Textile-to-Textile Recycling Faces Economic and Infrastructure Challenges
Textile-to-textile recycling has made strong technological progress. However, major economic and infrastructure challenges still limit its growth at commercial scale.
This is according to a 19-page report, “Textile-to-textile recycling: the business case,” published by global business information company Textiles Intelligence.
The report says that corporate focus on sustainability is shifting towards margins, budgets and investment returns. At the same time, climate change is affecting supply chains and raw material prices remain volatile. In addition, regulations on textile waste and circularity are becoming stricter.
As a result, companies are increasingly viewing sustainability as both a financial and strategic issue, alongside its environmental impact.
Business Benefits of Textile Recycling
According to the report, textile-to-textile recycling can offer three main business benefits.
First, it can create new revenue opportunities through circular products. Second, it can reduce exposure to supply chain risks. Finally, it can help companies meet new and upcoming regulations.
However, the business case remains difficult. Recycled fibres generally cost more than virgin fibres. At the same time, the infrastructure needed 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.
Instead, a large share of recycled fibre comes from other sources, especially plastic bottles. This highlights the limited use of textile waste as a feedstock for new textile fibres.
The report also estimates that only around 11% of post-consumer textile waste was collected and sorted into streams suitable for recycling last year.
Therefore, the limited supply of suitable textile waste remains a major barrier to textile-to-textile recycling.
Recycling Technology Continues to Develop
Technology in textile-to-textile recycling continues to advance. In particular, chemical recycling could produce fibres with properties similar to virgin materials.
Companies including Ambercycle, Circ, Circulose and Syre are developing and scaling textile-to-textile recycling technologies.
However, the sector still faces several challenges. These include high investment costs, limited feedstock, infrastructure requirements and energy use.
The price gap between recycled and virgin fibres also remains significant. According to the report, recycled polyester costs an estimated 2.6 times more than virgin polyester.
In Europe, reaching a 15% textile-to-textile recycling rate by 2035 could require €8 billion–€11 billion (US$9.2 billion–US$12.7 billion) in capital expenditure.
The sector could also need €5 billion–€6.5 billion in annual operating expenditure.
Policy Could Improve Commercial Viability
Policy will play an important role in the future of textile-to-textile recycling.
The European Union’s Ecodesign for Sustainable Products Regulation (ESPR) and extended producer responsibility (EPR) requirements are expected to put more pressure on companies to address textile product waste.
Under the current timetable, national textile EPR schemes should be operational by April 2028. Meanwhile, several countries have already introduced such schemes.
Companies can also help reduce investment risks by creating greater certainty around future demand. For example, offtake agreements and collaborative purchasing arrangements can give recycling companies more confidence to invest in new capacity.
At the same time, these agreements can help brands secure future supplies of recycled fibres.
Investment Needed to Reach Commercial Scale
The report concludes that the business case for textile-to-textile recycling is becoming clearer. However, technology alone will not be enough to achieve commercial scale.
The industry will also need greater investment, reliable supplies of suitable textile feedstock and stronger demand for recycled fibres. Supportive policy measures will be important as well.
Together, these factors can help bridge the gap between the technological potential of textile-to-textile recycling and its wider commercial use.
