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The global textile industry is trapped in a vicious cycle—too poor, too much, too cheap.
Each year, vast quantities of finite resources are ripped from the Earth to create billions of short-lived garments and furnishings. Recycled textiles are a drop in the ocean.
As more companies and consumers embrace sustainability, the textile industry must unite in pursuit of the one trend that matters—a circular economy.
The Circularity Gap Report Textiles reveals how circular strategies can transform the industry, making it three times more circular, halving its environmental footprint and reducing textile waste.
The opportunity is ripe. It’s time to seize it.
Measuring how materials flow through the textile industry provides insight into current inefficiencies and highlights opportunities where circular strategies can deliver the greatest impact.
Interact with the illustration below to learn more about the material flow in each part of the textile value chain.
Of all the materials the global textile industry uses, just 0.3% come from recycled sources. The use of recycled textiles from within the sector is close to zero.
The key to cutting textile waste is reducing the overall production and consumption of textiles.
The industry employs millions of people whose wages and working conditions must be significantly improved.
This metric indicates the share of secondary (recycled) materials used in the production of textiles. Most of this comes from recycled PET bottles rather than recycled textiles.
This means that of the 3.25 billion tonnes of materials the industry consumes each year, over 99% come from virgin sources. Synthetic fibres like polyester, derived from fossil fuels, make up 70% of the raw materials used in textile production.
How do we measure the circularity of textiles?
The main barrier to a more circular textile industry is the overproduction of cheap, low-quality clothing. Mass-market brands now release up to 24 collections a year, with 30% of garments going unsold.
While boosting recycling is important, favouring quality over quantity is key to combatting overconsumption and textile waste. Focusing on durable and timeless garments and offering repair and rental services can massively improve the textile industry’s circularity.
Landfill and incineration
Roughly 61% of textile waste ends up in landfills or is incinerated. Synthetic fibres may never decompose and release harmful chemicals and greenhouse gas emissions. Incineration is becoming increasingly used to generate energy from textile waste, but this contributes to greenhouse gas emissions and destroys valuable materials in the process.
Reuse and export
Approximately 8% of discarded textiles are reused or exported, with the volume of traded second-hand clothing growing nearly sevenfold over the past 30 years. While this trade creates jobs, these positions are often unregulated and come with poor working conditions. Furthermore, low-quality imports can overwhelm local textile industries and contribute to environmental issues.
Over 43% of these workers are hired without formal contracts, particularly in low-income countries where the share of the informal workforce can be as high as 90%.
These workers often face unsafe conditions, low pay and no social protections. While the industry has started to address and make progress on these issues, much more needs to be done to guarantee fair wages and safe workplaces for all.
Informal labour refers to economic activities that are not regulated by the government and lack social protections like health insurance or unemployment benefits. These activities are often unregistered, with workers not protected by formal labour laws. This can include self-employed individuals like street vendors or workers in unregulated sectors such as domestic work.
It takes a vast amount of resources like water, energy and land to produce textiles.
The US and China are responsible for the most production and consumption of textiles in the world.
The textile industry is very resource-intensive, relying on natural fibres from crops and synthetic fibres made from fossil fuels. Producing these fibres requires large amounts of water, land and energy, which takes a heavy toll on the environment.
For example, the average European consumes 26 kilograms of textiles each year and generates 12 kilograms of textile waste. This requires 15 times more resources by weight to produce.
Two countries are responsible for a large portion of the environmental damage caused by the textile industry, including textile waste. China is the largest textile producer, with its textile manufacturing industry using 40% of materials used to produce textiles globally. Meanwhile, the US is the largest consumer, contributing significantly to water scarcity and climate change, both domestically and abroad.
Six scenarios hold the potential to triple the textile industry’s circularity while reducing environmental impacts by up to 50%. These scenarios highlight both the challenges and the potential of circular solutions, underscoring the need for bold, coordinated global action to make meaningful progress.
Achieving 100% circularity across sectors isn’t feasible due to technical and practical limits. Some materials are needed for stock build-up—like buildings and machinery—while others, like fossil fuels, are inherently non-circular. Instead of aiming for full circularity, we should see the circular economy as a tool for managing resources more sustainably.
The textile industry grapples with additional challenges, such as fibre degradation after recycling, and dilemmas such as mixed fabrics being more durable but less recyclable than mono-material fabrics. This is why it’s important to look beyond the Circularity Metric and focus on reducing material consumption and the environmental impacts linked to it.
Synthetic fibres are mainly derived from fossil fuels, which contribute to climate change. Boosting the use of natural fibres like cotton, linen, silk and wool could lower the industry’s emissions, but it may also increase its impacts on water and soil health, for example.
Improved textile recycling can help mitigate these impacts. Recycled cotton currently makes up only 1% of the plant-based fibre market. To fully unlock its potential, the industry could invest in advanced recycling technologies and design garments for recyclability—by making items with 100% cotton, for example, which is easier to recycle than blended fabrics.
While synthetic fibres may seem like villains in this story, how we use them is what matters! When designed well, these materials can help make clothing more durable. Keeping synthetic textiles in use for longer, whilst increasing the share of both virgin and recycled synthetic textiles can reduce the industry’s impacts and boost its circularity.
If not managed sustainably, natural fibre production can worsen environmental damage through extensive land, water and energy use. Transitioning to sustainable farming practices, such as regenerative agriculture, is a key solution. For instance, organic cotton can lower emissions by up to 46%, while hemp requires 50% less water and fewer pesticides to produce than cotton.
Global clothing and footwear consumption is predicted to increase by 63% by 2030. However, this trend can be slowed down or even reversed by adopting slow fashion—based on fewer garment collections per year and a focus on reuse, repair, clothing libraries, rentals, donations, and do-it-yourself practices. This shift benefits both brands and consumers by reducing the costs associated with unsold items and frequent new purchases.
Traditional textile manufacturing methods often result in fabric loss due to imprecise cutting, pattern layout mistakes and human errors. Technologies like computerised and laser cutting systems as well as computer-aided design can cut textile waste by using materials more efficiently.
Shifting some textile production from Asia to major consumption hotspots like North America and Europe can reduce emissions due to these regions’ stricter environmental requirements and shorter transportation distances and supply chains.
Brands might also prioritise transparent supply chains, sustainable practices and fair labour standards, enhancing both supply chain efficiency and resilience. However, this shift must be carefully managed, as it impacts the livelihoods of workers in textile producing countries.
Explore case studies hand-picked by the researchers of this report
Transitioning to a circular economy will require joint efforts of manufacturers, brands, governments, and consumers. By focusing on four priority areas, we can pave the way towards a more resilient and responsible textile industry that meets both environmental imperatives and societal needs.
Significantly reduce textile production by encouraging brands to release fewer collections and focus on durability and quality over quantity.
Address broader environmental concerns in addition to lowering greenhouse gas emissions. Strategies for a circular textile industry must tackle water use, biodiversity loss, and marine pollution.
Prioritise a just transition to a circular textile industry by improving labour conditions, ensuring fair wages, and reducing informal employment, especially in the Global South.
Drive a coordinated effort across sectors. Governments, businesses, and financial institutions should invest in circular technologies. Policies should mandate circular practices, while financial incentives encourage sustainable business models.
Got questions about our findings or methodology?
Check out our webinar for circular economy pros! It’s your guide to understanding the report and getting answers to common questions.