“ An average family disposes 30 kg of clothes annually and only 15% of that gets recycled or donated. “
In 2023, the revenue in the Apparel market in Bangladesh amounts to US$10.15bn. It is projected to experience an annual growth rate of 3.08% (CAGR 2023-2027). The largest segment in this market is Women’s Apparel, with a market volume of US$4.56bn in 2023.
Sustainable fashion is a holistic approach to fashion that aims to minimize environmental impact and promote social responsibility. It involves ethical labor practices, eco-friendly production, use of sustainable materials, and recycling of garments. It also includes slow and circular fashion models that focus on durability and recycling to reduce waste. The goal is to create a fashion industry that is environmentally sustainable and socially just.
Given that the fashion sector contributes approximately 8-10% of global carbon emissions and nearly 20% of wastewater, a shift towards sustainable practices is imperative. The increasing consumer inclination towards eco-friendly and sustainably produced clothing, as highlighted by a 2022 Statista survey where 35% of U.S. customers expressed willingness to pay a premium for sustainable products, underscores a significant trend in consumer behavior. This trend is pivotal in encouraging and accelerating the adoption of sustainable practices within the fashion industry.
Can Fashion be Sustainable?
The fashion industry, frequently criticized for its significant environmental impact, is exploring various strategies to enhance its sustainability. A pivotal approach involves the digitization of the supply chain, which promises transformative changes. This method not only reduces opacity and reliance on intermediaries but also improves operational efficiency, shortens inventory cycles, and potentially boosts financial performance. Moreover, digitization brings about increased transparency, predictability, accountability, and traceability in supply chains, all of which are crucial for fostering substantive progress in sustainable fashion practices. Concurrently, the industry is witnessing a surge in diverse forms of sustainable fashion consumption. This includes the adoption of products made from more sustainable resources, such as recycled or low-CO2 materials, and the integration of circular business models like resale, leasing, repair, and refurbishment. Long-term trends are emerging as well, encompassing recyclable fabrics, fashion rentals, on-demand fashion, localized manufacturing, product passports for enhanced transparency, and the advent of metaverse fashion, all contributing to a more sustainable and environmentally conscious fashion landscape.
Global Shift Towards Sustainability
Consumers Vote with their Wallets
Eco-conscious millennials and Gen Zs are driving the demand for sustainable alternatives. A survey conducted by McKinsey across more than 2,000 UK and German consumers found that 67% consider the use of sustainable materials to be an important purchasing factor.
Regulations & Legislation
Governments are increasingly intervening to steer the fashion industry towards sustainable practices. Despite the apparel industry's complex and global supply chains making it historically under-regulated, recent legislative efforts are being made to address environmental and social issues. These include reshoring production, improving garment worker wages, and enhancing supply chain accountability. The EU Strategy for Sustainable Textiles exemplifies such efforts, indicating the EU's commitment to legislating against the industry's overproduction crisis and its associated waste, pollution, and labor rights violations.
Technological Advancements
Advancements in biomaterials, recycling methods, and eco-friendly dyes are enhancing the feasibility and accessibility of sustainable fashion. The Indian fashion industry is embracing technologies like Blockchain, AI, and ML for better supply chain management, ensuring transparency and accountability. Big data and analytics play a crucial role in market monitoring and making informed business decisions. Virtual reality is being used for virtual try-ons, reducing returns-related carbon emissions. Practices such as ecodesign, repurposing, upcycling, and 3D printing are pivotal in aligning fashion production with environmental sustainability, thereby minimizing waste and resource strain.
Bangladesh's Adaptation to Sustainable Fashion
Bangladesh, the second-largest exporter in the $45 billion ready-made garment (RMG) industry, is making significant strides in sustainable fashion. The country holds a 7.9% share of the global market and employs 4.4 million people, mostly rural women.
Over the past 15 years, Bangladesh has set an example of green and sustainable manufacturing by establishing numerous certified green factories. Since 2009, Bangladeshi apparel and textile manufacturers have established 202 “eco-friendly” factories certified by the U.S. Green Building Council (USGBC), the highest number in the world. These factories are developed and equipped with design and manufacturing processes that efficiently improve greenhouse gas emissions and curtail environmental pollution and energy consumption.
In addition to green factories, Bangladesh is also moving towards a circular economic model in the textile industry. This model strengthens the conventional 'take-make-consume-waste' method of resource utilization by introducing a new process whereby raw materials are turned into a product that is recycled into a new product at the end of its life cycle instead of simply being discarded.
Future of Sustainable Fashion in Bangladesh
The future of the sustainable fashion industry in Bangladesh appears promising, marked by several significant developments. Firstly, the ready-made garment (RMG) sector, constituting a substantial portion of the country's exports, has witnessed substantial growth and modernization in recent years. Secondly, there has been a notable shift towards sustainability within the industry, with initiatives focusing on enhancing transparency, ensuring factory safety, and promoting responsible practices throughout the value chain. Bangladesh has also made remarkable progress in eco-friendly manufacturing, boasting the highest number of "eco-friendly" factories certified by the U.S. Green Building Council globally. These factories prioritize processes that minimize greenhouse gas emissions and mitigate environmental impact. Moreover, technological advancements are anticipated to drive further progress, with the apparel industry projected to become increasingly mechanized by 2023.
