Europe textile recycling market 2025-2033: Industry Growth, Share, Size, Key Players Analysis and Forecast

Market Overview 2025-2033

The Europe textile recycling market size reached USD 1,543.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,801.1 Million by 2033, exhibiting a growth rate (CAGR) of 1.7% during 2025-2033. The market is growing due to rising sustainability awareness, increasing government regulations, and demand for circular fashion. Technological advancements, eco-friendly initiatives, and expanding recycling infrastructure are key factors driving industry expansion.

Key Market Highlights:

✔️ Strong market growth driven by increasing sustainability awareness and circular economy initiatives

✔️ Rising demand for recycled fibers in fashion, home textiles, and industrial applications

✔️ Expanding government regulations promoting textile waste reduction and eco-friendly production

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Europe Textile Recycling Market Trends and Drivers:

The Europe textile recycling market is undergoing a significant transformation, driven by stricter environmental regulations and growing consumer awareness of sustainability. The EU’s revised Waste Framework Directive mandates that all member states implement separate textile waste collection systems by 2025. This policy is expected to boost the overall Europe textile recycling market share, as more countries adopt circular economy models. In 2024, leading countries like France and Germany rolled out Extended Producer Responsibility (EPR) schemes, compelling fashion brands to contribute financially to recycling efforts based on their garment output.

As a result, global retailers such as H&M and Zara are now incorporating recycled polyester (rPET) and mechanically processed cotton into at least 30% of their product lines. Moreover, the Ecodesign for Sustainable Products Regulation has encouraged manufacturers to use monomaterial fabrics that are easier to disassemble and recycle. These initiatives are reshaping the textile recycling market in Europe, but significant hurdles remain. Only 12% of post-consumer textiles are currently recycled into new fibers, highlighting the urgent need for improved sorting technology and chemical recycling capabilities.

Startups such as Renewcell (Sweden) and Infinited Fiber Company (Finland) are leading innovation by converting textile waste into biodegradable lyocell fibers. Their partnerships with brands like Adidas, which now sources 40% of its athletic wear from such recycled materials, are expanding the Europe textile recycling market share further. The secondhand apparel market is also fueling growth, with a projected 14% CAGR through 2027, reflecting a consumer shift toward reuse and circular fashion.

However, the rise of ultra-fast fashion, particularly brands like SHEIN, has led to a spike in low-quality textile waste. Between 2020 and 2024, the quality of recycled polyester fibers declined by 22% due to the widespread use of blended fabrics. Emerging solutions like enzymatic hydrolysis and solvent-based separation are beginning to address this issue. Notably, Dutch startup SaXcell, in collaboration with DSM, launched a 10,000-ton-per-year plant in 2024 to produce high-grade cellulose acetate from mixed textile waste.

On the digital front, AI-driven systems like Tomra’s Fibersort are revolutionizing sorting by identifying textile types and colors at a speed of up to 2,000 items per hour—boosting yields by 35%. Despite these advancements, capital-intensive technologies remain a barrier, with chemical recycling facilities requiring initial investments of €200 million or more.

The Europe textile recycling market is further propelled by the EU’s Circular Textiles Policy, which mandates a 50% recycled content threshold in all apparel by 2030. Still, the continent processes only 1.2 million tons of the 7.5 million tons of textile waste generated annually. This supply-demand gap has driven rPET prices up by 45% over virgin polyester, reaching €1,800 per ton by mid-2024.

Regionally, disparities remain. Northern Europe leads with a 65% collection rate, thanks to robust municipal programs, while Southern Europe lags with less than 15% due to informal recovery systems. Still, growing venture capital—€320 million in 2023 alone—signals rising investor confidence in scaling circular solutions. Mechanical recycling, which currently holds an 83% Europe textile recycling market share, is limited by lower output quality. Meanwhile, chemical recycling continues to struggle with contamination issues.

The rollout of digital product passports under the EU Digital Services Act is expected to enhance traceability from design to disposal. Strategic collaborations, like Inditex’s €70 million agreement with Lenzing, point toward a more integrated and transparent supply chain. Although the textile recycling market in Europe faces numerous challenges, its trajectory is clearly toward sustainable growth, driven by policy, innovation, and consumer demand.

Europe Textile Recycling Market Segmentation: 

The report segments the market based on product type, distribution channel, and region:

Study Period:

Base Year: 2024

Historical Year: 2019-2024

Forecast Year: 2025-2033

Breakup by Product Type:

• Cotton Recycling

• Wool Recycling

• Polyester & Polyester Fibre Recycling

• Nylon & Nylon Fibre Recycling

• Others

Breakup by Textile Waste:

• Pre-consumer Textile

• Post-consumer Textile

Breakup by Distribution Channel:

• Online Channel

• Retail & Departmental Stores

Breakup by End Use:

• Apparel

• Industrial

• Home Furnishings

• Non-woven

• Others  

Breakup by Country:

• Germany

• France

• United Kingdom

• Italy

• Spain

• Others

Competitive Landscape:

The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.

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