Jan 2026 Sustainable Fashion Update

Written By OurFashionFix

Welcome to your January update on the world of sustainable fashion. As we move further into 2026, the industry is seeing a  shift from "voluntary" efforts to hard-hitting regulation and technological scaling.

Here is your breakdown of the essential news shaping our industry this month.

Circularity & Materials Innovation

The "next-gen" materials market is finally bridging the gap between experimental labs and global commercial supply chains.

• Circulose Circulose Scales via Global Strategic Partnerships: Following a strategic restructuring, the 100% recycled textile pulp is reaching commercial volumes through a landmark deal with Aditya Birla Fashion and Retail Ltd, supported by volume commitments from H&M, Mango, and M&S.

• SPINNOVA® Spinnova Accelerates Commercial Path with Tommy Hilfiger: By joining a new Fashion for Good consortium, Tommy Hilfiger and Armedangels are securing early access to Spinnova’s chemical-free, waste-based fibres, bringing the technology closer to large-scale retail.

• Balenciaga Debuts SS26 3D Weaving: High fashion is embracing high-tech with Balenciaga’s latest collection featuring 3D weaving by WEFAN Ltd and bioengineered silk alternatives.

• EU Commits €6m to Textile Deposit-Return Pilot: Through the TexMat project, the EU is testing consumer incentives for textile returns in Finland and Spain, using digital product passport data to revolutionise sorting and recycling.

• Kuyichi Pure Denim Tests Fungi-Based Treatments: By replacing petroleum-based sizing with a fungal-based chitosan treatment (Kitotex®), Kuyichi is targeting microplastic pollution directly at the fabric production stage.

• Next-Gen Investment Hits $3 Billion (Research & Markets Report): Since 2014, capital has poured into material innovators, with Spiber, MycoWorks, and Spinnova emerging as the primary recipients of this $3 billion funding surge.

Retail Highs & Lows

Financial results this month highlight a stark divide between resilient legacy retailers and high-street brands struggling to navigate inflation and digital transformation.

• Steady Profits for Market Leaders: H&M reported a 6% rise in operating profit to SEK18.4bn for the full year to November 2025, while Next boosted its profit forecast to £1.15bn following a 10.6% jump in full-price sales in the 9 weeks to 27th December.

• Next also acquired Russell & Bromley and selected assets for £3.8m

• New Look faced a substantial £47.6m operating loss but is leveraging a £30m investment to "supercharge" its digital-first strategy.

• Matalan outperforms over Christmas sales as profits rise.

• The Carlyle group prepare to sell The Very Group, valued between £2bn and £2.5bn

• John Lewis & Partners ranked as the UK’s top retailer in the latest UK Customer Satisfaction Index

• DEPLOY won the Great British Brands award for Commitment to Planet

• Marks and Spencer had a record Christmas, with food sales up 6.6% and like-for-like growth of 5.6% in the 13 weeks to 27 December  Clothing and home declined 2.5%, to £1.3bn, despite improving trends.

• Primark posted 3% UK sales growth in the 16 weeks to 3 January.  Continental Europe sales fell 5.7%, while US trading remained volatile.

• Barbour reported 9% year on year increase in turnover to £351, in the year to 30April 2025 driven by growth across international markets

• Mulberry saw group sales rise 5.3% on the year in the 13 weeks to 27th December as its new strategy gains traction.

• The Social Commerce Boom: TikTok Shop reported a massive 55% year-on-year sales increase in the UK this December, with active sellers rising by over 60% in the final quarter.

• Mixed Results in Sport and Luxury: While JD Sports saw UK and European declines, Saks Global successfully secured $400m in financing to stabilise operations after a bankruptcy filing.

Policy & Regulation

Governmental bodies are increasingly closing the loopholes that previously allowed ultra-fast fashion and hazardous chemicals to go unchecked.

• France Implements PFAS Ban: As of 1 January 2026, France has officially outlawed PFAS in clothing and footwear, with a 12-month grace period for brands to clear existing stock.

• Beyond Retro Founder Calls for Action on De Minimis: In an open letter to the UK Government, Steven Bethell argues that the current "de minimis" tax rules allow a flood of untaxed, ultra-cheap garments that undermine legitimate businesses and the charity retail sector.

