Driving Growth: The Rise of Circular Fashion in Brazil

Brazil's circular fashion sector is booming, led by entrepreneurs like Michelle Svicero who are transforming second-hand retail into a thriving, female-focused business model.

    Key details

  • • The circular fashion sector in Brazil generated 24 billion reais in 2023, comprising 12% of wardrobes.
  • • Michelle Svicero's Release plans expansion to 50 stores and targets 90 million reais revenue.
  • • The second-hand market is growing 30% annually and driven by changing consumer attitudes.
  • • Over 4 million new businesses opened in Brazil in 2025, with a rising focus on sustainable businesses.

The circular fashion industry in Brazil is experiencing robust expansion, fueled by shifting consumer behaviors and innovative entrepreneurial efforts. In 2023, this sector generated approximately 24 billion reais, representing a significant 12% of Brazilians' wardrobes. Michelle Svicero, founder of the female-focused brand Release, exemplifies this trend. Starting with just 400 reais at age 17, she capitalized on the burgeoning second-hand market to build a thriving business now poised to reach 90 million reais in revenue this year. Svicero's strategy emphasizes creating an organized, enjoyable shopping environment exclusively for women, distinguishing Release from traditional thrift store experiences. Partnering with the leading franchise group 300 Franchising, she aims to expand to 50 stores nationwide, tapping into a market expected to grow 30% annually through 2025.

This growth is underpinned by a broad consumer shift, with younger generations normalizing second-hand purchases and older shoppers recognizing the value and savings these options offer. Svicero reflects, "If someone had told me 15 years ago that the second-hand market would be where it is today, I would have thought it impossible." Alongside this specific success story, Brazil's overall entrepreneurial landscape is thriving, with over 4 million new businesses launched this year, many embracing sustainability trends.

Experts from Sebrae highlight increasing interest among young women entrepreneurs and note sustainable business ideas gaining popularity. The ongoing market momentum signals a lasting consumer transformation towards sustainability and circularity in fashion and beyond, making 2026 a promising year for businesses aligned with these values.

This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.

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