Textile Recycling Market – By Source, By Technology, By Material, By Waste, By End Use & Forecast, 2025- 2034

Textile Recycling Market Size

The global textile recycling market was valued at USD 6 billion in 2024 and is estimated to grow at a CAGR of over 4.9 % from 2025 to 2034.
 

Textile recycling involves recovering and reprocessing used textiles to make new materials and products. This process helps reduce waste and lessen the environmental impact of textile production.
 

The growing demand for sustainable fashion and eco-friendly materials drives the global textile recycling market. As consumers prefer brands with ethical and sustainable practices, interest in recycled textiles increases. These textiles have a lower environmental footprint compared to traditional materials. This demand has led to new recycling technologies, making it easier to process different types of textiles, from natural fibers to synthetics. Advanced recycling methods help companies recover better-quality fibers and create durable recycled products, appealing to both manufacturers and eco-conscious consumers.
 

At the same time, more consumers are aware of the need to reduce waste, which strengthens the call for responsible disposal and reuse of textiles. Educated by campaigns, government initiatives, and industry efforts, consumers are more likely to support recycling initiatives, driving the overall market further. Together, these factors create a positive cycle: increased demand leads to better recycling technology, which increases consumer trust and participation in sustainable fashion, fostering ongoing growth in the market.
 

Textile Recycling Market Trends

The global textile recycling industry is experiencing important changes due to new ideas, policies, and changing consumer habits. One major change is the development of new recycling methods for synthetic fibers like polyester and nylon. These methods make it easier to recycle these tough materials. Big brands are also starting to use recycled fibers in their new products and are encouraging customers to resell and repair clothes. Governments are introducing more rules to reduce textile waste, requiring manufacturers to handle old textiles responsibly. More partnerships are forming between brands, recycling companies, and tech providers to create better recycling processes. These trends are making recycling a key part of the textile industry and helping the market become more sustainable.
 

Textile Recycling Market Analysis

The textile recycling industry faces significant challenges that impact its efficiency and scalability. High costs associated with the collection, sorting, and processing of textiles remain a barrier, as these processes are labor-intensive and require specialized technology for separating various fabric types. Effective sorting is crucial for quality recycling, yet it adds substantial operational costs, making large-scale recycling difficult without significant investment.
 

Additionally, the quality degradation of recycled fibers compared to virgin fibers limits their application, especially in industries where durability and appearance are critical, such as fashion and upholstery. Recycled fibers often experience wear in texture and strength, making them less desirable for high-quality products. This disparity affects demand, as many manufacturers prefer virgin materials for quality assurance. To overcome these challenges, the market requires advancements in both sorting technology and fiber recovery processes to improve the quality and affordability of recycled textiles, thereby expanding their viability across applications.
 

Based on source the textile recycling market is segmented into apparel waste, home furnishing waste and others. In 2024, the apparel waste segment led the market, generating USD 3.3 billion. This leadership is due to the high volume of post-consumer apparel waste, driven by fast fashion cycles and increased global consumption. Consumers and brands are focusing more on apparel recycling to reduce environmental impact, making it a key part of textile recycling. Home furnishing waste and others segments also contribute but on a smaller scale, with less frequent replacement cycles and fewer recycling options. Overall, the high turnover in the apparel sector strengthens its leading position in the market.
 

Based on technology, the market is segmented into mechanical recycling and chemical recycling. In 2024, the mechanical recycling segment leads the textile recycling market with a significant share of 68.8%. Mechanical recycling, which involves shredding and re-spinning fibers, is popular due to its low cost and simple technology compared to chemical methods. This method is commonly used for cotton, wool, and polyester, making it accessible to both small and large recyclers. Although chemical recycling can break down and reprocess synthetic fibers at a molecular level, its high costs and limited scalability hinder its widespread use. Therefore, mechanical recycling remains the main technology driving market growth.
 

