Green Is In!
The Growing Market for Sustainable and Organic Apparel

By Elaine Lipson

With organic foods well established in mainstream markets, it’s time for other categories to follow. In 2007 and early 2008, the market for sustainable apparel grew at dynamic levels. In fact, for 2007, the first year that the sustainable apparel market became cohesive enough for a global retail sales estimate, Packaged Facts estimated that the international market had already reached a value of about U.S.$3 billion. Organic fibers and fabrics are a significant part of this market, and offer the strongest framework of certification and standards.

Though many factors could shift the growth rate of this market, Packaged Facts believes growth will be strong for years to come as designers and marketers adapt to the new demands of sustainable business. Several major players in the textiles industry are already making commitments to more sustainable sourcing—from Nordstrom and Patagonia to Levi Strauss, H&M and Wal-Mart. As this continues, projected retail sales for the international sustainable apparel market are expected to reach $4.18 billion in 2008, with the market expanding to $11.02 billion by 2012.

While this is still a very small fraction of the $450 billion global apparel market, it’s not insignificant. The position of sustainable apparel relative to the global market parallels the percentages that organic foods have occupied for some time in the total food industry. That small percentage has had a tremendous impact on the food industry and purchasing habits of shoppers, and the industry has set what it believes to be an attainable goal of reaching 10 percent of food industry sales. Organic and sustainable apparel can make the same kind of impact by developing a strong infrastructure now, and creating a framework for strong growth. “The International Market for Sustainable Apparel,” a report recently published by Packaged Facts [written by the author of this article] identifies, defines and evaluates this emerging market in its current state of growth and evolution as well as its possibilities for the future. With the important exception of organic fibers and fabric, there are few guidelines for what constitutes sustainability, though many claims are being made for “greener” fabrics and clothing. Even without well-defined parameters, however, there is clearly a demand for apparel that follows environmental and ethical principles, and for the clothing and textile industries to create new models and to begin to address their enormous ecological and social footprint.

Though most companies that market apparel as “sustainable” or “green” base their claim on material alone, a truly sustainable approach encompasses much more:

• Materials. Sustainable apparel makers have a growing selection of materials to choose from, including: certified organic fibers such as cotton, wool, linen and even organic leather; highly renewable natural fibers requiring little or no pesticide treatment such as bamboo or hemp; recycled or reclaimed fabric or clothing; fabrics sourced from recycled materials, such as polyester fleece made from water and soda bottles; specialty fabrics such as wild silk; and man-made fibers responsibly made from renewable sources such as lyocell (marketed in the United States as “Tencel”), a fiber made from wood pulp cellulose and manufactured using non-toxic solvents which are reused over and over again.

• Processing. Many of the chemicals used in fiber processing are synthetic and toxic, and facilities often have poor waste disposal systems. Manufacturers must reduce and mitigate the environmental impact of processing, treating, finishing and dyeing fabrics. Natural fibers begin on the farm, so responsible farming practices are vitally important, as are systems to protect farmers and assist them in transitioning to organic practices.

• Social Justice. Ethical labor is a critical component of sustainable apparel and an important issue in the minds of consumers. Manufacturers worldwide, especially those who are touting a green label, should focus on eliminating exploitation and inequities in farm and labor practices and instituting meaningful fair trade and anti-sweatshop initiatives.

• Packaging and Distribution. Both environmental and cost concerns dictate limiting the miles that materials and finished goods travel, promoting domestic or regional manufacturing. Companies should also focus on reducing and/or using recycled and biodegradable materials for packaging.

• Design and Life Cycle. Instead of a planned obsolescence, or throwaway approach to fashion, designers must innovate and adopt design strategies with sustainability in mind. At its most comprehensive level, sustainable design takes into account the entire life cycle of the garment. Can it be made to require fewer washings, an enormous use of water and energy? Is it recyclable or biodegradable? Can it be repaired or refitted easily? Is it made with craftsmanship and skill?

• Consistent and Meaningful Standards. In order to gain and retain consumer trust and confidence in the market, claims must be accurate, transparent and grounded in meaningful definitions and guidelines. Although there are various sustainability standards being developed, organic apparel leads in this regard with the federally mandated USDA standards for agricultural products, including cotton, wool and linen, and the voluntary Global Organic Textile Standard (GOTS) for processing and finished goods. The aim of GOTS is to define requirements to ensure organic status of textiles, from harvesting of the raw materials, through environmentally and socially responsible manufacturing up to labeling. With the publication of the revised version of the standard and the introduction of the new logo and labeling system, GOTS is now about to visually enter not only the shelves of natural textile shops but also of the largest retailers and brand dealers.

