Market Update: June 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.

Here’re the highlights of June 2026:

On 24–25 June 2026, Future Fabrics Expo 2026 – a joint B2B showcase organised by The Sustainable Angle and Textile Recycling Expo – took place in Brussels, bringing together more than 3,000 attendees and 120 organisations and exhibitors representing sustainable fashion, footwear and interior textiles.

Key takeaway? Next-generation materials are now scaling. They are no longer a collection of ambitious promises but practical solutions addressing multiple challenges, including waste management, resource efficiency, fair labour and, in many cases, animal welfare. The conversation has shifted from whether these materials are viable to how the industry can collaborate to integrate them into existing supply chains and ultimately transform today’s linear model into a circular one—one material at a time. The Sustainable Angle

Meanwhile, on 25 June 2026, Fashion Revolution Polska hosted the second edition of its Responsible Fashion Business Conference in Gdańsk, bringing together some of Poland’s leading fashion innovators, solution providers and brands for a full day of discussion and problem-solving. Topics ranged from community-led circular initiatives and preparing for the Digital Product Passport to building and growing a fashion brand without compromising its founding values.

Key takeaway? With the right partnerships, new legislation can become an opportunity to build stronger, more resilient businesses. Fashion Revolution Polska

Global Concern

As we are finalising this market update, Warsaw—where we are based—is experiencing its fourth consecutive day of temperatures reaching around 39°C in the shade and well above 40°C in direct sunlight. Across Europe, some politicians have turned the extreme weather into a campaigning opportunity—almost as concerning as the heatwave projections themselves.

Across South and Southeast Asia, rising temperatures and humidity are already disrupting factory output, reducing productivity, affecting product quality, harming workers’ health and increasing absenteeism. As highlighted by the NYU Stern Center for Business and Human Rights, these are not projections but today’s reality. BHR Stern New York University, The New York Times

The industry’s transparency challenges also remain evident. As reported by Apparel Insider on 22 June 2026, more than one-third of garments tested during an EU market surveillance campaign carried inaccurate fibre composition labels. The testing covered 132 clothing items, of which 49 (37%) failed to correctly identify the materials used. The survey included tops, baby clothing (yes!), activewear, nightwear, scarves and other garments made from wool, cotton and blended fibres. The findings raise significant, if not alarming, concerns around consumer protection, fair competition and textile recycling. Apparel Insider

In the UK, the Advertising Standards Authority (ASA) has banned advertisements by Adidas, Uniqlo and Calvin Klein over insufficiently qualified recycled-content claims. The companies responded by clarifying their respective positions: Adidas noted that recycled materials are incorporated across selected products rather than a dedicated recycled footwear range; Uniqlo explained that its claims referred specifically to recycled polyester; and Calvin Klein confirmed that between 20% and 100% of the material content across the products concerned consisted of recycled, organic or otherwise certified fibres. The company also removed the advertisement immediately The ASA reminded all three brands to ensure that future environmental claims clearly explain the basis of those claims and do not imply that products are made entirely from recycled materials where this is not the case. Just Style

Bio-Materials

Keel Labs, the seaweed fibre pioneer behind Kelsun, has filed for Chapter 11 bankruptcy protection in the United States. Formerly known as AlgiKnit, the North Carolina-based biomaterials start-up raised US$13 million in Series A funding in 2022 to support the scale-up of its seaweed-based yarn production. The bankruptcy filing lists estimated assets of US$1–10 million against liabilities of US$100,001–1 million. The filing does not necessarily signal the end of the business as Chapter 11 allows companies to continue operating while restructuring their finances. Apparel Insider

On a more optimistic note, the EU-funded LOCALITY project has established three circular algae ecosystems that integrate microalgae cultivation with industrial side streams from greenhouse horticulture, aquaculture and textile manufacturing. One ecosystem is located in the Netherlands, while two operate in Norway. Researchers have also identified and successfully scaled microalgae strains capable of growing on textile laundry wastewater from Sweden, creating new opportunities for developing algae-based pigments for the textile industry. Locality

The H&M Foundation has announced the winners of this year’s Global Change Award, with five of the ten selected innovations focusing on transforming waste or regenerative resources into bio-based alternatives to resource-intensive fibres. Among the winners are: Agro-Lyocell by Canvaloop, which converts agricultural waste into regenerated cellulosic fibres; ArtSilk, which uses microorganisms to produce fibres inspired by spider silk; Fiberly, which extracts cellulose from discarded textiles to recreate the look and feel of cotton; Keltex, which combines AI-optimised seaweed farming with biopolymer extraction to produce biodegradable materials; Tera Mira, which transforms seaweed into stretch fibres using a low-temperature, solvent-free wet-spinning process as a bio-based alternative to elastane; and Microbeworks, which produces biodegradable textile dyes through microbial fermentation. Congratulations to all the winners! The H&M Foundation

Researchers at the University of Vienna have also developed flexible leather-like sheets from Agaricus bisporus mushroom-processing residues using papermaking techniques. Reinforced with woven lyocell fabric, the material achieved tensile strengths of up to 20 MPa and tear strengths of 104–107 N/mm. The material is produced from chitin-glucan complexes extracted from mushroom waste through alkaline treatment. If successfully scaled, the technology could provide the fashion industry with a genuinely circular leather alternative that is bio-based, biodegradable and recyclable for at least five cycles.

