Textile Recycling Market Forecasts to 2032 – Global Analysis By Material (Cotton, Polyester, Wool, Polyamide (Nylon), and Other Materials), Source, Process, End User and By Geography

According to Stratistics MRC, the Global Textile Recycling Market is accounted for $6.50 billion in 2025 and is expected to reach $9.98 billion by 2032 growing at a CAGR of 6.3% during the forecast period. Textile recycling refers to the recovery, classification, and repurposing of used garments, fabric scraps, and other textile waste to minimize ecological harm and reduce demand for new resources. It includes transforming discarded textiles into fresh fibers, materials, or new products through chemical and mechanical techniques. This practice helps decrease landfill pressure, saves water and energy, and limits pollution. By enabling repeated use of materials, textile recycling strengthens the circular economy and encourages more sustainable manufacturing and consumer behavior.

According to the Council for Textile Recycling, the average citizen throws away approximately 70 pounds of textiles annually in the country.

Market Dynamics:

Driver:

Growing environmental concerns

Consumers and industries are increasingly focused on reducing waste, conserving resources, and lowering the carbon footprint associated with textile production. Governments are implementing stricter sustainability regulations, which further encourage the use of recycled fibers. Brands are adopting eco-friendly material strategies to meet their climate commitments and appeal to conscious buyers. Innovations in chemical and mechanical recycling technologies are improving fiber recovery efficiency and quality. This collective shift toward sustainability is accelerating the expansion of the textile recycling market.

Restraint:

Lack of collection and sorting infrastructure

Many regions lack standardized processes for segregating post-consumer textile waste. Manual sorting increases operational costs and results in inconsistent material quality. Advanced automated sorting technologies remain expensive and inaccessible for smaller recyclers. Insufficient public awareness about textile disposal also reduces the availability of recyclable feedstock. These structural gaps slow down large-scale implementation of textile recycling practices.

Opportunity:

Shift towards circular economy models

Brands are redesigning products for durability, recyclability, and extended lifecycle management. Partnerships between fashion companies, recyclers, and technology providers are strengthening closed-loop systems. Digital platforms are enabling new business models such as resale, rental, and take-back programs. Governments are supporting circular initiatives through incentives and extended producer responsibility (EPR) policies. These developments are opening pathways for higher-value recycled fibers and sustainable market expansion.

Threat:

Competition from low-cost virgin materials

Volatile raw material prices can make recycled options less attractive for manufacturers. Some industries prefer virgin materials due to consistent quality and easier availability. Production of recycled fibers sometimes requires complex processes that raise overall costs. Price-sensitive markets in developing regions tend to choose cheaper alternatives over sustainable options. This cost disparity can hinder broader adoption of textile recycling solutions.

Covid-19 Impact:

The pandemic disrupted global supply chains, slowing textile recycling operations and reducing collection volumes. Lockdowns affected logistics networks, delaying waste movement and processing activities. Brands accelerated digital transformation and adopted online circular programs to engage customers. Increased focus on resource efficiency and material security encouraged investment in recycling innovations. As economies reopened, the textile recycling market showed strong recovery momentum with renewed sustainability commitments.

The cotton segment is expected to be the largest during the forecast period

The cotton segment is expected to account for the largest market share during the forecast period, due to the large volume of cotton-based textile waste generated globally. Cotton is widely used in apparel, home textiles, and industrial fabrics, creating abundant recycling opportunities. Advancements in chemical recycling are enabling higher-quality recovered cotton fibers. Growing demand for sustainable cotton blends is also supporting market expansion. Brands are integrating recycled cotton into mainstream fashion lines to meet eco-friendly mandates.

The geotextiles segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the geotextiles segment is predicted to witness the highest growth rate, due to increasing use of recycled fibers in construction and infrastructure projects. Recycled polyester and polypropylene are being widely adopted for soil stabilization, erosion control, and drainage applications. Demand is rising as governments invest in sustainable infrastructure solutions. The durability and cost-effectiveness of recycled fiber geotextiles make them attractive to engineering firms. Adoption of green building standards also promotes their usage.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, due to strong textile manufacturing bases and rising sustainability initiatives. Countries like China, India, and Bangladesh generate substantial textile waste that supports large-scale recycling operations. Governments in the region are promoting circular textile policies and recycling infrastructure development. Major fashion and textile brands operating in Asia are adopting recycled fibers to meet environmental goals. The region’s rapidly growing population is also increasing demand for sustainable apparel.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, driven by rising awareness of clothing waste and environmental impact. The region is witnessing strong growth in textile collection programs and advanced recycling facilities. Technological innovations in fiber regeneration and material sorting are gaining momentum. Partnerships between apparel brands and recycling companies are expanding closed-loop systems. Consumers are increasingly choosing sustainable clothing and participating in take-back initiatives.

Key players in the market

Some of the key players in Textile Recycling Market include Lenzing AG, H&M Group, Birla Cellulose, Patagonia, Inc., Unifi, Inc., Geocycle, BIR, Texaid AG, Worn Again Technologies, I:CO, Renewcell AB, HeiQ Materials AG, Infinited Fiber Company, Eastman Chemical Company, and Aquafil S.p.A.

Key Developments:

In September 2025, Eastman and Doloop announced their partnership for sustainable beverage packaging that will help the industry take the next step toward a circular economy. They will unveil a groundbreaking 100% recycled PET (rPET)* beverage bottle with no compromises at Drinktec 2025, taking place September 15–19 in Munich, Germany.

In October 2024, Birla Cellulose and Circ have announced a long-term strategic partnership aimed at accelerating the scaling of recycling fibers within the textiles sector. This groundbreaking collaboration proposes Birla Cellulose purchase a minimum of 5,000 metric tons of Circ’s pulp per year for 5 years from Circ’s first commercial-scale facility. This pulp will be converted into lyocell staple fiber, significantly enhancing access to recycled materials and supporting Circ as the company scales its commercial production.

Materials Covered:
• Cotton
• Polyester
• Wool
• Polyamide (Nylon)
• Other Materials

Sources Covered:
• Apparel waste
• Home furnishing waste
• Footwear and accessories
• Industrial textile waste

Processes Covered:
• Mechanical Recycling
• Chemical Recycling
• Thermal Recycling

End Users Covered:
• Recycled Fibers for Apparel
• Home Textiles
• Industrial Applications
• Nonwoven products
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances Show more