Textile Recycling Market to Reach USD 15.6 Bn by 2035 | Steady 5.9% CAGR Driven by Circular Economy Adoption

The Textile Recycling Market is undergoing a major transformation, driven by rising environmental awareness, regulatory pressure, and the rapid shift toward sustainable manufacturing models. Valued at USD 8.3 billion in 2025, the market is projected to reach USD 15.6 billion by 2035, exhibiting a CAGR of 5.9%. This growth reflects a global shift in the textile and apparel industries as manufacturers, brands, and consumers increasingly move toward circularity.

At the same time, the circular fashion market and the recycled textile materials market are expanding in parallel, creating new opportunities for brands, technology providers, and recyclers. This article explores the key market trends, technological advancements, and strategic developments shaping the future of textile recycling worldwide.

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Rising Demand for Circularity and Sustainable Fibers

Growing consumer expectations for sustainability, combined with increasing textile waste generation, are the major catalysts for the expansion of the Textile Recycling Market. Fast fashion cycles have intensified waste levels, pushing global brands to adopt more circular manufacturing practices.

Companies such as H&M, Nike, Adidas, and Patagonia have integrated large-scale collection, sorting, and fiber recovery systems into their supply chains. This has accelerated the adoption of recycled fibers, particularly polyester and cotton, which dominate the recycled textile materials market due to their widespread use and mature recycling technologies.

The shift from linear (take-make-dispose) models to circular textile loops is no longer optional but a business necessity. As the circular fashion market gains momentum, textile recycling offers solutions for waste reduction, supply chain sustainability, and long-term cost benefits.

Polyester Dominates the Textile Recycling Landscape

Among all material types, polyester accounts for nearly 32% of the global Textile Recycling Market in 2025. It remains the most recycled fiber because of its abundance, durability, and compatibility with established mechanical and chemical recycling processes.

Key factors driving polyester recycling include:

Large-scale use in clothing, sportswear, and home furnishings
Growing brand commitments to reduce carbon footprints
Investments in technologies converting PET bottles and textile waste into new fibers
Nike's incorporation of recycled polyester in its Dri-Fit line and Unifi's Repreve fiber-made from over 42 billion recycled bottles-demonstrate how brands are strengthening their sustainability credentials while reducing raw material dependency.

As the recycled textile materials market evolves, innovations in depolymerization and fiber-to-fiber chemical recycling are expected to increase polyester recovery rates and improve material quality.

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Asia Pacific Leads Market Growth and Technological Adoption

The Asia Pacific region dominates the Textile Recycling Market, capturing around 34.5% market share, equivalent to USD 2.8 billion in 2025. This leadership stems from:

The region's role as the world's largest textile production hub
High levels of post-industrial and post-consumer textile waste
Government incentives promoting recycling and waste reduction
Low-cost labor and integrated textile supply chains
Countries like India, China, Bangladesh, and Vietnam are aggressively investing in recycling initiatives. For example, Arvind Limited launched a zero-waste denim program using recycled cotton and polyester fibers, while China's Circular Economy Action Plan (2024) set mandatory recycling quotas for large factories.

These developments reinforce Asia Pacific's position as the fastest-growing center for textile recycling, circular manufacturing, and sustainable textile innovation.

Regulatory Push Accelerates Market Adoption Worldwide

Governments across the globe are implementing regulatory frameworks to reduce textile waste and encourage recycling. Policies such as:

EU Waste Framework Directive
Extended Producer Responsibility (EPR)
EU Green Deal mandates
National circular economy strategies
...are compelling brands to take responsibility for end-of-life textile waste.

Adidas' fully recyclable Futurecraft.Loop 2.0 shoe, made exclusively with recycled polyester, demonstrates how manufacturers are aligning product innovation with regulatory standards. These regulations are expanding both the Textile Recycling Market and the broader circular fashion market as brands adopt closed-loop systems.

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Technological Innovations Power a New Recycling Era

The surge in technological advancements is reshaping the Textile Recycling Market. Key innovations include:

Fiber-to-Fiber Chemical Recycling
Chemical processes-such as depolymerization and solvent-based separation-enable the recovery of high-quality fibers from complex and blended textiles. These technologies can convert waste into near-virgin fibers, enhancing the value and usability of recyclates.

Infinited Fiber Company's commercial-scale production of InfinnaTM fiber, made from polycotton waste, stands at the forefront of this revolution.

Automated Sorting Systems
AI-powered sorting helps classify textiles by material composition and color, overcoming the challenge of mixed fibers and contamination.

Thermal and Hybrid Recycling
Energy recovery technologies and hybrid recycling systems further reduce waste disposal and support circular resource utilization.

These technologies are expanding the frontiers of the recycled textile materials market, improving efficiency and enabling the recycling of previously unrecyclable blends.

New Applications in Automotive, Construction, and Furniture

While fashion remains the primary consumer of recycled fibers, the Textile Recycling Market is witnessing rapid adoption in non-apparel sectors:

Automotive Industry

Recycled fibers are increasingly used in:

Seat padding
Interior insulation
Carpets
BMW's collaboration with Renewcell to use CirculoseTM in vehicle interiors exemplifies this shift.

Furniture & Home Furnishings

IKEA's use of post-consumer cotton waste in furniture covers supports circularity at a large scale.

Construction & Industrial Use

Textile waste is now being transformed into:

Soundproofing materials
Wall insulation
Industrial wipes
Geotextiles
These growing applications are diversifying revenue streams and strengthening the recycled textile materials market.

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Market Challenges: Infrastructure and Sorting Limitations

Despite strong growth, the Textile Recycling Market faces infrastructure-related bottlenecks:

Insufficient sorting and processing technology
High heterogeneity of textile waste
Limited chemical recycling capacities
Low collection rates in some regions
As reported by Levi Strauss & Co., nearly one-third of collected garments remain unrecyclable due to infrastructure gaps. Addressing these limitations is essential for scaling the circular fashion market and achieving global sustainability goals.

Strategic Developments Shaping the Next Decade

Major players are strengthening their capabilities through expansions, partnerships, and new facilities:

Recover launched a 14,000 m2 plant in Vietnam, with annual capacity of 10,000 tons.
Unifi's Repreve expanded textile-to-textile recycling in China while boosting U.S. operations.
Emerging companies like Worn Again Technologies and iinouiio Ltd are advancing fiber regeneration technologies.
These strategic moves are helping global players capture opportunities in the rapidly expanding Textile Recycling Market.

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