Designer Marlene Raymakers has already tested the material during Berlin Fashion Week, wearing it for approximately 4–6 hours across runway shows and outdoor events. The material withstood repeated wear with only minor tears, which were easily repaired. Test wearers also described its feel as comfortable, with a distinctive cooling sensation. Remarkably, two years after fabrication, the corsage retained both its flexibility and colour. MycoStories, Marlene Raymakers

Resale & Repair

The Ellen MacArthur Foundation, together with 69 organisations, has published a comprehensive policy proposal aimed at fixing the economics of resale and repair in order to accelerate their adoption. The recommendations focus on three key measures: reduced VAT, lower labour taxes, and extended producer responsibility (EPR) schemes that incentivise repair and resale. According to the Foundation, circular business models such as resale and repair offer businesses a unique opportunity to remain competitive, desirable and resilient by decoupling revenue from new production. If implemented, these policy measures could increase gross profit margins to 55% for resale and 41% for repair.The Ellen McArthur Foundation

Meanwhile, Zalando has expanded its partnership with Vestiaire Collective, allowing customers to shop authenticated pre-owned luxury fashion directly through the Zalando platform. The collaboration reinforces two clear industry trends: partnerships are increasingly preferred over building entirely new services in-house, and resale is becoming an integral part of mainstream fashion retail, brands and retailers alike. Zalando

Following its rapid expansion into the United States earlier this year, Vinted, Europe’s largest second-hand marketplace, will launch in Australia on 1 July 2026 in partnership with Australia Post, which will manage deliveries through prepaid shipping labels. The platform remains free for sellers, while buyers pay a 5% Buyer Protection fee plus AU$0.70 per transaction. The launch also introduces an international shipping corridor between Australia and the UK, enabling users to shop across both markets. Broadsheet

Continuing the trend, ThredUp has launched Direct Listings, a service designed to compete more directly with peer-to-peer resale platforms. The platform offers 0% seller fees, AI-assisted listings and returns managed by ThredUp rather than individual sellers. Sellers can set their own prices, connect directly with millions of buyers and retain a greater share of their earnings, while customers benefit from marketplace protections and hassle-free returns. ThredUp

Another sign that consumers are increasingly purchasing with future resale in mind comes from Trace, which has raised US$3 million in seed funding to develop a pre-sale marketplace. The platform allows users to list items for resale—or even rent—before purchasing them. Sellers can effectively secure a buyer before making the original purchase or estimate how much of the purchase price they can recover through rental. Buyers, meanwhile, gain early access to second-hand items before they reach conventional resale platforms. Trace on LinkedIn

Finally, Miu Miu has unveiled a new Upcycled Collection, featuring garments made from upcycled chino and poplin fabrics enhanced with worn-effect leather appliqués and intricate hand embroidery. Prices start at €690. Miu Miu

Recycling news

Swiss chemical recycling company GR3N SA has raised €15.5 million to build Modus, Europe’s first industrial-scale microwave PET recycling plant. The depolymerisation facility will be built in Spain and is designed to process 40,000 tonnes of PET waste annually. Its technology breaks down PET and polyester waste into their original monomers, creating new opportunities for both textile-to-textile and bottle-to-textile recycling. If successful, the textile-to-textile pathway could help address one of polyester’s biggest circularity challenges: despite growing demand for recycled polyester, most of today’s supply still comes from plastic bottles rather than discarded textiles. Apparel Insider

Meanwhile, Recover™ has launched Recover Yarns, a portfolio of ready-to-use recycled cotton yarns developed in collaboration with more than 150 spinning partners. The range covers denim, workwear, jersey, fleece and woven fabrics. Limited availability of commercially viable recycled yarns has long been one of the practical barriers to scaling recycled cotton. By providing a ready-to-use yarn network with built-in traceability, Recover has the potential to shorten the path from fibre innovation to commercial adoption while reducing the industry’s dependence on virgin cotton—still one of the world’s three most resource-intensive plant-based fibres. Recover on LinkedIn

Several large-scale textile recycling initiatives are also continuing to gain momentum. In Ghana, home to one of the world’s largest textile waste sites, a collaborative research project aims to establish a pilot facility capable of chemically recycling polyethylene terephthalate (PET) textile and plastic waste into reusable monomers. In India, Loop Industries has signed a memorandum of understanding with the Government of Gujarat to establish its first large-scale production facility for virgin-quality recycled polyester. EcoTextile, Just Style

Meanwhile, Syre continues to expand its global ambitions. Ahead of constructing its first gigascale textile recycling facility in Vietnam—expected to produce between 150,000 and 250,000 metric tonnes of circular polyester annually and begin construction in 2027—the company has announced an expanded partnership with Target to accelerate the adoption of next-generation recycled materials across retail. The collaboration strengthens Syre’s growing network of strategic partners, which already includes H&M Group and Nike, as the company works to accelerate the transition towards circular textiles at industrial scale Syre

June releases

• The Textile Institute launched the highly anticipated course: Introduction to Textiles Short Course, scheduled for 22 to 24 September 2026 at The Midland Hotel in Manchester, UK (registrations open)
• Bloomsbury released the new Foundations of Fashion Studies series of paperbacks on how fashion functions in modern society

New reports

• Too Hot to Ignore: Extreme Heat in Garment Supply Chains by NYU | Stern Center for Business and Human Rights
• Circular by nature: a policy agenda for bio-based materials in a circular economy by The Ellen MacArthur Foundation and La Coalición de Economía Circular
• Sorting for Circularity Rewear by Fashion For Good
• The 2026 Luxury Resilience Report by BCome
• From Wheat Straw to Wardrobes: Fashioning a New Fibre Future by Canopy
• Polyester Life Cycle Assessment (LCA) Study by Textile Exchange
• Current state and outlook for circular fashion in Europe 2026 Edition by KPMG X Circular Fashion Federation

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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!