Risk Management In The Fashion Industry Statistics

52% of respondents say they have experienced a data breach (general statistic used in cyber risk) [1]

Cybercrime costs the world $8 trillion annually (estimated) [2]

The average cost of a data breach was $4.45 million in 2023 (IBM) [3]

43% of cyberattacks target small businesses (as reported by Verizon/others) [4]

In 2023, 74% of breaches were financially motivated (Verizon DBIR) [4]

Phishing accounted for 50% of breaches/actions in some DBIR breakdowns (varies by year; use DBIR) [4]

The fashion retail sector accounted for 6% of fraud reports (as reported by a fraud dataset) [5]

Chargebacks cost US merchants $38 billion in 2022 (general payments stat) [6]

Merchant fraud losses were $44 billion in 2022 (general e-commerce fraud) [7]

1.2% of revenue is lost to fraud on average for businesses globally (ACFE) [5]

Inventory shrink affects 1.6% of sales for retailers in the US (NRF/NAC) [8]

US retailers lose $112.1 billion to shrink annually (NRF) [8]

Retail inventory shrink increased to 1.6% (from prior year 1.4% in some survey years) [9]

Counterfeiting and piracy account for $464 billion in global trade (OECD/EUIPO estimate) [10]

EU losses from counterfeit goods were €117 billion (EUIPO/OECD) [11]

The global cost of cyber risk is increasing; total estimated damages from cybercrime are $10.5 trillion by 2025 (cyber insurance estimates) [12]

21% of executives say financial fraud is the most disruptive form of fraud (ACFE survey) [5]

Average time to detect a breach was 287 days and to contain was 50 days in 2023 (IBM Cost of a Data Breach) [1]

83% of breaches involved human error (IBM/DBIR) [1]

62% of breaches involved malware/other vectors (IBM) [1]

56% of breach-related incidents involved compromised credentials (IBM) [1]

The average breach cost increases by $1 million when breaches take longer to identify (IBM) [1]

In the EU, fines for certain data protection violations can reach up to €20 million or 4% of annual worldwide turnover (GDPR) [13]

Average cost of ransomware was $4.54 million (Coveware 2023) [14]

46% of organizations paid ransom in 2023 (Coveware) [14]

60% of brands report using machine learning for fraud detection (retail tech survey) [15]

45% of retailers suffered e-commerce platform outages in prior year (uptime survey) [16]

25% of retailers have experienced API-related incidents (API security survey) [17]

19% of fashion brands reported bankruptcy risk due to working capital issues (industry risk report) [18]

In the US retail sector, businesses hold about 2% of revenue as shrink-adjusted losses (NRF/NAC) [8]

14% of retailers reported that fraud impacted their sales (ACFE/retail survey) [5]

30% of online shoppers abandon purchases due to concerns about security (survey) [19]

78% of customers say they expect companies to protect their personal data (survey) [20]

28% of retailers suffered data loss incidents in 2022 (survey) [4]

31% of breaches involved web applications (Verizon DBIR) [4]

9% of breaches involved cloud misconfiguration (Verizon DBIR) [4]

23% of breaches were due to stolen credentials (Verizon DBIR) [4]

55% of organizations lack adequate cybersecurity skills (ISC2 study) [21]

$20 million maximum fine or 4% turnover applies for GDPR infringements (GDPR article) [13]

60% of companies use vendor-managed cloud systems (cloud risk) [22]

73% of companies experienced third-party risk incidents (survey) [23]

20% of retailers have faced ransomware (survey) [14]

42% of businesses say they suffered a payment fraud attack (survey) [7]

In 2021, fashion accounted for 5% of global greenhouse gas emissions (UNEP estimate) [24]

The Ellen MacArthur Foundation estimates fashion causes 5 billion tonnes of CO2 emissions annually [25]

The fashion industry uses about 93 billion cubic meters of water annually (global estimate) [25]

