Textile Recycling Market – By Product Type, By Textile Waste, By Process , By End-use, By Geography - Global Opportunity Analysis & Industry Forecast, 2025-2030

Textile Recycling Market Overview

The textile recycling market size is forecast to reach USD 5,673 million by 2030, after growing at a CAGR of 5.54% during 2025-2030. The growth of the textile recycling industry is driven by the rising awareness of sustainability among consumers. Over time, environmental conservation efforts and consumer-driven campaigns have gained momentum, encouraging the use of recycled textiles to minimize waste, with a growing emphasis on eco-friendly fashion. Additionally, government regulations play a significant role; many countries are revising waste management policies and promoting circular economy models that incentivize textile recycling.

Report Coverage

The report “Textile Recycling Market– Forecast (2025-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Textile recycling market.

By Product: Cotton, Wool, Polyester & Polyester Fiber, Nylon & Nylon Fiber, Others.

Textile waste: Pre-consumer Textile, Post-consumer Textile.

By Process: Mechanical, Chemical.

By End-use: Apparel, Industrial, Home Furnishing, Others.

By Geography:  North America, South America, Europe, Asia-Pacific, RoW

Key Takeaways

• In July 2024, according to the University of Delaware team, US researchers developed a new chemical recycling method for mixed-fiber textiles to reduce industry emissions. This approach aims to make large-scale, multi-fiber recycling both feasible and cost-effective, promoting sustainability. The method uses microwave-assisted glycolysis with a zinc oxide catalyst to separate polyester, nylon, cotton, and spandex in mixed textiles.
• On January 18, 2024, representatives from 19 consortium partners gathered to launch the PESCO-UP project, which aims to revolutionize the textile recycling industry by converting mixed waste into new raw materials. With textile waste collection set to become mandatory in EU member states by 2025, the project is poised to play a key role in meeting this regulatory shift and advancing sustainable recycling solutions within the textile sector.
• The collaboration between major fashion brands like Decathlon, H&M, Inditex, and Mango, along with organizations such as FEMP and the Spanish Association for the Management of Textile Waste, launched Spain’s first textile trash collection pilot program, Re-viste, signals a significant step in the growth of the textile recycling market. This initiative, ahead of the 2026 EU EPR regulation, aims to streamline the sorting and recycling of non-reusable clothing into new textiles, further advancing sustainable practices and supporting the circular economy in the textile sector.

By Product - Segment Analysis

Polyester and polyester Fiber dominated the textile recycling market in 2024. Due to their widespread use and high recyclability, polyester, and polyester fiber are playing an increasingly important role in the growing textile recycling market. Polyester is one of the most commonly used synthetic fibers, found in a vast array of products, including clothing, upholstery, and industrial materials. Its durability and versatility make it a key material for recycling, especially as industries and consumers prioritize sustainable practices. For instance, in October 2024, PARIS – Textile recycling company Reju, leveraging IBM-developed technology to transform post-consumer textiles into virgin-quality polyester, has inaugurated its first demonstration plant and announced plans to establish two large-scale facilities by 2027.

By Textile Waste- Segment Analysis

Post-consumer Textile dominated the textile recycling market in 2024. Post-consumer textiles are increasingly becoming a focal point in the growing textile recycling market. These materials, which include discarded clothing, household fabrics, and other textile products, represent a significant opportunity for reducing waste and promoting sustainability. With advancements in recycling technologies, post-consumer textiles can be efficiently processed and repurposed into high-quality fibers, such as polyester, for new applications. For instance, in  January 2024, BASF and Inditex have announced a groundbreaking advancement in enhancing recyclability within the textile industry. The introduction of Loopamid®, a polyamide 6 made entirely from textile waste, marks BASF's first circular solution for nylon apparel derived solely from textile waste. With Loopamid®, BASF has created an innovative approach to improving circularity in fashion by recycling polyamide 6 textile waste. Its advanced technology enables textile-to-textile recycling of both post-industrial and post-consumer textile waste, even accommodating mixed fabrics such as PA6 and elastane.

