Textile Recycling Market is expected to generate a revenue of USD 6.1 Billion by 2031, Globally, at 2.85% CAGR: Verified Market Research®

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Aug 25, 2025, 10:30 ET

The Textile Recycling Market is witnessing strong growth, driven by rising environmental concerns, regulatory push for circular economy practices, and growing demand for sustainable raw materials in fashion and industrial applications. However, challenges such as high collection costs, lack of standardization, and limited consumer awareness restrain widespread adoption. Despite these restraints, innovation in recycling technologies and strong government initiatives are creating new opportunities for market expansion.

LEWES, Del., Aug. 25, 2025 /PRNewswire/ -- The Global Textile Recycling Market Size is projected to grow at a CAGR of 2.85% from 2024 to 2031, according to a new report published by Verified Market Research®. The report reveals that the market was valued at USD 5.2 Billion in 2024 and is expected to reach USD 6.1 Billion by the end of the forecast period.

The Textile Recycling Market is gaining momentum as industries and consumers embrace eco-friendly solutions. With rising textile waste, governments and companies are investing in recycling technologies to promote circular economy practices, making this sector a critical pillar of sustainable development.

For a detailed analysis of industry trends and growth drivers, explore the full Textile Recycling Market.

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202 - Pages

126 – Tables

37 – Figures

Global Textile Recycling Market Overview

Market Driver

1. Growing Sustainability and Circular Economy Initiatives

The global focus on sustainability is reshaping industries, and textile recycling is at the center of this transformation. Increasing pressure from governments, corporations, and consumers is driving businesses to adopt eco-friendly practices that align with circular economy models.

Governments are enforcing waste reduction policies and encouraging recycling.
Global brands are setting ambitious ESG and zero-waste targets to reduce landfill waste.
The demand for eco-friendly materials is growing across apparel, industrial, and home textile sectors.
This sustainability shift ensures steady growth for the Textile Recycling Market, making it a critical pillar in long-term environmental strategies.

2. Rising Demand for Recycled Fibers in Fashion and Manufacturing

The fashion industry is one of the largest contributors to textile waste, but it is also becoming one of the biggest adopters of recycling solutions. Consumer behavior is shifting toward sustainable apparel, increasing demand for recycled fibers.

Recycled cotton, polyester, and wool are being adopted by leading global fashion brands.
Beyond fashion, industries such as automotive, construction, and furniture are integrating recycled textiles into their manufacturing.
Recycled textiles offer cost-effective and environmentally friendly raw materials.
This trend is not just a consumer-driven push but also a business opportunity for manufacturers seeking to cut costs and enhance sustainability credentials.

3. Government Regulations and Waste Management Policies

The Textile Recycling Market is gaining strong momentum due to strict regulations and government-led waste management initiatives. Many countries are mandating the adoption of recycling practices and offering incentives to support industrial players.

Europe is leading with advanced recycling laws and extended producer responsibility (EPR) schemes.
North America is witnessing strong policy support for diverting textile waste from landfills.
Asia-Pacific nations are increasingly investing in recycling infrastructure to meet sustainability goals.
These policies create a favorable regulatory environment, helping industries invest in textile recycling and ensuring long-term, scalable market growth.

Market Restraints

1. High Collection and Sorting Costs

One of the biggest challenges for the Textile Recycling Market lies in the collection and sorting process. The costs associated with gathering, separating, and processing textiles create barriers for scalability.

Post-consumer textiles require complex sorting due to mixed materials and contamination.
Logistics for collection systems add significant operational costs.
Small recyclers find it difficult to compete with large-scale players due to limited economies of scale.
This cost-intensive process limits profitability and slows down the adoption of textile recycling practices, particularly in emerging markets.

2. Limited Consumer Awareness and Participation

Consumer involvement plays a crucial role in textile recycling, yet awareness levels remain inadequate. Many people do not understand the impact of textile waste or the availability of recycling options.

A lack of awareness campaigns results in low collection rates.
Consumers are often unaware of designated collection points or recycling programs.
Without incentives or clear communication, participation rates remain weak.
This consumer-side gap restricts the growth potential of the Textile Recycling Market and calls for stronger education and outreach programs to increase engagement.

3. Technological Challenges and Quality Issues

Although textile recycling technologies are evolving, the industry still struggles with efficiency and product quality. Advanced recycling requires substantial investment and often fails to produce materials that match virgin fibers.

Blended fabrics are difficult to recycle due to mixed fiber content.
Recycled fibers often lack durability, softness, and aesthetic appeal compared to new materials.
Chemical recycling and advanced fiber regeneration technologies demand high capital investments.
These technological and quality challenges limit the adoption of recycled textiles in premium applications, creating a restraint for overall market growth.

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Geographical Dominance: Europe dominates the Textile Recycling Market, driven by strict EU waste management regulations, extended producer responsibility (EPR) policies, and strong adoption of circular economy models. Countries like Germany, France, and the UK are leading with advanced recycling infrastructure and sustainable fashion initiatives. North America is experiencing steady growth with rising consumer awareness and state-level sustainability mandates, while Asia-Pacific, led by China and India, shows high potential due to rapid textile production and government-backed recycling programs.

Key Players

The "Global Textile Recycling Market" study report will provide a valuable insight with an emphasis on the global market. The major players in the market are American Textile Recycling Service, Anandi Enterprises, Boer Group Recycling Solutions, Infinite Fiber Company, I: Collect GmbH, Patagonia, Retex Textiles, Prokotex, Pure Waste Textiles, Unifi Inc. and others.

Textile Recycling Market Segment Analysis

Based on the research, Verified Market Research has segmented the global market into Material Type, Source, Process, and Geography.

Textile Recycling Market, by Material Type
- Cotton
- Wool
- Polyester
- Polyamide
Textile Recycling Market, by Source
- Apparel Waste
- Automotive waste
- Home furnishing Waste
- Others
Textile Recycling Market, by Process
- Chemical
- Mechanical
Textile Recycling Market, by Geography
- North America
  - U.S
  - Canada
  - Mexico
- Europe
  - Germany
  - France
  - U.K
  - Rest of Europe
- Asia Pacific
  - China
  - Japan
  - India
  - Rest of Asia Pacific
- ROW
  - Middle East & Africa
  - Latin America

Strategic Insight:

The Textile Recycling Market presents significant growth opportunities for companies aligning with sustainability goals and circular economy practices. Market drivers such as rising demand for recycled fibers, regulatory support, and eco-conscious consumer preferences highlight strong entry potential. However, restraints like high sorting costs, limited consumer awareness, and technological barriers demand strategic investments in innovation and education. Europe's regulatory dominance and Asia-Pacific's production scale create contrasting yet lucrative opportunities, while North America offers growing consumer-driven demand. Firms entering this market should prioritize partnerships, advanced recycling technologies, and region-specific strategies to capture sustainable growth.

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Key Highlights of the Report:

Market Size & Forecast: In-depth analysis of current value and future projections
Segment Analysis: Breaks down the market by Material Type, Source, and Process for focused strategy development.
Regional Insights: Comprehensive coverage of North America, Europe, Asia-Pacific, and more
Competitive Landscape: Profiles key players, their strategic initiatives, and innovation-driven growth approaches.
Growth Drivers & Challenges: Analyzes the forces accelerating growth and the restraints hindering large-scale adoption.
Challenges and Risk Assessment: Evaluates ethical debates, off-target effects, and regulatory complexities.

Why This Report Matters:

This report delivers in-depth insights into market dynamics, emerging trends, and future opportunities in the Textile Recycling Market. It provides data-driven analysis to help stakeholders identify growth avenues, evaluate competitive strategies, and make informed investment decisions in this evolving sector.

Who You Should Read This Report:

Market research professionals seeking detailed insights
B2B clients and industry leaders in textiles, fashion, and manufacturing
Sustainability strategists and environmental policymakers
Investors and decision-makers exploring green business opportunities

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