Market Update: December 2025

At Vegan Fashion Repository, we keep our ears firmly on the ground, collecting and curating news and insights most relevant to the vegan fashion industry—particularly in material innovation, circularity, accountable sustainability, and consumer behaviour—at the end of every month.

At the tail end of 2025, it is becoming increasingly clear that, rather than actively fighting global temperature rise (currently at 1.46°C above pre-industrial levels1), fashion brands have largely dropped their pro-environmental efforts—both in terms of volume and quality, or rather, accountability.

Is this simply because brands now have different priorities in AD 2025 (tariffs, for one)? Have they shifted strategy towards a product-first approach? Or have they concluded that sustainability communication is no longer delivering the projected sales growth—an approach crooked and flawed at its very core? At VFR, we believe it is all of the above, operating in atrocious sync and synergy. To state the obvious: if a brand does not address environmental issues out of genuine concern for the harm that overconsumption—particularly in fashion, and consumption more broadly—inflicts on planet Earth, then any excuse becomes a good one to pivot away.

On the consumer side, sustainable fatigue—yup, already a term—is a real thing. So real, in fact, that in hindsight it may well become a defining term of 2025. It is a basic psychological mechanism: overexposure to a given narrative—in this case, an avalanche of sustainability communication—leads to fatigue, indifference, or even outright repulsion. Additionally, when compounded by a relentless series of scandals that practically render any sustainability claim questionable at best, the entire concept is taking a beating, leaving individual brands to defend themselves, fairly or not.

Just recently, Nike, Lacoste and Superdry have been blocked by the UK’s Advertising Standards Authority (ASA) over misleading green claims, after brand representatives failed to provide adequate evidence to substantiate their environmental assertions.
Source: Just Style

The year 2025 began with a major scandal that disrupted trust in so-called “ethical” cotton supply chain standards and is ending with a series of devastating floods across Bangladesh, Indonesia, Sri Lanka, Thailand, Malaysia and Vietnam—major manufacturing hubs for the textile and fashion industry. These events are forcing a reckoning with the consequences of systemic exploitation of resources, both human and planetary (yes, including deforestation). This goes far beyond “crisis talk” when entire communities have their lives swept away by the forces of nature.
Source: Independent

In further supply-chain-related news, official orders from the Italian police required 13 high-end fashion brands—including Gucci, Prada and Dolce & Gabbana—to submit documentation on governance and supply-chain controls. This grim December wrap-up follows earlier revelations of workforce abuse in the luxury segment, where customers pay a premium for supposed craftsmanship that should, at a minimum, include acceptable standards of human welfare. Whether these brands will manage to rectify matters—at least on paper—remains to be seen. What is clear is that consumer trust in Italian luxury has been fundamentally shaken, and regaining even a fraction of it will take many years and significant, as yet undefined, effort.
Source: Reuters, Business of Fashion

In related developments, a new report by Changing Markets shows that consumer fatigue—or outright mistrust—towards omnipresent green messaging, particularly from brands driving overconsumption at the lowest prices, is well founded. In recent years, fashion brands heavily reliant on polyester have aggressively marketed their increased use of recycled polyester to meet sustainability targets. Laboratory research now shows that recycled polyester releases, on average, 55% more microplastic particles during washing than virgin polyester. These particles are also nearly 20% smaller, and a single wash cycle can release up to 900,000 microplastic fibres, later found in the most extreme and unexpected locations, circulating through soil, air, water and living organisms alike.
Source: Changing Markets

All things considered, accountability for green claims is increasingly falling on individual entrepreneurs and consumers. Meanwhile, the Council’s presidency and European Parliament negotiators have reached a provisional agreement to simplify sustainability reporting and due diligence requirements. This agreement reduces the reporting burden under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D), limiting the trickle-down effect of obligations on smaller companies. While this is a fair development for small businesses—many of which simply cannot afford costly certification and audit schemes—it also sits within a broader global trend of policy dilution.
Source: Consilium Europa

Vegan Material News

Within the vegan and innovative materials sector, this year has been particularly turbulent, continuing a streak of already challenging years. The second half of 2025 saw the winding down of Natural Fiber Welding, the US-based biotech company behind Mirum. Another innovator, Ananas Anam—the one behind Piñatex—has placed both its UK headquarters and Spanish subsidiary into administration and bankruptcy proceedings.
Sources: Just Style, Modaes

The vegan materials industry does not lack innovation, but rather sustained, systemic support for development, scaling and visibility. Without mainstream backing, the efforts of innovators and visionaries alone will not be enough to break through persistent misconceptions (such as the belief that vegan leather always involves plastic) or counter systemic resistance from industries built on animal, environmental and human exploitation.

Therefore, it is with great—albeit cautious—optimism that we received the news that Natalie Portman is backing the New York-based start-up Uncaged Innovations and its bio-based leather alternative, ELEVATE™, crafted from grain by-products, along with natural rubber, plant oils, mineral pigments and flower extracts. According to the company, ELEVATE™ emits 95% fewer greenhouse gases, uses 89% less water and 71% less energy than conventional animal leather, and the material has already been adopted by in the automotive industry (Jaguar Land Rover, Hyundai Motor Group). 
Source: British Vogue

Earlier this year, Loué Studio also launched their signature ‘Mano Pochette’ bag made from ELEVATE™ as well.

