The European textile recycling sector is growing since there is an increasing awareness among governments, fashion brands, textile producers, retailers, and customers about circularity, waste management, and sustainable materials. With increased awareness about textile waste and fast fashion environmental impacts, more recycled fibers are being used in the production of apparel, household textiles, automotive, and other industries. Improved sorting processes, chemical recycling, mechanical recycling, and brand-specific take back initiatives are also boosting textile recycling across the continent.
According to SNS Insider, the Europe Textile Recycling Market was worth around USD 2.23 Billion in 2025 and will grow to be around USD 4.09 Billion by 2035, growing at a CAGR of approximately 6.25% between 2026 and 2035. Europe held a market share of about 35.14% of the worldwide textile recycling revenue in 2025 and was the largest regional market. The worldwide Textile Recycling Market was worth USD 6.34 billion in 2025 and is anticipated to be USD 11.13 billion by 2035, growing at a CAGR of 5.79%.
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Circular Economy Policies Are Strengthening Europe’s Market Position
The European region dominates the global market owing to policies related to circular economy, stringent waste management laws, developed recycling infrastructure, and sustainability in the Ai fashion industry. The development of Extended Producer Responsibility schemes, initiatives related to reduction of landfilling, and pressure from brands to handle post-consumer waste are motivating the companies to invest in collecting, sorting, and fiber recovery systems.
Germany, United Kingdom, the Netherlands, and the Nordics are some of the most active regions in this market. Germany and the United Kingdom have been profiting from the developed collection system, advanced sorting technology, and increased investments in the fiber-to-fiber recycling process. Consumer demand for sustainable products is also boosting recycled polyester, regenerated cellulose, recycled cotton, and other sustainable fibers.
Chemical recycling made up an estimated share of around 52.14% of the market in 2025, owing to its capability to recycle high-quality fibers from polyester and blended wastes. Mechanical recycling is also witnessing growth due to low cost and wide applications in cotton, wool, and denim. Sorting technologies enabled by AI are improving fiber identification and reducing contamination levels.
Companies Supporting Europe’s Textile Recycling Transition
Renewcell AB
The Renewcell Company is based in Sweden and specializes in recycling used textiles into recyclable cellulose material that will be used to manufacture new garments. Through its manufacturing process, the company encourages fiber-to-fiber recycling through reduced dependence on virgin raw materials and reuse of textiles which were considered as waste. In November 2025, Renewcell started mass-producing Circulose recycled cellulose pulp, and in addition, Lenzing Company signed a five-year contract to acquire up to 100,000 tonnes of Circulose per year.
Lenzing AG
Lenzing is an integral part of the sustainable fiber network in Europe, with a special emphasis on the use of regenerated cellulose fibers and circular textiles. The participation of Lenzing in agreements for the provision of recycled textiles over a long period of time demonstrates the increasing interest of apparel companies in using traceable and eco-friendly raw materials. The contract between Lenzing to buy Circulose from Renewcell creates a link between the recovery of textile waste and the production of new fibers.
I:Collect GmbH (I:CO)
I:Collect GmbH, more popularly referred to as I:CO, is involved in activities in relation to textile collection and recycling systems. This company is especially important in Europe as companies are now setting up take-back systems and EPR systems that focus more on consumer waste. Collection mechanisms such as those offered by I:CO are very important in providing the link between the consumer, retailer, sorter, recycler and the subsequent user of material to improve the circularity of materials in the textile chain.
Europe Textile Recycling Outlook Through 2035
The European recycling market for textiles is projected to be one of the key regional markets until 2035 because of circular economy regulations, the sustainable fashion trend, technological advancements in recycling, and producer responsibility. The high cost of recycling processes, the complexity of mixed fibers, and insufficient commercial-scale facilities will persist as obstacles.
Chemical recycling, AI-driven sorting methods, fiber-to-fiber solutions, retailer take-back initiatives, and an increasing use of recycled fibers are providing notable possibilities. Germany, the U.K., the Netherlands, and Nordic states are most likely to be among the key innovators as Europe moves away from traditional textile waste management practices towards circular material solutions.
