How the circular economy is transforming fashion: Sustainable trends & insights

As fashion designer Stella McCartney once said: “The future of fashion is circular: it’s about making clothes last longer and creating value beyond the first wear.” 

In recent years, this vision has become more than an ideal; it’s transforming the fashion industry as we know it. Unlike fast fashion, which prioritizes quick production and disposal, the circular economy focuses on extending the life of garments through reuse, recycling, and repair. This shift not only reduces waste but also aligns with growing consumer demands for sustainable choices. 

Why does circular fashion matter in today’s economy?

The environmental impact of fast fashion is hard to ignore. By extending the lifespan of garments and reducing waste, the circular economy addresses the urgent need to cut emissions and conserve resources.

Today, more clothing brands are offering repair services and encouraging secondhand sales, but they now face new challenges like finding ways to meaningfully communicate their sustainable initiatives amid “apocalypse fatigue”, while balancing the books and competing with fast fashion’s undeniable convenience. So, let’s have a look at the trends shaping this movement. 

Circular fashion trends and insights:

1. Secondhand buyers balance luxury finds with budget-conscious habits
2. More consumers are turning to thrift stores
3. Sustainability isn’t the main driver for many secondhand shoppers
4. Brands still need sustainable values
5. Social media and celebrities are fueling the secondhand trend

1. Secondhand buyers balance luxury finds with budget-conscious habits

Gen Z are typically the first generation that comes to mind when talking about sustainability, but they aren’t necessarily driving the secondhand market. In fact, almost 40% of secondhand fashion buyers are millennials, compared to 31% of Gen Z. 

To some, buying secondhand goods might sound like a cheaper way to shop, but the majority of secondhand buyers sit within the high income bracket or describe themselves as affluent, being more likely to have bought items from luxury brands like Max Mara and Burberry in the last year. 

These consumers aren’t all about luxury though; they blend premium tastes with everyday choices. Secondhand buyers also stand out for making regular visits to Nando’s and Pizza Hut, using public transport weekly, and using discount codes.

By leveraging data like this, brands can ditch their preconceptions about secondhand buyers and get to know them better – helping to create powerful, relevant campaigns that engage these consumers.

2. More consumers are turning to thrift stores

Secondhand shopping is becoming more popular – the number of secondhand fashion buyers has grown 25% worldwide since the end of 2022. 

As you might expect, the cost of living crisis has left many people with less money to live on than they had before, and 31% say they’re spending less than they did this time last year. People are likely to be looking for ways to cut costs, and shopping secondhand is a natural solution.

When money is tight, people are also looking for value and reliability; products that last the test of time. Consumers may have less money in the bank, but the number who say they’d prefer to pay more for a brand they know, rather than less for a cheaper own-brand product, has remained unchanged since early 2022. 

Secondhand shopping has become far more normalized over the past few years; secondhand doesn’t mean second-best. In five markets, almost half of consumers say wearing pre-owned luxury products is just as stylish as brand new ones, while some shoppers even pay stylists on TikTok to handpick secondhand pieces for them.

With consumer priorities driven by tighter budgets and a desire for value without sacrificing quality, fashion brands have an opportunity to tap into this demand. Embracing and normalizing secondhand options (like Balenciaga’s re-sell program) will not only align brands with cost-conscious consumers, but also position them as leaders in sustainable, value-driven fashion. 

3. Sustainability isn’t the main driver for many secondhand shoppers

It’s well-documented by now that eco-consciousness doesn’t often align with consumer purchase behaviors, and the same is true for secondhand clothing. 

If we look at luxury buyers specifically, among those who browse for pre-owned luxury items, only 14% say they shop for pre-owned luxury to avoid fast fashion or reduce their environmental impact. 

Saving money is always going to be a key motivation, but it’s closely followed by a desire to find unique pieces, timeless designs, and vintage styles. Consumers see secondhand shopping as a way of discovering pieces that no one else has. This is really important to secondhand buyers – they’re 48% more likely than the average consumer to say standing out in a crowd is important to them, so they’re likely to be interested in unique pieces which elevate both their status and style.

This suggests the environmentally friendly side of secondhand shopping is a coincidental benefit or an added bonus, rather than a driving factor, and so brands should tweak their messaging accordingly. 

It’s a similar story when we look at people who shop on online marketplaces more broadly. Their main motivation is ease of use, followed by affordability, and convenience. The importance of sustainability is slightly higher for luxury buyers, but still doesn’t sit within their top five driving factors.

For brands and online marketplaces, creating a preowned edit of their pieces, or marketing collections as rare and unique is more likely to get more shoppers through the door than focusing purely on sustainability. 

4. Brands still need sustainable values

When compared to other everyday problems, sustainability tends to take a backseat – but brands shouldn’t ignore it altogether. Quite the opposite, actually. If we ask people what they want brands to do, being eco-friendly comes out on top – and has been since we began tracking this in 2019.

Consumers want to see brands take more responsibility, so they can make better choices about where they buy from. In other words, even if consumers aren’t always choosing products based solely on sustainability, they want to trust that the brands they support are making responsible choices.  

Fashion brands who can do this will add value to their products – whether by offering repair and alteration services, providing recycling options, or introducing leasing models for consumers to borrow their favorite pieces. These initiatives will help reinforce a commitment to sustainability – something consumers see as their responsibility. 

But crucially, brands need to ensure they’re upholding these values authentically to avoid greenwashing. Getting it right creates a level of trust and loyalty that can set a brand apart, even when sustainability isn’t the deciding factor in every consumer purchase. 

5. Social media and celebrities are fueling the secondhand trend

In the US, the number of people who pay attention to what influencers and celebrities are wearing has grown 14% since the beginning of 2023. Celebrities like Zendaya and Sarah Jessica Parker have openly spoken about their love of thrifting, and Macklemore doesn’t just sing about going to the thrift shops – he’s a fan of the secondhand hunt himself.

On TikTok, #thrift has amassed 2.3 million posts, packed with tips, hauls, and styling transformations that inspire users to get creative with preloved fashion. As we mentioned earlier, many people are even hiring TikTok stylists to thrift clothes for them, with more people looking to find unique pieces. 

Brands looking to get in on the action should embrace the trend by collaborating with influencers, highlighting thrifted style stories, and showcasing the individuality that secondhand fashion offers. 

The circular economy in a nutshell

The circular economy is transforming fashion by balancing style and savings with sustainability.

With secondhand shopping on the rise, brands have a unique opportunity to engage eco-conscious, value-driven consumers. Embracing circular practices, like repair services and pre-owned collections, can help clothing brands stay relevant and build loyalty. 

Ultimately, the shift towards circular fashion offers a promising way to reduce waste while meeting the evolving expectations of today’s shoppers. 

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