Based on material, the market is segmented into polyester, cotton, nylon, wool and others. Polyester leads with a revenue of USD 2.9 billion in 2024, driven by its widespread use in fast fashion and sportswear. As one of the most produced synthetic fibers, polyester generates a large amount of textile waste, making it a key focus for recycling efforts. Recycled polyester, known as rPET, is in high demand for making sustainable clothing and reducing plastic waste, appealing to eco-conscious consumers and brands.
 

Based on waste the market is segmented into pre-consumer waste and post-consumer waste. The market driven by pre-consumer waste is expected to grow at a CAGR of 4.8% till 2034. Increasing post-production waste from factory outlets, including materials and products that do not meet quality standards, is encouraging companies to collaborate, which is boosting the growth of this segment.
 

Based on end use the market is segmented into apparel, home furnishing, fabrics, building & construction, automotive & transportation and others. In 2024, the apparel segment leads the market with a 52.9% share. This is due to the increasing use of recycled textiles in sustainable fashion. As consumer demand for eco-friendly clothing grows, brands are using more recycled materials, especially in casual and activewear. The fashion industry is also moving towards circularity, where old garments are turned into new ones.
 

In 2024, the U.S. textile recycling industry is expected to generate revenues of USD 1.1 billion, driven by increased consumer awareness and demand for sustainable fashion. Government initiatives focused on waste reduction and sustainable practices by leading apparel brands have boosted textile recycling. Advances in mechanical and chemical recycling methods have improved the quality and value of recycled textiles, supporting market growth.
 

North America, led by the U.S., dominates the textile recycling market due to a strong waste collection and processing infrastructure. The region's growth is supported by investments in sustainable practices from fashion retailers and enhanced recycling programs in cities. Canada also contributes, though on a smaller scale, with growing interest in sustainable fashion and circular economy practices. North America's established recycling networks and progressive policies make it a key player in global textile recycling.
 

Textile Recycling Market Share

In the global textile recycling industry, companies like Lenzing and Patagonia use different competitive strategies. The market is highly competitive, with companies focusing on innovation in recycling technology, product quality, and sustainability credentials to differentiate themselves. Key factors of competition include the ability to produce high-quality recycled fibers that closely resemble virgin materials, which appeals to environmentally conscious brands and consumers. Additionally, companies compete on scalability, expanding partnerships and enhancing distribution networks to increase recycled textile availability. Pricing remains crucial as recycled textiles often face higher production costs, pushing companies to improve efficiency and affordability to meet growing demand from industries like apparel, home furnishings, and automotive.
 

Textile Recycling Market Companies

Major players operating in the textile recycling industry are:

• BLS Ecotech
• iinouiio
• Leigh Fibers
• Lenzing
• Martex Fiber
• Patagonia
• Pistoni S.r.l.
• RE TEXTIL Deutschland
• Renewcell
• Textile Recycling International
• Unifi
• Worn Again Technologies      
   

Textile Recycling Industry News

• In November 2024, Project Re, a joint venture between the Salvation Army Trading Company and Project Plan B, was nominated for the Plastics Industry Awards 2024 in the "Recycler of the Year" category. It was Europe's first polyester textile recycling system utilizing the ISEC evo technology from PURE LOOP.
   
• In October 2024, Birla Cellulose, part of Aditya Birla Group, partnered with Circ to accelerate recycled fiber production, purchasing up to 5,000 tons of Circ's pulp annually for five years. This collaboration aimed to scale textile recycling and promote sustainable fashion through innovative technology.
   

The textile recycling market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Source

• Apparel waste
• Home furnishing waste
• Others

Market, By Technology  

• Mechanical recycling
• Chemical recycling

Market, By Material

• Polyester
• Cotton
• Nylon
• Wool
• Others

Market, By Waste

• Pre-Consumer waste
• Post-Consumer waste

Market, By End Use

• Apparel
• Home furnishing
• Fabrics
• Building & construction
• Automotive & transportation
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa