Textile recycling market predicted to hit 11.88 billion USD by 2030

The recycled textile market could be worth more than you’d think, as the global sector is showing signs of significant growth. Driven by a rising demand for sustainable materials, government regulations promoting circular economy practices, and urgent environmental challenges, a new report indicates the global textile recycling market could be worth as much as 11.88 billion US dollars by 2025.

Up from 8.41 billion US in 2025, this increase in market size is fuelled by a strong CAGR demand of 7.2 percent from 2026 to 2030, according to the report “Textile Recycling Market by Material,” from MarketsandMarkets. So what are some of the main factors fuelling this shift? As both the global use of textiles and demand for fast fashion grow, so do concerns for textile waste.

Textile waste remains a key driver for recycling market growth

With approximately 94 million tonnes of textile waste produced globally each year, most ends up polluting the environment in landfills or incinerators, as outlined by the UN Environment Programme. Consumer awareness is pushing brands and retailers toward circular business models and recycled materials, while governments worldwide are enacting stricter regulations such as Extended Producer Responsibility and landfill bans. In addition, advances in mechanical and chemical recycling technologies are also making it easier, more accessible, and more practical to process complex fiber blends, offering long-term cost savings while supporting ESG goals for sustainability-focused businesses.

Today, textile recycling is most seen in apparel, industrial, institutional, home furnishings, and other end-use industries and usually includes various man-made and natural fibers like cotton, polyester, wool, nylon, and rayon. Polyester (fabric and fibers) is expected to show the highest CAGR to 2023 due to its widespread global use and compatibility with chemical recycling technologies. A synthetic fiber primarily made from petroleum-based chemicals, polyester accounts for over half of all fiber production globally, particularly in fast fashion and activewear, generating massive volumes of recyclable waste. Advances being made in regards to chemical recycling now allow polyester to be depolymerized and reconstituted into virgin-quality fibers, fueling production of recycled polyester (rPET) that brands from H&M to Patagonia and Adidas are increasingly integrating into products.

In particular, pre-consumer textile waste is projected to grow fastest due to improved production efficiency efforts and legislative pushes, according to the report. Pre-consumer waste, which includes cutting scraps, excess production materials, and defective items, is more consistent in fiber type and less contaminated than post-consumer waste, making it ideal for both mechanical and chemical recycling processes. As more brands, retailers, and manufacturers aim to reduce their waste, many are developing closed-loop systems to recycle textile waste internally. The sharpened focus toward zero-waste manufacturing and landfill diversion is driving capital flows into pre-consumer recycling systems, making it the fastest-expanding segment in textile waste processing.

Asia Pacific Region expected to lead textile recycling market growth

Overall, online channels showed the highest levels of growth for textile recycling due to their convenience and scalability in connecting with environmentally conscious consumers. Digital platforms like RECYCLE by Refashion simplify textile pickup scheduling, donations, and resale while supporting reverse logistics and direct-to-recycler models that reduce costs and improve collection efficiency. Brands from Coach to Patagonia are offering upcycled or recycled products online, further promoting transparency and traceability. Social media strategies are also driving participation rates, particularly with Millennial and Gen Z consumers. The rapid expansion of internet access worldwide, notably in developing economies, is fundamentally transforming the collection, distribution, and marketing of recycled textile products.

Lastly, the report found that the Asia Pacific is expected to show the highest growth in both value and volume, driven by its dominant textile manufacturing base and increasing policy focus on sustainable waste management. Countries such as China, India, Bangladesh, and Vietnam generate vast amounts of textile waste, but governments are slowly introducing regulations to reduce landfill dependency and promote circular economy models. Likewise, international brands like H&M are investing in building regional recycling infrastructures to advance textile recycling.

As sustainability regulations tighten globally and consumer demand for responsibly made products increases, textile recycling is positioning itself as a critical component for the future of circular business models for brands and retailers.