The Recycled Textile Market size is expected to reach US$ 8.32 billion by 2030, from US$ 5.61 billion in 2023, growing at a CAGR of 5.8% during the forecast period. Recycled textiles are fabrics manufactured from reclaimed and recycled clothing, fibers, and waste materials such as PET bottles. They provide an eco-friendly alternative to virgin fibers for use in clothing, home furnishings, automotive parts, and various industrial applications. Key drivers of the recycled textile market include growing environmental awareness, government regulations, advancements in recycling technologies, and increasing consumer demand for sustainable fashion.
The recycled textile market is segmented based on material type, textile waste source, end-use industry, recycling method, distribution channel, and region. By material type, the market is segmented into cotton, wool, polyester, nylon, linen, viscose rayon, and others. The polyester segment is expected to dominate the market owing to the wide usage of recycled polyester from PET bottles in the textile industry.
Recycled Textile Market Regional Insights
- North America is expected to be the largest market for recycled textiles during the forecast period, accounting for over 41% of the market share in 2023. The growth of the market in North America is attributed to stringent regulations, established recycling infrastructure, and rising awareness about sustainable fashion.
- Asia Pacific is expected to be the second-largest market for recycled textiles, accounting for over 22% of the market share in 2023. The growth of the market in Asia Pacific is attributed to rapidly developing textile recycling capabilities and the large textile manufacturing industry.
- Europe is expected to be the fastest-growing market for recycled textiles, which is expected to grow at a CAGR of over 6.2% during the forecast period. The growth of the market in Europe is attributed to high sustainability awareness and government support for textile recycling.
Figure 1. Global Recycled Textile Market Share (%), by Region, 2023
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Recycled Textile Market Drivers
- Growing Environmental Concerns: The growing environmental concerns and consciousness among consumers is a major factor driving the growth of the recycled textile market. With rising awareness about the environmental impact of fast fashion and textile waste, there is an increasing demand for eco-friendly and sustainable textile solutions. Brands are also recognizing the need to adopt sustainable practices due to consumer pressure. Recycled textiles provide an environmentally responsible way to meet the textile demand while reducing waste. Government regulations regarding textile recycling and emphasis on circular economy models further propel the market growth.
- Government Regulations and Initiatives: Various government regulations and initiatives aimed at promoting textile recycling and increasing the use of recycled textiles are propelling the market growth. Regulations, such as the EU Circular Economy Package, which focuses on textile recycling have led to an increase in textile recycling initiatives. Governments are providing subsidies and incentives to recycled textile manufacturers. For instance, the U.K. government provides subsidies to companies involved in textile-to-textile recycling through the textile recycling technology challenge. Such initiatives encourage textile recycling and boost the market growth. For instance, in 2020, the Environmental Protection Agency (EPA) announced a sweeping relaxation of environmental rules in response to the coronavirus pandemic, allowing power plants, factories, and other facilities to determine for themselves if they are able to meet legal requirements on reporting air and water pollution.
- Advancements in Recycling Technologies: Recent technological advancements in textile recycling processes, such as chemical textile recycling, are supporting the market growth. New technologies can recycle blended and mixed-material textile waste, overcoming a major challenge earlier. Automated sorting technologies also enable the easier separation of textile waste. With technological innovations, a wider variety of textile waste can be recycled more efficiently. This is expanding the supply of recycled textiles, thereby driving the market growth.
- Increasing Consumer Awareness: There is growing awareness among consumers about recycled textiles and demand for eco-conscious apparel. Recycled textiles appeal to environmentally-conscious consumers looking for sustainable clothing options. With rising activism encouraging people to reduce waste and make ethical choices, the demand for recycled textiles in fashion and home furnishings has gone up. Increasing visibility of recycled textiles through effective marketing and communication by brands is further driving the consumer adoption.
Recycled Textile Market Opportunities
- Strategic Partnerships: There are significant opportunities for strategic partnerships across the recycled textiles value chain, from textile waste collection to recycled fiber production. Brand partnerships with recycling technology providers can help scale up production. Partnerships between brands and waste management firms can help improve the textile waste collection infrastructure. Collaborations between recycling firms, manufacturers, and brands can help introduce new recycled textile products. Such partnerships can accelerate the growth in the market.