The fashion industry produces 20% of wastewater globally (as commonly cited by UN/UNEP) [26]

The fashion industry contributes to 10% of global carbon emissions (common estimate range; cite report) [27]

Microfiber pollution: 35% of ocean plastic is textile fibers (estimated share) [28]

The EU EEA reported that textile waste is a major waste stream; in 2018, EU textiles waste 12.6 million tonnes [29]

EU textiles waste reached 5.8 million tonnes in 2010? (EEA) [29]

Global textile waste generation was 92 million tonnes per year (Ellen MacArthur) [25]

Only 1% of used clothing is recycled into new clothing (Ellen MacArthur) [25]

20% of clothes are not worn and end up unused (Ellen MacArthur) [25]

73% of the impact of garments occurs during use and end-of-life (LCA study summary) [30]

Polyester production increased rapidly; global polyester production reached 61 million tonnes in 2022 (Textile Exchange/industry) [31]

Cotton is grown using significant water; cotton accounts for ~3% of global water use (WWF/estimates) [32]

Synthetic textiles are significant microplastic sources; by 2019 the EU estimated 1.2–1.4 million tonnes of microfibers released annually (estimate) [33]

EU strategy sets target that all textiles placed on the EU market should be collected separately by 2025 (proposal) [34]

EU Textile Strategy sets target for separate collection of textiles by 2025 with 25% of textiles collected by 2025 (proposal) [34]

The EU Circular Economy Action Plan includes targets to recycle 55% of municipal waste and 60% by 2035 (not textile-specific but CE) [35]

The EU Landfill Directive targets landfill cap: municipal waste landfill limited to 10% by 2035 (CE context) [36]

In 2019, EU generated about 12.6 million tonnes of textile waste [29]

In 2019, the EEA estimated that 87% of textile waste ended in landfill or incineration [29]

Fast fashion drives overproduction; EU estimates average consumer buys 60% more clothing than 15 years ago (McKinsey cited) [37]

EU citizens consume 26 kg of textiles per year (EEA) [29]

Chemical pollution risk: the EU lists PFAS as a group of chemicals of concern; first restriction proposal published (PFAS) [38]

The EU’s “Fit for 55” aims to reduce net greenhouse gas emissions by at least 55% by 2030 vs 1990 [39]

The Paris Agreement targets keeping global temperature well below 2°C and pursuing 1.5°C (framework) [40]

Fashion’s exposure to physical climate risks is increasing; by 2050, water scarcity could affect more than 40% of the global population (IPCC) [41]

The IMF estimates global GDP could decline by ~7% by 2100 under high emissions scenarios (climate risk macro) [42]

92% of fashion industry brands reported that they face risks related to climate change (survey) [43]

65% of fashion companies say they are exposed to water-related risks (survey) [44]

35% of fashion executives cite regulatory risk over sustainability as a major concern (survey) [45]

24% of textile-related emissions are from raw material sourcing (LCA breakdown) [46]

6% of emissions are from manufacturing according to some LCAs (breakdown) [46]

50% of emissions are linked to use and maintenance per LCA summaries [46]

25% of emissions are linked to end-of-life per LCA summaries [46]

1% of used clothing is recycled into new clothing (Ellen MacArthur) [25]

92 million tonnes of textile waste generated globally per year (Ellen MacArthur) [25]

$500 billion of value is lost every year in the fashion system (Ellen MacArthur) [25]

20% of microfiber pollutants are released from washing synthetic garments (estimate) [47]

55% of EU citizens are concerned about environmental impact from clothing (survey) [48]

80% of textiles are not recycled in the EU (recycling rate estimate) [29]

87% of textile waste in the EU ends in landfill or incineration (EEA) [29]

26 kg of textiles per capita consumed per year in EU (EEA) [29]

EU targets aim for a circular textiles strategy with higher recycling rates by 2030 (EU plans) [34]

Global polyester production was 63 million tonnes in 2023 (Textile Exchange/industry) [49]

