s Association for Overseas Technical Cooperation and Sustainable Partnerships (AOTS), led by the Ministry of Economy, Trade and Industry (METI), is providing training on the Japanese System of Quality Evaluation. This training is being conducted for technical officers from the Textiles Committee in major Indian export hubs such as Mumbai, Kolkata, Jaipur, and Tirupur.
A key player in the Indian textile industry, Mafatlal Industries’ revenue rose by 174.5 per cent to Rs 1,240 crore in Q1, FY26 ending June 30, 2025 (Q1 FY '26).
This remarkable growth was driven by the successful completion of large institutional orders, particularly within the textile and consumer durables sectors.
The company’s operating EBITDA for the quarter increased by 66.4 per cent to Rs 47 crore. The company credits this margin expansion to a favorable product mix and a larger contribution from its institutional and steady business streams.
Revenues from the company’s textile and related segment grew by 41.4 per cent compared to Q1 FY '25. The EBIT margin for this segment improved to 9.8 per cent from 7 per cent a year ago. This was a result of the company's focus on providing value-added uniform solutions for corporations and schools, along with successful cost-optimization and operational efficiency initiatives.
MB Raghunath, Chief Executive Officer, highlights, the company started FY '26 on a high note with solid growth across all key financial metrics. He attributes this performance to the effective execution of high-value institutional orders and a disciplined approach to operations. Mafatlal also launched a new subsidiary, Mafatlal Apparel Exports, marking the company’s entry into the global garment and apparel export market. This move will help the company reinforce its core textile business and become a significant growth driver in the future.
Findings of a new case study conducted by GFF and its advisors Bureau Veritas, Fairwear Foundation, GlobalCAD and adelphi Consult in early 2025, confirm significant positive results achieved by Sri Kannapiran Mills (SKML) with $2.5 million loan.
Managed by FOUNT, the Good Fashion Fund (GFF) made its second investment in India, providing a $2.5 million long-term loan to SKML in 2023. These funds were used to modernize and replace old equipment in two cotton spinning mills; KG Naidu Mill, Balaji Mill and a denim weaving unit KG Fabriks.
SKML used the loan to install more efficient machinery, such as newer rotor spinning machines, auto doffers, and high-speed winding machines. The weaving unit was upgraded with a new singeing machine and second-hand air jet looms, boosting both capacity and efficiency. The company also shifted its energy mix, increasing its reliance on solar and wind power.
The assessment found, the investment surpassed the 50 per cent environmental savings target. It resulted in a 59 per cent reduction in energy consumption from key equipment, saving over 886,000 kWh annually; a 95 per cent reduction in cotton waste, saving over 4,700 kg annually and saving of approximately 1,272 tons of CO2
Financially, these improvements led to significant annual gross savings of approximately $140,000 from energy efficiency and waste reduction in spinning, and $115,000 from improved weaving production. The mill's monthly fabric output also increased to 220,000 meters.
On the social front, the automation of manual processes has led to safer working conditions. The company also implemented enhanced environmental and social governance, improved grievance mechanisms, and better health and safety measures.
Praising the GFF, Srihari Balakrishnan, Managing Director, SKML, states, the flexible capital and technical guidance were essential for making these upgrades. He notes, the investment not only led to cost savings and operational improvements but also enhanced product quality and worker well-being.
This case study is one of the first publicly documented examples of impact validation in Tier II and Tier III textile manufacturing. It demonstrates how targeted funding and manufacturer leadership can deliver measurable progress, providing a replicable model for other factories facing similar challenges with legacy systems. The results also inform the design of Good Fashion Fund 2.0, which aims to further align brands' and manufacturers' sustainability goals.
From the minimalist ateliers of Copenhagen to the neon-lit youth districts of Tokyo, unisex fashion is no longer a fringe concept—it’s a global style revolution. Once limited to avant-garde runway experiments and streetwear capsules, gender-neutral clothing is now reshaping how the world dresses, consumes, and even thinks about identity.
As consumers across continents increasingly reject the gender binaries ingrained in traditional fashion, a new era of inclusive, comfortable, and ethically aligned clothing has emerged. Unisex fashion is not simply a trend; it's a cultural recalibration—especially among Gen Z and Alpha consumers—toward greater authenticity, personal expression, and environmental consciousness.
Why the world is embracing unisex fashion
Behind this widespread shift lies a powerful mix of social change, digital influence, and economic pragmatism.
Global rejection of gender norms: Across continents, youth culture is challenging traditional notions of masculinity and femininity. Whether it’s high schoolers in California, university students in South Korea, or fashion influencers in Brazil, the younger generations are dismantling the rigid binaries that once dictated fashion choices.
A 2023 Grand View Research report identifies the rising visibility of non-binary and gender-fluid identities as a global catalyst for unisex fashion. In the U.S., over 38 per cent of Gen Z respondents in a Pew Research survey said they know someone who uses gender-neutral pronouns. In Europe, fashion houses like JW Anderson and Stella McCartney have consistently integrated non-gendered design language into their seasonal drops.
“For me, unisex is not about taking gender out—it's about allowing everything in,” says Dutch designer Nienke Boers, who creates oversized tailoring and modular garments for their label, Neutral Form.
Table: Global Youth Preferences in Apparel (Ages 16–30)
(Aggregated from multiple markets; 2024 Statista & YouGov insights)
|
Preference Category |
% of Global Respondents |
|
Comfort & Fit |
76% |
|
Versatility (Day-to-Night Wear) |
70% |
|
Sustainability/Ethics |
68% |
|
Gender-Neutral Design |
59% |
|
Digital Influencer Impact |
52% |
The comfort principle across borders: From oversized tees in Lagos to boxy jackets in Seoul, relaxed silhouettes are winning. This movement is propelled by hybrid lifestyles, where boundaries between work, leisure, and self-care blur. The unisex format—with its focus on flexible fits and functional design—is increasingly seen as the most sensible option.
Statista’s 2024 Global Apparel Survey revealed that 76% of Gen Z respondents across key fashion markets (U.S., UK, Germany, India, South Korea, and Japan) rated "comfort and fit" as more important than trendiness or brand name. Notably, comfort-first fashion is expanding from casual wear to formal and workwear categories, with brands like COS, UNIQLO, and Entire Studios leading the charge.
Sustainability in focus: As the climate crisis intensifies, so does the urgency to rethink fashion’s ecological footprint. Globally, unisex clothing is emerging as a more sustainable model by minimizing overproduction and streamlining design processes.
A 2023 McKinsey & Company report on sustainable fashion named gender-neutral design among the “Top 5 Enablers” of circular apparel economies. Brands like Pangaia (UK), Olderbrother (US), and Kaoru (Japan) are innovating with biodegradable fabrics and size-flexible garments that suit all genders—reducing both waste and SKU bloat. “Genderless fashion encourages shared wardrobes, slower consumption, and modular design—these are essential for circularity,” explains Alessandra Morandi, a sustainability researcher at Polimoda, Italy.
Economic accessibility and market logic: In emerging markets like Latin America and Southeast Asia, unisex fashion is also driven by economic logic. When garments are designed to suit anyone, families and consumers reduce the need for separate wardrobes, maximizing utility and reducing expenditure.
Moreover, fast fashion players from China’s Shein to India’s Bewakoof are adopting neutral designs for cost efficiency and global scalability, while premium players like Adidas, Nike, and Lululemon now feature dedicated unisex sections in their global online stores.
Fashion goes viral, not gendered: In the digital age, TikTok, Instagram, and Pinterest are where trends begin—and unisex fashion thrives. Influencers like Bretman Rock (Philippines/US), Wisdom Kaye (Nigeria/US), and Ellie Goldstein (UK) challenge stereotypes by modeling fluid fashion for millions.
Unlike legacy fashion advertising, today’s content is creator-led and peer-validated. The global hashtag #genderlessfashion amassed over 2.4 billion views across platforms in 2024, with unisex outfit challenges, thrift hauls, and DIY tailoring hacks driving organic virality.
Regional perspectives, local meets global
• Asia: In South Korea, unisex fashion is deeply rooted in K-pop aesthetics—oversized shirts, pleated pants, and monochrome looks dominate Seoul’s Hongdae district. Japan’s Comme des Garçons and Issey Miyake continue to set the tone for deconstructed gender-free design.
• Europe: Scandinavian minimalism plays a big role in unisex style’s rise. Labels like Arket and Weekday favor fluid cuts and monochrome palettes that appeal to broad audiences.
• Africa: In Lagos and Nairobi, gender-neutral fashion is fused with vibrant prints and street culture. Designers like Adebayo Oke-Lawal of Orange Culture Nigeria are globally recognized for blending queer identity with African heritage in a unisex format.
• Latin America: Countries like Brazil and Argentina are seeing a rise in queer-led fashion labels that celebrate cultural identity through inclusive design, such as Dendezeiro and Juan Hernandez Daels.
Where is unisex fashion heading?
Unisex fashion is entering a new phase—beyond T-shirts and sweatpants, toward haute couture, functional workwear, and adaptive design. The focus now includes size inclusivity, textile innovation, and AI-driven customization. Luxury brands from Gucci to Balenciaga are debuting gender-free lines on global runways.
Retailers are also transforming. E-commerce sites are collapsing gender-based filters, and physical stores are redesigning layouts to reflect a more fluid shopping experience. According to a 2025 report by Bain & Company, brands that blur gender lines in both product and experience see up to 30% higher engagement among Gen Z shoppers. “Fashion is becoming less about categories and more about stories,” says Kumi Yamada, creative director at Tokyo-based hybrid label MonoFlux. “And the most powerful story is one where everyone belongs.”