By Process - Segment Analysis

Chemical dominated the textile recycling market in 2024. Chemical recycling is experiencing significant growth in the textile recycling market due to its ability to address key challenges associated with traditional recycling methods and meet the increasing demand for sustainability. Unlike mechanical recycling, which often results in lower-quality fibers, chemical recycling breaks textiles down to their molecular building blocks, allowing for the production of high-quality materials equivalent to virgin fibers. For instance, in July 2024, according to the University of Delaware team, US researchers developed a new chemical recycling method for mixed-fiber textiles to reduce industry emissions. This approach aims to make large-scale, multi-fiber recycling both feasible and cost-effective, promoting sustainability. The method uses microwave-assisted glycolysis with a zinc oxide catalyst to separate polyester, nylon, cotton, and spandex in mixed textiles.

By End Use - Segment Analysis

Apparel dominated the textile recycling market in 2024. The apparel segment is a major driver of growth in the textile recycling market due to the increasing demand for sustainable solutions and the high volume of waste generated by the fashion industry. As consumer awareness of environmental issues rises, brands and manufacturers are under pressure to adopt recycling practices to reduce waste and carbon footprints, making apparel recycling a key focus. For instance, on September 22, 2024, the California Governor signed a law, California's Responsible Textile Recovery Act of 2024 (SB 707) directly supports the growth of the textile recycling market by mandating Extended Producer Responsibility (EPR) for apparel producers, requiring them to manage the collection, repair, reuse, and recycling of textiles statewide. As such, the law in the U.S. fosters increased investment in recycling infrastructure, innovation in sustainable textile processing technologies, and the development of circular economy practices. This policy not only diverts significant volumes of waste from landfills but also drives demand for recycled materials, aligning with broader global efforts to reduce textile waste and enhance resource efficiency. 

By Geography - Segment Analysis

Europe dominated the textile recycling market in 2024. Europe has some of the world's most progressive environmental policies, such as the European Union’s Green Deal and the Circular Economy Action Plan. These initiatives promote sustainable practices, including waste reduction and recycling. The introduction of Extended Producer Responsibility (EPR) schemes for textiles has further incentivized manufacturers to adopt recycling practices. Europe is a hub for innovation in textile recycling technologies, including advanced chemical and mechanical recycling methods. These technologies enable the efficient processing of complex textile waste, such as blended fabrics, and facilitate the production of high-quality recycled fibers like polyester and cotton. For instance, according to the European Environment Agency, the EU generated 6.95 million tonnes of textile waste in 2020, which highlights a significant opportunity for the textile recycling market. The Waste Framework Directive's 2025 mandate for separate collection systems for used textiles will drive market growth by enhancing collection efficiency, boosting recycling infrastructure, and fostering advancements in waste treatment capacity, supporting a shift toward a circular economy.

Drivers – Textile recycling Market

• Various Government Regulations and Initiatives Designed to Promote Textile Recycling and Boost the Use of Recycled Materials are Driving the Recycled Textiles Market.
• Various government regulations and initiatives aimed at promoting textile recycling and increasing the use of recycled materials are driving market growth. For example, the EU's Circular Economy Package prioritizes textile recycling and has spurred numerous regional recycling initiatives. Governments are also offering subsidies and incentives to support textile recycling manufacturers. In the U.K., for instance, the government provides financial support to companies engaged in textile-to-textile recycling through the Textile Recycling Technology Challenge. Such programs encourage the growth of the textile recycling industry.
• For instance, on September 22, 2024, the California Governor signed a law, California's Responsible Textile Recovery Act of 2024 (SB 707) directly supports the growth of the textile recycling market by mandating Extended Producer Responsibility (EPR) for apparel producers, requiring them to manage the collection, repair, reuse, and recycling of textiles statewide. As such, the law in the U.S. fosters increased investment in recycling infrastructure, innovation in sustainable textile processing technologies, and the development of circular economy practices. This policy not only diverts significant volumes of waste from landfills but also drives demand for recycled materials, aligning with broader global efforts to reduce textile waste and enhance resource efficiency.
• For instance, according to the European Environment Agency, the EU generated 6.95 million tonnes of textile waste in 2020, which highlights a significant opportunity for the textile recycling market. The Waste Framework Directive's 2025 mandate for separate collection systems for used textiles will drive market growth by enhancing collection efficiency, boosting recycling infrastructure, and fostering advancements in waste treatment capacity, supporting a shift toward a circular economy.

