Textile Recycling Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Textile Recycling Market

• The annual demand for textile recycling was USD 8.14 billion in 2024 and is expected to reach USD 8.73 billion in 2025, up 7.2% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the textile recycling market is expected to grow at a CAGR of 6.9%. The annual demand will reach of USD 13.91 billion in 2032.
• During 2025-2032, the textile recycling industry is expected to generate a cumulative sales opportunity of USD 89.42 billion.

High-Growth Market Segments:

• North America is expected to remain the largest market over the next five years.
• By Material type, Polyester segment is projected to have the highest CAGR during the forecast period.
• By Source type, Apparel Waste segment is projected to have the highest CAGR during the forecast period.
• By Process type, Chemical segment is anticipated to grow at the highest CAGR during the forecast period.

Market Statistics

Have a look at the sales opportunities presented by the textile recycling market in terms of growth and market forecast.

Market Dynamics

Introduction:

What is textile recycling?

Textile recycling is the process of recovering fibers, yarns, and fabrics from used clothing, manufacturing scraps, and other textile waste to produce new products. With rising global concern over environmental sustainability and the massive volumes of textile waste generated annually, recycling has become a crucial strategy for reducing landfill burden, conserving resources, and minimizing pollution.

As consumer awareness grows and governments introduce stricter regulations, the textile recycling industry is evolving rapidly, supported by innovations in mechanical and chemical recycling technologies. This transformation is enabling a circular economy in the fashion and textile sector, turning waste into valuable raw materials for various industries, including apparel, automotive, and home furnishings.

Market Drivers:

Rising Environmental Awareness and Push for Circular Economy

• Growing concerns over textile waste and the environmental toll of fast fashion are driving a global shift toward sustainable consumption. Consumers, brands, and governments are actively embracing circular economy models to reduce landfill use and resource depletion.
• This momentum is fueling investments in textile recycling technologies and infrastructure, particularly across the EU, North America, and the Asia-Pacific region, making environmental sustainability a key driver of growth in the textile recycling market.

Market Challenges:

High Cost and Limited Infrastructure

• One of the key challenges facing the textile recycling market is the high cost associated with collection, sorting, and processing, especially for blended or contaminated textiles. Advanced recycling technologies, particularly chemical recycling, require significant capital investment and technical expertise.
• Additionally, many regions lack the infrastructure for efficient textile waste collection and segregation, hindering large-scale recycling and limiting the industry's scalability, particularly in developing economies.

Market Opportunities:

Innovation in Chemical Recycling Technologies

• Rapid advancements in chemical recycling present a significant opportunity in the textile recycling market. Unlike mechanical methods, chemical recycling can recover high-purity fibers from complex, blended, or contaminated textiles. This enables closed-loop recycling and the production of virgin-equivalent materials.
• As global brands push for circularity and high-quality sustainable inputs, innovative chemical recycling solutions are poised to meet the growing demand and reshape textile waste management.

Segment Analysis

By Material Type

“Polyester segment dominates the global textile recycling market.”

• The polyester segment is expected to register the fastest CAGR over the forecast period, driven by its widespread use in fashion and sportswear.
• Being synthetic, polyester supports chemical recycling methods that recover high-quality fibers suitable for new fabric production.
• Rising demand for durable, lightweight textiles continues to fuel global polyester consumption.
• Technological advancements have improved the efficiency and scalability of polyester recycling, supporting the shift away from virgin polyester and reducing environmental impact.

By Source Type

“Apparel Waste segment is expected to grow at a faster pace during the forecast period.”

• The rise in fast fashion trends and shorter clothing life cycles is generating significant volumes of apparel waste globally.
• Increased consumer awareness and regulatory push for circular fashion are driving the demand for recycling used garments.
• Innovations in sorting and recycling technologies make it easier to recover fibers from post-consumer apparel waste.
• This trend positions apparel waste as a key contributor to the growth of the textile recycling market

Regional Analysis

“North America textile recycling industry is expected to grow at a significant CAGR over the forecast period.”

• Rising environmental awareness and supportive government policies are accelerating textile recycling initiatives across the region.
• The U.S. leads in post-consumer textile waste collection and investment in advanced recycling technologies.
• Collaborations between fashion brands and recyclers in this region are fostering a circular economy approach in the textile sector.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the textile recycling market -  

• Worn Again Technologies
• Lenzing Group
• Birla Cellulose
• BLS Ecotech
• The Woolmark Company
• iinouiio Ltd
• Ecotex Group
• The Boer Group
• Unifi, Inc.
• Textile Recycling International

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments/Mergers & Acquisitions:

• In March 2025, Worn Again Technologies introduced a novel chemical recycling process capable of separating and purifying polyester and cotton from blended textiles. This innovation converts waste into high-quality, virgin-equivalent materials ready for reuse in new products. By significantly cutting textile waste and dependence on virgin resources, the technology supports a circular economy and extends its applications beyond fashion to sectors like automotive and packaging. It also aligns with rising regulatory demands and sustainability goals.
• In May 2023, Lenzing, in partnership with ARA, Salesianer Miettex, Caritas, and Södra, launched Austria’s largest textile recycling initiative. The project focuses on collecting, sorting, and processing used textiles into pulp and fibers using OnceMore and REFIBRA technologies. To recycle 50,000 tonnes of textile waste annually by 2027, the program also creates inclusive employment opportunities for people with disabilities. This effort marks a major milestone toward circularity in the textile sector.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The global textile recycling market is segmented into the following categories. 

Global Textile Recycling Market, by Material Type

• Cotton
• Polyester
• Wool
• Polyamide

Global Textile Recycling Market, by Source Type

• Apparel Waste
• Home Furnishing Waste
• Automotive Waste

Global Textile Recycling Market, by Process Type

• Mechanical
• Chemical

Global Textile Recycling Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s global textile recycling market realities and future market possibilities for the forecast period.

• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 32 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]