Textile Recycling Market Size, Share & Trends Analysis Report By Material (Cotton, Polyester, Wool, Polyamide), By Source (Apparel), By Process (Mechanical), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global textile recycling market size was estimated at USD 4.54 billion in 2021 and is expected to expand at a CAGR of 2.7% from 2022 to 2030. The increasing environmental concern about waste production and rising social awareness about textile recycling is expected to propel the growth of the textile recycling market. In addition, the outbreak of the COVID-19 pandemic a had negative impact on the global market growth. Due to restrictions and barriers to performing the pre-recycling process, the textile recycling process is experiencing a setback. This resulted in clothes and textiles piled up in warehouses impacting the market growth. In the U.S., various programs and start-ups are gaining momentum, contributing significantly to the increasing rate of textile recycling. ATRS (American Textile Recycling Services) is the donation bin operator for donation and collection services of clothing, footwear, and household items. ARTS is continuously expanding to new cities in the country driving the growth of recycling.

Clothing and textile waste production is rising continuously as the average life of a particular garment is decreasing. This has a huge impact on the environment due to landfill disposal and the incineration process, giving rise to greenhouse gas emissions. According to EPA and SMART, the recycling of textiles has a major impact on reducing greenhouse gas emissions, thus acting as a growth driver. Furthermore, developments in recycling techniques and groundbreaking research in the field are anticipated to facilitate the growth of the market.

For instance, LIST Technology AG, announced a breakthrough in the textile recycling industry, and presented a lyocell t-shirt made from 100% recycled material, in February 2022, at the International Conference on Cellulose Fibers. The market growth is significantly restrained by the limited availability and accessibility of suitable recyclable material. Most of the time the fabric material is blended which makes the sorting process difficult, along with the following recycling process. Moreover, in developing countries, the collection and sorting process is undertaken by informal vendors affecting the overall recycling rate and market growth. 

Material Insights

The cotton material segment held 69.9% of the global textile recycling revenue share in 2021 and is anticipated to reveal a CAGR of 2.5% in the forecast period. The demand and consumption of cotton in clothing and other textiles are high, making it one of the major contributors to textile waste. Also, the non-renewable textiles collected for recycling cotton account for a significant share. In the textile industry, wool garments are naturally durable and can stay in circulation for a longer period. Wool is a readily recyclable textile and a well-known hub for wool recycling is in Prato, Italy. According to a study by IWTO, with best practices of use and care, recycled wool can significantly impact relative virgin pure wool products.

The polyester recycling segment accounted for 11.47% of the revenue share in 2021 and is expected to register a CAGR of 3.8% during the forecast period. Polyester recycling is gaining momentum due to increasing demand from the apparel industry, where companies have committed to increasing the use of recycled polyester in clothing by replacing normal polyester. In polyamide recycling, nylon recycling is majorly done, and most of the recycling is done by the chemical recycling process. The nylon recycling process has many technical challenges, and a relatively limited number of companies currently recycle nylon. Polyamide for recycling is mostly sourced from pre-consumer fabric waste, sometimes post-consumer sources such as fishing nets.

Source Insights

The apparel waste segment accounted for 28.75% of the global textile recycling revenue in 2021 and is expected to exhibit a CAGR of 3.1% in the forecast period. Apparel waste consists of waste produced by the leftover fabric during the manufacturing, damaged garments, post-consumer discarded clothes, and shoes.  Over the last two decades, the average lifespan of a new garment has reduced significantly, resulting in more waste production from the apparel industry.

Home furnishing waste consists of textile waste generated from pillows, carpets, rugs, bedsheets, curtains, and sofas. Increasing disposable income across the world has resulted in the increased spending and frequent purchasing of these products, simultaneously giving rise to the generation of waste. According to survey, in the U.K., one-third of the people throw away still-intact, functional furniture, hence generating excess waste.

The automotive waste segment accounted for 24.36% of global revenue in 2021 and is expected to witness growth at a CAGR of 2.9% in the forecast period. Textile used in automobiles includes carpets, seat cover, cushion, roof liners, door liners, tyre, filters, and air bags. Increasing vehicle ownership in developing nations is also creating problem of automotive waste. Increasing automotive waste management initiatives likely to prompt growth in the market.

