New report urges industry overhaul to tackle overproduction crisis

Source Fashion, the destination for responsible sourcing and fashion innovation, has launched a new report tackling one of the industry’s most pressing but least addressed issues: overproduction.

It comes as the global fashion industry produces between 80 and 150 billion garments annually - yet up to 40% remain unsold, frequently ending up in landfill, incineration, or markdown bins.

Despite this environmental and financial toll, only 1% of fashion brands are actively working to reduce production volumes.

To address this, the new data-driven report - developed in collaboration with retail futures consultancy Insider Trends - explores the scale, causes, and consequences of overproduction.

It presents solutions for brands looking to remain competitive while reducing waste and environmental impact, including:

• On-Demand Production - producing only what is needed, when it’s needed, to eliminate excess stock.
• Circular Design - creating garments designed to be reused, repaired, or recycled, thereby extending their lifecycle.
• Retail-as-a-Service - shifting from ownership to access models such as rental, resale, and subscription.
• Collaborative Creation - co-designing with consumers to ensure relevancy and reduce waste.

Within the report, Source also spotlights case studies from brands and retailers already implementing these approaches, demonstrating commercial viability alongside sustainability gains.

Suzanne Ellingham, Sourcing Director at Source, said: "This report highlights the uncomfortable truth behind retails success - that excess production is built into the model with volume is the only way to increase profits.

"As we approach 2025, companies must question not only how they produce, but how much, and how they deal with . There are real over production and excess. Opportunities for those willing to embrace a leaner, smarter, more circular future."

Source returns next month. Running from 8-10 July 2025 at its new home, The Grand Hall at Olympia London, the trade show has grown 30% season-on-season and now hosts audited manufacturers from over 25 countries, reinforcing its role as "a key platform for sourcing innovation and sustainable production".