Textile Recycling - Global Stategic Business Report

The global market for Textile Recycling was estimated at US$4.8 Billion in 2024 and is projected to reach US$5.4 Billion by 2030, growing at a CAGR of 1.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Textile Recycling market.

Global Textile Recycling Market - Key Trends & Drivers Summarized

Is Textile Recycling the Answer to Fashion’s Sustainability Crisis?

As the environmental impact of fast fashion and global textile waste reaches alarming levels, textile recycling has emerged as a vital pillar of the circular economy. The fashion industry generates over 90 million tons of waste annually, with a significant portion ending up in landfills or incinerators. Textile recycling offers a sustainable solution by recovering fibers, yarns, and fabrics from used garments and production scraps to reintroduce them into the manufacturing cycle. This approach reduces dependency on virgin resources, cuts greenhouse gas emissions, and mitigates water and chemical use associated with traditional textile production. Rising environmental awareness, combined with regulatory pressure to reduce industrial waste, is pushing brands, governments, and manufacturers to adopt recycling practices at scale. Major global fashion brands are launching take-back schemes and partnering with recyclers to close the loop on product lifecycles. Additionally, technological advancements are improving the efficiency and quality of recycled fibers, allowing for higher integration in mainstream fashion products. From cotton and polyester to wool and nylon, textile recyclers are now able to process a diverse range of materials, positioning the sector as an indispensable driver of sustainable fashion.

Why Are Shifting Consumer and Industry Behaviors Fueling Market Momentum?

Consumer attitudes toward clothing consumption are evolving rapidly, particularly among younger, eco-conscious generations that demand accountability and transparency from brands. The rise of conscious consumerism has placed immense pressure on retailers and manufacturers to reduce textile waste and promote sustainable sourcing. This shift has led to the emergence of resale platforms, upcycling brands, and clothing-as-a-service models that extend product lifespans and support recycling ecosystems. On the industry side, manufacturers are investing in closed-loop production models, in which textile waste from one phase is reintegrated into another. Supply chains are increasingly prioritizing traceable, recycled inputs to meet sustainability benchmarks and ESG (Environmental, Social, and Governance) criteria. The integration of digital tracking tools, such as blockchain and RFID, allows companies to document and verify recycled content - critical for both compliance and consumer trust. Governments and municipalities are also playing a role by introducing textile collection programs, waste disposal regulations, and extended producer responsibility (EPR) frameworks. This convergence of regulatory, consumer, and commercial forces is helping accelerate the normalization of textile recycling and transforming it from a fringe practice into a foundational element of responsible apparel production and consumption.

Can Innovation Bridge the Gaps in Fiber Recovery and Recycling Scalability?

The textile recycling market is undergoing a wave of technological innovation aimed at overcoming long-standing limitations related to fiber separation, material degradation, and scalability. Mechanical recycling, while widely used, often struggles with mixed fiber blends and results in lower-quality outputs. In response, chemical recycling methods - such as depolymerization and solvent-based extraction - are gaining traction for their ability to break down and purify fibers like polyester, cellulose, and nylon with minimal quality loss. These technologies enable the production of near-virgin quality fibers suitable for high-end fashion and industrial textiles. Innovations in sorting technologies using AI, robotics, and optical recognition are also improving efficiency in identifying and categorizing textile waste streams, allowing for more targeted recovery processes. Modular and decentralized recycling units are being developed to reduce logistics costs and serve regional collection hubs. Meanwhile, collaborative research between fashion houses, tech firms, and academic institutions is driving the commercialization of next-generation recycling technologies. The race to develop scalable, cost-effective, and low-impact recycling solutions is intensifying, backed by venture capital and corporate sustainability budgets. These advancements are critical for bridging the gap between textile waste generation and fiber reintegration, enabling the industry to meet ambitious circularity and zero-waste goals.

What Are the Core Drivers Behind the Expansion of the Textile Recycling Market?

The growth in the textile recycling market is driven by several key factors related to sustainability demands, policy initiatives, supply chain innovation, and evolving consumer behavior. One of the primary growth drivers is the mounting environmental and regulatory pressure on fashion and textile industries to reduce waste, lower emissions, and adopt circular practices. Global commitments to climate targets and the United Nations Sustainable Development Goals (SDGs) are prompting countries to introduce textile-specific recycling mandates and landfill restrictions. At the corporate level, brands are embedding circularity into their core strategies, often through partnerships with recycling startups and fiber innovation labs. Technological breakthroughs - particularly in chemical recycling and AI-based sorting - are making textile recycling more feasible at commercial scales. The increase in textile collection initiatives, both public and private, is expanding the feedstock supply for recyclers and creating a more organized waste management framework. Consumer demand for sustainable apparel and transparent sourcing is pushing brands to incorporate recycled content into product lines and market those efforts effectively. Investment flows into green infrastructure, innovation hubs, and recycling plants are providing the financial muscle to scale solutions and reduce costs. Altogether, these factors are converging to create a robust and fast-growing textile recycling market that is set to play a central role in the transition toward sustainable fashion and circular production models.

Report Scope

The report analyzes the Textile Recycling market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Material (Cotton, Polyester, Wool, Polyamide, Others); Source (Apparel Waste, Home Furnishing Waste, Automotive Waste, Others); Process (Mechanical, Chemical)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Cotton segment, which is expected to reach US$2.2 Billion by 2030 with a CAGR of a 1.4%. The Polyester segment is also set to grow at 2.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $1.3 Billion in 2024, and China, forecasted to grow at an impressive 3.7% CAGR to reach $998.9 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Textile Recycling Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Textile Recycling Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Textile Recycling Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Anandi Enterprises, American Textile Recycling Service, Birla Cellulose, Boer Group Recycling Solutions, Camira Group and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 34 Featured):

• Anandi Enterprises
• American Textile Recycling Service
• Birla Cellulose
• Boer Group Recycling Solutions
• Camira Group
• Circ
• ECOTEX COLLECT
• HYOSUNG TNC
• I:Collect GmbH (I:CO)
• Infinited Fiber Company
• Lenzing AG
• Martex Fiber
• Patagonia, Inc.
• Procotex Corporation
• Pure Waste Textiles
• Recover Textile Systems
• Retex Textiles Inc.
• SaXcell
• Texaid
• The Billie System
• The Woolmark Company
• Toray Industries

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry