Textile Recycling Market to Attain USD 11.39 Bn by 2031 with Asia Pacific Holding 46.10% Share in 2025, Reports Mordor Intelligence

HYDERABAD, India, April 2, 2026 /PRNewswire/ -- According to Mordor Intelligence, the textile recycling market size valued at USD 6.62 billion in 2025, is projected to grow from USD 7.25 billion in 2026 to approximately USD 11.39 billion by 2031, growing at a CAGR of 9.48%. Increasing regulatory pressure, especially from the European Union's Extended Producer Responsibility (EPR) frameworks, is transforming textile waste into a viable revenue opportunity and influencing capital allocation. Leading fast-fashion companies are securing long-term sourcing agreements for recycled fibers, supporting investment in advanced recycling technologies such as depolymerization. While Asia continues to benefit from strong feedstock availability due to its manufacturing base, the Middle East is emerging with supportive circular economy initiatives. At the same time, improvements in chemical recycling are narrowing the performance gap with virgin materials, although high investment requirements and energy demands remain key challenges. 

Textile Recycling Market Growth Drivers 

Advancing Closed-Loop Polyester Through Next-Generation Recycling Technologies: Advancements in chemical depolymerization are accelerating the shift toward closed-loop polyester recycling. Companies such as Circ, Syre, and Eastman are moving forward with large-scale projects, demonstrating the ability to produce high-quality output comparable to virgin materials while significantly reducing environmental impact. At the same time, academic research is introducing faster and more efficient processes, making large-scale adoption increasingly practical. Strong collaborations with fiber manufacturers are also helping secure consistent material supply and demand, reinforcing chemical recycling as an important complement to traditional mechanical methods. As industry confidence grows, these technologies are attracting increased investor interest and policy support. This momentum is expected to further strengthen the commercial viability of chemical recycling in the coming years. 

"The textile recycling market reflects steady alignment between regulatory direction and evolving supply chain practices, with progress in varying region and end-use adoption" says Jayveer V, Senior Research Manager, Mordor Intelligence. "This analysis applies consistent data triangulation and cross-market validation, supporting more dependable comparisons than many fragmented or single-source industry reports." 

EPR Policies Reshaping Textile Recycling Across Key Global Markets: The rollout of Extended Producer Responsibility (EPR) under the EU's Green Deal is transforming how textile waste is managed, placing greater accountability on producers. With mandatory separate collection now in effect, companies are increasingly responsible for the end-of-life handling of their products, encouraging more sustainable design and recycling practices. Countries like France and the Netherlands are already demonstrating how structured funding and early adoption can significantly improve recycling efficiency and infrastructure development. Similar regulatory approaches are emerging beyond Europe, with regions like California adopting comparable frameworks to ensure consistency and avoid policy gaps. This growing alignment is creating a more predictable investment environment, reducing risks for stakeholders, and supporting the expansion of localized recycling facilities. 

Textile Recycling Market Share by Region 

Asia-Pacific remains the leading region in textile recycling, driven by its large-scale textile manufacturing base and substantial generation of post-production waste from export-focused apparel industries. China accounts for a significant share of global textile waste, although regulatory constraints around recycled material usage have influenced how much of this is processed domestically. Vietnam is increasingly positioning itself as a preferred hub for large recycling investments, supported by policy incentives and strong links to production clusters. In India, infrastructure limitations continue to challenge large-scale reuse, but rising government initiatives and private sector involvement are gradually improving recycling adoption and long-term capacity. 

Europe continues to set the pace for global textile recycling through strong regulatory frameworks, with upcoming Extended Producer Responsibility measures expected to significantly increase collection volumes by the end of the decade. These policies are reshaping industry behavior by making producers more accountable for textile waste and encouraging higher recycling integration across value chains. In North America, a mix of state-level regulations and broader coordination efforts is creating new growth avenues, particularly in fiber-to-fiber recycling systems. Meanwhile, South America is gradually entering the space, with emerging initiatives in countries like Brazil and Chile reflecting a broader recognition of recycling as both an environmental and employment-generating opportunity. 

