Textile Recycling Market - Global Forecast 2025-2032

Textile recycling is transforming global supply chains by enabling senior leaders to drive sustainability, compliance, and operational resilience. Across industries, organizations are rethinking sourcing models and integrating recycled materials to achieve measurable ESG outcomes and competitive advantage.

Market Snapshot: Textile Recycling Market Growth and Dynamics

The textile recycling market is on a steady growth trajectory, valued at USD 5.76 billion in 2024 and projected to reach beyond USD 8.94 billion by 2032, with a compound annual growth rate of 5.63%. This expansion is fueled by greater environmental accountability, evolving corporate sustainability agendas, and tightening international regulations that reshape sourcing and production models. Industry players are accelerating investments in recycling infrastructure and advanced processing technologies to stay ahead in a competitive landscape characterized by mergers, acquisitions, and partnerships. Enhanced recycling technologies are broadening applications across multiple sectors and geographies, emphasizing the strategic importance of circularity, compliance, and long-term value creation for senior executives.

Scope & Segmentation: Textile Recycling Market

• Material Type: Covers diverse fiber recovery, including cotton, polyester, nylon (notably Nylon 6 and Nylon 66), and wool, emphasizing recovery performance, supply chain circularity, and adaptability to sustainability targets.
• Recycling Process: Evaluates chemical, mechanical, and thermal methods, focusing on feedstock integrity, process efficiency, and acceptance among manufacturers seeking to meet industry standards.
• Source Category: Analyzes both post-consumer and pre-consumer waste streams, addressing logistics complexity, supply chain integration challenges, and the evolution of collection models to ensure feedstock security.
• Output Form: Reviews fabrics, fibers, and yarns derived from recycling, highlighting their versatility for different end-uses and potential to meet evolving industry and client requirements.
• End-Use Segment: Identifies key application areas in apparel, home furnishings, as well as institutional and industrial product categories, with a focus on sector-specific drivers influencing demand for recycled solutions.
• Key Geographies: Assesses strengths and leadership by region, including infrastructure and regulatory context in the Americas, Europe, Middle East, Africa, and Asia-Pacific to uncover market entry and growth opportunities.
• Company Overview: Profiles prominent players such as Asahi Kasei Corporation, BASF SE, Lenzing AG, Eastman Chemical Company, UNIFI, Inc., Recover Textile Systems, S.L., and Worn Again Technologies Limited, with a focus on their innovation efforts and business model differentiators supporting competitive positioning.

Key Takeaways: Strategic Priorities for Textile Recycling

• Advancing recycling technologies are strengthening material performance standards, granting manufacturers the ability to extend product lifecycles and refine efficiency.
• Collaboration among brands, recyclers, and technology providers is supporting broader circular business model adoption and fostering transformative supply chain partnerships.
• Policy measures—including extended producer responsibility and landfill reduction mandates—are influencing sourcing strategies, prompting the integration of higher recycled content in finished products.
• Improved traceability tools and automation in sorting enhance validation of recycling practices, empowering organizations to meet increasingly rigorous transparency demands in sourcing and reporting.
• Tailored recycling programs are in demand across fashion, furniture, and institutional procurement, enabling buyers to match sourcing criteria to both performance and sustainability goals.
• Regional priorities vary, as North America and Europe invest in infrastructure renewal and governance, while Asia-Pacific focuses on technological trials and expanded sector-wide adoption.

Tariff Impact: 2025 United States Measures

Recent U.S. tariff adjustments on textile imports are shaping sourcing choices and industry competition. Higher duties on virgin fiber imports are increasing the appeal of domestic recycling, motivating U.S. organizations to boost local infrastructure and explore advanced recovery solutions. These developments are prompting businesses to refine procurement strategies, build relationships with American recyclers, and manage material costs more effectively while protecting supply continuity.

Methodology & Data Sources

This analysis integrates executive-level interviews and facility observations with a comprehensive review of regulatory records, sustainability disclosures, and proprietary datasets. An expert panel of industry specialists has validated the research to support actionable decision-making for senior teams.

Why This Report Matters: Textile Recycling Insights

• Delivers practical insights into the latest recycling technologies, changing global policy trends, and evolving market dynamics across priority regions.
• Enables organizational leaders to identify new channels for growth, refine segmentation strategies, and create value-added partnerships throughout the global textile recycling value network.
• Equips companies to respond quickly to policy and tariff changes, strengthening supply chain strategies and improving enterprise resilience in a shifting regulatory environment.

Conclusion

Textile recycling is shaping the next generation of sustainable supply chains. This report equips executive teams with critical insights to support circularity objectives and manage industry transitions with confidence.

Additional Product Information:

• Purchase of this report includes 1 year online access with quarterly updates.
• This report can be updated on request. Please contact our Customer Experience team using the Ask a Question widget on our website.