A global fabric of belonging
From Mumbai to Milan, unisex clothing is weaving a global narrative of acceptance, comfort, and shared identity. It mirrors a world in flux—where rigid labels are being replaced by fluid expression, and where what we wear says more about who we are than who we were told to be. In this new fashion order, the binary is broken—and the future wears what it wants.
Popular outdoor clothing retailer, Millets is closing six of its stores in 2025. These include the retailer’s store on Linthorpe Road in Middlesbrough in September.
Of these six stores, the company plans to rebrand four stores located in Lowestoft, Douglas, York, and Grimsby and reopen them as GO Outdoors, a sister brand to Millets. It has also launched a 30 per cent closing down sale at its store in Bracknell. Additionally, the Worthing store, which has been in operation since 2016, is expected to close by 2026-end and will be replaced by a GO Outdoors Express.
A retailer of major outdoor brands like Berghaus, The North Face, and Jack Wolfskin, Millets is owned by JD Sports which acquired the brand in 2012 when it rescued Millets's previous owner, Blacks, from administration.
These latest closures reflect the ongoing struggles faced by high street retailers, including reduced consumer spending, rising staffing costs, and increasing operational bills. The growing popularity of online shopping also continues to pose a significant challenge.
The retail sector has seen a wave of recent store closures. H&M-owned clothing brand Monki is closing its Glasgow store in Buchanan Galleries this August. New Look has also announced a series of store closures, with 11 branches already shut down in 2025, and its Neath, Wales, location is set to close on August 6. Furthermore, Poundland is closing 37 stores in August as part of a restructuring plan following its sale to Gordon Brothers earlier this year.
Italy's antitrust agency, AGCM has fined the Chinese online fast-fashion platform Shein €1 million for making misleading green claims.
The Italian competition authority alleged, operating in the 'fast' and 'superfast fashion' sectors, Shein adopted a misleading communication strategy regarding the characteristics and environmental impact of its clothing products
The environmental claims shared by operator of Shein’s website in Europe, Infinite Styles Services Co are‘in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive, notes’AGCM
Shein promotes its ‘evoluShein by design’ collection and the use of ‘green fibers’ as more sustainable.
However, the Italian authority notes, these statements may lead consumers to think that the collection is ‘fully recyclable,’ which it considers to be untrue given fibers used and the recycling systems currently in place.
In a statement to Politico, Shein said, it took immediate action to address the concerns,’ and has ‘strengthened their internal review processes and improved their website to ensure that all environmental claims are clear, specific, and compliant with regulation.
Italy is the second country in Europe to crack down on Shein after France fined the company €40 million for fake discounts and greenwashing in July.
The European Commission in May targeted Shein for alleged violations of consumer protection law involving fake discounts and misleading sustainability claims.
The EU has in recent months been taking a closer look at the millions of cheap parcels that enter the market every day — the vast majority of which from Chinese traders like AliExpress, Temu and Shein. These companies have also been probed over the potential sale of illegal products under the Digital Services Act.
German conglomerate best known for its confectionery brands, The Katjes Group, is expanding its portfolio into luxury apparel with the acquisition of a majority stake in Bogner. Katjes International announced a deal to purchase 60 per cent of the shares in the Bogner Group, with the remaining 40 per cent to be retained by the Bogner family.
A family-owned company, Bogner is recognized as Germany's largest luxury clothing brand, specializing in high-end sportswear and leisurewear. In FY24-25, the company reported net sales worth nearly €200 million and is currently profitable.
This strategic move diversifies the Katjes Group's holdings, which already include personal care brands such as ‘Bübchen’ and ‘Therame. Last year, the Group reported a turnover of €393 million, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of €45 million. The company has an average of 1,100 employees.
The 83rd Plenary Meeting of the International Cotton Advisory Committee (ICAC) will be held at the Malaika Beach Resort in Mwanza, Tanzania, from November 17-20, 2025.
The conference will focus on the theme titled, ‘Leveraging Sustainable Cotton and Textiles for Industrial and Rural Development.’ It will feature a variety of sessions covering all sectors of the supply chain, including Deep Learning and Sensor Technologies for Automated Detection and Monitoring of Cotton Diseases and Insect Pests; Financing Investment in Textiles and pparel Value Chain in Emerging Markets; Marketing Cotton: What Works, for Whom?, and Reports from the ICAC Secretariat.
The conference will also feature a session focusing on the views and ideas of attendees rather than the speakers on stage. Titled, The World Café, the session will focus on the theme, ‘Exploring the Challenges and Potential of Payment for Ecosystem Services (PES).’
The 83rd Plenary Meeting will also offer attendees an opportunity to participate in a two-day technical tour from November 21-22, 2025 to see Tanzania's iconic wildlife.
