Research suggests sustainable “Made in the USA” apparel featuring recycled textile materials has growth potential.
In recent
years, the increasing awareness of fashion sustainability and the environmental
impact of apparel production and consumption has motivated many fashion brands
and retailers to provide “sustainable apparel” products. Although the concept
of “sustainable apparel” continues to evolve, using preferred fibres like
recycled materials and organic content are among the most popular and essential
practices.
While the United States
traditionally is not regarded as a leading apparel-producing country, mainly
due to its high wage levels, “sustainable apparel” could be a potential
opportunity to promote US domestic clothing manufacturing.
On the one hand, studies
repeatedly show that consumers generally have a favourable perception of
clothing “Made in the USA” and regard such products as more environmentally
friendly and socially responsibly made.
On the other hand, making
sustainable apparel often requires substantial technology support and heavy
research and development (R&D) investment. These unique features present a
promising opportunity for US manufacturers to compete in the sustainable apparel
market, given their access to abundant capital, human talent, research, and
innovation resources, which are often lacking in a developing country.
By leveraging thousands of
product-level data collected from fashion companies’ websites, this study analysed
the availability and detailed product features of sustainable apparel labelled
“Made in the USA.”
These apparel products explicitly mention using
recycled textile materials or organic fibres in the product descriptions.
To capture the most timely and representative market trends, this
study selected sustainable apparel for sale in the world’s leading consumer
markets, including the US, EU5 (UK, France, Germany, Italy, and Spain),
and Canada from January 2022 to September 2023.
The study’s findings provide
valuable insights for fashion companies regarding the strengths and capacity of
the United States to serve as a sourcing base for sustainable apparel products.
The results can also inspire future policies to incentivise more sustainable
apparel production in the US.
First, contrary to
common perception, data suggests a decent presence of sustainable apparel “Made
in the USA” in the world marketplace. For example, from January 2022 to September 2023, over 15,000
Stock Keeping Units (SKUs) of apparel “Made in the USA” using
recycled textile materials and another 6,000 SKUs containing
organic fibre were for sale in the US market and worldwide. Notably, even
though clothing made from recycled textile materials is a relatively new and
emerging product category, US manufacturers are among the world’s top
suppliers.
Second, US-made sustainable apparel is popular in the domestic market and
beyond. The domestic market remains the top priority for sustainable apparel
“Made in the USA.” Specifically, measured in the number of SKUs, approximately
43% of US-made clothing using recycled textile materials and another 30% of
US-made clothing from organic fibre were sold in the domestic market from
January 2022 to September 2023.
Meanwhile, when measured by the number of SKUs, more than half of “Made in the
USA” apparel using recycled textiles was sold outside the US, such as in Europe
and Canada. The percentage was even higher for apparel products made from
organic materials. These results reveal foreign consumers’ positive views of
the United States as a trustworthy source of sustainable apparel and retailers’
global sourcing practices for such products.
Furthermore,
sustainable apparel “Made in the USA” covers various market segments.
When measured in the number of
SKUs, over 70% of sustainable apparel “Made in the USA” for sale in the US
domestic market during the examined period targeted the value and mass
market segments. Consistent with the results, the top sellers of
US-made sustainable apparel were also mostly mass-market retailers, such as Target,
Zappos, Madewell, Lord & Taylor, and Macy’s. In other words, it
could be different from the common perception that sustainable apparel “Made in
the USA” was not necessarily beyond the affordability of ordinary
consumers.
Meanwhile, a
relatively higher percentage of US-made sustainable apparel in the EU targets
the luxury and premium market segments. This result reflects the
distinctive market structure for sustainable apparel products in European
countries, where a higher concentration of high-end fashion retailers is
present, and both local consumers and international tourists are more inclined
to pay a premium for clothing products made with environmentally friendly
fibres.
Results show that sustainable
apparel “Made in the USA” has several unique product assortment
features.
First, sustainable apparel “Made in the USA” is more visible in specific
categories than others. For example, regarding clothing using recycled textile
materials, swimwear and hosiery ranked among the top
categories of US-made sustainable apparel introduced to the market. This
phenomenon can be attributed to the US being one of the world’s leading
producers of recycled polyester widely used in swimwear. Also, compared to
other apparel categories, hosiery manufacturing has become more automated
today, allowing US producers to use machines, thereby reducing total production
costs. Regarding clothing made from organic fibres, both US and non-US-made
products exhibit a high concentration in tops, likely due to
the prevalent use of organic cotton.