The Rise of Consumer-driven Sustainability Initiatives is Driving the Textile Recycling Market. 

The rise of consumer-driven sustainability initiatives is significantly contributing to the growth of the textile recycling market. As consumers become more conscious of their environmental impact, there is an increasing demand for eco-friendly products, including those made from recycled textiles. This shift in consumer behavior is reshaping the fashion industry, with more people seeking sustainable brands and products that reflect their values.
For instance, in September 2024, Envoy Textiles Limited's investment of Tk 23.70 crore approx ($2M) in a sustainable waste fabric recycling plant highlights the increasing emphasis on eco-friendly practices, contributing to the growth of the textile recycling market. As the world's first LEED Platinum-certified denim textile mill, Envoy's project, set to begin commercial production by June 2025, will transform waste fabric into yarn, meeting rising sustainability demands from customers. With a financing structure of 70% debt and 30% equity, this initiative will enhance production capacity and support the broader global push for circular economy practices, bolstering advancements in textile recycling technologies and infrastructure.

For instance, in August 2024, Goodwill Industries International's two-year pilot project, funded by the Walmart Foundation, underscores the growing emphasis on textile circularity, contributing to the expansion of the textile recycling market. A $1.28 million investment was dedicated to building the skills, systems, and infrastructure required to collect, sort, and prepare textiles for reuse and recycling. The project's success, shared at the Goodwill Sustainability Summit, highlights the increasing collaboration between private, nonprofit, and research sectors to transform unsellable textile donations into valuable feedstock for recycling. This effort drives market growth by improving recycling capabilities and advancing circular economy practices within the textile industry.

Challenges – Textile recycling Market

• Textile Waste's Quality and Contamination

• Textiles are often mixed with non-textile materials such as buttons, zippers, metal parts, dyes, or synthetic embellishments. These materials can damage recycling equipment and make it harder to process textiles into usable fibers. Even small amounts of contamination can reduce the quality of the recycled fibers, making them less suitable for producing new garments or products.
• Textile waste often consists of a wide range of fabrics, blends, and treatments (such as dyes, finishes, and chemical coatings), which can complicate the recycling process. For example, blends of natural fibers (e.g., cotton and wool) with synthetic fibers (e.g., polyester) are difficult to separate and recycle effectively.

Market Landscape

Technology launches and R&D activities are key strategies adopted by players in the Textile recycling market. In 2024, the Textile recycling market share has been consolidated by the major players accounting for 78% of the share. Major players in the textile recycling are Toray Industries, Indorama Ventures, Teijin Limited, Hyosung TNC, Unifi Inc, Lenzing AG, Patagonia, Aquafil, Camira Group, Procotex Corp, Zhejiang Jiaren New Materials, Birla Cellulose, Longfu Recycling Energy Scientech, Sigmatex , among others.

Developments:

• In January 2024, Lenzing Group, has revealed a new method for processing lyocell fibers under the TENCELTM trademark that is intended to make stretch fabrics that improve wearer comfort. This solution adheres to safe production practices and has remarkable stretch and recovery properties without using fossil fuels.
• In January 2023, Toray Industries, Inc. declared that it had created recycled nylon 66 made from scrap trimmings of silicone-coated airbag fabric.  The mechanical and flowability characteristics of this material are identical to those of injection-molded grades made from virgin nylon 66. 

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