Clothing and footwear repair presents a large opportunity for circularity, but this industry faces stronger headwinds than other sustainable markets.
Circular Fashion News, a media and foresight platform, published “The State of Clothing Repair & Care H1/2026,” a report on the state of the European repair industry and the key developments in the first half of 2026. The report synthesizes industry reports, academic studies, brand news, and policy developments released in this period.
The report states that the European clothing and footwear repair market was worth an estimated 2.8 billion euros ($3.1 billion) in 2025 and is projected to grow 5.5 percent a year to 3.7 billion euros ($4.1 billion) by 2030. These numbers are sourced from the Fédération de la Mode Circulaire and KPMG.
The ongoing discussion around circular VAT in the EU is a potential opportunity. This would create a reduced VAT rate on repair services and potentially on secondhand sales. The EU has allowed for reduced VAT on repair since 2022, but it has not yet been widely implemented. In May 2026, the Ellen MacArthur Foundation and 69 organizations signed a statement seeking targeted policies for circular business models, including a call for lower VAT on second-hand sales and repair. The European Commission opened a public consultation on circular VAT in September of this year. Fast and ultra-fast fashion remain a challenge to the repair industry, disincentivizing repair with low prices and product quality.
Source link







