Textile Recycling Market Size, Share & Industry Analysis, By Material (Cotton, Polyester & Polyester Fiber, Wool, Nylon & Nylon Fibers, and Others), By Process (Mechanical and Chemical), By End-use Industry (Apparel Waste, Home Furnishing Waste, and Others), and Regional Forecast, 2024-2032

The global textile recycling market size was valued at USD 5.76 billion in 2023. The market is projected to grow from USD 6.08 billion in 2024 to USD 8.49 billion by 2032 at a CAGR of 4.3% during the forecast period. Asia Pacific dominated the textile recycling market with a market share of 44.97% in 2023. Moreover, the U.S. textile recycling market is projected to reach USD 1.29 billion by 2032, fueled by sustainability initiatives and circular fashion practices.

Textile recycling is the process that utilizes used or discarded clothing, apparel, and fibrous material from reusable and eco-friendly products. All these waste materials are cleaned, sorted, and turned into recyclable fibers for further chemical and mechanical processes. These processes turn the old material into new products such as wool blankets, plant-friendly yoga mats, and wall wallpaper. The manufacturing of recycled material has increased in the past few years owing to a rise in the awareness of sustainable production. The governments of China, Germany, Italy, and India have encouraged the recycling of textile waste programs to tackle the increasing waste from the textile industry.

The recycling of textiles may reduce landfill space, greenhouse gas emissions, energy consumption, and water pollution. Thus, a rise in the awareness of sustainable production and increasing consumption of recycled textile products across various end-use industries is driving market growth. In addition, advancements in technology will also propel market growth in the near future. For such, LENZING AG company has pioneered the REFIBRA technology, which incorporates upcycling cotton scraps into the production of new TENCEL Lyocell fibers, marking a significant advancement in textile recycling.

Global Textile Recycling Market Key Takeaways

Market Size & Forecast:

• 2023 Market Size: USD 5.76 billion
• 2024 Market Size: USD 6.08 billion
• 2032 Forecast Market Size: USD 8.49 billion
• CAGR: 4.3% from 2024–2032

Market Share:

• Asia Pacific dominated the textile recycling market with a 44.97% share in 2023, driven by the presence of major waste-generating countries such as India and China, government recycling initiatives, and increased demand for sustainable textile products.
• By material, polyester & polyester fiber is expected to retain the largest market share in 2025, supported by its high recyclability, wide usage in home furnishing and apparel, and growing use in recycled yarn production.

Key Country Highlights:

• United States: The U.S. textile recycling market is projected to reach USD 1.29 billion by 2032, fueled by sustainability initiatives, mechanical recycling adoption, and rising demand for circular fashion.
• India: One of the top contributors to textile waste in Asia Pacific, India is expanding its recycling infrastructure, with strong government support and growing demand for eco-friendly materials.
• China: A dominant player in both waste generation and recycled textile usage, especially in home furnishing applications, holding a 34.4% market share in this segment in 2023.
• Germany: As part of the EU, Germany is promoting textile recycling through sustainability mandates and investments in chemical and mechanical recycling technologies.
• Mexico: Leading growth in Latin America, supported by rising textile use in the automotive and mechanical sectors for seatbelts, seat covers, and other industrial applications.

TEXTILE RECYCLING MARKET TRENDS

Rising Recycled Fiber Blends Consumption in Various Applications is a Prominent Trend 

Over the past few years, fashion waste has become one of the biggest problems in circular economies across the globe. This has resulted in a drastic increase in recycling activities to reduce pollution and water consumption, as millions of gallons are used during textile production. Moreover, textile recycling companies have adopted newly invented recycling processes, such as closed-loop recycling and recycled fiber blends, to reduce the pressure on waste management.

The utilization of the recycled fiber blend has boosted the textile recycling market growth. These blends can be used in the manufacturing of casual articles in the clothing industry, including sweatshirts, sleepwear, and t-shirts, owing to their eco-friendly characteristics and cost-saving nature. Furthermore, the recycling technologies of recycled textiles are expected to offer massive opportunities in technical textiles. For instance, wool and nylon blends are widely consumed in the production of winter scarves, coats, and sweaters. The wool used in the blend can easily adapt to temperature fluctuations, and nylon enhances the water-wicking characteristics and durability. Thus, the increasing consumption of recycled fiber blend in several end-use applications is an emerging trend in the market.

