Textile Recycling Market Summary

The global textile recycling market was estimated at USD 4,850.6 million in 2024 and is projected to reach USD 6,938.4 million by 2033, expanding at a compound annual growth rate (CAGR) of 4.2% from 2025 to 2033. This growth is primarily driven by increasing environmental concerns related to the mounting volume of textile waste and rising social awareness about the benefits and importance of recycling textiles. Consumers, industries, and policymakers are recognizing the ecological implications of wasteful textile consumption and are taking steps to promote sustainable recycling practices across global markets.

According to the U.S. Environmental Protection Agency (EPA), textile waste occupies approximately 5% of total landfill space, highlighting the significant environmental burden caused by discarded fabrics and garments. Furthermore, the National Council of Textile Organizations (NCTO) identifies the U.S. textile industry as one of the world’s leading producers of textile-related products, making the issue of textile waste even more critical. Supporting this, the Council for Textile Recycling reports that the average American discards about 70 pounds of textiles annually. These compelling statistics underscore the growing urgency to adopt effective textile recycling strategies and are expected to boost market demand over the forecast period.

Key Market Trends & Insights

• The textile recycling industry in North America is expected to grow at a robust CAGR of 4.3% during the forecast period. This growth is largely attributed to the implementation of strong environmental regulations, alongside increasing public awareness about sustainability and responsible consumption. Various local and national programs promoting textile reuse, along with innovation in recycling technology, are expected to accelerate market development in this region.
• Europe led the global textile recycling market in 2024, capturing the largest revenue share of 29.4%. The region's dominance can be attributed to its progressive waste management legislation, strong environmental advocacy, and well-established recycling infrastructure. European Union policies emphasizing a circular economy and extended producer responsibility (EPR) encourage companies to minimize waste and recycle post-consumer textiles effectively. The growing emphasis on fashion circularity also boosts demand for recycled textile fibers and materials in the European apparel industry.
• The textile recycling industry in Asia Pacific is anticipated to experience rapid growth over the forecast period. This momentum is supported by increasing textile production and consumption, particularly in emerging economies such as China, India, Bangladesh, and Vietnam. As environmental awareness rises, governments in the region are intensifying efforts to enforce stricter waste disposal and recycling regulations. The increasing presence of textile manufacturers in the region provides a vast supply of recyclable materials, contributing significantly to the growth of textile recycling operations.
• India's textile recycling market is projected to grow at a notable CAGR of 5.7% from 2025 to 2033. This growth is fueled by the country’s large-scale textile industry, growing awareness of environmental conservation, and the presence of key textile waste hubs. Government support for sustainability initiatives, combined with local efforts in waste collection and segregation, is expected to enhance the development of organized textile recycling in the country.
• By material type, the polyester segment is forecasted to expand at a considerable CAGR of 5.7% from 2025 to 2033 in terms of revenue. Polyester is one of the most widely used synthetic fibers and poses significant recycling challenges due to its petroleum-based composition. However, advancements in recycling technologies, especially chemical recycling methods, are making it increasingly viable to recover and repurpose polyester for use in new garments, industrial fabrics, and packaging materials.
• In terms of source, the apparel waste segment is expected to grow at a strong CAGR of 4.7% from 2025 to 2033 in terms of revenue. This growth is driven by the fast fashion industry's contribution to textile waste, with vast quantities of unsold, worn-out, or out-of-style clothing ending up in landfills. Increased consumer awareness, brand take-back programs, and innovations in collection and sorting systems are expected to help mitigate this issue and support recycling efforts.
• By process type, the chemical recycling segment is projected to grow at a considerable CAGR of 4.9% from 2025 to 2033 in terms of revenue. Chemical recycling allows for the breakdown of synthetic textiles, such as polyester, into their basic monomers, which can then be re-polymerized into new fibers. This method is gaining traction due to its potential to produce high-quality recycled materials while handling complex blends and contaminated textile waste more effectively than traditional mechanical recycling.

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Market Size & Forecast

• 2024 Market Size: USD 4,850.6 Million
• 2033 Projected Market Size: USD 6,938.4 Million
• CAGR (2025-2033): 4.2%
• Europe: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Some of the key companies operating in the global textile recycling market include Worn Again Technologies, Lenzing Group, and Birla Cellulose, among others. These players are actively contributing to the market through technological innovation, strategic collaborations, and sustainable practices.

• Worn Again Technologies, established in 2005 and headquartered in East London, England, was co-founded in partnership with Vivo Barefoot. The company specializes in converting waste materials, including discarded prison blankets, automotive scrap leather, hot air balloons, and retired Virgin Atlantic seat covers, into valuable products such as footwear, handbags, and jackets. Worn Again’s proprietary recycling technology can efficiently decontaminate, separate, and extract polyester and cellulose from blended textiles and packaging waste. These recovered materials are reintroduced into the manufacturing supply chain, supporting a circular textile economy.
• LENZING AG, founded in 1938 and based in Lenzing, Austria, is a global leader in the production of sustainable textile fibers. The company operates across three divisions: Fiber, Pulp, and Others. The Fiber division produces and markets wood-based cellulosic fibers under brand names such as TENCEL, VEOCEL, and LENZING ECOVERO. Its fibers, made from modal, lyocell, and viscose, are widely used in both woven and nonwoven applications. LENZING collaborates with global manufacturers and retailers to advance innovation in textile recycling and promote responsible fiber sourcing.

Key Players

• Worn Again technologies
• Lenzing Group
• Birla Cellulose
• BLS Ecotech
• The Woolmark Company
• iinouiio Ltd
• Ecotex Group
• The Boer Group
• Unifi, Inc.
• Textile Recycling International
• Renewcell
• Pistoni S.r.l.
• REMONDIS SE & Co. KG
• Martex Fiber
• HYOSUNG TNC

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Conclusion

The global textile recycling market is poised for steady growth, fueled by rising environmental awareness, growing textile waste generation, and technological advancements in recycling processes. With government support, evolving consumer preferences, and increasing corporate responsibility, textile recycling is gaining traction as a critical sustainability solution. Polyester and apparel waste segments lead growth due to widespread usage and disposal. Regions like Europe and Asia Pacific are advancing rapidly due to policy and industrial support. Key players are driving innovation to improve fiber recovery and circularity. The market is expected to play an essential role in creating a sustainable and resource-efficient textile ecosystem by 2033.