Circ and Zara’s Second Collaboration Looks Long-Term to Make Circularity Affordable

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Zara and Circ have announced their second capsule collection, emphasizing the importance of bringing sustainability to the mainstream.

Zara and Circ’s new four-piece collection is crafted entirely from Circ Lyocell, a material made from 50 percent recycled poly-cotton textile waste and 50 percent FSC-certified wood pulp. Circ’s patented process allows for the separation of natural and synthetic fibers, making these sustainable textiles possible. For the Zara collaboration, Circ partnered with high-end Italian mills to refine the fabric further, and Zara’s design team explored new creative approaches. The result is a collection featuring architecturally inspired pieces, including a structured minidress, a long dress with an open-back looped top, and a pencil skirt.

The collaboration with Zara is part of Circ’s broader strategy to scale its production capacity and meet the growing demand for sustainable materials. “These collections help showcase to the market that circular materials can work in a lot of different applications, and that’s necessary for us to secure long term purchase agreements from brands, which unlock financing,” Peter Majeranowski, Chief Executive Officer of Circ, told WWD. “It’s really important for us that we don’t just do this at a very high price point that is not attainable for people,” he told WWD. “If we want to move the needle on protecting the planet from clothing, we really need to focus on the mass market and make sure circularity is affordable.”

Model wears Zara x Circ dress.
Photo courtesy Zara

In addition to its production expansion, Circ recently launched Circ-Ready, a global network of supply chain partners. This initiative is designed to streamline the integration of Circ’s products into the global fashion industry by overcoming potential challenges in the production pipeline. The manufacturer is also in the process of planning a new factory capable of processing 65,000 tons of material annually. The company is evaluating potential sites in Europe and Asia, with Europe being a prime candidate due to the region’s upcoming recycling and circular design regulations set to be implemented in 2026.

Circ’s ongoing efforts have been bolstered by significant financial backing, including a $30 million Series B funding round led by Bill Gates’ Breakthrough Energy Ventures, with Zara’s parent company, Inditex, as a key investor.

Beyond Zara, Circ has several more collaborations and collections planned with various brands in the coming seasons. Majeranowski emphasized the importance of building long-term partnerships with brands committed to scaling up sustainable solutions. “For us, success is when circularity is the default, with no compromise on quality or design,” he said. “Our latest collection with Zara builds on our goal of creating a model for widespread adoption of sustainable materials. This partnership also reinforces the long-term potential of Circ and Inditex to work together to improve product circularity for the fashion industry, while demonstrating Circ’s product quality.”

“We only will work with brands that want to be on that [scaling] journey with us,” Majernowski said. “We’re not interested in just doing like one-off, small capsules.”

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