One of the main benefits of GOTS is that it includes organic and social responsibility standards, such as fair trade practices, in one certification. Although there is fair trade cotton available, TransFair, the U.S. fair trade certification authority, has not developed an official program for organic cotton sold in the United States quite yet. They are, however, currently working on a pilot program with U.S. manufacturers to create this certification and hope to have it finalized in the near future. Meanwhile, other companies are showing their commitment to social responsibility by performing social audits and/or committing to codes of conduct created by various non-profit organizations.

While few companies are currently able to meet every possible dimension of sustainability, and many garments meet only a materials criterion, a full-spectrum approach of assessing and improving all of these areas will help firmly ground a brand as genuinely eco-friendly in the minds of consumers.

Industry-wide, establishing this new, sustainable approach to fashion without sacrificing style or profit will demand substantive changes—a massive undertaking requiring commitment, innovation and investment at every link in the chain from design to retail. Established organic fiber companies and organizations have acted as pioneers and explorers in this journey; their knowledge is of immense value to the apparel and textile industry, particularly in the realms of farming and standards development.

Growth By Fabric Type: Organic Cotton Leads the Way
Out of the estimated $3 billion in sales of eco-textiles, organic fiber (primarily organic cotton) accounts for close to 70 percent of the market, with estimated global sales of about $2.1 billion.

Many of the fabrics under the sustainable umbrella are relatively new to fashion and apparel use in the United States, and some have both environmental advantages and drawbacks. Fabrics sourced from bamboo are often subject to intensive chemical processing to soften the fiber (although some companies are working on alternative eco-friendly methods). Soy- and corn-based fabrics are most often made from genetically modified crops. While these may be preferable to petroleum-based synthetics, these drawbacks remain a concern and a hindrance to a truly sustainable profile and, for some, consumer acceptance.

At this time, Wal-Mart is the largest purchaser of organic cotton, offering baby clothes and casual apparel such as yoga clothes and T-shirts. Organic cotton apparel has taken many years to achieve its current fast-growing market force. According to the advocacy, education and trade organization Organic Exchange (OE), retail sales of organic cotton products, including apparel, home textiles and personal care products, were just $250 million in 2001. Today, OE projects the market for organic cotton alone will increase to $3.5 billion in 2008, $4.5 billion in 2009 and $6.8 billion in 2010.

Many other major apparel marketers, including manufacturers such as Levi Strauss and Nike have created organic cotton programs, and longtime environmental leader, Patagonia, has even made a commitment to use 100 percent organic for all of their cotton garments. Retailers including Nordstrom and JC Penney have committed to selling organic brands and manufacturing organic private label garments. Under the Canopy has developed private label agreements with Target for everything from clothing to bedding. Meanwhile, smaller independent manufacturers are also influential, including pioneers such as Maggie’s Organics and Blue Canoe. In the organic wool market, Vermont Organic Fibers is a leading supplier of both wool fabric and hand knitting yarn, a small but enthusiastic market for organic fibers. Many new designer-entrepreneurs are building their brands on using organic and sustainable materials, and textile designers, like Harmony Susalla of Harmony Art, are creating exclusively organic fabrics and participating in the process of defining the industry. Many marketers are also using organic cotton to green their promotional efforts, creating organic cotton t-shirts for concerts and bands as well as organic tote bags for events.

Like many commodities in the fast-growing world of organic, there are questions about whether or not organic cotton supply will be able to keep up with demand. OE’s September 2007 “Organic Exchange Organic Farm and Fiber Report,” found that the amount of organic cotton produced globally increased 53 percent from 2005/06 to 2006/07. According to the report, 57,931 metric tons, or 265,517 bales, were produced in 24 countries on all arable continents. The top ten organic cotton producing countries were: Turkey, India, China, Syria, Peru, the United States, Uganda, Tanzania, Israel and Pakistan. Nearly half of the organic cotton was grown in the Middle East, while approximately one-third of organic cotton was grown in Southeast Asia.