- New Product Development: The growing demand for eco-friendly textiles and sustainability awareness provides an opportunity for extensive new product development and innovation in recycled textiles. Manufacturers can develop new recycled fabric blends and diversify their recycled textile portfolio beyond existing products. New finishing and coatings can be applied to improve feel and functionality. Investing in R&D for new recycled textile applications creates significant opportunities for growth. For instance, in 2020, just over half of the polyester used in Adidas' products came from recycled plastic waste. The same year, Adidas also manufactured 15 million pairs of shoes made from plastic waste sourced from beaches.
- Online Channels: Online channels provide huge, relatively untapped growth opportunities in the recycled textile market. Direct-to-consumer recycled fashion brands have performed well, indicating consumer demand. Existing recycled textile companies can expand their digital presence and utilize e-commerce channels, online retailers, and social media to increase availability and visibility of their sustainable offerings to eco-conscious consumers.
- Emerging Economies: Developing and emerging economies offer lucrative opportunities for market expansion owing to improving economic conditions and increasing environmental awareness. Large population bases coupled with rising disposable incomes and urbanization make these markets highly attractive for recycled textile products. Local partnerships can help gain access to these high-potential markets and drive growth.
Recycled Textile Market Report Coverage
| Report Coverage |
Details |
|---|
| Base Year: |
2022 |
Market Size in 2023: |
US$ 5.61 Bn |
|---|
| Historical Data for: |
2018 to 2021 |
Forecast Period: |
2023 - 2030 |
|---|
| Forecast Period 2023 to 2030 CAGR: |
5.8% |
2030 Value Projection: |
US$ 8.32 Bn |
|---|
| Geographies covered: |
- North America: U.S. and Canada
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East & Africa: GCC Countries, Israel, South Africa, North Africa, and Central Africa and Rest of Middle East
|
| Segments covered: |
- By Material Type: Polyester, Cotton, Nylon, Wool, Viscose Rayon, and Others
- By Textile Waste Source: Post-consumer, Pre-consumer/Post-industrial, Production Overruns, Pullouts, Export Seconds, and Others
- By End-use Industry: Apparel, Home Furnishings, Automotive, Industrial, and Others
- By Recycling Method: Mechanical, Chemical, Thermal, and Others
- By Distribution Channel: Online, Retail Stores, Specialty Stores, Department Stores, and Others
|
| Companies covered: |
Unifi, Martex Fiber, I:CO, Renewcell, Lone Star Textiles, Retex Textiles, Leigh Fibers, Prokotex, Santanderina Group, and Kirklees Wools
|
| Growth Drivers: |
- Growing environmental concerns
- Government regulations and initiatives
- Increasing consumer awareness
- Advancements in recycling technologies
|
| Restraints & Challenges: |
- Quality issues with recycled textiles
- High costs compared to conventional textiles
- Complex textile recycling processes
|
Recycled Textile Market Trends
- Circular Economy Concepts: The circular economy concept is a major trend shaping the recycled textiles market. Brands are increasingly adopting circular systems to maximize the utilization of textile waste and enable closed-loop recycling. Implementing circularity in design and production reduces textile waste generation. Recyclability and biodegradability are becoming important considerations. Cradle-to-cradle production, where products are endlessly recyclable, is also gaining prominence.
- Implementation of Take-back Schemes: Many brands have implemented take-back and clothing collection schemes to obtain textile waste for recycling. This provides a consistent source of recyclable material. Partnerships with charities and take-back programs at stores allow brands to collect used clothing from consumers. The collected garments are then recycled by the brands into new products. Such initiatives are becoming an integral part of fashion sustainability strategies. In 2020, H&M launched a recycling project called "Looop" that aimed to transform unwanted garments into new fashion items. The project was the world's first in-store recycling system and used a garment-to-garment recycling system that incentivized customers to recycle their old clothes.
- Recycled Textiles in Home Furnishings: Using recycled textiles in home furnishings and interior fabrics is rising as a key trend. Consumers want their home textiles like curtains, upholstery, blankets, etc. also to have sustainability credentials. Recycled fibers like recycled cotton, polyester, and wool are being increasingly used by home furnishing companies to offer eco-friendly fabrics. This trend provides an additional growth avenue for recycled textiles.
