Fashion’s Waste Crisis: New Report Urges Industry to Decouple Growth from Volume

A new report has highlighted how the global fashion industry — including high-impact segments such as denim — is fueling a mounting waste crisis through mass overproduction. The study calls for urgent action to decouple business growth from production volume to curb environmental damage.

Published by UK trade show Source Fashion and consultancy Insider Trends, the report titled “Do We Really Need to Produce So Much?” warns that up to 40% of the 80 billion to 150 billion garments produced annually — from fast fashion basics to durable denim — go unsold and often end up in landfills or incinerators.

Despite the scale of the problem, only 1% of brands are actively working to reduce production, the report found. “This report highlights the uncomfortable truth behind retail’s success—that excess production is built into the model, with volume seen as the only way to increase profits,” said Suzanne Ellingham, sourcing director at Source.

The study calls on brands to rethink outdated metrics of success that tie profit to year-over-year volume growth. It points to examples like Uniqlo, which achieved a 70% rise in business over seven years while growing production by just 20%.

Legislative efforts, including the EU’s Extended Producer Responsibility (EPR) rules and bans on destroying unsold stock, are expected to push the industry towards more sustainable practices. But the report argues that a deeper mindset shift is needed, urging companies to embrace planned reductions in production — so-called “degrowth” — without fearing sales declines.

Solutions identified in the report include on-demand manufacturing, circular and modular design, and retail-as-a-service models such as resale, rental and subscription. The report also advocates greater consumer involvement in product development to reduce waste and increase relevance.

“Opportunities await for brands willing to embrace a leaner, smarter, more circular future,” Ellingham said.