U.S. Recycled Fibers Market Size, Share & Trends Analysis Report By Type (Synthetic Recycled Fibers, Natural Recycled Fibers), By End-Use (Textile & Apparel, Automotive, Construction), And Segment Forecasts, 2025 - 2030

U.S. Recycled Fibers Market Size & Trends

The U.S. recycled fibers market size was valued at USD 3.21 billion in 2024 and is projected to grow at a CAGR of 7.6% from 2025 to 2030. The U.S. recycled fibers industry is witnessing steady growth driven by heightened environmental awareness, regulatory support for circular economy practices, and increasing demand from sectors such as packaging, textiles, and automotive. Rising concerns over landfill waste and carbon emissions are prompting manufacturers to incorporate recycled materials into their production lines.

The growth of the U.S. recycled fibers market is primarily driven by the increasing focus on sustainability across various industries. As consumers and businesses become more environmentally conscious, there is a notable shift toward eco-friendly materials, such as recycled fibers, to lessen reliance on virgin resources. Brands in the textile, packaging, and construction sectors are increasingly incorporating recycled fibers into their products to align with corporate social responsibility goals and meet consumer demand for greener alternatives.

Government regulations and policy incentives play a crucial role in promoting the adoption of recycled fibers. Initiatives for reducing waste, recycling mandates, and extended producer responsibility (EPR) frameworks encourage companies to invest in sustainable sourcing and closed-loop systems. In addition, the economic viability of recycled fibers has improved in the recent years with advancements in sorting and processing technologies, making them a more competitive option in several applications.

Furthermore, the emergence of circular business models and innovations in recycling techniques, such as chemical recycling and fiber regeneration, are presenting new market opportunities. These advancements enhance the quality and functionality of recycled fibers and enable their use in high-performance applications that were previously dominated by virgin materials.

Market Concentration & Characteristics

The U.S. recycled fibers market growth is moderate, and the pace of growth is accelerating. The market is characterized by high degree of innovation, driven by the growing need for sustainable solutions and improved fiber performance. Companies are actively investing in R&D to develop advanced recycling processes such as chemical depolymerization, fiber regeneration, and closed-loop recycling systems. These innovations aim to enhance fiber quality, enable multi-cycle reuse, and reduce contamination challenges, especially in blended materials.

M&A activity in the U.S. recycled fibers industry is moderate, with companies seeking vertical integration, access to proprietary recycling technologies, and expansion into new geographies or end-use markets. Strategic collaborations between recyclers and consumer brands are also increasing to secure raw material supply and ensure traceable sourcing. For instance, in January 2025, Danish fashion brand Ganni signed a four-year agreement with Ambercycle to use its recycled polyester material, Cycora, made from post-consumer textile waste. The partnership aims to advance scalable textile-to-textile recycling, support next-gen material adoption, and help Ganni achieve its goal of replacing 20% of its virgin and bottle-derived polyester with circular alternatives.

Product substitutes pose a moderate threat, especially from biodegradable alternatives, virgin fibers with improved eco-profiles, and bio-based materials. The impact of regulations is high, as government mandates and initiatives such as landfill reduction targets, recycling rate goals, and Extended Producer Responsibility (EPR) policies significantly influence industry practices. Regulations encourage the adoption of recycled materials and promote investment in infrastructure to improve collection, sorting, and processing efficiency.End-use concentration is high, with sectors like textiles and apparel accounting for a major portion of demand.

Type Insights

Synthetic recycled fibers held the largest revenue share of 77.3% in the U.S. recycled fibers market in 2024, largely driven by the widespread adoption of recycled polyester in various industries, especially apparel and packaging. These fibers offer superior durability, flexibility, and moisture resistance, which make them ideal for performance-oriented applications. The increasing use of advanced recycling technologies, such as chemical recycling, enhances the quality of synthetic recycled fibers, enabling their use in high-end textile production and industrial applications. As more brands seek alternatives to virgin plastics, synthetic recycled fibers continue to gain traction as a reliable and environmentally efficient substitute.

Natural recycled fibers, such as recycled cotton, wool, and jute, are gaining gradual momentum due to their biodegradability and lower environmental impact. Growing awareness of microplastic pollution and demand for all-natural, low-impact textiles is expected to foster the growth of this segment in the coming years. These fibers are increasingly used in eco-conscious apparel and home furnishings. Innovations in mechanical recycling and sorting technologies are also helping retain the quality of fiber during reprocessing, improving the commercial viability of natural recycled fibers in fashion and other soft applications.

End-use Insights

The textile & apparel segment held the largest revenue share in 2024. This growth is driven by the rising consumer demand for sustainable fashion and brand commitments to circularity and ethical sourcing. Major apparel manufacturers are increasingly incorporating recycled polyester, cotton, and blended fibers into their collections to reduce environmental impact and meet ESG targets. The growth of second-hand clothing markets and fiber-to-fiber recycling innovations has also strengthened the segment, while collaborative initiatives between brands and recyclers are enhancing material recovery and reuse at scale.

The automotive application segment is expected to record growth from 2025 to 2030. Automakers are increasingly adopting recycled materials in interiors, insulation, and non-structural components to reduce vehicle weight and comply with sustainability regulations. Integrating recycled fibers in headliners, carpets, and seat fabrics aligns with the industry’s shift toward greener production and electric vehicle platforms. Technological advancements in fiber processing and rising pressure to minimize the carbon footprint of automotive manufacturing are further favoring the adoption of recycled fiber solutions in this sector.

Key U.S. Recycled Fibers Company Insights

The U.S. recycled fibers industry features a mix of established players and emerging innovators focusing on sustainable material solutions. Key companies, such as Unifi, Inc., Martex Fiber, and Leigh Fibers, actively invest in advanced recycling technologies and expand their product lines to meet rising demand across textiles, automotive, and packaging sectors. Many of these players are forming strategic partnerships with global brands to integrate recycled fibers into large-scale production while promoting closed-loop systems. Continuous efforts in R&D and material innovation are central to maintaining competitiveness and addressing the evolving sustainability standards in the market.

Recent Developments

• In January 2025, Reclaimed Cleaning Textiles, a subsidiary of RTCM Holdings, acquired United-Southern Waste Material Company to form the largest textile recycling operation in North Texas. The acquisition aims to expand recycling capacity and support the company’s goal of diverting 100 million pounds of textiles from landfills annually.

• In October 2024, Syre announced plans to establish a textile chemical recycling plant in Cedar Creek, North Carolina, in partnership with polyester producer Selenis. The facility, set to be operational by mid-2025, aims to produce 10,000 metric tons of chemically recycled polyester annually to support scalable, circular textile production.

• In August 2024, UNIFI launched a globally available line of circular polyester products made from textile waste as part of its Textile Takeback initiative. This move aims to promote sustainability by transforming discarded textiles into high-quality, recycled polyester for various applications.

U.S. Recycled Fibers Market Report Scope

U.S. Recycled Fibers Market Report Segmentation

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. recycled fibers industry report based on type and end use.

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Synthetic Recycled Fibers

  • Natural Recycled Fibers

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Textile & Apparel

  • Automotive

  • Construction

  • Others