Published Date : 2025-Jun-24
Textile recycling refers to the recovery and reuse of fibers, fabrics, and garments from pre- and post-consumer textile waste. It’s at the center of the circular fashion movement, addressing both sustainability goals and raw material shortages.
The market is expected to develop at a CAGR of 3.2%, reaching a value of USD 6137.8 Million by 2031.
This post profiles the global companies that are leading in the market.
Market Size (2023): $4800+ Million
Projected Market Size (2031): $6100+ Million
CAGR (2023–2031): 3.1+%
Main Drivers: Sustainable fashion mandates, increasing landfill regulations, textile waste awareness, circular supply chain pressure.
The market is anticipated to increase as a result of growing social awareness of textile recycling and environmental concerns about the generation of textile waste. The Environmental Protection Agency (EPA) estimates that textile waste takes about 5% of landfill area. Every year, the United States generates around 25 billion pounds of textiles, or 82 pounds per person. Over the course of the forecast period, the demand for textile recycling is anticipated to be driven by the aforementioned factors. Recycling textile waste contributes to environmental sustainability. One possible recycling strategy that minimizes its negative effects on the environment and maximizes the saving of energy, raw materials, and water is upcycling. In addition, recycling textiles has a smaller environmental impact than landfilling or burning them. The recovery of resources can have a significant positive environmental impact by substituting products generated from primary resources. Over the course of the projected period, all of the above-mentioned variables are anticipated to accelerate market growth.The United States is one of the world's top producers of goods related to textiles, according to the National Council of Textile Organization of the United States. Furthermore, there is a significant amount of waste produced in the United States from wasted textiles.
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Company | Founded | Headquarters | Employees | Revenue (2024) |
Lenzing AG | 1938 | Austria | 7,900+ | +$2.57B |
Worn Again Technologies | 2005 | UK | 50+ | +$10M |
Renewcell | 2012 | Sweden | 100+ | +$17M |
Sedo Treepoint | 1951 | Germany | 1,000+ | +$600M (group) |
Boer Group | 1980s | Netherlands | 1,200+ | +$200M |
American Textile Recycling Service | 2001 | USA | 300+ | +$50M |
Circ | 2011 | USA | 100+ | +$8M |
Unifi Inc. | 1971 | USA | 100+ | $697M |
Resortecs | 2017 | Belgium | 100+ | +$2M |
Circular Systems SPC | 2021 | US | 100+ | +$4M |
High Fragmentation: Market includes legacy players, niche innovators, regional vendors.
Partnership-Driven Growth: Collaborations between brands, recyclers, NGOs, and regulators are fueling expansion.
Barrier: Sorting complexity and cost of chemical recycling remain a challenge for large-scale scalability.
Circular economy enforcement: Brands are under pressure to comply with take-back and waste minimization mandates.
Chemical recycling innovation: Technologies like molecular regeneration and cellulose extraction are scaling.
AI for textile sorting: Real-time image recognition helps automate and improve recycling yields.
Rise of fiber-to-fiber recycling: Companies like Renewcell and Circ are leading this charge.
Brand + recycler partnerships: H&M, Adidas, and Levi’s have committed to sustainable sourcing collaborations.
Asia-Pacific: Fastest-growing, Rapid urbanization and manufacturing footprint (India, China, Vietnam) drive industrial-scale recycling.
Europe: Leading Region, Strong regulations and waste reduction targets make the EU a leader.
North America: Growing consumer pressure, brand accountability, and innovation hubs (California, New York).
Middle East & Africa: Emerging textile hubs in Egypt, Turkey, and South Africa are adopting circular models.
By Type: Mechanical Recycling, Chemical Recycling
By Source: Pre-consumer, Post-consumer
By Material: Cotton, Polyester, Wool, Nylon, Blends
By End-Use: Apparel, Industrial, Household, Automotive Textiles
By Technology: Sorting, Shredding, Depolymerization, Regeneratio
Q1. What is textile recycling?
The process of recovering fibers from old clothes and fabrics to reprocess into new products or raw materials.
Q2. Which companies are leading textile recycling in 2025?
Lenzing, Renewcell, Unifi, Worn Again, and Circ are global leaders in different recycling niches.
Q3. Is textile recycling profitable?
Yes, especially with rising raw material prices, ESG pressures, and government incentives for circularity.
Q4. What are the challenges?
Fiber blend separation, contamination, and limited consumer participation in recycling schemes.
Q5. Who are the emerging players?
Evernu, Resortecs, Infinited Fiber Company, and Refiberd are pioneering scalable innovations in 2025.
Q6. What’s the future outlook?
Strong growth, especially with digital textile ID tags and policy-driven mandatory recycling.
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