Textile-to-textile recycling has made technological progress, but significant economic and infrastructure challenges continue to limit its expansion to commercial scale, according to a 19-page report, “Textile-to-textile recycling: the business case,” published by global business information company Textiles Intelligence.
The report notes that corporate focus on sustainability has increasingly shifted towards margins, budgets and investment returns. At the same time, climate change is affecting supply chains, raw material prices remain volatile and regulations covering textile waste and circularity are becoming more stringent. As a result, sustainability is increasingly being considered as a financial and strategic issue alongside its environmental implications.
According to the report, textile-to-textile recycling can offer three key business benefits: creating new revenue opportunities through circular products, reducing exposure to supply chain risks and supporting compliance with emerging regulations.
However, the commercial case remains challenging. Recycled fibres are generally more expensive than virgin alternatives, while the infrastructure required to collect, sort and process textile waste is still developing.
Limited Textile Feedstock
Less than 1% of global fibre production currently comes from recycled pre-consumer and post-consumer textiles. A significant proportion of recycled fibre is instead produced from other sources, particularly plastic bottles.
The report also estimates that only around 11% of post-consumer textile waste was collected and sorted into streams suitable for recycling last year. The limited availability of appropriate feedstock remains a constraint for textile-to-textile recycling.
Technology Continues to Develop
Technological developments in textile-to-textile recycling are continuing, with chemical recycling offering the potential to produce fibres with properties comparable to virgin materials.
Companies including Ambercycle, Circ, Circulose and Syre are developing and scaling textile-to-textile recycling technologies. However, high investment requirements, limited feedstock availability, infrastructure needs and energy consumption continue to present challenges for the sector.
The cost difference between recycled and virgin fibres is also significant. Recycled polyester is estimated to cost 2.6 times more than virgin polyester, according to the report.
In Europe, achieving a 15% textile-to-textile recycling rate by 2035 is estimated to require €8 billion–€11 billion (US$9.2 billion–US$12.7 billion) in capital expenditure, along with €5 billion–€6.5 billion in annual operating expenditure.
Policy Expected to Influence Commercial Viability
The report highlights policy as an important factor in making textile-to-textile recycling commercially viable. The European Union’s Ecodesign for Sustainable Products Regulation (ESPR) and extended producer responsibility (EPR) requirements are expected to increase pressure on companies to address the end-of-life impacts of textile products.
Under the existing timetable, national textile EPR schemes should be operational by April 2028, while several countries have already introduced such schemes.
Companies can also help reduce investment risks by providing greater certainty around future demand. Offtake agreements and collaborative purchasing arrangements could give recycling companies greater confidence to invest in additional capacity while helping brands secure supplies of recycled fibres.
The report concludes that while the business case for textile-to-textile recycling is becoming clearer, achieving commercial scale will require more than technological progress. Increased investment, reliable supplies of suitable feedstock, stronger demand for recycled fibres and supportive policy measures will all be required to bridge the gap between technological potential and commercial implementation.
