On July 16, 2025, global management consulting firm Kearney unveiled its fifth annual Circular Fashion Index Report (CFX 2025). The report serves as a benchmark for the fashion industry’s progress in adopting and implementing circular practices globally. The CFX 2025 provides an in-depth analysis of 246 apparel brands, spanning 18 countries and encompassing five primary product categories: fashion, sports, outdoor, underwear and lingerie, and footwear. The report assesses brand performance across seven key dimensions, each reflecting different stages of a product’s lifecycle, from design and material sourcing to end-of-life management.
Key Findings and Trends
The report’s findings underscore a significant disparity between the fashion industry’s aspirations for circularity and the tangible implementation of these strategies. According to the report, a large proportion of brands are grappling with the challenge of translating their circularity commitments into consistent, large-scale actions. A major finding is that more than 70 percent of the analyzed brands now find themselves in the “moderate” performance zone. This indicates that while many brands acknowledge the importance of circular practices, they are struggling to fully integrate these principles into their operations.
In contrast, only a small percentage of brands—between 3 and 5 percent—have achieved the “extensive” implementation level. This disparity highlights a considerable “conversion gap,” signifying the difficulties brands face in moving from theoretical commitment to practical application. Nora Kleinewillinghoefer, partner, Americas fashion and luxury lead and co-author of the report, noted that circularity efforts often remain siloed within sustainability departments, which can limit their scope and effectiveness. This can hinder the holistic integration of circular principles across all aspects of a brand’s business model.
Regional Performance and Comparative Analysis
The CFX 2025 reveals that Europe and North America continue to lead the way in the adoption of circular practices, with average scores of 3.6 and 3.4, respectively. Europe’s performance saw a notable improvement, recording a significant gain of +0.4 points since 2024. This upward trend suggests that European brands have been particularly effective in advancing their circularity initiatives during the past year. These regional differences underscore the varying paces at which different markets are embracing circular economy principles within the fashion industry.
The report’s scope is broad, encompassing a variety of apparel brands operating across diverse geographic locations. The analysis spans brands from fashion, sports, and outdoor segments. The index provides insights into the different approaches adopted by various brands within these categories. This comprehensive scope makes the CFX 2025 a valuable tool for understanding the nuances of the fashion industry’s circularity journey.
Implications and Future Outlook
The CFX report tracks the fashion industry’s efforts to introduce, apply, and advance circular economic practices. It highlights both the progress made and the persistent challenges that remain. The findings suggest that while there’s growing awareness and commitment to circularity, a more concerted effort is needed to bridge the gap between aspiration and execution. As the fashion industry evolves, the importance of circular practices is expected to increase. By providing quantifiable metrics and insights, the CFX 2025 serves as a critical resource for stakeholders seeking to understand and contribute to the industry’s sustainable transformation. The report provides a roadmap for brands and policymakers to improve environmental performance, enhance resource efficiency, and foster a more sustainable future for the global fashion sector. The report also helps to identify areas where further innovation and investment are needed.
