CHARMING INSIGHTS

Every year brings a new set of industry terms you’re expected to understand and use fluently. Some become genuinely useful. Others linger without ever fully settling into a shared meaning. Smart packaging falls somewhere in between.

The past few years have seen a steady stream of policy ideas, sustainability pressure, and changing consumer expectations. By the end of 2025, increased environmental policy was more than a thought for down the road; sustainability requirements and structured demands for data and transparency became concrete.

Instead of another wave of new regulations, 2026 is looking to be the year that companies adjust their systems. With clearer regulatory direction and rising expectations from retailers and consumers, it’s time for apparel brands to build the infrastructure they need to be compliant and competitive. 

The coming year is less about the “what” and more about the “how.” Here are the big shifts we’re predicting for 2026:

While there are hardly any year-end wrap-ups that look back and claim the year was calm, 2025 was a particularly dynamic year in apparel. 

With regulatory shifts solidifying, consumer priorities shifting, and technology emerging, 2025 was the year that ideas became cemented into action. The industry entered the year preparing for change and finished it operating at a new baseline. Here are three of the most substantial shifts that defined 2025.

The second-hand apparel market is redefining the future of fashion. With projections that the market will double in size within the next five years, apparel organizations are looking for opportunities to get in on the action.

As compliance expectations evolve across the apparel and footwear industry, one thing remains clear: progress depends on collaboration. That’s why this November, Charming is proud to sponsor the AAFA Western Hemisphere Apparel & Footwear Compliance Conference, hosted by the American Apparel & Footwear Association (AAFA) in Guatemala City.

For decades, the humble care label has been a footnote, delivering basic information like fiber content and  wash instructions. But Gen Z has different expectations.

Walk into any store or scroll through any brand’s website, and you’ll see a familiar pattern: words like “compostable,” “eco-friendly,” and “carbon-neutral” everywhere. They sound great — but what do they actually mean?

It’s one of the most frustrating moments in retail: your system says the size and color a customer wants are “in stock,” but the item is nowhere to be found.

The fashion industry has already made important progress toward a circular economy. Brands have shown real commitment to lowering their impact by using recycled fabrics and reducing packaging waste. Now circularity is the goal, keeping products in use longer and connecting every stage of their journey through a digital identity.

The DPP mandate is approaching fast, and for the fashion industry, there’s no dodging it. For many brands, it feels like a regulatory headache in the making. In fact, a recent Bain & Company survey found that 90% of brands view the DPP as just more red tape.