What if your fashion choices could help change the world? Sustainable fashion offers just that possibility. By focusing on eco-friendly practices and ethical production, this drive is reshaping the fashion industry. This movement prioritises the use of organic and recycled materials, fair wages and safe working conditions for workers. The shift is gaining momentum, with the sustainable fashion market valued at $7.8 billion in 2023 and projected to reach $33.1 billion by 2030, growing at a compound annual growth rate (CAGR) of 22.9%. With increasing consumer awareness and supportive government regulations, the demand for sustainable fashion is continuing to rise globally. According to a 2022 Statista survey, 35% of US consumers expressed a willingness to pay more for eco-friendly or sustainably produced clothing.
However, despite this consumer demand, fast fashion brands continue to dominate the market. A 2022 Harvard Business Review article stated that Zara releases around 24 clothing lines annually, while H&M offers 12–16. Meanwhile, eCommerce giant Shein sells clothing at ultra-low prices—tops for $7, dresses for $12, and jeans for $17—making even Zara and H&M appear expensive and slow.
The Asia Europe Foundation estimates that around 30% of global apparel production goes unsold each year. As long as overproduction remains profitable, brands are unlikely to fully commit to sustainability, casting doubt on the notion of truly sustainable fashion. The fashion industry is also the second-largest global polluter after the oil industry, consuming vast amounts of energy, water, and resources while generating significant waste. According to Weavabel, the fashion industry is responsible for 20% of the world’s wastewater. Producing a single white cotton t-shirt generates emissions equivalent to driving a car 56.33 kilometres. If current pollution levels persist, fashion industry emissions are projected to increase by 50% by 2030. This underscores the urgent need for sustainable fashion which mitigate environmental damage through eco-friendly materials and practices. With only 20% of clothing currently being recycled, there remains significant potential for businesses to step up sustainability efforts and reduce waste.
Nepal also holds promise for expanding sustainable fashion. Thrifting is becoming a popular, budget-friendly way to buy and sell second-hand clothes. Affordable Thrift Store in Maitighar, Kathmandu, founded by Pratha Basnet, is thriving, with monthly sales of Rs 100,000. The store offers products priced between Rs 100 and Rs 10,000. Popular among students for its affordability, the store also offers nationwide delivery. Thrifting provides a sustainable and cost-effective fashion option thereby reducing waste and promoting reuse.
Hemp products in Nepal, especially hemp bags, are liked by locals and tourists alike for their eco-friendly, durable and lightweight qualities. Priced between Rs 600 and Rs 5,000, these bags are made from hemp fibres sourced from districts like Rolpa and Bajura. Entrepreneurs like Deepak Khanal and Hemp House Nepal export hemp bags to the US, Europe and Australia, among others. Despite transportation challenges from remote areas, hemp has become a key income source for local communities, contributing to Nepal’s growing sustainable fashion industry. A noteworthy fact is that hemp requires 2,400 to 3,400 litres of water per kilogram for processing, far less than the 9,758 litres needed for cotton. Likewise, growing hemp reduces agricultural costs and lowers microplastic pollution risks compared to synthetic materials like polyester.
Moreover, Nepal’s fashion rental industry is growing, offering affordable and stylish wear. Stores like 1st Step Rental provide options from Rs 500 to Rs 1,500, making it popular among young consumers. Despite setbacks during the pandemic, social media and affordability are driving the resurgence of fashion rentals, transforming Nepal’s fashion scene.
Talking about sustainable footwear in Nepal, Dochaa is one of the few brands that has merged traditional Nepali craftsmanship with modern design through locally and ethically produced shoes. Another brand, Paila, also emphasises eco-friendly, locally made footwear with a minimal carbon footprint. Established in 2021, Royal Hemp focuses on hemp footwear, cashing in on the growing popularity of hemp bags. Likewise, Goldstar, one of Nepal’s largest footwear brands, is making progress in sustainability through a partnership with Gham Power to transform its manufacturing process. By utilising rooftop space for eco-friendly initiatives, it has installed a 422.4 kilowatt solar power system to power its plants.
Having delved into the current state of sustainable fashion in Nepal, it is also important to uncover the challenges that the industry is facing. One major challenge in sustainable fashion is the higher cost of eco-friendly materials such as organic cotton, bamboo, and recycled fibres, which can make it difficult for brands to maintain competitive pricing. Likewise, many consumers in Nepal still lack a clear understanding of sustainable fashion and its impact on their purchasing decisions which can hinder the adoption of eco-friendly practices. While thrifting and rental culture are growing, traditional cultural attitudes may affect their acceptance, with some questioning whether rented outfits are suitable, especially for special events and programs, mainly for newlyweds in their weddings. Additionally, the hemp market in Nepal holds significant potential but faces challenges including public scepticism about hemp's quality, government restrictions on hemp as an illegal substance, and a shortage of skilled labour in hemp footwear manufacturing.
