The global textile recycling market was valued at USD 4.9 billion in 2025 and is projected to reach USD 5.1 billion in 2026 and USD 6.9 billion by 2033, expanding at a CAGR of 4.4% from 2026 to 2033. Europe led the global market in 2025, accounting for 29.2% of total revenue.

Growing environmental concerns surrounding textile waste, increasing awareness of textile recycling, and the need to reduce the environmental impact of textile disposal are key factors supporting market growth. The increasing emphasis on resource recovery, circular economy practices, and sustainable production is also creating opportunities for textile recycling technologies and services.

Textile Recycling Market at a Glance

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Key Market Trends and Insights

Cotton Leads the Market by Material

The cotton segment accounted for 69.1% of global textile recycling revenue in 2025, making it the leading material category. The high volume of cotton-based textile products entering the waste stream and the potential to recover fibers for reuse support demand for cotton recycling.

Home Furnishing Waste Represents a Significant Source

By source, home furnishing waste held a 32.3% market share in 2025. The growing volume of discarded household textiles, including furnishings and other fabric-based products, provides a substantial feedstock for recycling operations.

Mechanical Recycling Remains the Dominant Process

The mechanical recycling segment dominated the market with a 70.2% share in 2025. Mechanical recycling remains widely used because it can process textile materials through established fiber recovery and material separation techniques.

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Regional Textile Recycling Market Insights

Europe: Largest Regional Market

Europe accounted for 29.2% of global textile recycling revenue in 2025, making it the largest regional market. Strong environmental awareness, sustainability initiatives, and increasing emphasis on textile waste reduction are supporting the adoption of recycling practices across the region.

Germany held the largest country-level market share in 2025, supported by the country's established textile industry, recycling infrastructure, and focus on sustainable resource management.

Asia Pacific: Fastest-Growing Region

Asia Pacific is projected to register the highest CAGR from 2026 to 2033. Expanding textile manufacturing activity, rising textile consumption, increasing urbanization, and growing awareness of waste management are expected to support regional market growth.

Textile Waste and the Growing Need for Recycling

The large volume of discarded textiles is increasing pressure on waste management systems and creating greater demand for recycling solutions. According to the U.S. Environmental Protection Agency (EPA), textile waste accounts for approximately 5% of landfill space.

The U.S. is also one of the world's major producers and consumers of textile-related products. The substantial quantity of discarded clothing and other textile products creates significant opportunities for collection, sorting, reuse, and recycling.

According to the Council for Textile Recycling, the average U.S. consumer discards approximately 70 pounds of textiles annually. This volume of textile waste highlights the need for more effective recycling infrastructure and circular approaches to textile production and consumption.

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Market Dynamics

Growing Environmental Consciousness Regarding Textile Disposal

Increasing environmental awareness regarding textile disposal is a major driver of the global textile recycling market. Textile recycling and upcycling can help conserve water, raw materials, and energy while reducing the environmental impact associated with conventional textile production.

Recycling also provides an alternative to textile incineration and landfill disposal. Recovering fibers and other materials from discarded textiles can reduce dependence on virgin resources and support more efficient resource utilization.

The transition toward circular economy models is further encouraging manufacturers, brands, retailers, consumers, and waste-management companies to prioritize textile collection, reuse, and recycling. These developments are expected to contribute to continued market expansion during the forecast period.

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Key Textile Recycling Companies

Leading companies profiled in the global 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

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