Global Textile Recycling Market to Reach $20 Billion by 2031

According to a new report published by Valuates Reports, the global clothing and textile recycling market is projected to reach $20.2 billion by 2031, up from $13.6 billion in 2024. This increase represents a compound annual growth rate (CAGR) of 5.9% over the forecast period.

The report emphasizes that as circular economy practices gain acceptance, clothing and textile recycling is becoming an essential component of sustainable fashion systems and responsible material management strategies globally.

Key drivers of market growth include heightened environmental awareness among consumers, particularly in developed regions, and strengthened corporate sustainability commitments from brands. Europe currently leads the market due to stringent waste management policies and extended producer responsibility schemes. Countries such as Germany, the Netherlands, and France are paving the way by establishing strong recycling collection infrastructures.

The market includes sorting, processing, resale, and material recovery activities that extend product lifecycles. Collaboration between manufacturers, retailers, and recycling operators strengthens supply chains and supports the global expansion of the circular economy.