Textile Recycling Market

The global Textile Recycling Market was valued at USD 6.5 Billion in 2022 and is projected to reach a value of USD 9.9 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.2% between 2023 and 2030.

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Recycled textile is obtained through recycling and recovering old clothing and waste fibrous materials through several treatments. Recyclable textiles are mostly found in municipal waste from old or discarded clothes, tires, footwear, carpets, furniture, and non-durable goods such as sheets and towels. The global Textile Recycling market is expected to be dominated in a growth trajectory during the forecast period. The market for recycled textiles is anticipated to expand due to rising social awareness of Textile Recycling and growing environmental concerns about waste generation. Many initiatives and projects are taking off in the United States, considerably boosting the Textile Recycling rate. The organization in charge of running the donation bins for clothing, shoes, and household goods are called ATRS (American Textile Recycling Services). The expansion of ARTS into new communities around the nation is causing recycling to increase.

As the average life of a given garment gets shorter, there is an increase in the production of textile and clothing waste. Landfill disposal and incineration, which results in greenhouse gas emissions, significantly impact the environment. According to EPA and SMART, recycling textiles significantly lowers greenhouse gas emissions, stimulating economic growth. Furthermore, innovations in recycling practises and ground-breaking research in the area are projected to support market expansion. For instance, LIST Technologies AG displayed a lyocell t-shirt made entirely of recycled material in February 2022 at the International Conference on Cellulose Fibers, announcing a breakthrough in the Textile Recycling business.

Textile Recycling has several advantages for the environment and the economy, including lower energy and water use, less reliance on new fibers, fewer chemical dyes, and reduced land and water pollution. It has recently become a viable strategy for developing sustainability in the garment sector. Due to these advantages, recycled textiles are widely used in various end-use industries, including garments, home furnishings, and other industrial sectors, including retail, automotive, mining, building, and construction.

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Economic Insights

Central banks are anticipated to raise interest rates globally in reaction to inflation. The interest rate increase is inconsistent with patterns seen over the previous 50 years. In the last two quarters, the US's GDP shrank, with losses of -1.6% in the first month and -0.6% in the second. In the third quarter of 2022, when the percentage grew to 2.9%, these losses were reversed. The world economy has been forced to deal with the shocks of rising power prices due to the prolonged conflict between Russia and Ukraine. A fuel price restriction will reportedly be imposed on Russia's petroleum exports starting on February 5 by the European Union, the G-7, and their newest allies.

Top Market Trends

1. Growing Awareness Towards the Environment: The expanding environmental worries about the negative effects of waste incineration, large industrial discharges from textile mills, and the depletion of raw materials, such as silk, wool, etc., are the main factors driving the increased demand for recycled textiles. Also, the high levels of greenhouse gas emissions caused by the expanding manufacture of synthetic and polyester materials have increased the global need for recycled fabrics. With this, rising public awareness of the value of recycling old clothing and increasing availability of collection bins for sorting textiles have further fueled market expansion.

2. Various Innovations within the Dominant Players: Several recycling organizations are developing door-to-door pickup programs for used clothing and educational activities about Textile Recycling. Also, these businesses are implementing cutting-edge methods for collecting post-consumer clothing waste by placing eye-catching cloth bins in public areas, including parking lots, parks, shopping malls, sidewalks, and other high-exposure sites. Also, several technological advancements aided by the increased use of automation in the recycled textile industry have accelerated market expansion. For instance, the introduction of near-infrared (NIR)-spectroscopy technology for automated sorting applications in the recycled textile industry is thanks to Textile for Textile (T4T), a European Commission eco-innovation program.

Market Segmentation

The global Textile Recycling market can be categorized on the following: Material, Source, Process, and Region. Based on Material, the market can be categorized into Cotton, Polyester, Wool, Polyamide, and Other Materials. Furthermore, based on Source, the market can be further split into Apparel Waste, Home Furnishing Waste, Automotive Waste, and Other Sources. In addition, by Process, the market can be fragmented across Mechanical and Chemical. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Material

Cotton to Dominate Market Owing to Rising Demand and Consumption

The global Textile Recycling market is expected to be dominated by the segmental growth of cotton during the forecast period. Cotton is one of the main contributors to textile waste due to its high demand and usage in garments and other textiles. A sizeable portion of the non-renewable textiles gathered for recycling cotton are also included. Wool clothing has a higher inherent durability and a longer shelf life in the textile business. Wool is a material that is easily recycled, and Prato, Italy, is a recognized center for recycled wool. IWTO research indicates that recycled wool has a substantial advantage over pure virgin wool when used and cared for properly. Due to rising apparel sector demand, polyester will grow with the fastest-growing CAGR during the forecast period. Businesses have pledged to replace regular polyester in clothes with recycled polyester to increase the use of recycled polyester.

