PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1777621
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1777621
Global Textile Recycling Market to Reach US$5.4 Billion by 2030
The global market for Textile Recycling estimated at US$4.8 Billion in the year 2024, is expected to reach US$5.4 Billion by 2030, growing at a CAGR of 1.9% over the analysis period 2024-2030. Cotton, one of the segments analyzed in the report, is expected to record a 1.4% CAGR and reach US$2.2 Billion by the end of the analysis period. Growth in the Polyester segment is estimated at 2.7% CAGR over the analysis period.
The U.S. Market is Estimated at US$1.3 Billion While China is Forecast to Grow at 3.7% CAGR
The Textile Recycling market in the U.S. is estimated at US$1.3 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$998.9 Million by the year 2030 trailing a CAGR of 3.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.6% and 1.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.0% CAGR.
Global Textile Recycling Market - Key Trends & Drivers Summarized
Is Textile Recycling the Answer to Fashion’s Sustainability Crisis?
As the environmental impact of fast fashion and global textile waste reaches alarming levels, textile recycling has emerged as a vital pillar of the circular economy. The fashion industry generates over 90 million tons of waste annually, with a significant portion ending up in landfills or incinerators. Textile recycling offers a sustainable solution by recovering fibers, yarns, and fabrics from used garments and production scraps to reintroduce them into the manufacturing cycle. This approach reduces dependency on virgin resources, cuts greenhouse gas emissions, and mitigates water and chemical use associated with traditional textile production. Rising environmental awareness, combined with regulatory pressure to reduce industrial waste, is pushing brands, governments, and manufacturers to adopt recycling practices at scale. Major global fashion brands are launching take-back schemes and partnering with recyclers to close the loop on product lifecycles. Additionally, technological advancements are improving the efficiency and quality of recycled fibers, allowing for higher integration in mainstream fashion products. From cotton and polyester to wool and nylon, textile recyclers are now able to process a diverse range of materials, positioning the sector as an indispensable driver of sustainable fashion.
Why Are Shifting Consumer and Industry Behaviors Fueling Market Momentum?
Consumer attitudes toward clothing consumption are evolving rapidly, particularly among younger, eco-conscious generations that demand accountability and transparency from brands. The rise of conscious consumerism has placed immense pressure on retailers and manufacturers to reduce textile waste and promote sustainable sourcing. This shift has led to the emergence of resale platforms, upcycling brands, and clothing-as-a-service models that extend product lifespans and support recycling ecosystems. On the industry side, manufacturers are investing in closed-loop production models, in which textile waste from one phase is reintegrated into another. Supply chains are increasingly prioritizing traceable, recycled inputs to meet sustainability benchmarks and ESG (Environmental, Social, and Governance) criteria. The integration of digital tracking tools, such as blockchain and RFID, allows companies to document and verify recycled content-critical for both compliance and consumer trust. Governments and municipalities are also playing a role by introducing textile collection programs, waste disposal regulations, and extended producer responsibility (EPR) frameworks. This convergence of regulatory, consumer, and commercial forces is helping accelerate the normalization of textile recycling and transforming it from a fringe practice into a foundational element of responsible apparel production and consumption.
Can Innovation Bridge the Gaps in Fiber Recovery and Recycling Scalability?
The textile recycling market is undergoing a wave of technological innovation aimed at overcoming long-standing limitations related to fiber separation, material degradation, and scalability. Mechanical recycling, while widely used, often struggles with mixed fiber blends and results in lower-quality outputs. In response, chemical recycling methods-such as depolymerization and solvent-based extraction-are gaining traction for their ability to break down and purify fibers like polyester, cellulose, and nylon with minimal quality loss. These technologies enable the production of near-virgin quality fibers suitable for high-end fashion and industrial textiles. Innovations in sorting technologies using AI, robotics, and optical recognition are also improving efficiency in identifying and categorizing textile waste streams, allowing for more targeted recovery processes. Modular and decentralized recycling units are being developed to reduce logistics costs and serve regional collection hubs. Meanwhile, collaborative research between fashion houses, tech firms, and academic institutions is driving the commercialization of next-generation recycling technologies. The race to develop scalable, cost-effective, and low-impact recycling solutions is intensifying, backed by venture capital and corporate sustainability budgets. These advancements are critical for bridging the gap between textile waste generation and fiber reintegration, enabling the industry to meet ambitious circularity and zero-waste goals.
What Are the Core Drivers Behind the Expansion of the Textile Recycling Market?
The growth in the textile recycling market is driven by several key factors related to sustainability demands, policy initiatives, supply chain innovation, and evolving consumer behavior. One of the primary growth drivers is the mounting environmental and regulatory pressure on fashion and textile industries to reduce waste, lower emissions, and adopt circular practices. Global commitments to climate targets and the United Nations Sustainable Development Goals (SDGs) are prompting countries to introduce textile-specific recycling mandates and landfill restrictions. At the corporate level, brands are embedding circularity into their core strategies, often through partnerships with recycling startups and fiber innovation labs. Technological breakthroughs-particularly in chemical recycling and AI-based sorting-are making textile recycling more feasible at commercial scales. The increase in textile collection initiatives, both public and private, is expanding the feedstock supply for recyclers and creating a more organized waste management framework. Consumer demand for sustainable apparel and transparent sourcing is pushing brands to incorporate recycled content into product lines and market those efforts effectively. Investment flows into green infrastructure, innovation hubs, and recycling plants are providing the financial muscle to scale solutions and reduce costs. Altogether, these factors are converging to create a robust and fast-growing textile recycling market that is set to play a central role in the transition toward sustainable fashion and circular production models.
SCOPE OF STUDY:
The report analyzes the Textile Recycling market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Material (Cotton, Polyester, Wool, Polyamide, Others); Source (Apparel Waste, Home Furnishing Waste, Automotive Waste, Others); Process (Mechanical, Chemical)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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