Earlier in 2025, and even in late 2024, several U.S. states began making history. In a decisive move against wasteful, costly fashion production, major states on both U.S. coasts proposed and passed bills taking aim at fashion sustainability and supply chain transparency.

In California, the Responsible Textile Recovery Act established the nation’s first Extended Producer Responsibility (EPR) program for textiles — making apparel producers responsible for end of lifecycle of their products. On the other coast in Massachusetts, the H420 bill requires more detailed supply chain mapping and disclosure, due diligence reports, and verification of sustainability.

In the U.S. and globally, the message is clear: The era of cheap, disposable clothing is incompatible with the future they want to build. Around the world, regulators, consumers, and investors are waking up to the fact that the apparel industry, as currently structured, is unsustainable — both environmentally and economically.

A New Supply Chain Reality

The traditional apparel supply chain — long, wasteful, and opaque, in the opinion of many — no longer fits consumer expectations or planetary needs. Overproduction has become an endemic business model, with some estimates suggesting that over 30% of apparel is never sold at full price, much of it destined for landfills or incinerators.

But these recent actions toward a more sustainable future are only a symptom of the larger issue. The fashion supply chain is broken … and has been for quite some time. It’s by far the world’s oldest, largest, most complex supply chain, yet holistically inefficient, resulting in overproduction, needless markdowns, supply chain disruption, and waste. Unfortunately, the status quo isn’t affordable or profitable anymore.

Adapting to new market forces like sustainability requires producers to inject agility into the market, because waste is no longer an unfortunate side effect. It’s a liability — one that brands, retailers, and manufacturers will increasingly be forced to address.

For years, sustainability was seen as a cost center — something to be offset, marketed, or minimized. But in a world of regulatory penalties, shifting consumer values, and volatile supply chains, the equation has flipped.

Sustainable production is no longer a moral imperative. It’s a strategic necessity:

  • Brands that embrace on-demand, localized production gain resilience — reducing dependency on complex global logistics.
  • Real-time inventory management reduces working capital needs and boosts margins.
  • Transparency and traceability open the door to premium positioning, loyalty, and compliance.

The next generation of fashion must be both fast and responsible. Companies are finally starting to embrace a long-advocated-for smarter approach to apparel production — one that flips the script from overproduction to on-demand manufacturing. Now, that vision is no longer a niche idea. It’s becoming a regulatory necessity.

With digital printing technologies that eliminate water waste, reduce chemical usage, and cut lead times from months to days, companies such as Kornit and others are empowering brands to create collections based on real demand, not projections.

Flipping the Script to On-Demand Production

The goal is to build a technology infrastructure for sustainable digital textile production — empowering brands to produce only what sells, closer to the point of need, with minimal waste. Making this possible, it’s critical to inject agility into the market with the ability to design, produce and deliver apparel and fashion in real-time.

The rule is a model that is fast, flexible and on-demand, with demand determining supply, not the other way around. The key is production postponement, letting buyers guide the production process. This not only reduces waste, but offers significant advantages in terms of inventory management, cost optimization and flexibility.

As opposed to stocking up on inventory, on-demand production enables retailers to only manufacture products when they’re ordered by customers. This reduces the risk of excess inventory, especially for seasonal products or niche markets and eliminates warehousing and related costs. And yes, it also addresses the inefficiency and waste these new laws are hoping to achieve.

As regulation tightens and scrutiny intensifies, winners in the apparel industry are those who can adapt, iterate, and innovate. The future of fashion won’t be measured in how many units you ship, but how intelligently you meet demand — with minimal waste, local agility, and creative freedom.