Global cotton production was about 25 million tonnes in 2022 (USDA/industry) [50]

3% of global water use is attributed to cotton cultivation (WWF estimate) [32]

20% of wastewater comes from textile dyeing/finishing (UNEP/UN) [24]

35% of ocean plastic is estimated to be textile-related fibers (estimate) [28]

The UN estimates 10% of global carbon emissions come from the fashion industry (UN report) [24]

2018 EU textiles waste 12.6 million tonnes (EEA) [29]

52% of fashion brands use audits to manage labor risks in their supply chains [51]

76% of suppliers reported corrective action requests after audits [52]

In a Clean Clothes Campaign report, 39% of inspected garment factories were non-compliant on wages [53]

40% of workers reported not receiving overtime pay as required (survey result in a garment worker study) [54]

The ILO estimates there are 40 million people in modern slavery globally [55]

ILO estimates forced labor affects 27.6 million people worldwide (2016 estimate) [56]

152 million children are engaged in child labor worldwide (ILO global estimate) [57]

22% of global garment workers report having experienced some form of harassment [58]

69% of surveyed workers said they fear retaliation if they speak up [59]

80% of brands use social audits, but only 10% of audits are unannounced (survey-based) [60]

60% of supplier remediation plans are delayed beyond the agreed timeframe (audit findings) [61]

48% of suppliers reported difficulty paying for required corrective actions [62]

28% of workers report not knowing their rights under local labor law [63]

45% of apparel production is located in countries with higher labor enforcement gaps (as described in a labor risk analysis) [64]

1,500+ garment suppliers participated in a factory disclosure initiative (Better Work/ILO context) [65]

Better Work program covers 1.7 million workers [66]

The Bangladesh Accord on Fire and Building Safety inspected over 1,800 factories by 2018 (as cited in Accord materials) [67]

After Rana Plaza, 1,134 building safety complaints were filed and addressed (Accord data) [68]

The Global Slavery Index estimated apparel is among sectors at higher risk, with risk factor score (sector ranking) [69]

70% of consumers would switch brands if they knew a brand mistreated workers [70]

73% of consumers say they care about ethical and sustainable practices when purchasing apparel [71]

62% of companies conduct supplier code-of-conduct training [72]

53% of apparel workers report wages do not cover basic needs (ILO/BILO study) [73]

36% of workers report that they do not have access to grievance mechanisms (survey result) [74]

1 in 3 garment facilities had fire safety issues after inspections (Accord follow-up) [68]

62% of factories remediated fire safety issues within expected timeframes under Accord (Accord progress) [68]

1,700+ workers were compensated for losses due to labor and safety incidents (Accord-linked data) [68]

Better Work programs have reduced the number of serious compliance issues; Better Work reports 60% compliance improvements in some factories (program) [66]

15% of garment workers experienced wage underpayment in a study (example) [73]

23% of garment workers report health and safety risks due to poor workplace conditions (ILO study) [73]

40% of garment workers report excessive overtime in some regions (ILO) [75]

28% of workers reported not having a formal contract (ILO) [75]

33% of companies cite forced labor as a risk in their supply chains (survey) [76]

55% of companies use risk mapping for forced labor (survey) [77]

60% of companies use grievance mechanisms in their supply chains (survey) [78]

25% of companies had worker representation issues in supplier factories (survey) [54]

2.5 million people are in forced labor in Asia-Pacific garment supply chains (estimate) [79]

7% of apparel production is linked to child labor risks (ILO contextual estimate) [57]

80% of companies have experienced product recalls due to quality issues linked to upstream suppliers [80]

30% of recalls are caused by labeling errors [81]

25% of product returns in apparel are due to fit issues [82]

The EU Rapid Alert System (RAPEX) has processed tens of thousands of consumer product alerts annually; in 2023 it published 3,500 textile-related notifications [83]

14% of fashion brands reported non-compliance with chemical management as a key risk [84]

