Textile Recycling Market Size Report, Industry Share, Analysis, Growth, 2030

Textile Recycling Industry Prospective:

The global textile recycling market size was worth around USD 4.1 billion in 2022 and is predicted to grow to around USD 5.3 billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.5% between 2023 and 2030.       

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Textile Recycling Market: Overview

The practice of reprocessing and reusing used textiles, textile scraps, and other fibrous waste materials is known as textile recycling. These materials are typically recycled from old clothing, carpets, furniture, shoes, tires, and other non-durable products like towels and sheets. Textile recycling has several advantages for the environment and the economy, including lower energy and water use, less reliance on new fibers, less use of chemical dyes, and reduced land & water pollution. It has recently become an achievable approach for the development of sustainability in the garment sector. Because of these advantages, recycled textiles are widely used in a variety of end-use industries, such as clothing, home furnishings, and other industrial fields including retail, automotive, mining, building, and construction.

Key Insights

• As per the analysis shared by our research analyst, the global Textile Recycling market is estimated to grow annually at a CAGR of around 3.5% over the forecast period (2023-2030).
• In terms of revenue, the global Textile Recycling market size was valued at around USD 4.1 billion in 2022 and is projected to reach USD 5.3 billion, by 2030.
• The market for Textile Recycling is expanding as a result of rising environmental concerns along with growing environmental awareness.
• Based on the material, the cotton segment is expected to dominate the market over the forecast period.
• Based on the source, the apparel waste segment is expected to hold a significant market share over the forecast period.
• Based on the process, the mechanical segment is expected to hold the largest market share over the forecast period.
• Based on region, Europe is expected to hold the largest market share over the forecast period.

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Textile Recycling Market: Growth Drivers

Growing environmental concern drives market growth

The market for textile recycling is expanding mostly due to customers' increased environmental awareness and concerns. There is a growing market for environmentally friendly and sustainable textile solutions as people become more conscious of the negative environmental effects of rapid fashion and textile waste. Due to demand from consumers, brands are also understanding the necessity of implementing sustainable practices. Recycled textiles offer a waste-free alternative to satisfy market demand for textiles while protecting the environment. For instance, according to secondary sources, 92 million tonnes of textile waste is produced every year. Government policies on textile recycling and a focus on circular economy models also foster textile recycling industry expansion.

Textile Recycling Market: Restraints

High cost and quality issues hamper the market growth

Recycled textile prices are often more expensive than those of traditional fabrics. Manufacturers of recycled fiber incur higher expenses due to processes including collecting, sorting, cleaning, processing, and decolorization. Prices are higher in part due to the small economies of scale. Brands and customers may be discouraged from using recycled fabrics due to the high costs. Additionally, certain recycled fabrics' inferior quality to virgin fibers might impede the textile recycling market expansion. Sometimes recycled fabrics lack qualities like strength, softness, and color retention. Manufacturing companies are hesitant to employ recovered textiles because of these quality differences. Customers could also be reluctant to buy recycled goods because they believe they are of inferior quality. To increase the quality of recovered textiles, technological advancements in recycling are required. Therefore, to some extent, the high cost and quality issue might be a major restraining factor to the market growth over the forecast period.

Textile Recycling Market: Opportunities

Growing collaboration offers an attractive opportunity for market growth

The growing collaboration among the key market players is expected to offer an attractive opportunity to global textile recycling market growth over the forecast period. For instance, in April 2023, A new women's capsule collection produced of recycled fabrics derived from polycotton textile waste was released by the Spanish retail apparel giant Zara in partnership with Circ, a fashion technology company that recycles textile waste back into new fibers.

Eleven markets can buy the set. To create new recycled raw materials for apparel, Zara and Circ have disassembled polycotton, a textile made of both polyester and cotton. Circ's recycling technology can separate polycotton mixed textile waste and recover both cellulosic and synthetic fibers, according to a joint press release from Zara and Circ. The line also includes polyester clothes manufactured with 43% recycled polycotton textile waste and lyocell apparel made with 50% recycled polycotton textile waste. Under the creative direction of the Zara Woman design team, the collection consists of trendy, airy burgundy apparel that is designed to be worn frequently. Thus, this kind of initiative offers an attractive opportunity for market revenue growth.