Nevertheless, most
sustainable apparel products that are relatively more complex to produce, such
as outerwear, were non-US made. The lack of cut-and-sew capabilities for such items in the US
could be a critical factor behind the limited supply.
Secondly, sustainable apparel labelled “Made in the USA” places a higher
concentration on women’s clothing than products manufactured elsewhere. This was particularly the case for
clothing made from recycled textile materials, where over 80% of US-made were
womenswear compared to only 52% of non-US-made clothing items. Interestingly,
there were significantly fewer US-made sustainable childrenswear items,
possibly reflecting the requirement for more advanced production techniques to
meet stricter safety standards in this category.
Third, similar to products made elsewhere, sustainable “Made in the USA”
apparel looks less stylish than regular clothing using virgin fibres. Specifically, more than 70% of US-made
clothing made from recycled textile materials adopted the plain style
without using any graphic or patterned design. Similarly, over half of US-made
clothing using organic fibre also adopted the plain pattern. Previous studies
consistently show that because of the fibre limitations leading to
inconsistencies, technically, adding more graphic patterns to clothing items
using recycled or organic fibres could be more challenging.
Fourth, the percentage of sustainable apparel “Made in the USA” that provides
fibre certification information remains relatively low, an area that needs
improvement. In
most markets, “Made in the USA” recycled and organic apparel reported a lower
certification percentage than products made elsewhere. The scarcity of
certifications may be attributed to the time and cost of obtaining them.
Certification fees typically apply to each product order, regardless of size,
making it considerably more expensive for sustainable apparel producers that
carry orders with smaller SKUs. Nevertheless, studies indicate certifications
are crucial for demonstrating credibility and communicating sustainability
efforts to consumers. Governments worldwide are also working on new legislation
to impose more restrictive requirements on certifying the garment’s recycled
and organic fibre content.
Additionally, for clothing made from recycled textile materials, intriguing
distinctions exist between “Made in the USA” apparel and those made elsewhere
in the selection of specific fibre content. Notably, about 37% of US-made clothing
using recycled content consists of nylon, significantly higher than non-US-made
items in the market. In comparison, whereas the supply of recycled polyester
exceeds many other fibres worldwide, it appears to be less dominantly used in
US-made clothing containing recycled textiles. One possible contributing factor
is the product structure. For example, hosiery, which widely uses recycled
nylon, is a leading category of apparel “Made in the USA.” Legal factors may
also play a role. For instance, some US states have implemented regulations
prohibiting certain plastic-related chemicals, such as bisphenol A, in
clothing, which could result in US manufacturers’ more cautious use of recycled
polyester generated from plastic bottles.
Two patterns are worth
watching regarding the price competitiveness of sustainable apparel “Made in
the USA.”
On the one hand, for
clothing made from recycled textile materials, “Made in the USA” items are
often priced relatively lower than those made elsewhere in the retail market. Some notable
examples include bottoms, underwear, sleepwear, and product sets in the mass
and value market and bottoms and sleepwear in the luxury and premium markets.
To a certain extent, this result revealed the cost advantages of “Made in the
USA” for clothing made from recycled textile materials and highlights US
manufacturers’ leadership in production scale for such products.
However, on the other
hand, US-made apparel is often priced higher than those made elsewhere for
clothing using organic fibre content. For example, both in the mass and value segments and the
luxury and premium markets, US-made tops, dresses, and even swimwear are priced
much higher than non-US-made. As many low-wage developing countries actively
supply organic fibres such as cotton and the production process remains labour
intensive, it could make it more challenging for the US as a high-wage
developed country to compete on price.
In conclusion, this study’s findings suggest a decent presence of sustainable
apparel production and sourcing base in the United States. For relatively new product categories
like clothing made from recycled textile materials, apparel “Made in the USA”
demonstrates unique market competitiveness with future growth potential. To
further promote sustainable apparel “Made in the USA” in the world marketplace,
more efforts could be made to strengthen US production capacity beyond
relatively simple product categories. Meanwhile, industry associations could
consider developing more practical guidelines to streamline the certification
process for recycled or other sustainable fibre content in garments.
Additionally, policymakers
could explore measures to incentivise new investments in production capacity
for sustainable apparel, facilitating cost reduction for manufacturers and
encouraging fashion companies to expand domestic sourcing for such products.
By Just Style