Large fashion companies operating in the European Union can no longer destroy unsold apparel, clothing accessories and footwear from 19 July 2026, marking a major step in the bloc's transition towards a circular economy. The measure forms part of the Ecodesign for Sustainable Products Regulation (ESPR) and is designed to reduce textile waste, extend product lifecycles and encourage more sustainable inventory management.

The ban applies to large companies, while medium-sized companies will be required to comply from 19 July 2030. Small and micro enterprises are exempt. Under the new rules, companies are expected to prioritise alternatives such as reuse, repair, donation and recycling instead of sending unsold products for incineration or landfill. Limited exemptions exist for products that pose health or safety risks, are counterfeit or are irreparably damaged. Businesses relying on these exemptions must maintain supporting documentation and disclose the reasons for destruction.

The European Commission estimates that 4–9% of textile products placed on the European market are destroyed before they are ever used, representing hundreds of thousands of tonnes of wasted materials each year. By eliminating the routine destruction of excess inventory, the EU aims to keep valuable fibres in circulation, reduce greenhouse gas emissions and stimulate investment in resale, repair and textile recycling.

The regulation is expected to significantly reshape inventory strategies across the fashion industry, particularly for luxury brands that have traditionally destroyed excess stock to preserve exclusivity. Companies are now likely to invest more heavily in demand forecasting, inventory optimisation, resale channels and fibre recovery systems to remain compliant while protecting brand value. Analysts say the measure could also accelerate the adoption of digital inventory management and circular business models throughout Europe's textile sector.