Textile-to-textile recycling is making technological progress, but economic and infrastructure challenges continue to limit commercial growth. This is according to a 19-page report, Textile-to-textile recycling: the business case, from Textiles Intelligence.
The report notes that companies are giving greater attention to margins, budgets and investment returns. At the same time, climate change, volatile raw material prices and tighter regulations are increasing pressure on supply chains.
Limited Recycled Textile Feedstock
Textile-to-textile recycling can create new revenue opportunities and reduce supply chain risks. It can also help companies meet emerging circularity and textile waste regulations.
However, recycled fibres often cost more than virgin fibres. Collection, sorting and processing infrastructure also remains limited.
Less than 1% of global fibre production currently comes from recycled pre-consumer and post-consumer textiles. Most recycled fibres come from other sources, including plastic bottles.
The report also estimates that only about 11% of post-consumer textile waste was collected and sorted into suitable recycling streams last year. This limits the feedstock available to recyclers.
Investment Needed for Commercial Scale
Chemical recycling technologies could produce fibres with properties similar to virgin materials. Companies such as Ambercycle, Circ, Circulose and Syre are developing and scaling textile-to-textile recycling technologies.
Despite this progress, high investment costs, limited feedstock and energy requirements remain key challenges.
Recycled polyester also remains more expensive than virgin polyester. The report estimates that recycled polyester costs about 2.6 times more than virgin polyester.
In Europe, achieving a 15% textile-to-textile recycling rate by 2035 could require €8 billion–€11 billion in capital expenditure and €5 billion–€6.5 billion in annual operating expenditure.
Policy and Industry Collaboration
Policy measures could support the commercial development of textile-to-textile recycling. The EU’s Ecodesign for Sustainable Products Regulation and extended producer responsibility requirements are increasing attention on textile end-of-life management.
National textile EPR schemes should be operational by April 2028 under the current timetable. Several countries have already introduced such schemes.
Companies can also reduce investment risks through long-term offtake agreements and collaborative purchasing. These arrangements can provide recyclers with greater demand certainty while helping brands secure recycled fibre supplies.
The report concludes that technological progress alone will not bring textile-to-textile recycling to commercial scale. Investment, reliable feedstock, stronger demand and supportive policies will all be needed to close the gap between technology and commercial adoption.