• Japan Sets 2030 Waste Targets: Japan aims to slash textile waste by 25% through expanded recycling and reuse mandates by 2030.

• UN Releases Toolboxes for Policymakers: Two new resources from the UN Environment Programme provide blueprints for both high-production and high-consumption nations to transition toward circular textile value chains.

•  The European Commission is developing a mandatory "circular" ecolabel for electronics, fashion, and furniture, requiring brands to disclose data on durability, repairability, and carbon footprints. Leading the charge, Carrefour has already begun piloting an environmental scoring system for its Tex clothing line, allowing customers to scan items for an instant impact rating. These dual initiatives signal a major shift toward standardized sustainability transparency for both physical and digital retail.

Supply Chain

Traceability and human rights are moving from voluntary CSR goals to mandatory operational requirements.

• Nike Resolves Landmark Wage Dispute: After five years of pressure, Nike has agreed to compensate thousands of former garment workers in Thailand for pandemic-era wage abuses.

• Toteme Boosts Traceability with Fairly Made® : The Swedish house is now using end-to-end visibility tools to provide product-level impact insights across its supply chain.

• Raw Material Stewardship: Next Level Apparel has joined the U.S. Cotton Trust Protocol to enhance its commitment to sustainably sourced cotton.

Resale, Rental, & Repair

The second-hand economy is becoming increasingly logistically advanced and culturally dominant.

• By Rotation By Rotation and Uber Partner for Fast Rental Delivery: This partnership now offers 60-minute delivery for rental gear in the UK, aiming to replace "panic purchases" with sustainable, fast-fashion alternatives.

• Harry Styles Leads the Slow Fashion Movement: Styles has been dubbed a "slow fashion king" after featuring pre-loved and archival pieces on his new album cover, sourced via eBay and vintage dealers.

• Investing in Repair Skills: Levi’s has launched the 'Wear Longer Project' to teach Gen Z repair skills, while the United Repair Centre is set to open a major hub in Paris this February.

• Fatface have partnered with Reskinned on takeback

• Motel launched resale with Continue

•   French branded resale player, FAUME, expands its offering to the US market.

• Bundlee, the children's rental model, has been acquired by OR Collective

• Declining Quality Hits Charities: The Salvation Army is closing 27 clothing banks, citing the "declining quality" and poor resale value of modern fast-fashion donations.

Reports & Research

New data highlights the significant gap between corporate "net zero" promises and tangible climate action.

• Fast Fashion Fails on the 2025 Fossil Free Fashion Scorecard: While 95% of brands now offer resale, only three out of 42 brands are aligned with a 1.5°C climate pathway. H&M leads with a B+ grade, while Shein and Boohoo received Fs.

•  The new Valuates Reports has projected the value of the global textile and clothing recycling market to reach $20.2 billion by 2031, up from $13.6 billion in 2024 and with a CAGR of 5.9% over the forecast period.

• CMA Clarifies Green Claims Liability: New UK guidance confirms that every business in a supply chain—not just the final retailer—is responsible for the accuracy of environmental claims.

• OEKO-TEX Digitises Organic Cotton Traceability: A new partnership with TextileGenesis uses "Fibercoin" technology to create fraud-resistant, digital chains of custody for organic cotton.

• WRAP WRAP Releases UK Textiles EPR Blueprint: The 10-point plan advocates for a mandatory UK scheme where fees are "eco-modulated" to reward brands for sustainable design.

• Health Warning on PFAS: A University of Birmingham study has confirmed that "forever chemicals" used in textiles can be absorbed through human skin, adding health urgency to regulatory bans. . New study confirms forever chemicals are absorbed through human skin - University of Birmingham

• Carbonfact released their “Definitive Guide For Textile Sustainability Regulations 2026” The complete overview of textile sustainability regulations

• Unlocking Equity in Innovation: A new report from Transformers Foundation highlights how "top-down" innovation often ignores supplier expertise and calls for more equitable risk-sharing in the industry.

• 2026 Fashion Landscape Roadmap: Fairly Made® new e-book provides a strategic guide for brands navigating Digital Product Passports and the 2026 regulatory environment.

Are you ready for the 2026 landscape?

OurFashionFix