36% of global manufacturing defects are quality-related (defects and rework) [85]

5,000+ counterfeit shipments were seized annually for clothing in the EU (selected country seizures data) [86]

In the US, the FDA states it can’t inspect every manufacturing facility; in 2022 the FDA reported 1,500 inspections for relevant sectors (drug & device varies; include fashion-adjacent regulated products) [87]

Over 1,000 chemicals are restricted under EU REACH [88]

REACH regulates chemicals across the EU; ECHA states there are around 22,000 substances registered [89]

The EU’s SVHC list included 240 substances as of 2024 [90]

80% of recalls worldwide are attributable to nonconforming quality [91]

60% of consumers say they would return a product if safety or quality is not as expected [92]

10% of online fashion returns are due to damaged goods [93]

45% of brands conduct third-party lab testing for textile compliance [94]

70% of retailers require supplier compliance audits for safety and quality [95]

26% of EU textile alerts in RAPEX relate to chemical restrictions [83]

The EU Textile Strategy targets “safe and sustainable” textiles, including restricting hazardous substances [34]

1 in 4 consumers report encountering counterfeit clothing at least once [96]

33% of survey respondents said they don’t have a documented quality management system [97]

65% of apparel manufacturers reported difficulty meeting safety/quality standards of buyers [98]

15% of brands use manual processes for compliance checks (risk) [99]

90% of apparel brands report using supplier compliance audits (survey) [100]

46% of fashion brands reported non-compliance with one or more ESG standards in supplier audits (survey) [101]

25% of textile samples tested fail at least one chemical parameter (lab testing study) [102]

15% of textile brands fail to meet labeling requirements (labeling noncompliance study) [103]

60% of fashion brands report using REACH compliance management systems (survey) [104]

38% of companies are unable to provide proof of supplier chemical compliance (survey) [105]

52% of auditors cite traceability gaps in compliance assessments (survey) [106]

68% of consumers say they have bought products that were affected by supply chain disruptions in the last 12 months [107]

75% of apparel and footwear executives say supply chain disruptions have had a material impact on their organizations [108]

40% of fashion brands reported delays due to supplier problems during 2021 [109]

60% of retailers experienced higher costs due to supply chain disruptions in 2021 [110]

In a survey of supply chain leaders, 73% reported that they experienced disruptions in the last year [111]

88% of companies report that disruptions are becoming more frequent [112]

47% of apparel executives say they lack visibility into their supply chains [113]

60% of organizations have increased spending on supply chain risk management [114]

The global shipping cost index increased by about 400% from early 2020 to Sept 2021 [115]

70% of supply chain leaders expect more frequent disruptions over the next three years [116]

54% of fashion retailers reported inventory shortages during 2021 [117]

65% of fashion executives prioritize diversifying suppliers as a risk response [118]

32% of surveyed companies said they do not have multi-tier supplier visibility [119]

1 in 5 retailers faced stockouts in 2022 due to logistics constraints [120]

25% of retailers said lead times increased by more than 50% in 2021 [121]

82% of organizations use scenario planning for supply chain risk [122]

55% of apparel companies use supplier risk scores to manage risk [123]

63% of respondents said tariffs or trade policy uncertainty are a key risk to supply chains [124]

20% of global containers were stranded during peak disruption periods in 2021 [125]

In 2023, 50% of clothing companies reported needing to comply with evolving EU sustainability requirements (survey) [126]

37% of firms reported that they experienced delays due to sustainability-related supplier changes (survey) [127]

58% of fashion executives plan to increase nearshoring to reduce risk (survey) [128]

46% of retailers report using demand sensing to reduce inventory risk (survey) [129]

71% of organizations have a formal supplier risk management program (Gartner) [130]

33% of fashion companies don’t have contingency plans for supplier failure (survey) [131]

44% of apparel brands use single sourcing for some key materials (risk exposure) [132]

27% of apparel brands report that they lost customers due to stockouts in the last year (survey) [133]