The sustainability of the fashion industry is an issue of shared interest to consumers, legislators, and fashion brands. And stakeholders across the fashion industry are becoming increasingly aware that sustainable consumption is much more than a trend. In fact, sustainable business practices – such as adopting circular business models, sourcing raw materials more responsibly and prioritising supply chain transparency – respond to much more than emerging consumer demands: their competitive advantages are underpinned by broader economic factors as well as regulatory pressure.
In addition, the relationship between what consumers want and the legislation is highly complex, balancing existing trends with the need for infrastructure-level change. While some of the focus areas of EU sustainability legislation are in line with consumer concerns, lawmakers are also looking to implement measures that will proactively change many current consumer behaviours, with the aim of achieving long-term sustainability improvements. Read on to learn more about this evolving landscape.
How strong is consumer demand for sustainability in fashion?
There’s no doubt that sustainable designs and business practices are highly valued by many consumers. Around two-thirds of fashion consumers consider sustainable materials and a brand’s promotion of sustainability to be important factors in their purchasing decisions. Consumers who care about sustainability are even willing to pay up to 15% more for more sustainable options.
An even more visible consumer desire is for more durable clothing that maintains or even increases its value over time. This is reflected in the McKinsey State of Fashion 2024 report, which states that ‘consumers across markets [are likely to] zero in on categories and brands on which they feel they can rely’.
Clothing that lasts longer is also inherently more sustainable, reducing the need for new production. In addition, the use of recycled materials can help brands to mitigate the effects of potential supply chain disruptions. To encourage the reuse of materials, brands can even reward consumers for returning worn items for recycling. For example, Patagonia’s Worn Wear programme allows customers in the US to trade in their old clothing in exchange for store credits. This can help to create a deeper connection with customers and increase the perceived value of your brand’s products.
In other words, the increasing adoption of more sustainable practices isn’t simply a response to a consumer trend. It’s a multi-faceted strategy that reflects a range of operational and strategic imperatives. And these imperatives will become increasingly important in the coming years, especially as regulatory pressures increase.
The rise of the regulators
As noted in the McKinsey report, the fashion industry is struggling to move forward with sustainability.
Circularity practices, for example, depend on other stakeholders like recyclers. As a result, regulators are stepping in, with the EU “leading the charge”. The EU’s vision for the textile industry is reflected in its Strategy for Sustainable and Circular Textiles, adopted in June 2023, which aims to set rules on product design, among other topics, to move the industry towards more sustainable practices.
It includes the flagship Ecodesign for Sustainable Products Regulation (ESPR), which sets minimum design standards for all individual products sold within the EU in terms of recyclability, durability, reusability and repairability. Extended Producer Responsibility (EPR) legislation, set to be introduced across Europe, also makes brands more accountable for the disposal and recycling of their waste.
One objective of these regulations is to increase the potential for circularity throughout the value chain. If products are designed with recyclability in mind from the outset, it will be more worthwhile to invest in increasing recycling capacity. At the same time, if there are more recycling facilities available, it will become more practical to produce sustainable products, as manufacturers will have easier access to recycled raw materials – creating a ‘virtuous circle’ that promotes circular supply chain.
To what extent are consumer trends and legislation linked?
There’s no denying that some EU legislation is in line with what consumers want, such as more durable products and brands they can trust. For example, the EU’s new Green Claims Directive aims to curb greenwashing, which is also high on the consumer agenda. However, it would be a mistake to assume that the EU only passes sustainability legislation when it’s popular with European consumers. Indeed, regulators in Europe are also targeting practices that are popular with consumers.
In recent years, for example, fast fashion companies have been able to develop loyal customer bases through hyper-low pricing strategies, marketing focused on building large and engaged communities, and apps with high adoption and engagement rates. Despite this evident consumer demand, legislation in the EU has increasingly targeted the ‘take-make-dispose’ practices of such brands. In France, a levy on fast-fashion garments has already been proposed. Meanwhile, the ESPR regulation includes a complete ban on the destruction of unsold clothing and footwear.
This goes to show that, while some consumer trends are certainly reflected in EU legislation, they are by no means driving it. The pressures and advantages of sustainability are here to stay, both as a consumer trend and a legislative objective.
What can brands do to get ahead in the sustainability race?
It’s clear that sustainability in fashion is here to stay. And brands that implement sustainable practices now will have a competitive advantage that can only grow in the coming years. Indeed, by adopting more durable designs and integrating recycling and renewal solutions capabilities into their operations, brands can kill two birds with one stone. the one hand, they can respond to consumer demands for sustainability, and the “buy less, buy better” trend. On the other hand, they can ensure compliance with current and future regulations. Crucially, these practices can also improve supply chain resilience, reducing the impact of disruptions caused by climate change and geopolitical shifts.
Want to find out how your brand can take steps to make sustainability a priority? Get in contact today for a free consultation with our experts!