Recycled Textile Market Restraints
- Quality Issues: Quality issues in some recycled textiles compared to virgin fibers can restrain the market growth. Properties like strength, softness, and color retention are sometimes inferior in recycled textiles. These quality discrepancies make manufacturers reluctant to use recycled textiles. Consumers may also be hesitant to purchase recycled products perceived as low quality. Advances in recycling technology are needed to improve recycled textile quality.
- High Costs: The cost of recycled textiles is generally higher compared to conventional textiles. Steps like collection, sorting, cleaning, processing, and decolonization increase costs for recycled fiber manufacturers. The limited economies of scale also contribute to higher prices. The high costs can deter brands and consumers from choosing rvvcycled textiles, hampering the market growth. decolonization
- Complex Textile Recycling Processes: The processes involved in textile recycling can be complex, acting as a restraint on the market growth. Sorting mixed fabrics, separating fibers, dealing with dyes, and treatments require advanced technical capabilities. The complexities and difficulties result in low recycling rates. Streamlining processes through technology and operational improvements is critical to drive efficiency and increase recycling.
Analyst’s View
The recycled textile market is poised to grow owing to increasing focus on sustainability across industries. Rising environmental consciousness among consumers and stringent regulations regarding textile waste disposal are the key drivers bolstering the demand for recycled fabrics. Furthermore, the growing adoption of recycled fibers by leading fashion brands to meet sustainability targets will augment the market growth over the coming years.
However, lack of standardized recycling procedures and need for significant investment in recycling infrastructure pose challenges. Absence of dedicated collection centers in underdeveloped regions hampers efficient waste management. Presence of cheaper new materials also restricts market expansion to some extent.
Europe currently dominates the recycled textile recycling market owing to a favorable regulatory environment and the presence of major recyclers. Strong regulations in Germany and the U.K. regarding waste reduction are supporting the regional market growth. Asia Pacific is expected to offer lucrative opportunities due to increasing focus on waste management in countries like India and China. Rapid urbanization coupled with awareness programs will boost the market in the Asia Pacific region.
Rising focus on product innovation using recycled materials provides new opportunities. Collaboration between brands, waste collectors, and recyclers can help address bottlenecks. Development of advanced recycling technologies can make recycling economically viable and help divert waste from landfills. Increased adoption of circular business models focusing on reduce, reuse, and recycle will drive the market growth.
Recent Developments
New product launches
- In January 2022, Renewcell launched Circulose for fashion brands derived from recycled textile waste. It provides a biodegradable alternative to viscose rayon
- In September 2021, Teijin Fibers launched a new recycled polyester fiber made completely from recycled PET plastic. It enhances the sustainability of polyester.
- In June 2022, Levi’s introduced recycled denim made with post-consumer plastic waste collected from shorelines. It highlights Levi’s focus on circularity
Acquisition and partnerships
- In February 2022, Infinited Fiber partnered with Adidas to supply InfinnaTM fiber made from textile waste to develop recycled sneakers
- In January 2023, Rothy’s acquired Texel to expand the use of recycled post-consumer fiber in its footwear. It enhances supply capabilities.
- In June 2021, Renewcell partnered with a vintage clothing company, Beyond Retro to implement take-back schemes and scale-up textile recycling
Figure 2. Global Recycled Textile Market Share (%), by Textile Waste Source, 2023
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Top Companies in the Recycled Textile Market
- Unifi
- Martex Fiber
- Renewcell
- Lone Star Textiles
- Retex Textiles
- Leigh Fibers
- Prokotex
- Santanderina Group
- Kirklees Wools
Definition: The recycled textile market refers to the market for textile products manufactured using recycled and reclaimed fibers, yarns, and fabrics. It involves the recycling of pre-consumer and post-consumer textile waste into new fabrics and products like clothing, home textiles, accessories, footwear, and many industrial applications. Recycled textiles provide an environmentally responsible alternative to reduce waste and enable circularity in the textile and fashion industry. Key materials recycled include cotton, polyester, nylon, wool, linen, and rayon derived from various textile waste sources.
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