Oct 15, 2026

What's changing in fashion in 2026, and what should businesses do about it?

What's changing in fashion in 2026, and what should businesses do about it?

From AI on the factory floor to new EU regulations, three developments fashion businesses should be watching.

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5 Mins

Category

News

Fashion businesses are being asked to do more with less. Protect margins, improve productivity, reduce waste and prepare for new regulations, often without the time or people to explore what’s available.

So where should businesses be paying attention?

Future Fashion Assembly’s Signals intelligence engine tracks what’s changing across the industry, from regulations and new technologies to emerging business opportunities.

Here are three developments we’re watching and what they could mean for your business.

1. AI is moving onto the production floor

AI is no longer just about creating content or answering questions. It’s increasingly being used to solve everyday problems across fashion businesses.

Take fabric quality control. Defects can go unnoticed until fabric reaches the cutting room, when materials, time and money have already been spent.

Smartex.ai, a Future Fashion Assembly verified innovator, uses AI-powered cameras to spot defects as fabric is being made, giving factories a chance to fix problems earlier. It works with existing machinery, making adoption more practical.

For brands and manufacturers, the opportunity is straightforward: less waste, better quality and lower production costs.

What to consider: Where are mistakes or manual processes costing your business time and money? That could be a good place to start with AI.

2. Digital Product Passports and greenwashing rules are raising the stakes

The EU’s Digital Product Passport Registry became operational in July 2026. Specific requirements for textiles are still being developed, but brands and suppliers have good reason to start preparing.

New EU rules restricting misleading environmental claims also began applying in September 2026. Broad claims such as “green” or “environmentally friendly” now face tighter rules, alongside restrictions on unreliable sustainability labels.

For brands, the question is simple. Can you prove what you’re saying about your products?

Much of the information needed, from materials and suppliers to certifications, is scattered across spreadsheets and different systems.

Future Fashion Assembly innovator Fabacus helps brands bring this information together, verify it and prepare for Digital Product Passports through its Xelacore platform.

Better product data isn’t only useful for compliance. It can also support sourcing decisions, build customer trust and create new ways to engage shoppers.

What to consider: Can you easily find and verify the information behind your product claims?

3. Manufacturing and material innovation are gaining ground

Some of fashion’s most important innovations are happening long before a product reaches the shop floor.

Our Signals engine is tracking growing activity in textile recycling, alternative materials and manufacturing technology.

There’s also more pressure to deal with unsold stock. Since July 2026, large companies in the EU have been banned from destroying unsold clothing and footwear, with limited exceptions. This puts greater focus on preventing excess stock and keeping products in use.

For brands, mills and manufacturers, the opportunity is to work together to reduce material waste, improve production efficiency and find better ways to use resources and share in the commercial and reputational benefits. 

What to consider: Where could better manufacturing processes, material choices or stock management reduce costs and waste in your business?

So, where should you start?

There’s no shortage of technology available to fashion businesses. The challenge is knowing what’s relevant, what works and whether it’s worth the investment.

You don’t need to change everything at once.

Start with a problem that’s costing your business money, time or customers. Understand what’s available, speak to the right people and test what makes commercial sense.

Future Fashion Assembly helps you do exactly that.

Through our Signals intelligence engine and innovation platform, you can keep up with industry developments, discover vetted technology solutions and explore case studies showing how businesses are putting innovation to work.


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Fashion businesses are being asked to do more with less. Protect margins, improve productivity, reduce waste and prepare for new regulations, often without the time or people to explore what’s available.

So where should businesses be paying attention?

Future Fashion Assembly’s Signals intelligence engine tracks what’s changing across the industry, from regulations and new technologies to emerging business opportunities.

Here are three developments we’re watching and what they could mean for your business.

1. AI is moving onto the production floor

AI is no longer just about creating content or answering questions. It’s increasingly being used to solve everyday problems across fashion businesses.

Take fabric quality control. Defects can go unnoticed until fabric reaches the cutting room, when materials, time and money have already been spent.

Smartex.ai, a Future Fashion Assembly verified innovator, uses AI-powered cameras to spot defects as fabric is being made, giving factories a chance to fix problems earlier. It works with existing machinery, making adoption more practical.

For brands and manufacturers, the opportunity is straightforward: less waste, better quality and lower production costs.

What to consider: Where are mistakes or manual processes costing your business time and money? That could be a good place to start with AI.

2. Digital Product Passports and greenwashing rules are raising the stakes

The EU’s Digital Product Passport Registry became operational in July 2026. Specific requirements for textiles are still being developed, but brands and suppliers have good reason to start preparing.

New EU rules restricting misleading environmental claims also began applying in September 2026. Broad claims such as “green” or “environmentally friendly” now face tighter rules, alongside restrictions on unreliable sustainability labels.

For brands, the question is simple. Can you prove what you’re saying about your products?

Much of the information needed, from materials and suppliers to certifications, is scattered across spreadsheets and different systems.

Future Fashion Assembly innovator Fabacus helps brands bring this information together, verify it and prepare for Digital Product Passports through its Xelacore platform.

Better product data isn’t only useful for compliance. It can also support sourcing decisions, build customer trust and create new ways to engage shoppers.

What to consider: Can you easily find and verify the information behind your product claims?

3. Manufacturing and material innovation are gaining ground

Some of fashion’s most important innovations are happening long before a product reaches the shop floor.

Our Signals engine is tracking growing activity in textile recycling, alternative materials and manufacturing technology.

There’s also more pressure to deal with unsold stock. Since July 2026, large companies in the EU have been banned from destroying unsold clothing and footwear, with limited exceptions. This puts greater focus on preventing excess stock and keeping products in use.

For brands, mills and manufacturers, the opportunity is to work together to reduce material waste, improve production efficiency and find better ways to use resources and share in the commercial and reputational benefits. 

What to consider: Where could better manufacturing processes, material choices or stock management reduce costs and waste in your business?

So, where should you start?

There’s no shortage of technology available to fashion businesses. The challenge is knowing what’s relevant, what works and whether it’s worth the investment.

You don’t need to change everything at once.

Start with a problem that’s costing your business money, time or customers. Understand what’s available, speak to the right people and test what makes commercial sense.

Future Fashion Assembly helps you do exactly that.

Through our Signals intelligence engine and innovation platform, you can keep up with industry developments, discover vetted technology solutions and explore case studies showing how businesses are putting innovation to work.