At Vegan Fashion Repository, we remain steadfast in promoting the vegan and low-impact alternatives to traditional animal-based and resource-intensive fibres, and we regularly update our Directory of Vegan Fabrics and Textile Alternatives.

Fur-related News

In fur-related news, Poland—where we are based—has officially banned fur farming. The legislation was signed by President Karol Nawrocki on 2 December 2025. Poland thus becomes the 24th European country to implement restrictions or a full ban on fur farming. Existing fur farms must close by 31 December 2033, with incentives offered for earlier closure.
Source: Euro Group For Animals

Similarly, Hearst Magazines has banned the promotion of real fur across all its global publications, including ELLE, Cosmopolitan, Harper’s BAZAAR and Esquire, across print, web and social media, effective immediately. The Council of Fashion Designers of America (CFDA), which owns and organises the New York Fashion Week (NYFW) calendar, has also announced that animal fur will not be permitted at events on the official NYFW schedule from September 2026. This regulation has been developed in partnership with Humane World for Animals and Collective Fashion Justice.
Source: Humane World for Animals

Consumer Behaviour and New Reports

While resale has been recently promoted as a promising mechanism to curb overconsumption—and has fuelled a boom in resale platforms and generous venture funding—new Yale research published in Scientific Reports suggests that resale may not be reducing overconsumption at all. Instead, it may be systemically fuelling it. Our takeaway remains consistent: the root problem is humanity’s drive to overconsume, reinforced by business models across multiple industries that continue to depend on it.
Source: Nature

Women’s Wear Daily and Boston Consulting Group have jointly published a report on Gen Z and Gen Alpha consumer behaviour. One key takeaway: with 40% of shopping being AI-driven or AI-supported and a strong product-over-brand orientation, these generations require a fundamentally different approach from previous cohorts. Although the research was conducted in the US, the findings—given the global reach of technology and social media—are broadly applicable. Notably absent from the report is any meaningful reference to sustainability, suggesting that low-impact attributes must be seamlessly integrated into the product and shopping experience itself if brands wish them to resonate.
Source: Boston Consulting Group

In related news, it has been nearly a month since OpenAI launched a new shopping research feature in ChatGPT for logged-in users, enabling model comparisons, personalised recommendations and alternative product discovery based on selected criteria, including price. AI-powered retail transformation is accelerating, alongside growing consumer trust in AI as a decision-support tool. According to Business of Fashion’s The State of Fashion 2026 report, 41% of consumers now trust generative AI search results more than traditional advertising, and 85% report higher satisfaction with AI-assisted shopping experiences.
Sources: Retail Dive, Business of Fashion

In Poland, the Play Sustain Foundation has released an English-language edition of its second report, Ekoprojektowanie Mody Polskiej (Ecodesign of Polish Fashion). We spoke with Barbara Wybacz, Creative and PR Manager, and Dr Paweł Jurowczyk, Strategy Director and Vice President of ABR SESTA Market Research & Consulting, about the broader context, opportunities and challenges shaping the growth of circular fashion in Poland.
Source: The Play Sustain Foundation

Circularity News

H&M’s latest circularity initiatives have landed. The first limited-edition fleece sweatshirts made from recycled materials, developed in collaboration with Circ®, are now available in select markets. Additionally, H&M and Stella McCartney are marking 20 years since their first collaboration in 2005 with the announcement of a special collection launching in Spring 2026, featuring certified, responsible materials, many of them recycled.
Source: Circ®, H&M Group

In related news, Circulose and Birla Cellulose have entered a strategic partnership to accelerate textile recycling. Circulose will supply pulp made from 100% recycled textile waste, while Birla Cellulose will produce viscose staple fibre using CIRCULOSE® pulp for Circulose’s brand partners.
Source: Circulose

Save Your Wardrobe (SYW) and Fairly Made have joined forces to deliver Europe’s most advanced end-to-end circularity infrastructure, offering enterprise brands a comprehensive solution spanning eco-design, compliance and measurable lifecycle extension, in response to forthcoming Eco-Design, DPP and EPR requirements.
Source: Save Your Wardrobe

As circularity becomes a central objective for the fashion industry heading into 2026, SuperCircle—a textile waste management platform whose partners include J.Crew, Guess, Reformation, FIGS and Parachute Home—has raised USD 24 million in Series A funding led by Foundry, with participation from BBG Ventures, Renewal Fund and Elemental Impact. Its AI-powered sorting engine determines the most profitable and sustainable next life for each item, traceably and responsibly routing returns, excess inventory, production waste and post-consumer garments across the US and Canada.
Source: Just Style

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At Vegan Fashion Repository, we consult multiple sources and always cite them for transparency and traceability. Some we trust particularly and recommend wholeheartedly. For more sustainability- and circularity-focused fashion news, we strongly encourage you to follow Lydia Brearley (This Is Enkel).

Cheers!

  1. https://www.climate.gov/news-features/understanding-climate/climate-change-global-temperature#:~:text=The%20global%20average%20surface%20temperature,degrees%20Celsius)%2C%20which%20NOAA%20defines ↩︎