COP29: Pricing gap means fashion remains amongst largest polluters globally - Euromonitor International

• Fashion has wide-reaching effects on climate, water and eco-systems
• High costs in sustainable fashion creates a pricing gap, making it hard for consumers to avoid cheaper options
• Gen AI could make diverse and impactful contributions to sustainable fashion
• More than a quarter of global consumers say they would rather repair existing items than buy new ones

LONDON, Nov. 20, 2024 /PRNewswire/ -- Affordability is the reason the fashion industry remains one of the largest polluters globally, according to data analytics firm Euromonitor International.

As COP29 convenes in Baku, Azerbaijan this year to address the world's most pressing climate issues, the fashion industry's role in driving environmental degradation and social inequality is now taking centre stage. Recognising the urgent need for sustainable transformation, industry leaders, policymakers and environmental advocates are coming together to address key challenges.

Fashion's high environmental impact has wide-reaching effects on climate, water and ecosystems. Its problems stem from multiple factors, particularly high costs and affordability.

Marguerite Le Rolland, head of footwear and apparel at Euromonitor International, said: "Sustainable fashion requires investing in high-quality materials, fair pay and strong labour practices throughout the supply chain, along with eco-friendly energy sources. These factors create growth opportunities but also lead to higher production costs, resulting in a pricing gap that make it difficult for consumers to choose sustainable fashion over more affordable alternatives."

Sustainability ranks low on consumers' shopping lists

With economic pressures and rising consumer demand for value, brands are increasingly positioning themselves as responsible by focusing on durability, quality and environmental impact. Leading labels now leverage innovative technology and consumer education to enhance product resale and reuse value.

According to Euromonitor International's Voice of Consumer: Lifestyles Survey 2024, 26% of global consumers state they would rather repair existing items than buy new.

However, most consumers are still looking for comfort, value for money, high quality, perfect fit and low prices when buying items. The fashion industry remains one of the largest polluters globally.

Gen AI could reshape fashion supply chains

A key driver in the pursuit of sustainability is the implementation of Gen AI which could help to address environmental concerns and promote more ethical practices.

Le Rolland said: "From sourcing to design and recycling, Gen AI has the potential to reshape the fashion industry's supply chains towards a more environmentally friendly and socially responsible future. However, companies must also anticipate changing regulations around AI governance.

"As regulations, consumer demands and technology evolve, collaboration among market players, manufacturers, policymakers, and tech developers will be essential to unlock the full potential of AI in advancing sustainability and circularity."