13/5/2025

CFIN Report 2025: Accelerating the UK towards a Circular Fashion Ecosystem

The Circular Fashion Innovation Network (CFIN) presents its landmark report detailing two years of industry-led collaboration to accelerate the UK's transition to a circular fashion ecosystem. Led by the British Fashion Council (BFC) and UK Fashion & Textile Association (UKFT) in partnership with UK Research and Innovation, CFIN has successfully mobilised the fashion and textiles industry toward a circular future.

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Key Achievements

By convening more than 250 organisations spanning the entire fashion value chain - from raw material suppliers to end-of-life processors - CFIN has created unprecedented alignment around practical pathways to circularity. Our Circular Business Models (CBM) Working Group alone represents businesses accounting for 42% of UK clothing sales by volume.

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Our collaborative work has delivered key transformative outputs with significant industry support, including the following.

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Comprehensive National Textile Recycling Infrastructure Plan

This provides a strategic roadmap for developing domestic recycling capabilities to process the 1.3 million tonnes of post-consumer textiles generated annually in the UK. This groundbreaking plan addresses four key areas:

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  • Building advanced infrastructure to enable automated textile sorting, pre-processing, and fibre-to-fibre recycling
  • Investing in technology to drive automation and innovation
  • Developing workforce skills to support substantial job growth across emerging textile recycling supply chains
  • Expanding market capacity to establish a strong, economically viable market for recycled textile products

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Socioeconomic impact analysis demonstrates the enormous potential benefits of this infrastructure. The modelled National Textile Recycling Hub, integrating three automated sorting plants and a chemical recycling facility, represents a £277 million investment opportunity that would generate hundreds of new jobs and millions in economic benefits for the UK economy.

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Detailed Extended Producer Responsibility (EPR) Framework for Textiles

Developed through our policy working group and collaboration with experts across government and industry, this practical, industry-supported framework is built on three core principles:

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  • Mandatory participation across all fashion and textile manufacturers and retailers to create a level playing field
  • Variable eco-modulated fees that reward sustainable practices and penalise environmentally harmful ones
  • Funds raised, ringfenced for reinvestiment in circular fashion and textiles innovation and infrastructure

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Circular Business Models Analysis

Detailed analysis of circular business models shows that while 81% of fashion organisations include circularity in their five-year strategies, 63% of customer-facing initiatives remain in pilot phases.

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Next Steps

From our work, we've identified clear priority next steps that require continued funding:

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Circular Business Models: Launch an accelerator programme for mid-sized brands and retailers to scale CBMs.

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Sustainable Manufacturing: Test automation, robotics and artificial intelligence solutions in manufacturing environments.

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Recycling Infrastructure: Develop a 5-10 year roadmap and undertake cost and environmental analysis of the National Textile Recycling Infrastructure Plan.

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Our Call to Action

The foundations established over the past two years provide an essential platform for future progress, but implementing systemic change requires sustained effort and resources.

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With continued support for programmes like CFIN, industry can work together toward new skilled jobs, UK-based manufacturing, a thriving ecosystem of circular innovations, and competitive advantage for UK brands and retailers.

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