Major Segments Highlighted in the Textile Recycling Market Report 

By Material 

• Cotton  
• Polyester and polyester-based fibers  
• Wool materials  
• Nylon and nylon-derived fibers  
• Other fibers including silk, acrylic, and blended textiles  

By Waste Source 

• Pre-consumer waste such as manufacturing off-cuts and yarn residues  
• Post-consumer waste including discarded clothing and household textile materials  

By Application End-user 

• Apparel and fashion industry applications  
• Industrial uses such as wipes, filtration systems, and protective equipment  
• Home furnishing and carpet manufacturing  
• Automotive and transportation sector applications  
• Construction and building materials  
• Other consumer and retail-based applications  

By Recycling Process 

• Mechanical recycling methods  
• Chemical recycling processes including depolymerization and dissolution techniques  
• Thermal and energy recovery approaches  

By Geography 

• North America region  
  • United States  
  • Canada  
  • Mexico  
• South America region  
  • Brazil  
  • Argentina  
  • Chile  
  • Rest of South America  
• Europe region  
  • Germany  
  • United Kingdom  
  • France  
  • Italy  
  • Spain  
  • Benelux countries  
  • Nordic countries  
  • Rest of Europe  
• Asia-Pacific region  
  • China  
  • India  
  • Japan  
  • South Korea  
  • ASEAN countries (including Indonesia, Thailand, Philippines, Malaysia, Vietnam)  
  • Rest of Asia-Pacific  
• Middle East and Africa region  
  • Saudi Arabia  
  • United Arab Emirates  
  • Turkey  
  • South Africa  
  • Nigeria  
  • Egypt  
  • Rest of Middle East and Africa 

Overview – Textile Recycling Industry    

Textile Recycling Companies: Covers Global and regional market overview, key segment breakdowns, available financial insights, strategic developments, product and service landscape, and recent industry updates. 

• Lenzing AG  
• Birla Cellulose (part of Aditya Birla Group)  
• Unifi Inc.  
• Renewcell AB  
• Worn Again Technologies  
• Waste Management Inc.  
• American Textile Recycling Service  
• Boer Group Recycling Solutions  
• I:CO (I:Collect GmbH)  
• Infinited Fiber Company  
• Eastman Chemical Company (Naia™ Renew)  
• Circ LLC  
• Carbios SA  
• Loop Industries Inc.  
• Soex Group  
• Textile Recycling International  
• Evrnu SPC  
• Pistoni SRL  
• Gemini Corporation NV  
• The Woolmark Company 

Get in-depth industry insights on the textile recycling market research report: https://www.mordorintelligence.com/industry-reports/textile-recycling-market?utm_source=prnewswire 

Explore related reports from Mordor Intelligence 

Recycled Plastics Market Size: The recycled plastics market is estimated to be valued at USD 72.66 billion in 2025, rising to USD 77.93 billion in 2026 and expected to reach USD 111.10 billion by 2031, expanding at a CAGR of 7.35%. Growth is increasingly being shaped by regulatory frameworks, particularly in the European Union, where the Packaging and Packaging Waste Regulation is introducing mandatory recycled content requirements across multiple plastic packaging segments starting in 2026, significantly influencing supply chain strategies and material sourcing decisions. 

E-waste Management Market Share: The e-waste management market is categorized by material type, including metals, plastics, and other recoverable components. It is further segmented by source into IT and telecommunication equipment, consumer electronics, and additional electronic waste categories. Based on service type, the market covers collection, transportation and sorting, as well as disposal and treatment activities. Regionally, the analysis spans North America, South America, Europe, and the Middle East & Africa, among other areas. Market sizing and forecasts are presented in terms of value (USD). 

Global Waste Management Market: The waste management market is dominated by major players such as Veolia, Waste Management Inc., and Suez, though regional specialists continue to play an important role. Industry leaders are increasingly focusing on vertical integration and expanding across water, energy, and recycling value chains, including advanced waste processing technologies. At the same time, investments in automation, robotic sorting facilities, and smart fleet solutions are improving operational efficiency and enabling higher-value material recovery. These advancements are widening the competitive gap, pushing smaller operators toward partnerships or niche-focused strategies. 

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