Biodegradable Fabrics Market Report 2026

The biodegradable fabrics market size has grown rapidly in recent years. It will grow from $7.99 billion in 2025 to $8.96 billion in 2026 at a compound annual growth rate (CAGR) of 12.1%. The growth in the historic period can be attributed to increasing environmental awareness in textile production, growth of sustainable fashion brands, rising demand for natural fiber textiles, expansion of renewable raw material usage, availability of biodegradable fiber technologies.

The biodegradable fabrics market size is expected to see rapid growth in the next few years. It will grow to $14.02 billion in 2030 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period can be attributed to growing adoption of circular textile models, rising demand from apparel and home textile industries, expansion of biodegradable fabrics in medical applications, increasing investments in green textile manufacturing, growing focus on textile waste reduction. Major trends in the forecast period include increasing adoption of natural and regenerated fibers, rising demand for eco-friendly textile processing, growing use of plant-based fiber sources, expansion of functional biodegradable fabrics, enhanced focus on low-impact dyeing techniques.

The increasing use of sustainable materials in the fashion industry is expected to drive the growth of the biodegradable fabrics market in the coming years. The adoption of sustainable materials is expanding due to heightened environmental concerns related to textile waste, as fast fashion has resulted in large quantities of discarded garments being sent to landfills, where they emit harmful greenhouse gases and pollutants. The shift toward sustainable materials in the fashion industry supports the adoption of biodegradable fabrics by boosting demand for eco-friendly textiles that naturally decompose without leaving harmful residues. As fashion brands and manufacturers progressively replace traditional synthetic materials with biodegradable alternatives, they lower their environmental footprint while addressing rising consumer demand for sustainable products. For example, in September 2025, according to Textile Exchange, a US-based nonprofit organization dedicated to advancing sustainability in the textile sector, the proportion of raw materials sourced under sustainability programs by reporting brands increased from 58% in 2023 to 67% in 2024. Consequently, the growing adoption of sustainable materials in the fashion industry is fueling the growth of the biodegradable fabrics market.

Leading companies in the biodegradable fabrics market are leveraging innovative technologies to promote environmental responsibility. Biodegradable synthetic yarn technology enables the production of synthetic fibers, such as polyester and nylon, with additives that allow them to naturally break down in soil or water, reducing microplastic pollution and minimizing the environmental impact of synthetic textiles. For instance, in April 2025, US-based manufacturer Unifi Inc. launched Repreve with Ciclo technology, a line of recycled polyester and nylon fibers enhanced with a biodegradable additive that allows fabrics to degrade naturally in soil and seawater. This innovation reduces microplastic pollution while maintaining durability, performance, and dyeability. By combining recycled content with biodegradable technology, Repreve with Ciclo enables brands, mills, and retailers to provide high-performance, eco-friendly textiles for applications ranging from sportswear and fashion to home textiles and outdoor gear, reflecting the industry’s focus on circular economy principles and sustainable production.

In December 2023, Israel-based textile manufacturer Algaeing partnered with Birla Cellulose to develop sustainable algae-powered cellulosic fibers. The collaboration integrates Birla Cellulose’s expertise in man-made cellulosic fibers with Algaeing’s algae-based fiber technology to create biodegradable, eco-friendly fibers that reduce environmental impact and offer innovative solutions for the textile industry. Birla Cellulose, an India-based company, specializes in producing sustainable, biodegradable man-made cellulosic fibers.

Major companies operating in the biodegradable fabrics market are H & M Hennes & Mauritz AB, Eastman Chemical Company, Teijin Limited, Lenzing AG, Sateri Holdings Limited, PANGAIA Materials Science Ltd., Sinosilk Co. Ltd., Ecovative Design LLC, Renewcell AB, Kelheim Fibres GmbH, Amour Vert Inc., Apex Mills Inc., Greenfibres Ltd., EnviroTextiles LLC, Bast Fibre Technologies Inc., Orange Fiber S.r.l., Toad & Co. Inc., Bolt Threads Inc., Ananas Anam Ltd., Natural Fiber Welding Inc.

North America was the largest region in the biodegradable fabrics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biodegradable fabrics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biodegradable fabrics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biodegradable fabrics market consists of sales of linen, hemp, jute, ramie, kapok, coir, lyocell (tencel), modal, viscose, and rayon. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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