Textile recycling sector faces scaling barriers

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High investment needs, weak brand demand and inadequate collection and sorting infrastructure continue to constrain the scale-up of textile-to-textile recycling – report says

AMSTERDAM – A new report by Circular Fashion News and Fashion For Good says the textile-to-textile recycling sector is attracting investment, new technologies and regulatory attention, but the industry remains some way from achieving circularity at scale.

The H1 2026 ‘The State of Textile Recycling’ report details investment gaps, factory delays, regulatory developments, and unresolved environmental and social risks across the sector.

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