Market Overview

The global textile recycling market size was USD 5.6 Billion in 2025, and it is projected to reach USD 6.8 Billion by 2034. The market is expected to grow at a CAGR of 2.27% during the forecast period 2026-2034. Growth is propelled by environmental concerns, sustainable waste management needs, innovations in recycling technologies such as chemical recycling, and supportive government regulations.

Study Assumption Years

  • Base Year: 2025
  • Historical Years: 2020-2025
  • Forecast Period: 2026-2034

Textile Recycling Market Key Takeaways

  • The global textile recycling market size was USD 5.6 Billion in 2025.
  • The market is anticipated to grow at a CAGR of 2.27% during 2026-2034.
  • Forecast period for market growth is from 2026 to 2034.
  • The expanding market is driven by mounting environmental concerns and the need for sustainable practices.
  • Technological advancements like advanced sorting and chemical recycling are key trends enhancing market potential.
  • Europe leads the textile recycling industry due to stringent EU regulations and high consumer environmental awareness.
  • Strategic partnerships between apparel companies and recycling firms are common to improve sustainability.

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Market Growth Factors

The textile recycling market is driven by increasing concerns towards environmental sustainability and need for responsible waste management systems. Initiatives taken by governments to promote sustainability and divert waste from landfills contribute to the growth of the market. Stringent regulations on waste disposal have forced companies and industries to focus on recycling textiles to reduce the environmental effects.

Another major driver is the development of recycling technologies. Newer sorting technologies can sort textiles by fiber composition and color, and new mechanical and chemical recycling technologies can recycle blended fibers and other types of complex textile waste. Chemical recycling closes the textile loop by turning waste into value-added feedstock and reducing the need for virgin resources, effectively making recycling more cost effective for businesses.

Corporate sustainability commitments are also contributing to market growth. Companies in the apparel and textile industries have made meaningful commitments to recycled fiber, as environmental impacts continue to rise globally. Sustainable consumer demand is pushing manufacturers to develop processes with a lower carbon footprint. An example is the 100% pulp-from-recycled-textile Lyocell T-Shirt, which the manufacturer LIST Technology AG is able to produce. These commitments are commended for increasing recycling technology adoption and moving to change supply chains.

Market Segmentation

Product Type:

  • Cotton Recycling: Dominates the market segment due to its high prevalence in clothing and relatively easier mechanical breakdown compared to synthetics. It offers reduced ecological impact by consuming less water and energy than virgin cotton.
  • Wool Recycling
  • Polyester & Polyester Fiber Recycling
  • Nylon & Nylon Fiber Recycling
  • Others

Textile Waste:

  • Pre-consumer Textile: Holds the largest market share as this waste type consists of scraps before the product reaches the consumer. It is cleaner, more homogeneous, and less costly to recycle.
  • Post-consumer Textile

Distribution Channel:

  • Retail & Departmental Store: Commands the largest share, acting as key sales endpoints and driving consumer availability of recycled textiles through extensive networks.
  • Online Channel

End-Use:

  • Apparel: Largest end-use segment reflecting high fabric usage and waste generation. Rising sustainable fashion trends and technological improvements fuel demand.
  • Industrial
  • Home Furnishings
  • Non-woven
  • Others

Regional Insights

North America leads the textile recycling market, accounting for the largest share. This dominance stems from stringent regulations, elevated consumer environmental awareness, and significant investments in recycling technologies in the United States and Canada. The region hosts advanced recycling infrastructure and collaborations that support textile sustainability as a global benchmark.

Recent Developments & News

  • On June 01, 2023, Boer Group Recycling Solution launched a mobile NIR spectroscopy solution to improve textile material identification and sorting efficiency.
  • On May 24, 2023, Infinited Fiber Company signed an agreement with SOEX for textile waste feedstock supply to Infinited Fiber's flagship factory.

Key Players

  • Birla Cellulose (Aditya Birla Group)
  • BLS Ecotech Ltd. (BLS Group)
  • Boer Group
  • Lenzing AG
  • Martex Fiber (Leigh Fibers)
  • Pistoni S.r.l.
  • Remondis SE & Co. KG
  • Respun (Kay Gee Enterprises)
  • Unifi Inc.
  • Usha Yarns Ltd.

 

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