With the sustainable clothing sector rapidly expanding, along with the fact that it takes 3 years to convert conventional farmland to organic, the supply of organic cotton remains a valid concern for manufacturers large and small. Companies like Wal-Mart have created agreements with farmers to help them transition. Meanwhile, some smaller companies with less buying power are entering into cooperative buying agreements to help ensure supply.

Educating Consumers About Eco-Fashion
With all things green as the trend of the moment, sustainable apparel has media attention and fashion and celebrity interest. Earth Pledge, a New York-based environmental non-profit that has made sustainable fashion one of its core issues, partnered with Barneys New York, Lexus Hybrid, and Pure & Natural to produce its 2008 Future Fashion Show. Earth Pledge invited international designers to participate, provided them with samples of hundreds of fabric choices and helped them source the fabrics. Participating designers and design houses included Stella McCartney, Yves St. Laurent, Michael Kors, Marc Jacobs, Calvin Klein, Versace, Givenchy, Burberry and many more. The event garnered significant media coverage and made “eco-fashion” a popular term.

Still, the majority of the market consists not of designer gowns, but of jeans, yoga clothes, T-shirts, underwear, athletic and outdoor garments—and baby clothes, the gateway products of this sector. Many of these products are available online, and in fact, the internet is a primary source of information, education and availability. Today’s environmental movement is inseparable from e-media, especially social networking sites, blogs, retail sites and other interactive functions of the internet. Sites like Treehugger, Inhabitat and Grist.org write frequently about sustainable apparel brands and designers. Retail sites like White Apricot and Organic Style offer many brands of organic and sustainable clothing. Companies like Under the Canopy sell from their company website as well as in retail outlets.

Fashion shows, celebrities and the internet offer a tremendous marketing base but can also provide misinformation and exaggerated claims. Just as with the organic foods industry, standards, transparency and consumer education will be critical to the ongoing success and growth of the sustainable apparel market. There are still many consumers whose immediate response to an organic garment is, “Why? You don’t eat it, do you?” The burden will be on apparel manufacturers and retailers to build a stronger base of educated shoppers.

This means exposing the underside of the textile industry—chemical use in processing, pesticides in growing cotton, sweatshop labor, and intensive use of natural resources to clean, finish and transport fabrics and clothing. Unless shoppers understand these dynamics, they will be less likely to understand and accept the need for sustainable alternatives.

The need for creative and innovative public relations, marketing, advertising and education through hang tags and point-of-purchase materials will give industry talent a chance to shine. Working with non-profit education and advocacy organizations such as Organic Exchange, Sustainable Style Foundation, Fair Trade Federation, Organic Trade Association and Earth Pledge, as well as those championing anti-sweatshop initiatives, will help for-profit marketers to achieve their consumer messaging goals.

Organic food manufacturers and retailers can also play a role in this market; virtually every food consumer is also a clothing and textiles consumer, and there are many parallels between the two for the values-based shopper. Retailers like Whole Foods are experimenting with sales of clothing in the grocery environment, and nearly every retailer today offers a cloth grocery bag and T-shirt that can be made of organic cotton. Conference organizers can use organic cotton or hemp bags and other items as attendee gifts. Where once few choices existed in color and texture of these fabrics, today there is a range of options to satisfy the most exacting customer.

In conclusion, there is tremendous potential for the sustainable and organic apparel industry. The need for change is there, and interest among young entrepreneurs and professionals in the apparel industry is growing. Consumer awareness of environmental and social issues specific to textile production is growing. The farming, manufacturing and retail infrastructure is developing.

Integrity and transparency in business, which will in turn lead to consumer confidence in sustainable claims, may be the key ingredients for success. Those who are committed to genuine change, even in small and incremental ways, will help build a strong foundation for what can be the most significant shift in apparel manufacturing and marketing since the Industrial Revolution.

Elaine Lipson is a writer, editor and creative consultant in sustainable and organic textiles and apparel, and the author of The Organic Foods Sourcebook. You can reach her at emlipson@aol.com.

This article is excerpted and adapted from “The International Market for Sustainable (Green) Apparel,” published by Packaged Facts, May 2008; Elaine Lipson, author. View the abstract and table of contents and purchase the full report at www.packagedfacts.com/International-Sustainable-Apparel-1634668/.