Sustainable fashion is grappling with challenges like high production costs and limited industry adoption, with affordability being a key obstacle. However, Nepal stands to gain by adopting global sustainable practices to bolster its eco-friendly fashion industry. Major fashion capitals such as Paris, Milan, and New York are leading the shift, with designers showcasing eco-conscious collections at fashion weeks. This global shift towards sustainable fashion is setting a powerful example for Nepali designers and local artisans. By adopting similar eco-conscious practices, such as using sustainable materials and traditional craftsmanship, Nepali fashion can align with international trends, preserve cultural heritage and promote environmental responsibility. Learning from these global initiatives will help the Nepali fashion industry to thrive sustainably and gain possible recognition on the national and the world stage.
In fact, Nepal is already embracing this shift. On 14 September 2024, KAMA X NEBA hosted a fall edition sustainable market, together with Mesohot Restaurant & Bar and The Baha, offering attendees the opportunity to explore exclusive Nepali sustainable brands while enjoying cocktails, food, and live music. There are successful examples of brand collaborations driving innovation, expanding eco-friendly practices and proving the success of ethical models thereby reshaping consumer views and setting new sustainability standards. The Reformation x New Balance partnership combined eco-friendly design with athletic expertise, creating sustainable sneakers that appeal to style-conscious, eco-friendly consumers. For Spring/Summer 2025, Prabal Gurung elevated his sustainability efforts by collaborating with luxury bedding brand Boll & Branch. This innovative partnership showcased 100% organic cotton on the runway, featuring Boll & Branch Summit Supima fabric, renowned for its eco-friendly production and luxurious feel. Similarly, Nepali brand Danfe Works is offering sustainably-made clothing with the help of its sustainability partner SAATH. It has started B2B collaboration offering end-to-end services that includes everything from design concept to sourcing and manufacturing, with a focus on guiding brands using a holistic ethical approach throughout the entire production process.
Through collaborations and sustainable collection events, circular fashion creates a closed-loop system by designing products for durability, reuse and recyclability, while reducing waste and extending the lifespan of products. One recent example is the collaboration between Chakraviu Nepal and Nhu Designs who upcycled the used jeans to produce bags and stationary pouches for school children under its project ‘From Jeans to Dreams: Upcycling for Education’. It has so far upcycled 412 pairs of jeans, saving 4.12 million litres of water so far and is further working on to save 10.46 million litres of water by November 2024.
With these initiatives and many more on the horizon, sustainable fashion could have a promising future. The growing acceptance of eco-friendly practices is driving steady growth in the industry, paving the way for its continued expansion. While these small steps are crucial in building a larger, impactful sector, it is important to recognize that the strategies that brought us here may not be sufficient to take the industry forward. It still needs to make progress before achieving widespread impact at the macro level.
Several key steps and initiatives could have a significant impact to drive the growth of this industry. Increased demand for eco-friendly materials can lower production costs, while broader adoption of sustainable practices by brands can create economies of scale, making these materials more affordable. Government incentives, such as subsidies or tax breaks, could further reduce costs. Educational campaigns aimed at raising consumer awareness of the benefits of sustainable fashion, along with greater transparency on environmental and social impacts, can help guide more informed purchasing decisions. Strong collaborations with committed partners will also ensure sustainability remains consistent across the supply chain.
Nepali sustainable fashion businesses should focus on maintaining quality while scaling their initiatives to reach international markets. A notable example is designer Sanyukta Shrestha, whose sustainable gown was worn by actress Yasmina El-Abd on the red carpet at the 2022 premiere of 'Top Gun: Maverick', alongside stars like Tom Cruise and British royals, Prince William and Princess Kate. Reflecting on the moment, Shrestha said, “It felt surreal, but I was proud to represent Nepal and Britain while promoting sustainable fashion and women’s empowerment through my dresses.” Increased international visibility like this can propel Nepali brands onto the global stage.
In conclusion, sustainable fashion is gaining momentum globally, and in Nepal, the sector is evolving with growing interest in thrifting, hemp products, and fashion rentals. Local footwear brands like Dochaa, Paila, and Royal Hemp are combining traditional craftsmanship with eco-friendly practices. By learning from global trends and strengthening local initiatives, Nepal can build a more sustainable fashion industry and create opportunities for international collaborations. However, challenges such as public scepticism, government regulations, limited industry adoption, and high costs remain significant barriers for the industry. With all the optimism surrounding sustainable fashion, one question still remains: Will it truly sustain?
(Ranjit and Gadtaula are analysts at Business Brainz, a global business research and insight firm operating from Nepal)
(The opinion article was originally publihsed in the October, 2024 issue of the New Business Age Magazine.)