Based on Source

Apparel Waste to Accommodate the Largest Market Share Owing to Reducing Average Lifespan

The apparel waste is expected to dominate the largest market share for the global Textile Recycling market during the forecast period. Clothing damage, wasted clothing from the post-consumer phase, shoes, and extra fabric from garment manufacturers all fall under the category of apparel waste. The typical lifespan of a new garment has dramatically decreased over the past 20 years, increasing the amount of trash produced by the clothes industry. Home furnishing waste will grow with the fastest-growing CAGR during the forecast period. Textile waste from sofas, beds, curtains, carpets, and pillows is included in household furnishings waste. Worldwide increases in disposable income have led to higher expenditure and more frequent purchases of these things, boosting waste production. A poll found that in the UK, one-third of people discard functioning furniture still in good condition, adding to the country's waste problem.

Based on Process

Mechanical to Dominate Majority Market Share Owing to the Presence of Numerous Players

The mechanical process segment will lead the largest market share during the forecast period in revenue and share. This is primarily attributable to the fact that many market participants recycle textiles mechanically instead of chemically. The mechanical recycling market is developed in the Textile Recycling sector. The majority of the major players have been recycling different textiles mechanically. Cotton is primarily recycled without the use of chemicals through shredding and respinning. Also, most recycled polyester and wool are recycled mechanically rather than chemically. The chemical segment will grow with the fastest-growing CAGR during the forecast period as there has been an increase in research and development and the emergence of innovative solutions. The number of recyclers choosing the chemical process has been steadily increasing over the past ten years in the context of chemical recycling.

Based on Region

Europe to Dominate Global Sales Owing to a Higher Disposable Income

The global Textile Recycling market is expected to be dominated by the region of Europe during the forecast period. European nations tend to have a higher standard of living and spend more money on clothing and fashion, which raises the issue of waste management. According to data from the World Bank on trends in solid waste management, the waste collection rate is greater in European nations. The largest recycling markets in Europe are Germany, Italy, France, Belgium, the Czech Republic, and Poland. Italy is the world's leading center for Textile Recycling and is known as its capital. The Italian Textile and Recycling Association, based in Prato, Italy, where vintage rugs and clothing are customarily gathered from all over the world and turned into yarn, now has more than one hundred enterprises as members.

Asia Pacific will grow with the fastest-growing CAGR during the forecast period. The rise throughout the forecast period is likely driven by rising consumer awareness and interest in regional brands that use recycled materials. For instance, Asia Pacific Rayon released its APR2030 sustainability vision in December 2020, intending to raise the recycled textile content to 20%.

Competitive Landscape

The global Textile Recycling market is expected to grow significantly during the forecast period. Textile Recycling is a niche business continually emerging. The market is fragmented, and significant small-scale players are what define it. To enhance revenue creation and market share, important methods adopted by the key players are technical development, expansion, and merger & acquisition.

The key players in the global Textile Recycling market include - Worn Again Technologies (UK), Lenzing Group (Austria), Birla Cellulose (India), BLS Ecotech (India), Ecotex Group (Germany), The Boer Group (Germany), Unifi Inc. (U.S.), Textile Recycling International (UK), Hyosung Group (South Korea), Martex Fiber (U.S.), Re NewCell (Sweden) among others.

Recent Market Developments

· June 2022: The solid waste recycling rate is currently 4% due to efforts made by the Brazilian Association of Cleaning and Waste Businesses, ABRELPE. National Recycling Day was established on June 5 to increase public awareness of collection, separation, recycling, and reuse.

· July 2020: Through one of its companies, Indorama Ventures Public Company Limited purchased the PET recycling factory of AG Resinas Ltda. The company has purchased a 100% position in the equity share of the company that recycles PET into PET flakes and pellets in Juiz de Fora, Brazil.

Segmentation of the Global Textile Recycling Market