Comprehensive Snapshot for Europe Textile Recycling Market Including Country Analysis in Brief.
Industry: Chemicals and Materials
Delivery Timelines: Please Contact Sales
Published Date: April-2025
Format: PPT*, PDF, EXCEL
Number of Pages: 190
ID: PMRREP35260
Europe textile recycling market size is projected to rise from US$ 1,916.3 Mn in 2025 to US$ 2,966.5 Mn at a CAGR of 6.5% by 2032. This industry growth is driven by the heightened awareness of the environmental consequences of textile waste and the increasing shift towards a circular economy. Recycling textiles conserves essential resources such as water and energy, reduces greenhouse gas emissions, and mitigates landfill pressure. Consumer demand for sustainable products, fueled by concerns over fast fashion’s environmental impact is prompting brands and retailers to incorporate recycled materials, further accelerating market expansion.
Key Industry Highlights:
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Europe Market Attribute |
Key Insights |
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Textile Recycling Market Size (2025E) |
US$ 1,916.3 Mn |
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Market Value Forecast (2032F) |
US$ 2,966.5 Mn |
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Projected Growth (CAGR 2025 to 2032) |
6.5% |
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Historical Market Growth (CAGR 2019 to 2024) |
4.8% |
The European Union's circular economy policies are significantly propelling the growth of the textile recycling market through regulatory mandates, extended producer responsibility (EPR), and systemic changes in production and consumption patterns. Europe’s strategy for sustainable and circular textiles, introduced in March 2022, targets the entire textile lifecycle from design to disposal, emphasizing durability, reparability, and recyclability. By promoting sustainable practices across the industry, the strategy aims to reduce environmental impact and resource consumption in textile manufacturing.
A key pillar is the implementation of EPR schemes for textile-compelling producers to finance the end-of-life management of their products, including collection, sorting, and recycling processes. Additionally, under the Waste Framework Directive, all EU member states will establish separate collection systems for used textiles by 2025. This initiative is expected to substantially boost recycling volumes, driving demand for advanced sorting and treatment infrastructure, especially as the European Commission estimates 12.6 million tonnes of textile waste are generated annually, with less than 1% globally recycled into new products.
Per- and polyfluoroalkyl substances (PFAS), which are used for water and stain resistance, are found in over a third of textiles produced in the EU, including clothing, home textiles, and technical gear such as firefighting suits. These substances are persistent in the environment and difficult to remove during recycling processes, which hampers efforts to reuse and recycle textiles. This issue significantly undermines the European circular economy goals as textiles contribute to 35% of the global demand for PFAS, and while some PFAS are banned, many continue to be used in imported textiles from countries with less stringent regulations.
The health implications of PFAS exposure are profound, including weakened immune systems, endocrine disruption, and a higher risk of cancer. According to the Human Biomonitoring for Europe initiative (HBM4EU), 14.3% of European teenagers have PFAS levels in their blood exceeding health-based guidance.
The European textile sector, employing 1.3 million people with a turnover of EUR 167 billion and over EUR 67 billion in exports, offers a significant opportunity for advancing sustainable practices. With European citizens consuming an average of 26 kg of textiles annually and discarding 11 kg, nearly 87% of which end up incinerated or in landfills, the urgency for scalable recycling technologies and circular economy models is growing. Digital platforms such as Reverse Resources play a vital role by connecting stakeholders across the textile recycling value chain, thereby improving the efficiency of collection, sorting, and processing operations.
Innovative solutions such as Refiberd’s hyperspectral imaging and AI-based material identification are critical enablers of textile-to-textile recycling. As the global winner of the eBay Circular Fashion Fund, Refiberd received $300,000 from eBay Ventures to expand its technology and AI capabilities with new recycling partners. According to a study, Europe’s potential fibre-to-fibre recycling capacity could technically recycle up to 70% of all textile waste by 2030, leading to a reduction in carbon footprint by up to 90% for certain fibre types compared to virgin fibres, along with decreased land, water, and chemical usage.
Fiber identification technologies, particularly FTIR (Fourier-Transform Infrared Spectroscopy) and NIR (Near-Infrared Spectroscopy), have significantly transformed the textile waste sorting process. FTIR provides detailed molecular analysis, enabling precise identification of fiber types, while NIR offers rapid, non-destructive scanning, enhancing the speed and efficiency of sorting systems. These advanced methods enable the automated separation of textiles into their constituent fibers for recycling, which is crucial for improving sustainability in the textile industry.
Projects such as Autorsort, SipTex, and Fibersort have integrated NIR technology alongside RGB cameras to improve sorting accuracy by analyzing fiber composition and color. This fusion of technologies has significantly reduced the need for manual sorting, leading to higher throughput and better-quality recycled fibers. For example, optical separator streamlines the recycling process by combining NIR spectroscopy with artificial intelligence to automate the classification of textile waste by composition, color, and shape.