RCS (Recycled claim standard) and GRS (Global recycled standard) are the international standards for the certification of recycled material for third party. The goal of the standards is to facilitate the use of recycled materials, increasingly. This also provides consumers as well as brands to make informed decisions and drive sustainability, thus thriving the market growth.  

Process Insights

By process, the textile recycling market is segmented into mechanical and chemical processes. The mechanical segment led the market share and accounted for 71.0% of the market revenue share in 2021 and is anticipated to reveal a CAGR of 2.5% in the forecast period. This is mainly credited to a large number of players in the market recycling textiles using a mechanical process comparatively more than the chemical process.

In the textile recycling industry, there is maturity in the mechanical recycling market. Most of the key players have been using the mechanical process of recycling various textiles. Cotton is majorly recycled by shredding and re-spinning without the use of chemicals. Also, most of the polyester and wool are mechanically recycled, rather than the chemical process.

The chemical process segment accounted for 29.03% of the global revenue and is expected to grow at a CAGR of 3.4% during the forecast period. With increasing research and development, new solutions have been emerging in the chemical recycling market. Over the last decade, in the chemical recycling landscape, the number of recyclers opting for the chemical process is growing continuously.

For instance, in May 2022, Teijin Frontier Co. announced the development of a new recycling technology using a depolymerization catalyst. With this new technique, colored polyester can be recycled without the loss of quality of the original polyester. Moreover, the new process also uses less energy than the previous transesterification.

Regional Insights

Europe led the textile recycling market and accounted for 29.78% of the global revenue share in 2021 and is expected to reflect a CAGR of 2.3% during the forecast period. Higher living standard and spending on fashion and apparel are observed in European countries, which also raise the problem of waste management. In European countries, the waste collection rate is higher, according to the world bank data on trends in solid waste management.

In Europe, the biggest market for recycled apparel are Germany, Italy, France, Belgium, Czech Republic, and Poland. Italy is a well-known hub for the recycling textile and is the capital of textile recycling. Over a hundred companies have joined the Italian Textile and Recycling Association located in Prato, Italy, where traditionally old rugs and clothes are collected from all over the world and converted into yarn.

The Asia Pacific region accounted for a revenue share of 21.55% and is anticipated to register a CAGR of 3.3% in the forecast period. Increasing consumer awareness and increasing interest in local brands in recycled materials are likely to drive the growth during the forecast period. For instance, In December 2020, Asia Pacific Rayon announced a ten-year sustainability vision, APR2030, , with the aim to increase recycled textile content to 20%.

According to Agencia Brasil, in June 2022, solid waste recycling rate is around 4%, as initiatives are being taken by the Brazil’s Association of Cleaning and Waste Companies, ABRELPE. For this, June 5 was declared as National Recycling Day, with the aim to increase the awareness of collection, separation, recycling, and reuse among the people.

Key Companies & Market Share Insights

The global market of textile recycling is still niche and at the developing stage. The market is fragmented and is characterized by the presence of small-scale key players. Key strategies opted by the key players include technological development, expansion, and merger and acquisitions, to increase revenue generation and market share. In June 2020, the PET recycling facility of AG Resinas Ltda. was acquired by Indorama Ventures Public Company Limited through one of its subsidiaries. The company has acquired a 100% stake in the equity share, which is located at Juiz de Fora, Brazil, and processes post-consumer PET into recycled flakes and pellets of PET.

Some prominent players in the textile recycling market include:

• Worn again technologies

• Lenzing Group

• Birla Cellulose

• BLS Ecotech

• The Woolmark Company

• iinouiio Ltd

• Ecotex Group

• The Boer Group

• Unifi, Inc.

• Textile Recycling International

• Hyosung Group

• Martex Fiber

• Re:NewCell

• Pistoni S.r.l

• RE TEXTIL Deutschland GmbH

Textile Recycling Market Report Scope

Global Textile Recycling Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the textile recycling market based on material, source, process, and region:

• Material Outlook (Revenue, USD Billion, 2017 - 2030)

  • Cotton

  • Polyester

  • Wool

  • Polyamide

  • Other

• Source Outlook (Revenue, USD Billion, 2017 - 2030)

  • Apparel Waste

  • Home Furnishing Waste

  • Automotive Waste

  • Other

• Process Outlook (Revenue, USD Billion, 2017 - 2030)

  • Mechanical

  • Chemical

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE