Textile Recycling Market - Global Forecast 2025-2032

The textile recycling market is entering a defining era for global supply chains and sustainability-focused leaders. Innovative technologies, circular strategies, and evolving regulatory frameworks are converging to reshape industry economics and environmental impact.

Market Snapshot: Textile Recycling Market Growth and Outlook

The Textile Recycling Market grew from USD 5.76 billion in 2024 to USD 6.07 billion in 2025. With a projected CAGR of 5.63%, the market is expected to reach USD 8.94 billion by 2032. This trajectory reflects the rising urgency among brands, manufacturers, and policymakers to balance production expansion with circular economy mandates and sustainability imperatives. Stakeholders are adapting to regulatory and societal pressure while leveraging new revenue models linked to recycled materials’ adoption.

Scope & Segmentation

• Material: Cotton, Polyester, Nylon, Nylon 6, Nylon 66, Wool
• Process: Mechanical, Chemical, Thermal
• Source: Post-consumer Waste, Pre-consumer Waste
• Form: Fabrics, Fibers, Yarns
• End-Use: Fashion & Apparel, Home Furnishings, Industrial & Institutional
• Region: Americas, North America (United States, Canada, Mexico), Latin America (Brazil, Argentina, Chile, Colombia, Peru), Europe, Middle East & Africa (United Kingdom, Germany, France, Russia, Italy, Spain, Netherlands, Sweden, Poland, Switzerland, United Arab Emirates, Saudi Arabia, Qatar, Turkey, Israel, South Africa, Nigeria, Egypt, Kenya), Asia-Pacific (China, India, Japan, Australia, South Korea, Indonesia, Thailand, Malaysia, Singapore, Taiwan)
• Featured Companies: Asahi Kasei Corporation, BASF SE, AFRY AB, Ambercycle, Inc., BlockTexx Pty Ltd, Boer Group, CARBIOS, Circ, Circulose AB, Cross Wrap Oy by Saalasti Oy, Eastman Chemical Company, ECO TEX COLLECT EOOD, Evrnu Inc., iinouiio, Infinited Fiber Company, JEPLAN, Inc., Kay Gee Enterprises, Kishco Group, Leigh Fibers, Lenzing AG, Pistoni S.r.l., Protein Evolution, Inc., Recover Textile Systems, S.L., REFIBERD, INC, REMONDIS SE & Co. KG, Retold Recycling, Sulzer Ltd., Syre, Textile Recycling International, UNIFI, Inc., Upparel, Usha Yarns Limited, Worn Again Technologies Limited.

Key Takeaways for Senior Decision-Makers

• Regulations in leading regions are accelerating adoption of recycled content through extended producer responsibility and landfill diversion mandates, prompting supply chain transformation.
• Mechanical and chemical recycling technologies now enable recovery of complex fiber blends, establishing viable feedstock streams for premium and technical markets.
• Collaboration between brands, recyclers, and technology developers is improving material traceability and driving investment into state-of-the-art processing infrastructure.
• Consumer demand for sustainable products and transparent supply chains is reshaping procurement, with brands increasingly offering collections based on fully recycled or reusable fabrics.
• Regional drivers—from regulatory frameworks in Europe to infrastructure investments in North America and large-scale chemical pilots in Asia-Pacific—are creating tailored opportunities and challenges for stakeholders.

Tariff Impact: Navigating US 2025 Measures

Forthcoming US tariffs on specific textile imports are shifting the competitive landscape, making recycled materials more attractive relative to virgin inputs. Domestic recyclers benefit from increased demand and enhanced cost competitiveness, while global brands assess partnerships and regional investment to mitigate future trade disruptions. These measures also prompt strategic evaluations of supply chain localization and resilience for firms active in US markets.

Methodology & Data Sources

This report integrates qualitative and quantitative research, including direct interviews with industry executives, plant tours, and expert panels. Data triangulation ensures analytic rigor, supplemented by secondary research from regulatory filings, trade associations, company reports, and proprietary market intelligence tools.

Why This Textile Recycling Market Report Matters

• Enables strategic planning by supplying actionable insights on regulatory trends, technology breakthroughs, and regional growth drivers.
• Supports investment decisions through analysis of competitive dynamics and emerging circular models across key end-use sectors.
• Offers robust, validated data to guide risk assessment, policy engagement, and cross-border partnership development in a rapidly shifting environment.

Conclusion

Textile recycling’s advancement is central to delivering efficient, resilient, and future-proof supply chains. Decision-makers who invest in circularity, innovation, and stakeholder collaboration will secure new opportunities and sustained industry leadership.

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