THE STATE OF SUSTAINABLE FASHION IN 2026
By Clémence MacKenzie Dehais
If you work in the fashion industry (or if you just have a good pair of eyes), it’s clear that sustainability is no longer the hot topic it was only a few years ago. The optimism we felt around sustainability in the post-pandemic era was quickly replaced by growing scepticism, fuelled by a slew of self-proclaimed “sustainable” brands relying on greenwashing tactics and vague sustainability claims. At the same time, 2026 is proving to be a pivotal year for the global fashion industry, with stricter regulations and compliance requirements slowly coming into play.
The challenges
While it may be hard to pinpoint the exact moment sustainability lost its shine, there are several factors, both economic and sociological, that can explain this trend.
In the 10th annual State of Fashion report by McKinsey and Company and BoF Insights published in November 2025, sustainability has, perhaps unsurprisingly, slipped from the top 10 industry priorities, with topics such as AI, tariff turbulence and efficiency coming at the top of the list. To thrive, and in many cases, to merely survive, brands and suppliers have been forced to adjust to a fast-changing market impacted by a challenging economy, technological disruption and evolving consumer priorities, defined by a clear focus on value and relevance.
In the US, consumer sentiment was especially low in 2025, and things aren’t looking any better now. In the second quarter of 2026, only a smaller share of US consumers felt optimistic, while a larger share continued to face cost concerns, including difficulty covering everyday expenses among lower- and middle-income consumers. In the EU, consumers’ economic outlook and spending intentions remain mixed, with inflation being their top concern, closely followed by international conflicts and job insecurity.
When times get hard, sustainability goes out the window, simple as that. While some companies, including H&M and Kering, have successfully reduced emissions by more than a third, a growing number of fashion and luxury brands, from Asos to Burberry and Ralph Lauren, are revisiting their sustainability goals or delaying their net-zero targets altogether. Adidas and Inditex are also falling short, achieving only single-digit percentage reductions in emissions, despite targeting 42 per cent and 51 per cent reductions by the end of the decade.
Even leaders in the sustainable fashion space aren’t immune to this turbulent market. Pioneer sustainable fashion label Mara Hoffman closed for good in May 2024 after 24 years in business. California-based brand Amour Vert filed for bankruptcy in early 2025. Sneaker brand Allbirds pivoted to AI in April 2026 in a desperate bid to stay afloat. Dutch sustainable brand Mud Jeans officially filed for bankruptcy over the summer. Oh, and let’s not forget Everlane, the brand once known for its “radical transparency,” which has now been acquired by ultra-fast fashion giant Shein. Sustainable fashion has become The Hunger Games, and no one’s safe from perishing in the arena.
To stay in the game (no pun intended), fashion brands must now prioritise agility above all else, whether by improving their supply chains and data accessibility, restructuring their workforce or adopting AI-native shopping journeys. While more established players have the advantage when it comes to speed, trend response and supply chain adaptability, smaller sustainable fashion brands can stay agile by focusing on on-demand manufacturing to reduce waste and minimise inventory costs. They can also implement 3D virtual sampling to avoid wasteful physical samples, and partner with micro-factories that offer lower Minimum Order Quantities.
Sustainability fatigue
On top of a challenging economy and cautious consumer spending, sustainability fatigue has officially kicked in – on a wider scale, we could even talk about an “apocalypse fatigue”, exacerbated by intensifying climate warnings and a general sense of helplessness in the face of economic and environmental issues.
Over the last few years, consumers have been drowning in information regarding sustainability goals, carbon emissions reports and eco- products. When you add rife greenwashing to the mix – and in more recent years, “greenhushing”, a trend where brands purposefully don’t disclose their sustainability progress to avoid backlash – it’s no wonder consumers don’t feel confident about the information they receive.
On the bright side, consumers are becoming more adept at spotting misleading claims and holding companies accountable. According to Draper’s Sustainability and the Consumer 2026 report, which surveyed 2000 UK adult consumers aged 18 to 60, “60% of consumers now research brand sustainability credentials before making fashion purchases, particularly younger shoppers, and “reviews and third-party validation carry more weight than brand-owned messaging”, according to 47% of the people surveyed. Additionally, consumers (36%) are expecting manufacturers, brands and retailers to take the lead when it comes to improving sustainability in the fashion industry. Consumers are demanding real change, and brands need to step up or risk losing business. However, if brands want to stay relevant in today’s volatile market, they must not only share accurate, reliable and measurable information about their products and sustainability goals, but also offer value through product innovation, design and emotional storytelling. The appetite for sustainable products is there, but what consumers are looking for is quality and value first, then sustainability.
New EU regulations coming into play
2026 is proving to be a defining year for the EU fashion market, with major regulatory shifts set to reshape transparency and the way brands communicate their sustainability credentials.
The Ecodesign for Sustainable Product Regulation (ESPR) entered into force on 18 July 2024, but its first concrete requirement – a ban on the destruction of unsold clothing and footwear – only applied from 19 July 2026. The ESPR aims to make sustainable products and goods the norm in the EU, which means that products and physical goods imported from outside the EU will also have to comply.
As part of the ESPR, the much-anticipated Digital Product Passport (DPP) will become mandatory starting in 2027 for priority sectors; batteries, textile and furniture, to name a few. In the context of fashion, the Digital Product Passport will create product-level digital records showing a garment’s environmental performance via a QR code or similar data carrier. It will apply to any brand or retailer placing textile and footwear products on the EU market and verify material composition, carbon footprint, repairability, as well as end-of-life and recyclability guidance.
While textile-specific delegated acts are expected to be adopted in 2027, there will be a minimum 18-month transition period, meaning implementation might not start until 2028. Fashion labels should however start planning for DPP adoption and work towards creating a unified, accurate record of their product data. Key steps include conducting thorough audits of their entire supply chain, identifying and analysing data gaps, and choosing an adaptable, future-proof technology stack.
The highlights
Everything isn’t doom and gloom for the sustainable fashion market (and thank God for that). Stricter regulations are forcing brands to invest in traceability infrastructure and data collection, and vague sustainability claims are quickly being replaced by specific, certification-led demand. Brands certified by third-party verification labels, such as GOTS or OEKO-TEX, will be the ones to show credibility and help rebuild consumer trust.
Consumers are not only getting better at identifying greenwashing and vague sustainability claims, but they’re also more savvy about fabrics and product composition. Conversations about health and wellness are reshaping consumer priorities and could explain why an increasing number of shoppers are rejecting polyester clothing and seeking natural fibres instead. According to a new Cotton Incorporated survey, 41% of U.S. consumers say they’re aware of microplastic pollution, which is up from 17% in 2017. 59% of consumers also say they’re likely to look for clothing made with microplastic-free fibres.
Beyond the growing demand for natural fabrics, attitudes around buying and selling second-hand fashion have changed significantly over the last decade, so much so that Vinted is now the third biggest fashion retailer in the UK. As consumers get more educated about fashion’s impact on the planet and the workers making our clothes, we’re hoping that a return to slower fashion, made ethically and with natural fibres, could be the next big trend shaping fashion over the next decade.
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