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

Titled “Do We Really Need to Produce So Much?”, the report—developed in collaboration with retail futures consultancy Insider Trends—offers a data-rich exploration of the scale, causes, and consequences of overproduction. It presents forward-thinking solutions for brands looking to remain competitive while reducing waste and environmental impact. The full report is now available for download at Source Fashion – Overproduction Report 2025. 
  
Overproduction: A Costly and Widespread Issue 

The report reveals that 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 the environmental and financial toll, only 1% of fashion brands are actively working to reduce production volumes. 

                                                  

A New Blueprint for Fashion 

Rather than simply highlighting the problem, the report presents actionable models already being piloted by leading brands and retailers: 

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. 
As the report states, “Brands can reduce production without reducing profit. In fact, in many cases, it increases margins and strengthens consumer trust.” The publication includes case studies from brands already implementing these approaches, demonstrating commercial viability alongside sustainability gains. 
  
A Turning Point for Retail 

The report arrives at a pivotal moment for fashion, as the industry faces shifting consumer expectations, economic uncertainty, and growing pressure from both regulators and investors. 
  
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.” 

  
Webinar: Rethinking Volume in Fashion 

To mark the release of the report, Source will host a live webinar on Thursday 20th June at 11am, titled “Rethinking Volume – Fashion’s Shift from Overproduction to On-Demand”. Held in partnership with Insider Trends, the session will bring together retail leaders to unpack the findings and explore what action brands can take today. To register, visit Webinar: Fashion's Shift to On-Demand. 
  
The Full Report is available to download now: Source Fashion – Overproduction Report 2025