2010 global market report on sustainable textiles-executivesummary

8/3/2019 2010 Global Market Report on Sustainable Textiles-ExecutiveSummary

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2010 Global Market Reporton Sustainable Textiles: Executive Summar


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TextileExchange 2011

Global Market Report on Sustainable Textiles 20EXECUTIVE SUMMARY

Introduction

As a result of its change in name and focus, Textile Exchange for the rst time is providing an overview of both the organi

cotton and sustainable bers markets. We address each sector separately below.

Key Findings

Global Organic Cotton Market Climbs

Despite the recession, during which the majority of brands remained staunchly committed to their sustainability strategie

and programs, global retail sales of organic cotton apparel, home, and personal care products increased 20 percent to just

over $5.16 billion from 2009-2010, an increase from $4.3 billion in 2009 (the gure actually exceeded TEs 2010 projectio

of $5.1 billion for 2010). The rate was comparable to the 15 percent growth rate in organic ber production, with the bu

of the market growth centered on companies in the United States and Europe.

The Top Ten Users of Organic Cotton

According to the results of Textile Exchange surveys and interviews, the Top Ten organic cotton-using brands and retaile

globally in 2010 were (in order by rank): H&M (Sweden), C&A (Belgium), Nike, Inc. (Oregon, USA), Zara (Inditex) (Spain),

adidas (Germany), Greensource (Washington, USA), Anvil Knitwear (New York, USA),Target (Minnesota, USA), Disney

Consumer Products, (California, USA), and the Otto Group (Germany).

Certain companies had exceptional programs that resulted in a major reshufing of the rankings from previous years. For

example, H&Ms ambitious program launched past former front-runner C&A (which itself had an outstanding year) to tak

the lead and adidas leaped past competitors to go from 11th to 5th place. Greensource and Target both increased twopositions, Zara stepped up from 2008 and Disney Consumer Products ranked for the rst time with robust sales of Anvil

private label Ts to several in the Top Ten, the only reason for it to decrease. (Walmart did not submit data.) Overviews o

each of the companies organic cotton programs are included in the full report.

Several brands increased their volumes by 125 percent or more, knocking several loyal users of organic cotton out of the

Top Ten, including Nordstrom and Williams-Sonoma.

2005 2006 2007 2008 2009 2010

1. Nike, Inc. 1. Walmart/Sams Club 1. Walmart/Sams Club 1. Walmart/Sams Club 1. C&A 1. H&M

2. Coop Switzerland 2. Nike, Inc. 2. Nike, Inc. 2. C&A 2. Nike, Inc. 2. C&A

3. Patagonia 3. Coop Switzerland 3. Coop Switzerland 3. Nike, Inc. 3. Walmart/Sams Club 3. Nike, Inc.

4. Oto Group 4. Patagonia 4. C&A 4. H&M 4. Williams-Sonoma, Inc. 4. Inditex (Zara)

5. Walmart/Sams Club 5. Oto Group5. Woolsworths South

Africa5. Zara 5. H&M 5. adidas

6. Anvil Knitwear 6. Anvil Knitwear 6. Greensource

7. Coop Switzerland 7. Coop Switzerland 7. Anvil Knitwear

8. Potery Barn 8. Greensource 8. Target

9. Greensource 9. Levi Strauss & Co.9. Disney Consumer

Products

10. hess natur 10. Target 10. Oto Group

11. adidas

12. Nordstrom

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GlobalmarkEt rEporton SuStainablE tExtilES


2010Possible Market and Fiber Production Scenarios - Organic Cotton

If organic cotton market growth continues at the current rate of 20 percent per year, a conservative rate, retail sales of

organic cotton products will likely grow to an estimated $6.2 billion in 2011 and $7.4 billion in 2012.

Chart 1 Global Retail Sales of Organic Cotton Products 2006-2012

If there is an increase in levels of commitment from brands and retailers to farming projects, as has been seen with C&A

and Anvil, among others, and annual growth rates return to the 34 percent seen in 2008, retail sales of organic cotton

products could grow to an estimated $6.9 billion in 2011 and $9.3 billion in 2012.

The economic recession, in large part, led to declining product sales across the board. This has led to a subsequent dip in

organic ber production, leaving little if no excess inventory. TE urgently recommends that brands and retailers contract

with producer groups and textile mills to ensure the right type and amount of ber is available. For the 2011/12 harvest,

TE expects some improvement, but the lack of communication between the market, producer groups, and mills remains

a signicant barrier to sustainable growth. More details are provided in Textile Exchanges rst Mid-Year Farm and Fiber

Predictions Report, available free of charge on the TE Farm Hub at www.farmhub.textileexchange.org. Note that ber

production is projected to return to 2009/10 levels in the 2011/12 season and continue increasing.

Chart 2 Global Organic Cotton Fiber Production 2005/06 2011/12

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

06 07 08 09 10 11 12

Global Retail Sales of Organic

Cotton Products


Cotton Products


Cotton Market

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Global Market Report on Sustainable Textiles 20ExEcutivESummaryWhat About the Other 95 Percent?

Despite the recession, in which the majority of brands remained staunchly committed to their sustainability strategies

and programs, the most signicant factor in the organic cotton market has been the increase in brand interest in cotton

from Better Cotton Initiative (BCI) and other initiatives. TE believes in the need to focus on improving conventional

agricultural practices, and organizations such as BCI are doing a tremendous job at identifying and communicating differen

methodologies for mitigating environmental and social issues at the cotton farm gate level and collecting metrics on

potential solution paths. Many brands are thrilled at discovering ways of improving whats commonly referred to as the

other 95 percent, but Textile Exchange rmly believes that organic cotton sets the bar. However, both methods are

needed to change cotton production for the better.

