Textile Recycling Market: Closing the Loop in Fashion and Beyond

The global fashion and textile industries are under increasing pressure to address their environmental footprint. Textile recycling, which involves reprocessing old clothing, fabrics, and industrial textiles into new materials, is emerging as a critical solution. By reducing landfill waste, conserving resources, and supporting circular economy initiatives, textile recycling helps industries align with sustainability goals while creating new business opportunities. According to Stratview Research, the Textile Recycling market size was USD 8.14 billion in 2024 and is expected to grow from USD 8.73 billion in 2025 to USD 13.91 billion in 2032, witnessing an impressive market growth (CAGR) of 6.89% during the forecast period (2025-2032).
The Textile Recycling Market is poised for strong growth, fueled by rising environmental concerns, government regulations, and consumer demand for sustainable fashion.
Key Market Drivers
- Sustainability initiatives – Brands and governments are pushing for circular economy models in textiles.
- Waste reduction – Textile recycling helps address the millions of tons of fabric waste generated annually.
- Consumer awareness – Growing preference for eco-friendly fashion and recycled products.
- Industrial demand – Recycled fibers find use in automotive, construction, and home furnishing sectors.
- Technological innovation – Advances in chemical and mechanical recycling improve fiber recovery efficiency.
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Regional Insights
- Europe leads the market, supported by stringent regulations and strong adoption of sustainable textiles.
- Asia-Pacific is the fastest-growing region, with large textile manufacturing bases in China, India, and Bangladesh.
- North America shows steady growth, with increasing consumer demand for sustainable apparel and corporate ESG commitments.
Outlook
Stratview Research highlights that the future of the textile recycling market lies in scaling advanced recycling technologies, integrating with supply chains, and promoting consumer participation. As fashion brands and industries embrace sustainability, textile recycling will play a pivotal role in reducing waste and reshaping global textile production.
In short, the textile recycling market is not just about managing waste — it is about weaving sustainability into the very fabric of industry.
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