An interim report by the Circular Fashion Innovation Network (CFIN) highlights key insights and next steps in the UK's journey towards a circular fashion ecosystem by 2032.
- The insights presented in this report provide a foundation for collaborative action among industry stakeholders, government bodies, and funders. By focusing on these key areas, the UK can position itself as a global leader in circular fashion, addressing both environmental concerns and economic opportunities.
THE REPORT: The report, developed through extensive stakeholder engagement over the past year, focuses on three critical areas: Circular Business Models (CBM), Sustainable Manufacturing, and Recycling Infrastructure.
THE RECOMMENDATIONS: It recommends several key actions to accelerate the transition to a circular fashion ecosystem:
- Develop an accelerator programme to support scaling circular business model initiatives.
- Explore the potential of increasing volume apparel manufacturing capacity in the UK through innovative infrastructure projects.
- Create a comprehensive National Textile Recycling Infrastructure Plan, addressing challenges in collection, sorting, and recycling technologies.
- Advocate for Extended Producer Responsibility (EPR) schemes in the UK textiles industry to help finance recycling infrastructure.
The CFIN has also suggested some key next steps to help drive this change:
- Identify how existing EU regulations will apply to UK business, which can drive business change through legislation compliance on eco-design products and EPR.
- Develop an accelerator programme to support the scaling of CBMs, which is holistic in approach with sustainable manufacturing and recycling infrastructure.
- Identify a harmonised approach to how brands and retailers communicate with customer base on sustainable fashion, including circular design and business models.
- Identify the government interventions required, in the form of financial incentives and policy, in order to drive the right behaviours.
CIRCULAR BUSINESS MODELS: The fashion and textiles industry demonstrates a strong intention towards circularity, with CFIN’s research showing 81% of organisations include CBMs in their five-year strategy.
- However, a significant gap exists between ambition and implementation, with 63% of existing customer-facing CBMs in a low-maturity pilot phase.
- The primary barrier to scaling these initiatives is financial viability, alongside challenges in customer communication and demand
SUSTAINABLE APPAREL MANUFACTURING: A key opportunity lies in aligning UK manufacturing capacity with volume retail demand. By strategically increasing production capabilities, the UK can reduce reliance on imports, shorten supply chains, and enhance responsiveness to market trends.
- To address this opportunity, the concept of a sustainable apparel manufacturing park emerges, serving as a hub for sustainable manufacturing practices, bringing together advanced technologies, skilled workers, and circular production methods under one roof.
The next steps the CFIN programme will take in sustainable manufacturing include:
- Continuing exploration of technological innovations and their integration into UK manufacturing supply-chains, particularly in AI, automation, and robotics.
- Exploring the potential of increasing volume apparel manufacturing capacity through volume apparel infrastructure.
- Establishing collaborations between manufacturers, innovators and key industry stakeholders to drive sustainable transformation.
- Exploring minimum compliance requirements to manufacture in the UK.
RECYCLING INFRASTRUCTURE: The UK’s textile recycling landscape presents a significant opportunity for development.
- With approximately 1.45 million tonnes of post-consumer textiles generated annually in the UK, there is considerable potential to create an effective recycling ecosystem. This presents a socioeconomic opportunity to capture the value of these textiles, generate environmental benefits, and contribute to economic growth and job creation.
The next steps for CFIN’s Recycling Infrastructure activities will include:
- Create a comprehensive National Textile Recycling Infrastructure Plan.
- Develop a socio-economic impact analysis of developing a National Textile Recycling Infrastructure.
- Advocate for EPR schemes in the UK textile industry and broader policy mechanisms, to help finance recycling infrastructure.
- Foster cross-sector collaboration to drive textile recycling innovation.
ABOUT CFIN: The Circular Fashion Innovation Network (CFIN) is an industry-led programme led by the British Fashion Council (BFC) and UK Fashion and Textile (UKFT) in partnership with UK Research and Innovation (UKRI) to accelerate the UK towards a Circular Fashion Ecosystem.
WHAT THEY SAID:
UK fashion and textile industry is at a turning point, faced with both significant opportunities and challenges. Global markets are evolving rapidly, driven by sustainability demands, technology transformation and supply chain volatility. The UK sector must adapt swiftly to remain competitive and sustainable. The Interim Report marks a tangible milestone in CFIN's mission to drive systemic change in the UK fashion industry. It offers vital insights into the current state of circular practices, highlighting both progress made and critical areas where further action is needed to achieve long-term success.
— Caroline Rush
Chief Executive
British Fashion Council
This report highlights how we’ve been working to bring the entire industry together to start building a circular fashion ecosystem here in the UK. After a year, we’ve made some real progress and taken practical steps forward, but more importantly, we’ve brought together all parts of the supply chain. This isn’t just about solving the challenges in our sector – it’s also about creating new opportunities for growth, efficiency and sustainability across the whole industry.
— Adam Mansell
Chief Executive
UK Fashion & Textile Association
