It seems every season geopolitical instability throws another spanner in the works for fashion retailers. Some are bigger than others. Oil restrictions and the closing of the Strait of Hormuz were certainly not in the scenario-modelling script for fashion brands in 2026, and the element of uncertainty makes it all the more unsettling.
Oil usage in textile production is a big deal. The activewear industry, if the oil crisis continues, will feel the brunt of the restrictions the most, with around 70% of global clothing, and nearly all activewear, crafted from synthetic fibres, with the majority using polyester, nylon, and elastane.
That means every pair of leggings, sports bra, or zip-top is derived from crude oil or petrochemicals. Polyester dominates the sphere with nearly 59% of global fibre production. It's athleisure and sportswear’s top fibre because it’s a performance-driven synthetic; it’s lightweight, great for stretch and recovery, and it’s moisture-wicking. It’s also very cost-effective to produce at scale.
Many successful activewear brands have performance at the core of their ethos, so how should these brands navigate potential reductions in access to oil, while upholding the standard they’re known for?
Right now, activewear and sports brands are uniquely positioned to lead the shift away from oil dependency, with a combination of innovation and meaningful change across materials, design, operations, and customer engagement.
Here’s how activewear brands can become less dependent on oil-based fibres.
1. Transition to low-oil and bio-based fabrics
The most direct way to reduce reliance on fossil fuels is to rethink fabric composition. Replacing virgin oil inputs with recycled or renewable alternatives is an optimal way to reduce oil reliance without compromising on performance.
Brands already in this space include Patagonia, pioneers in recycled polyester and regenerative sourcing, and PANGAIA, which developed bio-based and plant-powered textiles. Lululemon is investing in next-generation materials and circular innovations, and is aiming for 100% "preferred materials" (recycled or responsibly sourced) by 2030, having already achieved 57% in early 2025. Adidas meanwhile, incorporates recycled ocean plastics into performance gear.
Australian label, Nimble Activewear crafts all their cellulose-based products (modal, lyocell, viscose) from Tencel™, as well as uses fabrics free of chemicals, produced with safe and ethical chemical management.
Material alternatives:
- Recycled polyester (rPET): Made from post-consumer plastic bottles, reducing demand for virgin petroleum.
- Bio-based synthetics: Innovations such as bio-nylon and plant-derived elastane offer performance with a lower carbon footprint.
- Regenerative natural fibres: Materials like organic cotton, merino wool, and TENCEL™ Lyocell provide breathable, biodegradable alternatives.
- Innovative textiles: Emerging fibres derived from algae, castor beans, bamboo, and corn.
2. Embrace circular design and business models
Designing products to stay in use longer reduces both oil consumption and environmental impact. Brands can plan for a regenerative ecosystem by launching repair, resale, and take-back programs, introducing fibre-to-fibre recycling initiatives, designing for durability and recyclability by minimizing blended fabrics, and developing mono-material garments for easier recycling.
Australian activewear giant, Lorna Jane, has launched its resale online marketplace as part of its sustainability commitments, where customers can resell their pre-loved activewear items online. Speaking of castor beans, On Running is unique in its subscription-based circular models, where customers can shop pre-loved running gear, or ‘Lap 2’ items, which have been returned or rejected due to minor imperfections. Nimble has created end-of-life solutions for products and sampling, with no samples or excess stock currently going to landfill.
3. Innovate in product design
Smart design choices can significantly reduce dependence on oil-based materials. Less material usage means lower fossil fuel demand and reduced emissions.
Fabric innovation leader, Nagnata, was founded on the basis of moving away from using synthetic fibres, instead using responsibly sourced, superfine Australian Merino Wool to create its seamless Core performance fabrication. The brand uses circular knit machines, working closely with yarn spinners and knitwear technicians, and is working towards replacing all virgin synthetics with recycled and biodegradable versions.
Best practices:
- Reduce reliance on elastane through mechanical stretch fabrics, where the stretch engineered through structure. For example, texturized fibres that behave like tiny springs, looser weaves, or knitted structures that stretch further than woven fabrics.
- Adopt seamless knitting technologies to minimise waste.
- Engineer garments for longevity and versatility.
- Partner with material innovators and textile mills.
4. Reposition marketing with product transparency
If you’re changing your materials - be transparent about it. Communicating the environmental impact of materials, or the changes you’re making in your own production, empowers consumers to make informed choices and strengthens brand loyalty.
However, be aware of greenwashing. Without the right credentials, you may incidentally make your products appear more environmentally friendly or sustainable than they really are. Be sure to be thorough in your approach to sustainable fabric solutions, so you can clearly and effectively make the right claims.
Australian activewear brand P.E. Nation keeps their customers up to date with its sustainability efforts; obtaining and displaying its B Corp Ceritfcation, being a members SEDEX and the Ethical Trading Initiative (ETI), and labelling recycled materials in fabric compositions.
5. Invest in forecasting technology to curb overproduction
It’s almost impossible to accurately and strategically forecast inventory without the right technology to support decisions at scale. With intelligent product forecasting, brands can remain agile when the unexpected arises while optimizing for stock cover and reducing excess.
Consider whether fashion retail forecasting and demand planning technology:
- Automatically forecasts demand by product, size, and location. Granular forecasting is essential, by SKU, category, size, and geography, with the flexibility to adjust for current assortment changes and external factors.
- Aligns delivery and supply chain timelines. Customizable weeks cover, lead times, and delivery frequencies based on specific periods to optimize sales and ensure you have inventory when you need it.
- Helps you visualize future cash flow. Seeing when sales are set to peak and trough enables brands to drive revenue through smarter stock planning and financial alignment with sales events.
Fashion is full of uncertainty, and no fabric or production model is immune to the forces at play. With the right technology, however, you can get as close to correct as possible using product data sets and automated processes to set up for a sustainable, profitable future.
Find out more about Style Arcade's Product Forecasting