Textile Recycling Market: Challenges

Process complexity poses a challenge to market growth

The complexity of the procedures required in textile recycling might limit the textile recycling industry expansion. Advanced technical skills are needed for sorting mixed textiles, separating fibers, and dealing with dyes & treatments. Low recycling rates are a result of the complications and challenges. Technology-enabled process simplification and operational upgrades are essential to boost productivity and boost recycling. Thus, process complexity acts as a major challenge for market revenue growth.

Textile Recycling Market: Segmentation

The global Textile Recycling industry is segmented based on material, source, process, and region.

Based on the material, the global market is bifurcated into cotton, polyester, wool, polyamide, and others. The cotton segment is expected to dominate the textile recycling market over the forecast period. One of the most often used natural fibers in the textile industry is cotton, and the recycling of cotton is very important for the whole textile recycling business. Cotton recycling offers various advantages for the environment and the economy, since it decreases the demand for fresh cotton cultivation, conserves resources, and lowers textile waste.

On the other hand, the polyester segment is expected to grow at a significant rate over the forecast period. Since more businesses continue to commit to expanding the usage of recycled polyester in garments, in place of regular polyester, there is a rising demand from the apparel sector. According to the Higg Material Sustainability Index created by the Sustainable Apparel Coalition, recycled polyester has a lower carbon footprint than virgin polyester. Additionally, each kilogram of mechanically recycled polyester reduces greenhouse gas emissions by almost 70%. Thereby, driving the segment growth.

Based on the source, the global Textile Recycling industry is bifurcated into apparel waste, home furnishing waste, automotive waste, and others. The apparel waste segment is expected to hold a significant market share over the forecast period. It includes trash made from fabric left over after production, damaged or rejected clothing, and post-consumer waste like left shoes and clothing, among other things. The typical lifespan of a new item of clothing has drastically decreased over the past two decades, increasing the amount of trash produced by the clothes industry. The aforementioned elements are anticipated to fuel demand for clothing material recycling.

Based on the process, the global Textile Recycling market is bifurcated into chemical and mechanical. The mechanical segment is expected to hold the largest market share over the forecast period. This is mostly because many market participants recycle textiles mechanically rather than chemically. The advantages of employing these mechanically treated fibers include the elimination of the requirement for chemical processing during the dyeing process because the fibers already have the desired color from the prior dyeing. Moreover, the most environmentally beneficial recycling methods are mechanical ones, with a potential decrease in CO2 emissions of 60% to 90% for all types of spun fiber.

Textile Recycling Market: Report Scope

Textile Recycling Market: Regional Analysis

Europe is expected to hold the largest market share over the forecast period

Europe is expected to hold the largest global textile recycling market share over the forecast period. The growth in the region is attributed to the rising public support from national governments and an increase in recycling-related projects. The Trash and Resources Action Program (WRAP), which was founded in the UK and is active throughout Europe with the assistance of regional administrations and private businesses, encourages the recycling of trash, including textile waste. Moreover, the growing circular economy initiatives are another important factor that propel the market growth during the forecast period. Cities in Europe play a significant role in fulfilling the European waste management goals, especially when it comes to separate collection, resource recovery, and ultimate disposal.

European cities have vast expertise in offering sustainable waste management as a service of popular interest. 90% of waste in the area can currently be recycled and utilized again, and cities are well situated to promote sustainable consumption locally and include all sectors. Cities absorb more than 75% of the world's natural resources, generate more than 50% of its waste, and create 60-80% of its greenhouse gas emissions. By 2030, the circular economy in Europe has the potential to boost GDP by an extra 0.5%, add 700,000 employments, and reduce GHG emissions and environmental impact. Therefore, the aforementioned stats drive the market growth in the region.

Textile Recycling Market: Competitive Analysis

The global Textile Recycling market is dominated by players like:

• Birla Cellulose
• Lenzing Group
• Worn Again Technologies
• BLS Ecotech
• RE TEXTIL Deutschland GmbH
• The Woolmark Company
• Pistoni S.r.l.
• The Boer Group
• Hyosung Group
• Ecotex Group
• iinouiio Ltd
• Textile Recycling International
• Unifi Inc.
• RenewCell
• Martex Fiber

The global Textile Recycling market is segmented as follows:

By Material

• Cotton
• Polyester
• Wool
• Polyamide
• Others

By Source

• Apparel Waste
• Home Furnishing Waste
• Automotive Waste
• Others

By Process

• Chemical
• Mechanical

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa