Textile Recycling Market Size, Share & Trends Analysis Report By Material (Cotton, Polyester, Wool, Polyamide), By Source (Apparel Waste, Home Furnishing Waste), By Process (Mechanical, Chemical), By Region, And Segment Forecasts, 2025 - 2033

Textile Recycling Market Growth & Trends

The global textile recycling market size is estimated to reach USD 6,938.4 million by 2033, expanding at a CAGR of 4.2% from 2025 to 2033, according to a new report by Grand View Research, Inc. Factors such as the growing demand for recycled products coupled with rising environmental awareness regarding textile disposal are expected to boost the demand for textile recycling during the forecast period.

According to the Centre for the Promotion of Imports from Developing Countries (CBI), the global textile industry was valued at USD 904.13 billion in the year 2021, which includes clothing as well as furniture, mattress material, linens, drapes, cleaning materials, and recreational equipment, among other products. Globally, nearly 80 billion pieces of clothing are made annually. The average person purchases 60% more articles of clothes annually and uses them for around half as long as they did fifteen years ago, generating enormous amounts of textile waste. These aforementioned factors are expected to drive the demand for the textile recycling industry.

Concerns about the impact of incineration and landfill activities on textile disposal are likely to push companies and governments to look for more sustainable and environmentally friendly ways to dispose of textile waste. This is predicted to have a favorable impact on global demand for recycling operations, particularly in developing economies, and to drive market expansion over the forecast period.

Emerging new players in the market are also likely to propel the growth of the market, coupled with rising environmental awareness regarding textile disposal and recycling. For instance, Uniqlo stepped up with new initiatives to solve the rising garment waste production. The company initiated the program Re. Uniqlo, to create the ultimate recycling model in the company’s supply chain.Furthermore, in April 2022, Lenzing AG launched the Tree Climate fabric collection for sustainable outdoor apparel. It features a wide range of mid, base, and outer-layer fabrics, each with a unique set of inherent performance characteristics for outdoor applications.

Low economic viability, low quality of the recycled product, non-accessibility of the recyclable material, and technological constraints are some of the restraining factors of the market growth. However, with government initiatives, and increasing expenditure on R&D, these challenges are likely to be vanquished. Furthermore, the fashion industry, due to its expanding production and demand, contributes significantly to the environmental problem. The proactive attempts to build a more environmentally friendly method through textile recycling have become the preferred solution. This urgent and significant need to find inexpensive and effective recycling solutions for textile waste has led to the development of numerous recycling technologies by the research community.

Key companies are strategizing to increase revenue generation, with a focus on R&D, mergers & acquisitions, and geographic expansion. For instance, in May 2023, the Lenzing Group achieved a circular future in partnership with several partners. Companies based in Austria have joined forces with not-for-profit organizations, including Lenzing’s sorting & logistics partner Altstoff Recycling Austria AG, as well as the Swedish pulp producer Södra to collect used clothing textiles for reprocessing to produce pulp and, finally, new viscose fibers and lyocell. Furthermore, in May 2022, Textile Recycling International acquired its competitor, Germany-based Soex Group, which helped the company to increase its presence across Europe.

Textile Recycling Market Report Highlights

• The polyester segment is expected to register the fastest CAGR over the forecast period. The increasing initiatives and programs to recycle polyester to mitigate land pollution are driving the demand. Moreover, compared to virgin polyester, recycled polyester has a smaller carbon impact, according to the Sustainable Apparel Coalition's Higg Material Sustainability Index. Furthermore, each kilogram of mechanically recycled polyester results in a reduction of approximately 70% in greenhouse gas emissions
• The apparel waste segment is expected to witness a CAGR of 4.7% over the forecast period owing to increasing waste management, sorting, and recycling activities. The expansion of donation bin services for used clothes and footwear is also driving growth. For instance, H&M accepts textiles from any brand, old or new, and sends them to the nearest recycling plant. Customers receive a discount card for 15% off their next in-store purchase for every bag of textiles they drop off
• The mechanical segment accounted for 70.4% of the global revenue in 2024, which is attributed to the large number of recyclers operating with the mechanical recycling process and well-established processes for various materials. Furthermore, mechanical recycling technologies are the topmost CO2 friendly, with a potential reduction of 60%- 90% among all fiber types on spun fiber levels
• The Asia Pacific textile recycling industry is expected to grow rapidly over the forecast period. The demand for textile recycling activities is anticipated to increase in this region over the forecast period owing to rising concerns regarding the environmental impact of textile waste, increasing government initiatives for textile waste management, and ongoing development of innovative technologies for textile recycling.
• In March 2025, Worn Again Technologies developed an innovative chemical recycling process that separates and purifies polyester and cotton from blended textiles. This process transforms them into high-quality, virgin-equivalent materials suitable for reuse in new products. The technology supports a circular economy by reducing textile waste and reliance on virgin resources. It has applications beyond fashion, extending to industries like automotive and packaging. Worn Again's approach aligns with regulatory pressures and growing demand for sustainable practices.