Industry Updates

Closed-Loop Recycling: From Trash To Treasure

Published: May 3, 2025
Author: Fashion Value Chain

Jaskirat Kaur
M.Des Fashion Technology
Amity School Of Fashion Technology, Mumbai

Introduction

The fashion industry, celebrated for its creativity and perpetual transformation, significantly contributes to global waste and pollution. The growth of fast fashion has resulted in millions of tons of textiles being thrown away annually, ultimately landing in landfills or incinerators. This situation has created an urgent demand for sustainable solutions, among which closed-loop recycling stands out as a promising innovation—a system intended to maintain materials in continuous circulation, thereby minimising waste and environmental damage.

Closed-loop recycling offers an alternative to the traditional “take-make-dispose” model by ensuring that textile waste is recovered, processed, and transformed into new garments. This approach conserves valuable resources and significantly reduces the fashion industry’s carbon footprint. This article will explore the concept of closed-loop recycling, its benefits, challenges, and the brands leading the way toward a more sustainable future.

Understanding Closed-Loop Recycling

The Linear vs. Circular Fashion Economy

Traditionally, the fashion industry follows a linear economy—a system where clothes are manufactured, used for a short period, and then discarded. This cycle contributes to enormous textile waste and excessive resource consumption. In contrast, closed-loop recycling follows a circular model, ensuring that textiles are continually reused, either by breaking them down into raw materials for new fabrics or repurposing them into new clothing items.

How Does It Work?

The closed-loop recycling process involves several key steps:

  • Collection of Used Garments
      1. Consumers return old or unwanted clothes through brand take-back programs, donation centres, or textile recycling bins.
  • Sorting and Fiber Identification
      1. The collected textiles are sorted based on fabric type and condition. Garments made of pure fibres (like cotton, wool, or polyester) are easier to recycle than blended fabrics.
  • Recycling Process
      1. Mechanical Recycling: Fabrics are shredded into fibres and spun into new yarns. However, this often shortens fibre length, reducing durability.
      2. Chemical Recycling: A more advanced method where synthetic fibres like polyester are broken down into their original molecular components and then rebuilt into new fabric.
  • Fabric and Garment Production
    1. The regenerated fibres are used to create new textiles, which are then turned into garments, completing the cycle.

By continuously reusing textiles, closed-loop recycling helps prevent waste and reduces reliance on virgin resources. 

The Importance of Closed-Loop Recycling

  1. Reducing Textile Waste

The fashion industry generates 92 million tons of textile waste every year (Ellen MacArthur Foundation, 2017). The majority of this waste ends up in landfills, where synthetic fibres take hundreds of years to decompose. Closed-loop recycling keeps these textiles in circulation, significantly reducing waste.

  1. Conserving Natural Resources

Textile production consumes massive amounts of natural resources:

  • Cotton production requires about 2,700 litres of water to produce a single t-shirt (WWF, 2020).
  • Polyester, the most widely used synthetic fibre, is derived from petroleum, contributing to fossil fuel depletion.

By recycling fabrics instead of producing new ones, closed-loop systems conserve water, energy, and raw materials while reducing environmental degradation.

  1. Lowering Carbon Footprint 

The fashion industry is responsible for 10% of global carbon emissions (UNEP, 2019). Producing recycled fabrics requires significantly less energy than creating virgin textiles. For example, recycled polyester reduces carbon emissions by 32% compared to virgin polyester (Textile Exchange, 2022).

  1. Encouraging Ethical Consumer behaviour 

Many consumers are now aware of the environmental impact of fast fashion. Brands that adopt closed-loop recycling encourage sustainable shopping habits, offering incentives for customers to return used garments for recycling.

Brands Leading The Closed Loop-Revolution

  1. H&M – Garment Collection Initiative

H&M launched its global Garment Collection Program, allowing customers to drop off old clothing in stores. The collected textiles are sorted for reuse, upcycling, or recycling into new fabrics (H&M Group, 2023).

  1. Patagonia – Worn Wear Program

Patagonia has been a pioneer circularly. Its Worn Wear Program promotes garment repair and resale while also recycling worn-out clothing into new products. The company uses recycled polyester and organic cotton to minimize waste (Patagonia, 2023).

  1. Renewcell – Circulose® Fabric

Swedish company Renewcell developed Circulose®, a material made entirely from discarded textiles. Brands like Levi’s and H&M have already started using Circulose® in their sustainable collections (Renewcell, 2024).

  1. Stella McCartney – A Commitment to Sustainability

Stella McCartney has been an advocate for circular fashion, collaborating with textile recyclers to develop sustainable, high-quality fabrics (Stella McCartney, 2024).

Challenges in Implementing Closed-Loop Systems

  1. Difficulty in Recycling Blended Fabrics

Many garments are made from blended fibres (e.g., polyester-cotton mixes), which are difficult to separate and recycle efficiently. Advances in fibre-to-fibre recycling technology aim to address this challenge (Fashion for Good, 2024).

  1. High Costs of Recycling Technologies

Compared to traditional textile production, closed-loop recycling is costly due to complex fibre recovery processes. However, increasing investments in sustainable innovation are driving costs down.

  1. Consumer Participation and Awareness

Many consumers are unaware of clothing recycling programs or find them inconvenient. Brands need to educate shoppers and provide incentives to encourage participation.

  1. Government Regulations and Industry Support

Stronger government policies, such as textile recycling mandates and tax incentives for sustainable brands, are needed to promote closed-loop systems on a larger scale.

The Future of Closed-Loop Recycling in Fashion

The future of closed-loop fashion looks promising, with innovations such as:

  • Fibre-to-Fibre Recycling: Technologies like Resortecs® and Worn Again Technologies enable better separation and recovery of blended fibres.
  • AI-Driven Textile Sorting: Companies are using AI to improve fabric sorting accuracy, ensuring more garments can be effectively recycled.
  • Biodegradable and Regenerative Textiles: Research in biodegradable fabrics ensures that even discarded garments return to nature without causing pollution.

As sustainability becomes a priority for brands and consumers, closed-loop recycling will play a crucial role in shaping the future of fashion.

Conclusion

Closed-loop recycling is not just an innovative trend—it is a necessity for a sustainable fashion industry. By keeping textiles in continuous circulation, this model reduces waste, conserves resources, and lowers carbon emissions. While challenges remain, technological advancements, brand commitment, and consumer participation are driving the shift towards a circular economy.

The fashion industry must move beyond fast fashion’s disposable culture and embrace solutions that turn trash into treasure. If we work together—designers, brands, governments, and consumers—we can create a future where fashion is not only stylish but also sustainable.

References

  1. Ellen MacArthur Foundation. (2017). A New Textiles Economy: Redesigning Fashion’s Future.
  2. WWF. (2020). The Environmental Cost of Fashion.
  3. UNEP. (2019). Fashion and Sustainability Report.
  4. Textile Exchange. (2022). Preferred Fiber & Materials Market Report.
  5. H&M Group. (2023). Garment Collection Program.
  6. Patagonia. (2023). Worn Wear: Buy Used, Trade In, Repair.
  7. Renewcell. (2024). Circulose®: The Future of Sustainable Fashion.
  8. Fashion for Good. (2024). Scaling Circular Innovations in Textiles.
  9. Stella McCartney. (2024). Sustainable Fashion Practices.

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