MARKET DYNAMICS

MARKET DRIVERS

Growing Demand for Recycled Textiles from End-use Industries to Boost Market Growth

The demand for recycled textiles is gradually increasing in end-use industries such as automotive, fashion, construction, and others. Recycled textiles offer properties similar to virgin textile fibers, including strength, lightness, and flexibility. Such similar properties, cost-effectiveness, and eco-friendly nature make it suitable for products such as seat covers, carpets, wearables, and others. Furthermore, the boom in the fashion industry also acts as a major driving factor for market growth. For instance, the key established players in the market, such as H&M, offer their clothing manufactured from waste textile material. Asia Pacific witnessed a growth from USD 2.47 billion in 2022 to USD 2.59 billion in 2023.

The recycling activity of these fibers maximizes the conservation of natural resources such as natural fibers and water. On the other hand, the innovation of tech-fused clothing combined with recycled clothing products is the most trending innovation in the textile market.

In addition, to meet the increasing demand for household products such as curtains, towels, washing clothes, holders, and bed sheets, many manufacturers have started to use recycled textiles as raw materials. This has resulted in the increased recycling of post- and pre-consumer textile waste. Thus, all these factors are anticipated to boost market growth during the forecast period.

Download Free sample to learn more about this report.

MARKET RESTRAINTS

Use of Hazardous Chemicals in Recycling Process May Hamper Market Growth

The use of hazardous chemicals during the textile recovery from the waste is anticipated to hinder market growth. Approximately 10-15% of unbound dyes to textile materials are lost in the industrial wastewater discharge. These dyes are the big reason behind air, land, and water pollution owing to their hazardous nature. The discharged dyes in the water can absorb light and affect aquatic species and the water ecosystem. Furthermore, it may hamper human health when it comes to the long contact with human skin. The dyes can be easily absorbed on the skin, which may be the reason behind skin allergies and other skin-related diseases.

In addition, these used chemicals, such as dyes and other coloring agents, can lead to respiratory disease if proper precautions are not taken during the recycling process. On the other hand, the government has imposed strict rules and regulations on the use of chemicals in textile recovery. Thus, all these factors may hinder the growth of the global market.

MARKET OPPORTUNITIES

Circular Economy Initiatives Creating Opportunities for the Market

Many brands and manufacturers are adopting circular economy principles, which focus on extending the lifecycle of textiles. This includes take-back programs and partnerships with recycling facilities, creating a consistent supply chain for recycled materials.

The shift toward a circular economy is significantly impacting the market, presenting numerous opportunities for innovation, sustainability, and economic growth. This approach emphasizes reducing waste, reusing materials, and recycling textiles to create a more sustainable industry.

By focusing on reducing waste, reusing materials, and enhancing recycling processes, stakeholders can contribute to a more sustainable future while capitalizing on economic benefits associated with these initiatives. As the consumer demand for sustainable practices continues to rise, embracing circularity will be essential for companies aiming to thrive in this evolving landscape.

MARKET CHALLENGES

High Costs of Recovery Processes and Limited Recycling Infrastructure May Hamper the Market Growth

The infrastructure for textile recycling is often inadequate. Many regions lack sufficient facilities for collection, sorting, and processing of textile waste, which limits the capacity to handle the growing volume of discarded garments. The financial burden associated with recycling processes is substantial. Costs related to sorting, processing, and transporting textiles can be prohibitively high, especially when dealing with low-quality materials that dominate the recycling end-market.

Moreover, the market is at a critical juncture, facing numerous challenges that threaten its viability and growth potential. Addressing these issues requires concerted efforts from industry stakeholders, including improved infrastructure and high cost recovery process enhanced consumer engagement strategies. Without significant changes and investments in these areas, the sector may struggle to achieve its sustainability goals effectively.

IMPACT OF COVID-19

Restrictions on Business Facilities Due to the Pandemic Hampered Market Growth

The COVID-19 pandemic negatively impacted the textile industry owing to the restrictions on business facilities such as recycling business, manufacturing units, sales centers, and warehouses. The growth of the industry is strongly dependent on the production of clothing and apparel for transport, home, medical, industrial, packaging, and construction end-use applications. Moreover, the pandemic impacted waste material generation from pre-and post-consumer waste collection activities. This led to reduced recycling activities across the globe. Thus, all these factors affected the market expansion and changed the market landscape.

