Textile Recycling Market by Material (Cotton, Polyester & Polyester Fibers, Wool, Nylon & Nylon Fibers), Textile Waste, Process, Distribution Channel, End-Use (Apparel, Home Furnishing, Industrial & Institutional), and Region - Global Forecast to 2030

The textile recycling market is estimated at USD 8.41 billion in 2025 and is projected to reach USD 11.88 billion by 2030, at a CAGR of 7.2% from 2025 to 2030.

Cotton holds the second-largest market share in textile recycling due to its high global use, biodegradability, and reuse potential in mechanical and chemical methods. As a common natural fiber in apparel and textiles, cotton generates steady pre- and post-consumer waste, providing recyclers with a scalable input. Mechanically recycled cotton is used for insulation, rags, and yarn, while chemically recycled cotton—still in development—offers options for high-value fibers like lyocell or viscose. Recycling cotton reduces water use and pesticide reliance, appealing to sustainable brands and circular economy initiatives. Although it ranks below polyester due to lower durability and blending requirements, cotton’s renewability and eco-friendly appeal keep it vital in textile recycling.

‘‘In terms of value, pre-consumer textile waste accounted for the second-largest share of the textile recycling market.’’

Pre-consumer textile waste holds the second-largest market share, by textile waste, because the waste generated during manufacturing processes is consistent and predictable. This includes scraps, excess fabrics, production rejects, and off-spec materials—all clean, uncontaminated, and easier to sort than post-consumer waste. Large textile producers generate these residues in large quantities, making them an attractive and economical raw material for recycling. Moreover, pre-consumer waste typically has higher fiber quality since it hasn’t been worn, washed, or dyed, making it more suitable for mechanical or chemical recycling. While post-consumer waste currently dominates the market due to rising interest in circular fashion and consumer awareness, the reliability and ease of processing pre-consumer waste help it maintain a significant market share.

“Mechanical process segment will register the second-largest market share, by process.”

Mechanical recycling accounts for the second-largest share in the textile recycling process segment due to its cost-effectiveness, scalability, and longstanding industry presence. This approach involves physically shredding and carding used textiles into fiber for reuse in products such as insulation, automotive padding, industrial rags, or regenerated yarns. Unlike chemical recycling, mechanical methods do not require solvents or complex chemical reactions, making them more environmentally friendly and suitable for regions with limited technological infrastructure. Its lower capital costs and simpler operations make it a preferred option for small- to mid-scale recyclers, especially in developing markets.

“The online distribution channel segment is expected to account for a significant share of the market.”

The online channel is the second-largest in the textile recycling market due to increased digitalization and consumer preference for convenient platforms. E-commerce, recycling portals, and apps enable consumers to schedule pickups, donate, or buy recycled clothing from home. This appeals especially to environmentally conscious, young consumers valuing sustainability. Online channels also facilitate direct interaction, reducing costs and bypassing middlemen. While offline centers and B2B remain dominant, online methods are growing faster because of scalability, personalized data, and global reach. Social media and awareness campaigns enhance digital textile recycling’s accessibility.

“North America is projected to be the second-largest regional market for textile recycling.”

North America holds the second-largest share in the textile recycling market due to its well-developed recycling infrastructure, strong regulatory support, and increasing consumer demand for sustainable products. The region produces a significant amount of textile waste annually, fueled by high per capita clothing consumption and the prevalence of fast fashion. This creates a consistent supply of recyclable textiles, which recycling companies and nonprofits have taken advantage of through efficient collection systems and partnerships with retailers. Government initiatives, such as landfill diversion mandates and extended producer responsibility (EPR) frameworks, have further promoted textile recovery and circular business models. North America is also a leading producer of textile recycling products, with major companies like Unifi, Inc., Patagonia, Inc., Leigh Fibers, Martex Fiber, and others.

This study has been validated through primary interviews with industry experts globally. These primary sources have been divided into the following three categories:

• By Company Type: Tier 1- 60%, Tier 2- 20%, and Tier 3- 20%
• By Designation: C Level- 33%, Director Level- 33%, and Managers- 34%
• By Region: North America- 20%, Europe- 25%, Asia Pacific- 25%, Middle East & Africa- 15%, and Latin America- 15%

The report provides a comprehensive analysis of company profiles:

Prominent companies Lenzing AG (Austria), Birla Cellulose (India), HYOSUNG TNC (South Korea), Unifi, Inc. (US), Renewcell (Sweden), Patagonia, Inc. (US), Leigh Fibers (US), Martex Fiber (US), The Woolmark Company (Australia), Textile Recycling International (UK), Boer Group (Netherlands), REMONDIS SE & Co. KG (Germany), Procotex (Belgium), Usha Yarns Ltd (India), Infinited Fiber Company (Finland), Worn Again Technologies (UK), Reju (France), iinouiio (UK), Anandhi Texstyles (India), Pure Waste (Finland), Ecotex Group (Germany), PISTONI SRL (Italy), Retex Textiles Inc. (Canada), American Textile Recycling Service (US), Gebr. Otto Baumwollfeinzwirnerei GmbH + Co. KG (Germany).

Research Coverage

This research report categorizes the textile recycling market by materials (cotton, polyester & polyester fibers, wool, nylon & nylon fibers, other materials), by process (mechanical, chemical), by textile waste (pre-consumer, post-consumer), by distribution channel (online channel, retail & department stores), by end-use industry (apparel, industrial & institutional, home furnishing, and other end-use industries), and by region (North America, Europe, Asia Pacific, Middle East & Africa, and South America). The report covers detailed information about the main factors influencing the growth of the textile recycling market, including drivers, restraints, challenges, and opportunities. It provides a comprehensive review of key industry players, highlighting their business overview, solutions, services, key strategies, contracts, partnerships, and agreements. Additionally, the report discusses product launches, mergers, and acquisitions, and recent developments within the textile recycling sector. It also offers a competitive analysis of emerging startups in the textile recycling market ecosystem.

Reasons to buy this report:

The report will assist market leaders and new entrants by providing revenue estimates for the overall textile recycling market and its subsegments. It will help stakeholders understand the competitive landscape and gain insights to better position their businesses and develop effective go-to-market strategies. Additionally, the report offers key market insights, including major drivers, restraints, challenges, and opportunities, giving stakeholders a clear understanding of the market's current pulse.

The report provides insights on the following pointers:

• Analysis of key drivers (increasing textile waste due to decreased garment life, high emission of greenhouse gases, increasing consumption of energy and water), restraints (usage of harmful chemicals, high processing cost & poor return on investment), opportunities (growing adoption of circular industries, expansion in emerging markets), and challenges (fast fashion, lack of global textile waste traceability systems) influencing the growth of the textile recycling market.
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and service launches in the textile recycling market.
• Market Development: Comprehensive information about lucrative markets – the report analyses the textile recycling market across varied regions.
• Market Diversification: Exhaustive information about services, untapped geographies, recent developments, and investments in the textile recycling market
• Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Lenzing AG (Austria), Birla Cellulose (India), HYOSUNG TNC (South Korea), Unifi, Inc. (US), Renewcell (Sweden), Patagonia, Inc. (US), Leigh Fibers (US), Martex Fiber (US), and The Woolmark Company (Australia).

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