In an industry long criticized for excess and opacity, a new chapter is being written—and it’s being stitched with recycled yarn.

This May, a sustainable fashion startup backed by industry giants H&M Group and Amazon’s Climate Pledge Fund made headlines for launching a model rooted in circularity, transparency, and tech-powered production. The startup—founded by alumni of MIT and the London College of Fashion—promises to manufacture garments only after a customer orders them. No overstock. No landfill overflow.

It’s not just a fresh business idea—it’s a sign of fashion’s reckoning.

A Global Market in Transition

The global fashion industry is worth over $1.5 trillion, but it’s also responsible for about 10% of global carbon emissions, more than international flights and maritime shipping combined. According to the United Nations Environment Programme, the industry also contributes around 20% of global wastewater.

But now, market forces and environmental pressure are driving change.

“Sustainability isn’t a trend; it’s becoming the cost of entry,” said Stacey Vanek Smith, former NPR business journalist and current ESG advisor at the World Retail Forum.

According to Meticulous Research, the global sustainable fashion market is projected to grow from $9.2 billion in 2022 to over $48 billion by 2030, with a CAGR of over 22%. Leading brands are investing heavily: Patagonia has committed to being carbon-neutral by 2025; Nike has pledged zero carbon and zero waste as part of its “Move to Zero” initiative.

The startup featured in CNBC’s 2025 story, while unnamed in this version, exemplifies a new generation of players combining AI-driven demand forecasting, recycled materials, and blockchain-based supply chain traceability. With H&M and Amazon on board, the message is clear: sustainability is becoming the default.

Sustainability: A Real Business Advantage

Why are giants like Amazon and H&M investing now?

Part of it is pressure. Regulations in the EU and California are tightening. Consumers, especially Gen Z, are increasingly choosing brands based on ethics. According to a 2024 NielsenIQ survey, 76% of Gen Z shoppers worldwide say sustainability influences their purchasing decisions, with 43% willing to pay more for ethical products.

But there’s also opportunity.

“Sustainable fashion startups are attractive because they tackle both risk and innovation,” said Tanvi Mehta, a Mumbai-based fashion investor and founding partner at Threads Capital. “They solve real-world supply chain and environmental issues while opening new markets—particularly in Asia and Africa.”

Made in India: A Movement Takes Root

India, home to centuries of handloom and craft traditions, is becoming a hub for sustainable fashion—not just production, but innovation.

Iro Iro (Jaipur)

Founded by Smita J, Iro Iro is a circular design studio that creates new textiles entirely from garment industry waste. It employs local artisans and has been featured at COP26 and Fashion Revolution India.

Doodlage (Delhi)

One of India’s first zero-waste fashion brands, Doodlage upcycles fabric scraps from garment factories to create modern, wearable designs. Its founder, Kriti Tula, has spoken at TEDx and been featured in Vogue and Elle India.

“We don’t need to stop consuming—but we do need to stop consuming irresponsibly,” said Tula in a 2024 interview with The Hindu.

Boito (Odisha)

Boito, founded in 2023, is preserving tribal handwoven techniques from Odisha while using natural dyes and plant-based textiles. The brand also trains local weavers in digital design to reach global markets.

Goonj (Pan-India)

Though not a fashion brand per se, Goonj is perhaps the most impactful initiative in the space. Its “Cloth for Work” program recycles urban waste clothing into usable products for rural development, turning fashion waste into community empowerment.

Students, Startups, and the Next Generation

Sustainable fashion is opening up an entirely new category of careers.

At institutions like NIFT (National Institute of Fashion Technology), London College of Fashion, and Parsons, sustainability is no longer a minor elective—it’s core curriculum. Startups are hiring not just designers but materials scientists, supply chain analysts, and blockchain developers.

According to a 2025 report by The Business of Fashion and McKinsey, nearly 1 in 3 fashion companies globally will employ a sustainability officer by 2026.

Even social media influencers are pivoting. On Instagram and Threads, influencers like @SustainablyStyled and @GreenChicIndia now promote “slow fashion hauls,” showcasing thrifted, rented, or upcycled outfits.

Technology + Tradition = The Future

New tools are making sustainability scalable:

• AI-powered Demand Forecasting: Reduces overproduction by predicting trends more accurately
• On-Demand Manufacturing: Allows garments to be produced only when ordered
• Blockchain: Offers full visibility into supply chains, helping detect and prevent labor violations
• Biotech Textiles: Companies like Spiber and MycoWorks are creating materials from fungi and spider silk proteins

But technology alone won’t save the industry. As Dr. Anjali Mehra, professor of fashion sustainability at Pearl Academy, puts it:

“Technology is an enabler. The mindset shift is the real disruption.”

The Stitch That Lasts

Sustainable fashion is not the future—it’s the present, finally being taken seriously. With major players like H&M and Amazon investing, a startup that might have been niche five years ago is now a blueprint for the industry.

But real change will come from the grassroots—from classrooms, from design labs, from voices that ask not just what’s next, but what’s better.

So the question now is:
Are you dressing for the trend—or for the times?