TRADE PROTECTIONISM AND GEOPOLITICAL IMPACT

Trade Protectionism and Geopolitical Dynamics Significantly Influence the Market, Shaping its Growth Prospects and Operational Landscape

Countries may impose tariffs on imported textiles or recycled materials to protect domestic industries. This can lead to higher costs for recycling companies that rely on imported raw materials or technologies, ultimately affecting pricing and market competitiveness. Protectionist measures can disrupt established supply chains, making it difficult for recycling firms to source materials or distribute their products efficiently. This may lead to increased operational costs and delays in recycling processes.

Geopolitical tensions can result in restrictions on the export of textile waste, particularly in regions such as Europe, where there is a push to limit the export of unsorted textiles. This can create a surplus of waste in local markets, straining recycling capacities and infrastructure. Political instability or strained international relations can deter foreign investment in textile recycling initiatives. Investors may be hesitant to fund projects in regions perceived as unstable, limiting access to necessary capital for scaling operations.

RESEARCH AND DEVELOPMENT (R&D) TRENDS

New Innovations in the Product Propel the Market Growth

Upcycling is emerging as a promising approach within textile recycling, maximizing resource conservation by transforming waste into higher-value products. Research is being directed toward methods that can effectively upcycle textile waste while minimizing energy and water usage during the process.

Chemical recycling is gaining traction as a viable alternative to mechanical methods, especially for blended textiles that are difficult to recycle mechanically. Innovations such as Tyton BioSciences' water-based hydrothermal solution allow for the separation of cotton from polyester blends, enabling the recovery of both materials for reuse.

SEGMENTATION ANALYSIS

By Material

Polyester & Polyester Fiber Segment Held a Dominant Share Owing to Its Recycled Nature

By material, the market is classified into cotton, polyester & polyester fiber, wool, nylon & nylon fibers, and others.

The polyester & polyester fiber segment held the largest textile recycling market share in 2023. The growth of the segment is associated with the large population that consumes a huge amount of polyester in the form of tires, disposable bottles, and other home-furnishing products. Polyester is a recyclable compound that can be easily recycled and can be combined with other materials to form yarn. The recycled nature of the product is driving the segment growth.

The cotton segment had a significant market share in 2023. Cotton is one of the most widely used natural fibers in the textile industry. Its recyclability is significant due to its biodegradability and high demand for sustainable practices. The demand for recycled cotton is increasing as brands aim to reduce their environmental footprint and meet consumer preferences for sustainable products.

Wool segment is anticipated to grow significantly due to its rising demand for winter clothing. Further, adoption of recycled wool in thermal insulating materials will boost the segment growth.

Similarly, nylon & nylon fibers segment is expected to grow at a positive pace. Nylon is a widely used synthetic fiber known for its strength and elasticity. Its recycling is essential for reducing waste from products like clothing and industrial textiles. The increasing focus on circular fashion and sustainability drives demand for recycled nylon, especially in high-performance applications such as activewear and outdoor gear.

The growth of above all segments is associated with the increasing production of virgin cotton, wool, and nylon for end-use applications such as swimwear, summer wear, and winter wear. These production activities increase the pre-consumer and post-consumer textile waste, including household items and consumer products. This has created pressure on the textile industry to meet the consumer demand and to reduce the waste. Therefore, the need for recyclability from these segments has increased over the past years.

By Process

Mechanical Segment Accounted for the Largest Share Due To Ease of Installation

On the basis of process, the market is segmented into mechanical and chemical.

The mechanical segment held the largest market share in 2023. The growing machinery & equipment sector across the globe is driving the segment growth. The recycling machine can be easily installed and does not require any chemical formulation to generate the fibers from the waste. Moreover, the maintenance and running costs are cheaper than those of other processes. All these benefits offered by mechanical equipment for recycling are driving the segment growth.

By End-use Industry

To know how our report can help streamline your business, Speak to Analyst

Growing Fashion Industry to Boost the Apparel Waste Segment Growth

Based on end-use industry, the market is categorized into apparel waste, home furnishing waste, and others.

