Kearney Unveils Insights from the 2025 Circular Fashion Index
While Showing Growth, Circular Fashion Has Yet to Scale
- Top 10 list remains consistent for the third consecutive year
- Only two new brands have made it to the top ranks
- Mid-tier brands struggled while the bottom 80% stayed stagnant
- Only five brands scored above 7.0, with fewer than 20% exceeding a score of 5.0
- A notable shift is observed from voluntary to mandated changes
Today, Kearney has introduced its fifth annual Circular Fashion Index (CFX 2025), an important study tracking the fashion industry’s movement towards circular economic practices globally. This extensive report evaluates 246 apparel brands across a diverse array of regions and categories, shedding light on their sustainable efforts.
According to Nora Kleinewillinghoefer, a Kearney partner and expert in fashion and luxury, "While our top-ranking companies have excelled, many brands are caught in the gap between intentions and real actions, managing some successes yet failing to integrate changes across their entire operations."
Key Findings from CFX 2025:
- Many brands have pledged their commitment to circularity, but only a few follow through with consistent large-scale execution.
- Over 70% of brands now occupy a 'moderate' level of commitment, indicating that circularity has reached mainstream recognition.
- However, merely 3-5% of brands achieved an 'extensive' level of implementation, highlighting a major gap in actual practice compared to commitment.
- Regions like Europe and North America maintain their leadership, achieving average scores of 3.6 and 3.4, respectively, with Europe showing significant improvement due to its evolving regulatory frameworks.
Namrata Shah, another Kearney partner, emphasizes, "Progress in adopting circular design and material reuse has mostly seen limited advances, which points to the urgent need for a strategic overhaul. Circularity should be viewed as an opportunity for growth rather than merely compliance; it must be ingrained in product design and development practices."
Dario Minutella from Kearney notes, "While initial steps have been taken, such as circularity initiatives and awareness campaigns, these measures often lack integration into full product lines and comprehensive geographic strategies. Our analysis illustrates that the industry’s challenges are not due to a lack of understanding but rather insufficient support systems and business frameworks.”
As regulations demand more accountability, the message is clear: brands need to transition from simply stating intentions to proving their commitments through tangible and substantial evidence. The industry must evolve and adapt at a faster pace.
About Kearney
Kearney has been a trusted partner in management consulting since 1926, serving a majority of the Fortune Global 500 and spanning over 40 countries. The firm's mission is to tackle significant challenges, focusing on delivering impactful results through innovative solutions, ensuring clients achieve their objectives sustainably.
About Kearney's Circular Fashion Index
The Circular Fashion Index reflects Kearney's dedication to sustainability in the fashion sector, evaluating 246 brands on their circularity efforts across five major categories, offering an insightful perspective on the path towards a more sustainable future.
Frequently Asked Questions
What is the Circular Fashion Index?
The Circular Fashion Index is a report that measures the sustainability efforts and circular practices of apparel brands globally.
How many brands were analyzed in the 2025 CFX report?
A total of 246 brands were assessed in the 2025 Circular Fashion Index report.
What key trend is observed in the CFX 2025 findings?
A significant trend is the shift from voluntary sustainability practices to mandated regulatory requirements in the fashion industry.
Which regions are leading in circularity scores?
Europe and North America lead in circularity efforts, with Europe showing notable improvements recently.
What does Kearney suggest for brands moving forward?
Kearney advises brands to embed circularity into their core operations and view it as a growth lever rather than just a compliance task.
