What: H&M Group signs multi-year agreement with Circulose to replace substantial virgin viscose content with recycled alternatives across its brand portfolio.

Why it is important: This development shows how the textile recycling industry is evolving from pilot projects to commercial-scale operations in mainstream retail.

H&M Group has entered into a multi-year partnership with Circulose (formerly Renewcell) to significantly replace virgin viscose across its brands, including H&M, Cos, Weekday, and Arket. This agreement marks one of Circulose's first major partnerships since its June 2024 relaunch following bankruptcy in February 2024. The company's new strategy focuses on deeper brand partnerships and a licensing-based pricing model, developed with Fashion For Good and Canopy. While specific volumes remain undisclosed, H&M Group aims to source "significant volumes" of Circulose's recycled cotton-based viscose alternative. The initiative supports H&M's goal of ensuring 100% recycled or sustainably sourced materials by 2030. Production restart is planned for the second half of 2026, contingent upon securing sufficient demand through similar brand partnerships.

IADS Notes: H&M's partnership with Circulose represents a significant evolution in sustainable material adoption. According to The Retail Bulletin's March 2025 coverage , successful retailers are increasingly adopting multiple circular approaches simultaneously, with material innovation becoming a key driver of sustainability strategies. BCG's February 2025 analysis revealed that next-generation materials could reach 8% of the fibre market by 2030, highlighting the growing importance of partnerships like H&M-Circulose. Vogue Business's October 2024 report showed how major brands are moving beyond proof-of-concept products to integrate sustainable materials into regular collections, demonstrating the industry's maturation. BoF's December 2024 coverage  highlighted how industrial-scale solutions are emerging to address both regulatory pressures and consumer demands for better quality recycled materials. H&M's commitment to replace a "substantial share" of virgin viscose with Circulose's recycled alternatives across its brand portfolio demonstrates how major retailers are moving from experimental to strategic implementation of sustainable materials.

Sustainability: H&M Group inks multi-year deal with Circulose