The report titled ‘Accelerating Towards a Circular Fashion Ecosystem in the UK’ says the fashion and textile industry is vital to the UK economy, contributing £62bn ($83.63bn) annually, sustaining 1.3m jobs, and generating £23bn in tax revenue.

Plus, it offers major opportunities for innovation, sustainability, technology, and infrastructure development that can transform the sector while addressing critical environmental challenges and maintaining global competitiveness.

The report is based on two years of work by CFIN, which is led by the British Fashion Council (BFC) and the UK Fashion & Textile Association (UKFT) to accelerate the UK’s transition to a circular fashion ecosystem.

British Fashion Council’s former CEO Caroline Rush explains the report’s analysis of circular business models (CBM) shows a significant intention-action gap.

She states: “While 81% of fashion organisations include circularity in their five-year strategies, 63% of customer-facing initiatives remain in pilot phases.”

Growth potential across different fashion circularity models

Through industry engagement, the report identifies specific growth potential across different circularity business models (CBMs), ranging from resale and repair to takeback.

Resale shows particular promise for mass market and premium fashion retailers with 78% of initiatives currently in pilot phases

Repair demonstrates strong adoption in premium fashion sectors (57% were premium player led) with the highest customer participation rate (25%).

Takeback presents significant potential for midmarket fashion retailers (38% of Takeback CBMs from the survey were from this group) due to higher production volumes.

Rental and remake has emerging models with growth potential in specific product categories.

Other key findings and opportunities

The report also highlights sustainable manufacturing as offering substantial opportunities for economic growth and competitive advantage.

Its findings show that UK manufacturing offers enhanced supply chain resilience, faster response times, greater production agility, reduced carbon footprints, and creation of high-value, technology enhanced manufacturing jobs.

Given 1.45m tonnes of post-consumer textiles are generated annually in the UK, recycling infrastructure is also listed as a key opportunity.

The report says CFIN’s National Textile Recycling Infrastructure Plan outlines a strategic approach to developing domestic textile recycling capabilities across four key areas:

• Building advanced infrastructure to enable automated textile sorting, pre-processing, and fibre-to-fibre recycling
• Investing in technology to drive automation and innovation, paving the way for the creation of new business sectors
• Developing workforce skills to support job growth across emerging textile recycling supply chains
• Expanding market capacity to establish a strong, economically viable market for recycled textile products.

Novel technology is about connecting innovative start-ups with brands, retailers, and investors to scale commercially viable circular solutions. The report’s work has identified key technology opportunities, implementation barriers, and strategic recommendations to accelerate adoption.

The report’s commissioned expert research has examined how
circular fashion businesses can access funding needed to scale green growth. The analysis challenged persistent investment myths while providing practical recommendations for mobilising capital across different stakeholder groups.

A diverse and futureproof workforce is another area of potential. The report’s skills research identified critical capability gaps and tracked progress in education and training. Recommendations provide targeted guidance for industry, education providers, government, and employers to build the workforce needed for circular transformation.

Through CFIN’s policy working group and collaboration with experts, it has developed a detailed proposition for implementing EPR legislation for textiles that balances environmental goals with business practicality.

The research and stakeholder engagement demonstrates the need for a mandatory, eco-modulated EPR system with fees ringfenced for reinvestment in circular infrastructure and innovation.

CFIN’s suggested next steps for fashion sector stakeholders

CFIN invites all stakeholders across the fashion and textiles value chain to build on the foundation it has established through the following actions.

• Fashion brands and retailers should implement the circular business models identified in this report, setting ambitious targets for resale, repair, and takeback services while integrating sustainability metrics into core business strategies
• Manufacturers should explore automation, reshoring, and sustainable production opportunities highlighted in the research, partnering with technology providers to build more resilient and responsive supply chains
• Investors and financial institutions should address funding gaps for circular innovations by developing specialist knowledge of textile value chains and creating investment vehicles tailored to circular business models
• Policymakers should advance the detailed EPR framework proposed in this report while creating consistent regulatory incentives that drive circular practices across the industry
• Education providers should integrate circular economy principles into the curriculum and develop targeted training to address the skills gaps identified in the research.

The report explains: “For these collaborative actions to succeed, continued and enhanced support for CFIN is essential. The systemic changes required for a circular fashion ecosystem demand long-term, coordinated industry engagement that only an industry-led network like CFIN can facilitate.

“Longer-term funding mechanisms for CFIN would ensure the continuity of this critical work, enabling the industry to move beyond short-term pilots to sustained implementation at scale. Together, we can position the UK as a pioneering force in fashion circularity, creating a more resilient, innovative, and sustainable industry that delivers economic growth, environmental benefits, and social value.”

By Just Style