Market Update: February 2026

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.

In this fashion month, when much of the industry’s attention is focused on the runway shows — and yes, we are there too, having already reported from Copenhagen and Berlin — we are also applauding the changes taking place from the roots to the leaves of the fashion system tree.

To begin with, on 3 February 2026, the International Accord for Health and Safety in the Textile and Garment Industry announced the list of signatories to the renewed Pakistan Accord, effective from 1 January 2026. By 5 February, over 100 brands had re-signed the Accord out of the original 143, and we are eagerly awaiting further clarity on which brands have renewed their commitment — and which have not. Source: Clean Clothes

At the other end of the fashion system, the resale market continues to evolve, with eBay acquiring Depop from Etsy for $1.2bn in a bid to target younger customers and compete more effectively with Vinted, which has recently expanded into the US market. Source: BBC

LEGISLATION NEWS

Perhaps the most significant legislative development this month is that, on 9 February, the European Commission adopted new measures under the Ecodesign for Sustainable Products Regulation (ESPR) to prevent the destruction of unsold apparel, clothing, accessories and footwear. The ban on destroying unsold apparel, clothing accessories and footwear, together with the related derogations, will apply to large companies from 19 July 2026. Medium-sized companies are expected to follow in 2030. Disclosure requirements under the ESPR already apply to large companies and will extend to medium-sized companies in 2030. Source: European Commission

Also in the EU, fashion, retail and textile waste stakeholders have collectively raised concerns over the potential establishment of state-owned or state-controlled Producer Responsibility Organisations (PROs) to implement Extended Producer Responsibility (EPR). The concern is that state participation could weaken implementation and execution rather than strengthen it — particularly as the European Commission continues to tighten environmental regulation (see ESPR above). Source: Eurocommerce

In the United States, on 20 February 2026, the US Supreme Court issued a ruling striking down the use of the International Emergency Economic Powers Act (IEEPA) to levy the so-called reciprocal tariffs ranging from 10% to 50%, imposed on virtually all US trading partners, with additional measures affecting countries including China, India and Brazil. Source: Boston Consulting Group

Meanwhile, in California, the Department of Resources Recycling and Recovery is evaluating three proposals from three PROs. A decision on which organisation will operate the EPR scheme is expected by 1 March 2026.

In the UK, WRAP’s UK Textiles Pact has released a 10-point blueprint outlining how an Extended Producer Responsibility (EPR) scheme for textiles should be designed. The proposal follows similar schemes in France, the Netherlands, Australia and Germany. The statement was developed collaboratively by WRAP, the British Retail Consortium, the British Fashion Council, the UK Fashion and Textile Association, and WEFT. Source: WRAP

The UK Government has also published its PFAS Plan: Building a Safer Future Together — a long-term national strategy aimed at managing risks from so-called “forever chemicals”. The strategy focuses on three pillars: understanding, monitoring and reducing harmful exposure to per– and polyfluoroalkyl substances, particularly in water systems. Fashion and textiles are included within its scope. Source: gov.uk

TECHNOLOGY NEWS

In technology developments, Veritas, the start-up founded by former Tesla product manager Luci Holland, has revealed a “hack-proof” chip that verifies designer goods and resists tampering with tools like Flipper Zero. If tampering is detected, the chip becomes dormant and conceals product codes. The Veritas chip is linked to digital certificates and incorporates NFC (Near Field Communication), the same short-range wireless technology used in contactless payments, enabling verification via smartphone. Source: TechCrunch

Business of Fashion’s technology correspondent Marc Bain has published a step-by-step guide for retailers on preparing for the implementation of AI shopping agents, which are predicted to reshape the e-commerce landscape in the near term and potentially dominate it by 2030. Retail platforms may increasingly design functionality to interface with AI agents rather than human shoppers. Source: The Business of Fashion

MATERIAL NEWS

In materials news, Ambercycle has strengthened its strategic partnership with BHF, a leading specialty polyester fibre innovator in China. Through this collaboration, Ambercycle’s circular polyester, cycora®, will serve as a core recycled input in BHF’s supply chain, supporting global brands in transitioning away from virgin fossil-based polyester while maintaining performance, quality and scalability. Source: Ambercycle

Fashion for Good has launched The Stretching Circularity Project, a collaborative initiative aimed at validating next-generation elastane solutions that support a more circular textile economy. Elastane — also known as spandex or by the brand name Lycra — is widely used but problematic, as conventional elastane is fossil-based and carbon-intensive. Bio-based and recycled alternatives remain fragmented, early-stage and insufficiently validated at pilot scale. Source: Fashion for Good

MycoWorks (Reishi) has been acquired by DFX Corp. The new leadership aims to undertake strategic restructuring and scale its Fine Mycelium™ technology in order to strengthen its position in the increasingly competitive market for innovative leather alternatives. Source: World Bio Market Insights

NEW REPORTS AND RELEASES

Cascale’s latest report finds that the fashion, textile and apparel sector is not decarbonising at the pace or scale required to meet global climate targets. Coal remains a critical barrier to progress, accounting for 31% of total industry energy consumption — unchanged year on year. In Tier 2 production, coal represents the largest fuel source, accounting for 40% of the global energy mix. The key takeaway: meaningful progress depends on genuine value chain collaboration, not merely sourcing shifts by brands. Source: Cascale

Première Vision has released its SS2027 season report from the February 2026 PV Paris edition, providing detailed analysis of Spring/Summer 2027 themes, sector-specific trend insights, and a strong focus on eco-responsible innovation. Report available here: Première Vision

ZDHC (Zero Discharge of Hazardous Chemicals Foundation) has released the ZDHC Chemical Watchlist — the first sector-specific chemical watch list for textile, leather, apparel and footwear manufacturing. Version 1.0 includes nearly 1,700 substances aligned with the ESPR substance-of-concern definition, with additional substances under expert review. Source: ZHDC

Similarly, the American Apparel & Footwear Association (AAFA) has released the 26th edition of its Restricted Substance List (RSL), an open-access resource covering over 300 chemicals and substances in finished home textile, apparel and footwear products worldwide. The update reflects recent global chemical bans and restrictions. Source: AAFA Global

Tiina Nyman, founder of Circular Fashion News, has published an updated version of the Circular Fashion News Resale Database. The 2025 update adds over 50 new companies to the original 150+, refines company categorisation, and includes funding data and revenue details for public companies. Source: Circular Fashion News

In sad news, REMAKE has closed its operations due to shifts in the political and economic landscape. Funding for labour organising and climate justice work has declined sharply over the past two years, making it unsustainable to continue. As the organisation undertakes a responsible closure process, we wish the Team well and encourage readers to review its 10-year impact summary.

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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!


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