PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1781940
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1781940
Textile recycling market size was valued at US$ 4,950.49 Million in 2024, expanding at a CAGR of 4.90% from 2025 to 2032.
Textile recycling is the process of recovering and reprocessing used or waste textiles to create new products. It involves collecting, sorting, and converting discarded clothing, fabrics, and fibers into reusable materials for industrial, fashion, or household use. This practice helps reduce landfill waste, conserve resources, and lower environmental pollution. Textile recycling plays a key role in promoting sustainable fashion and supports a circular economy within the global textile industry.
Textile Recycling Market- Market Dynamics
Increasing textile waste generation to propel market demand
The rising textile waste generation across the globe is predicted to boost the growth of the global textile recycling market during the forecast period. The U.S. Environmental Protection Agency (EPA) reported that in 2018, over 17 million tons of textile waste were generated in the U.S. alone, with only 14.7% being recycled. This highlights the urgent need for effective recycling solutions. Besides, the growing environmental regulations is another factor propelling the market growth. However, lack of recycling infrastructure and the contamination & mixed fibers are anticipated to hinder the market growth in the coming years. On the contrary, rise in circular fashion initiatives and government support for sustainable manufacturing are providing massive growth opportunities for the global textile recycling market.
Textile Recycling Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 4.90% over the forecast period (2025-2032)
Based on Process segmentation, mechanical was predicted to show maximum market share in the year 2024
Based on Material segmentation, polyester & polyester fiber was the leading Material in 2024
Based on Textile Waste segmentation, post-consumer was the leading Textile Waste in 2024
Based on Distribution Channel segmentation, retail & departmental stores was the leading Distribution Channel in 2024
Based on End-use Industry segmentation, Apparel was the leading End-use in 2024
On the basis of region, Europe was the leading revenue generator in 2024
The Global Textile Recycling Market is segmented on the basis of Process, Material, Textile Waste, Distribution Channel, End-use Industry, and Region.
The market is divided into two categories based on Process: mechanical and chemical. The mechanical recycling sector is expected to hold the major market share during the forecast period. This is due to its lower operational cost, simpler processing, and widespread use in recycling cotton and polyester fabrics.
The market is divided into five categories based on Material: polyester & polyester fiber, nylon & nylon fiber, cotton, wool, and others. The polyester & polyester fiber segment is expected to hold the major market share. This is mainly because polyester is one of the most widely used synthetic fibers in the textile industry, and its recyclability, especially through mechanical methods-makes it highly favored.
Textile Recycling Market- Geographical Insights
Europe is expected to hold the major market share in the textile recycling market during the forecast period, driven by stringent environmental regulations, widespread sustainability initiatives, and early adoption of circular economy models. The European Union's mandate for separate textile waste collection by 2025 significantly supports this trend.
Meanwhile, the Asia-Pacific region is projected to grow at the fastest rate, owing to rising textile waste, increasing awareness about sustainable practices, and expanding textile manufacturing industries in countries like India, China, and Bangladesh.
Growing environmental concerns and regulations on landfill waste are driving innovation in textile recycling. Companies are focusing on advanced recycling technologies such as chemical and mechanical processes to improve fiber recovery and quality. Strategic partnerships with fashion brands and municipalities are helping expand collection networks. Players are also investing in automation and AI for sorting efficiency. Moreover, efforts to create closed-loop systems and sustainable raw materials reflect a shift toward circular economy models within the textile industry.
In April 2025, The Bailu Group in China launched a pilot line for next-gen viscose fiber, producing regenerated cellulosic fiber from postconsumer textiles. Their simplified direct-dissolution process aims to reduce energy, water, and chemical usage, enhancing sustainability.
In April 2025, BASF launched its first commercial plant in Shanghai to recycle waste textiles by depolymerizing nylon 6 into caprolactam for new garment production. With 500 tons annual capacity, this addresses the massive global clothing waste, where 45 billion unsold garments often end up in landfill.