Sustainable Fashion in the Circular Economy Era: Practices, Challenges, and Emerging Trends

Abstract

The global fashion industry is undergoing a significant paradigm shift as sustainability and
circular economy (CE) principles gain increasing attention from businesses, policymakers, and
consumers. Traditionally associated with high resource consumption, pollution, and social
challenges, the fashion sector is now under pressure to adopt environmentally and socially
responsible practices. This study explores the integration of sustainable fashion management and
circular economy strategies across the entire value chain, including sourcing, production, design,
distribution, and end-of-life management. It synthesises recent research on circular design
methodologies, eco-friendly and innovative materials, ethical business practices, consumer
behaviour towards sustainable fashion, and corporate sustainability reporting. The review
identifies key challenges that hinder progress, such as excessive waste generation, depletion of
natural resources, greenwashing practices, supply chain opacity, and the slow adoption of
circular business models. In addition, it emphasises the importance of technological innovation,
such as digital supply chain tracking, AI-driven design, and advanced recycling techniques, as
well as policy interventions that support sustainability and circularity. Collaborative initiatives
among brands, non-governmental organisations, governments, and consumers are highlighted as
critical drivers for large-scale adoption. Finally, education and capacity-building efforts are
underscored as essential for equipping industry professionals and consumers with the knowledge
and skills needed to transition towards a sustainable and circular fashion ecosystem. By

addressing these aspects, the fashion industry can move toward a more responsible, regenerative,
and resilient model that balances environmental, social, and economic objectives while
promoting long-term sustainability.