Key Findings - Sustainable Textiles

Sustainable Textiles Market Looks Bright

2010 was the rst year that TE requested data regarding industry use of sustainable bers including recycled and cellulosi

bers. While some would argue whether any textile production can be sustainable, TE has chosen to use a basic denition

as a process that both minimizes the negative impacts of the textile industry while maximizing its positive effects, acting in

favor of the future instead of at its detriment. Given that 2010 was the rst year TE requested data from its members and

the textile industry, the gures we received were nowhere near as robust as those for organic cotton but will still create

baseline for future research and projections.

Why Focus on Sustainable Textiles? Consider the Facts:

Textile waste occupies nearly ve percent of all landll space.

One million tons of textiles will end up in landlls every year.

20 percent of industrial fresh water pollution comes from textile treatment and dyeing.

In 2009, the world used three trillion gallons of fresh water to produce 60 billion kilograms of fabric.

It takes 700 gallons of fresh water to make one cotton T-shirt.

One trillion kilowatt hours are used every year by the global textile industry, which equates to 10 percent of glob

carbon impact.

Two bers, recycled polyester and TENCEL (lyocell) were the two leading bers in terms of quantity reported by

responding companies.

Recycled Fibers

It should be no surprise that recycled polyester represented the lions share of recycled textiles in the apparel and textile

industries. Sports apparel, uniforms, and home furnishings as well as lifestyle products were the leading users of the ber

among respondents. Those companies able to provide forecasts for 2011 and 2012 anticipate steady growth of recycled

polyester products and most indicate a high level of interest in other recycled bers such as nylon and cotton.

Cellulosics

TENCEL (lyocell) is the most widely used cellulosic material in the environmentally preferred category. Most brands th

reported annual usage and forecasts for use of the ber also indicated steady growth over the next two years.


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GlobalmarkEt rEporton SuStainablE tExtilES


2010Conclusions and Recommendations

Neither recessions nor unstable economies seem to have put a damper on the fast-growing organic and sustainable textiles

industry whether looking at the past few years or into the future. The focus on producing textiles in a more sustainable

manner continues to increase, mostly as a result of ingenuity and commitment on the part of caring innovators around the

world and in every textile sector and the thirst for all things green on the part of even cash-strapped consumers.

To bring commitment and functionality together, Textile Exchange believes the factors outlined below are key for the

continued growth of both the organic and sustainable textiles markets. For more descriptive recommendations, see the full

report.

Manufacturers, Brands, and Retailers

Organic ber supplies are tight, reinforcing the need for forward planning and contracting. Forward planning as an

integral part of any sourcing strategy not only ensures that the right ber types are grown in the right regions, but

that global production increases at a pace equal to market growth.

Beyond current ber inventories, developing and committing to a long-term expansion of any organic ber program

that includes fair pricing is imperative to ongoing ber availability, price stability, and a positive impact on rural

communities.

A strong commitment to organic cotton, coupled with increased use of more sustainable cotton as a stepping stone

to ultimate overall conversion to an organic method of farming, will support cross-pollination of best practices andagricultural innovation.

Measurement tools such as eco-indices are evolving and being adopted rapidly. This underscores the need for integrity

and transparency from the farm or polymer manufacturer to the retail shelf and beyond.

Transparency and integrity need to go hand-in-hand with growth and demand to ensure the markets credibility

and retain consumer trust. Existing chain of custody standards include the OE 100 and OE Blended standards for

organic cotton content, the Global Recycled Standard (GRS) for recycled materials, and the upcoming Content Claim

Standard (CCS) to verify raw material claims.

If you are making an organic garment or product claim, utilize processing standards such as the Global Organic Textile

Standard (GOTS) to ensure the nal garment is as organic as possible.

Collaboration between companies and across industries is critical to creating scalable solutions to existing andemerging issues like mulesing, the harvesting of goose and duck feathers, or the detection of chemical residues in

product. Non-prot organizations play an increasingly important role as conveners, subject matter experts, and

neutral third parties.

There are no longer any excuses for not identifying and reducing your companys and your supply chains footprints.

There are numerous initiatives underway, such as the Eco Index, Restricted Substance Lists, Global Water Quality

Guidelines, Clean by Design, and Pollution Prevention, and organizations to guide you on the path and all are publicly

available.

Network, Learn, and Get Involved. Industry is rapidly realizing that collaboration is the fastest way to affect positive

change. Textile Exchange and others have created safe spaces in which to learn, share best practices, and identify

issues. TE has provided over 500 different training sessions to brands, retailers, manufacturers, and producers in

a variety of formats including in-house sessions, global and regional conferences, technical seminars, webinars, and

workshops while also offering on-line fact sheets, calculators, and other tools to share our collective knowledge and

experiences.

Connect your sustainability strategy to your marketing and messaging and approach your delivery of sustainability as

work in progress. There will always be something more you can do, and there is no nish line!

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Global Market Report on Sustainable Textiles 20Fiber Producers

Farmer groups dedicated to producing cotton organically (or more sustainably) can benet from increased visibility

of their environmental and socio-economic objectives and achievements. Textile Exchange, for example, is committe

to raising awareness of the benets of organic agriculture and creating tools to improve farmer visibility (such as ou

online Find a Producer and our new Trading Post).

Farm group leaders or coordinators of farm projects should hone their business plans, assess market risk carefully,

and plan production accordingly, asking for commitments from buyers (and preferably enter into purchase

agreements).

Work with other farmers, as well as brands, retailers, and other key stakeholders to share research, best practices,

and tools that support responsible ber production. Sustainable businesses need to be knowledge-intensive, not

resource-intensive.

Sustainability is a journey that is constantly changing as new materials and production methodologies evolve.

Join with us. Together we can make a difference.

ExEcutivE Summary


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