The apparel waste segment held the largest market share in 2023. The segment growth is associated with the huge waste generation from the growing population across the globe. Moreover, the per capita apparel waste has increased over the past few years owing to the expansion of the fashion industry.

• The home furnishing waste segment is expected to hold a 33.9% share in 2023.

The adoption of recycling in the home furnishing waste segment is expected to grow considerably during the forecast period. The rising building and construction industry has led to a massive growth of home furnishing waste. The existing construction projects require a large number of home textile products such as curtains, blankets, pillow covers, and others. Therefore, the manufacturers are looking for recycled material, which is boosting the segment growth.

TEXTILE RECYCLING MARKET REGIONAL OUTLOOK

Regionally, the market is divided into Europe, Asia Pacific, North America, Latin America, and the Middle East & Africa.

Asia Pacific

To get more information on the regional analysis of this market, Download Free sample

The Asia Pacific market dominated the global market in 2023 with a value of USD 2.59 billion. The region is anticipated to maintain its dominance during the forecast period on account of the presence of major product-consuming nations, namely India and China. These nations generate a significant amount of textile waste. Therefore, textile recycling projects have increased in the region. Such activities have boosted the market growth in the region.

• In China, the home furnishing waste segment is estimated to hold a 34.4% market share in 2023.

To know how our report can help streamline your business, Speak to Analyst

North America

The U.S. dominated the market in North America in 2023 due to the presence of a large number of recycling manufacturers. The growth of the market is positively growing due to awareness of green and recycled textiles has increased over the past years. Moreover, the U.S. government has imposed regulations on the chemicals used in recycling. Thus, the recycling activity from the mechanical process has boosted the growth of the regional market.

Europe

Europe is expected to grow at a significant pace. The growing number of campaigns for recycling and the demand for sustainable products from the textile industry has created the demand for recycled textiles. These factors are anticipated to lead to several growth opportunities in the region.

Latin America

The Latin America market is poised to witness significant growth over the coming years. Mexico is a major country in this region. Rising product consumption in the automotive and mechanical industries for seatbelts, headliners, seat covers, and belt hoses is projected to drive market growth.

Middle East & Africa

In the Middle East & Africa, the low availability of virgin textile fibers is a key factor supporting recycling activities, further driving the regional growth.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Key Players to Adopt Organic and Inorganic Business Growth Strategies to Maintain Dominance in Market

LENZING AG, Birla Cellulose, Brandeur, The WoolMark Company, and iinouiio Ltd have a vast presence around the globe. They offer various types of recycled textile products. These companies have used acquisitions and new product developments as their key strategies to increase their global presence and serve the customer demand in the market. They serve various end-use industries, such as automotive, consumer home textile goods, and others.

LIST OF KEY TEXTILE RECYCLING COMPANIES PROFILED

• LENZING AG (Austria)
• Birla Cellulose (India)
• Brandeur (India)
• The WoolMark Company (Australia)
• iinouiio Ltd (England)
• ECOTEX COLLECT (Bulgaria)
• The Boer Group (Netherlands)
• UNIFI, Inc., (U.S.)
• Hyosung Group (South Korea)
• Martex Fiber (U.S.)

KEY INDUSTRY DEVELOPMENTS

• October 2024: Birla Cellulose, the cellulosic fibres division of the Aditya Birla Group and a prominent global producer of Man-Made Cellulosic Fibre (MMCF) through its main company Grasim Industries Limited, has entered into a long-term strategic alliance with Circ, an innovative US-based company specializing in textile-to-textile recycling. This partnership aims to enhance the growth of recycled fibres in the textiles industry.
• October 2023 - Birla Cellulose launched an eco-friendly circular yarn blend for newly manufactured textile products such as T-shirts, paints, and other clothing products.
• May 2023 – LENZING AG and its business partner companies named Aritas and Södra jointly formed an agreement to launch Austria’s largest textile recycling project to tackle waste generation from different end-use industries. The partnership is expected to reduce waste generation in Asia over the upcoming years.

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, material, and end-use. Besides this, it offers insights into the market and current industry trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market growth.

To gain extensive insights into the market, Download for Customization

Report Scope & Segmentation