Circular Business Models for Textiles:

Value Chain Capabilities and Challenges

Scaling circular fashion in Canada won’t happen without the right systems in place. This report maps the gaps — and what it will take to close them.

What’s Inside:

  • A first-ever value chain map for circular fashion business models in Canada

  • Heatmap analysis identifying capability gaps

  • Calls to action for brands, service providers, policymakers & investors

  • Canadian case studies featuring Arc’teryx, Goodwill, Debrand, Nudnik & more

Why Focus on Circular Business Models?

Circular business models are essential to transforming fashion’s linear system. They create new ways for brands to generate value — not by making more products, but by keeping existing ones in use longer through resale, rental, repair, and recycling. Shifting to these models isn’t just good for the planet — it’s becoming a business imperative.

For context:

  • $500 Billion USD lost globally each year from underutilized clothing

  • 95% of textiles sent to landfill could be reused or recycled

  • 73% of textiles globally end up in landfill or incineration

Report Calls to Action:

  • Grow Canada’s Circular Service Provider Ecosystem

  • Harmonize Textile-Specific Policy & Regulations

  • Increase Demand for Recycled Fibres

  • Invest in Circular Projects & Innovation

  • Establish Industry Standards & Transparent Metrics

Prepared by Deloitte in collaboration with Fashion Takes Action. For more information, contact [email protected]