Based on material, the market is divided into cotton, polyester & polyester fibers, wool, nylon fibers, acrylic, and others. Among these, polyester & polyester fibers are projected to generate a textile recycling market share of about 48.2% in 2025. This dominance is attributed to their affordability, durability, and versatility, which make them a staple in the fast fashion industry. According to the European Commission, Europe generates 5.2 million tons of clothing and footwear waste annually, a significant portion consisting of polyester-based garments. As clothing consumption is expected to rise by 63% by 2030, the fashion industry's carbon footprint will continue to grow, highlighting the need for effective recycling solutions.
Cotton is expected to see a steady growth due to its natural composition, making it easier to recycle into new products. Recycled cotton is used for yarns, fabrics, and garments, reducing the need for virgin cotton and minimizing environmental impacts like water consumption and pesticide use.
In terms of source, the market is segregated into post-consumer waste and pre-consumer waste. Out of these, post-consumer waste is expected to account for nearly 82.6% share in 2025. This is attributed to the increasing awareness of sustainability, the growing demand for circular economy models, and the evolving regulatory landscape that encourages higher textile recycling rates. For instance, companies such as H&M and Patagonia are integrating circular economy principles by incorporating recycled textiles into their product lines and encouraging consumers to return used garments for recycling. Additionally, major retailers such as Zara and IKEA have established in-store collection points for used clothing.
Germany is predicted to generate a market share of 24.7% in 2025 driven by its robust infrastructure for waste collection and recycling. The country has an extensive network of collection points, including street containers and civic amenity sites, ensuring efficient gathering of used textiles. This system leads to high collection rates, crucial for effective recycling operations.
Germany's strong legislative framework further supports its leadership in textile recycling. Regulations such as the German Packaging Act, 2019, and the Circular Economy Act promote sustainable waste management and producers accountable for product lifecycles. These policies, aligned with the EU's Waste Framework Directive, encourage investment in recycling infrastructure and the development of eco-friendly products.
Northern Europe, including Sweden, Finland, Denmark, the Netherlands, and Norway, consistently ranks at the top of sustainability indices in the textile sector. This leadership is driven by four key factors rooted in advanced technological solutions adopted in textile recycling: high-tech innovations, the development of new sustainable materials, a shift away from using the Global South as a dumping ground for textile waste, and the promotion of slow fashion practices.
Denmark achieved a municipal waste recycling rate of 53.9% in 2020, bringing it close to the European Union's 2025 target of 55%. However, recycling rates within the non-household segment remain significantly lower. Only about 10% of textiles discarded by businesses and public institutions are currently reused or recycled, highlighting a critical area for further improvement.
Sweden is experiencing a surge in textile waste following the implementation of new EU regulations that prohibit the disposal of textiles in regular rubbish bins. As a result, recycling centres across the country are overwhelmed with Stockholm alone reporting a 60% increase in clothing drop-offs in January and February compared to same period last year. Although 60–70% of collected textiles are reused and 20–30% are recycled into materials such as insulation 7–10% are still incinerated, partly due to the country’s limited sorting infrastructure. To address this, the EU is advancing legislation that requires fast fashion companies to finance collection, sorting, and recycling of textiles.
The United Kingdom is experiencing a significant cultural shift towards sustainable fashion, driven by the growing adoption of circular economy principles. Initiatives such as second-hand marketplaces, garment repair services, and clothing rental schemes are becoming increasingly popular among consumers seeking environmentally responsible alternatives. For example, Project Re:claim in Northamptonshire, is leading innovation in textile recycling by transforming polyester waste into new yarns. This project aims to recycle 2,500 tonnes of textile waste in 2024, with plans to double this volume by 2025, signaling a strong commitment to reducing landfill dependence and promoting material reuse.
Local authorities are playing an increasingly pivotal role in advancing textile recycling infrastructure and awareness. For example, Torfaen County Borough Council in Wales has expanded its textile recycling services, aligning with the national objective of achieving a 70% recycling rate by 2024–2025. The emergence of digital platforms that enable clothing rental, resale, and repair underscores a societal shift towards circular fashion models, supporting the long-term sustainability of the textile sector.
The Europe textile recycling market is fragmented with small and medium-sized enterprises (SMEs) and large corporations competing. Companies are investing in innovative recycling technologies to improve efficiency and quality in textile recycling, addressing the traditionally resource-intensive process. To ensure a steady supply of recyclable textiles, many recycler partners with fashion brands, material suppliers, and other stakeholders, creating closed-loop systems that continuously reintroduce discarded textiles into the supply chain.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis Units |
Value: US$ Bn/Mn, Volume: As Applicable |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
By Material
By Source
By Recycling Process
By End-user
By Country
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The Europe market is projected to be valued at US$ 1,916.3 Mn in 2025.
Regulatory initiatives and policy frameworks, along with environmental and sustainability concerns the key market drivers.
The market is poised to witness a CAGR of 6.5% from 2025 to 2032.
The increasing consumer demand for sustainable fashion coupled with advancements in recycling technologies is a key market opportunity.
Lenzing AG, Inditex, H&M Group, ANDRITZ and Recover Textile Systems, S.L. are among leading key players.
