Recycled Cellulosic Fibers and Textile-to-Textile Circularity Market
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Global Recycled Cellulosic Fibers and Textile-to-Textile Circularity Market Size is predicted to grow at a 22.4% CAGR during the forecast period for 2026 to 2035.
Recycled Cellulosic Fibers and Textile-to-Textile Circularity Market Size, Share & Trends Analysis Distribution by Feedstock Source (Post-Consumer Cotton Textiles, Post-Consumer Viscose & MMCF Garments, Industrial Textile Waste (Cutting & Spinning Scraps), Cotton-Rich Blended Textiles (Polycotton), Agricultural Cellulose Residues (Straw, Bagasse, Bamboo), Paper & Packaging Cellulose Waste), By Recycling Technology (Mechanical Recycling, Chemical Recycling & Regenera¬Tion, Hybrid Recycling Systems), By Output Material (Recycled Dissolving Pulp, Regene¬Rated Cellulosic Staple Fibers, Recycled Viscose Fibers, Recycled Lyocell Fibers, Reprocessed Modal Fibers, Recycled Cellulose Yarn Inputs), By Fiber Type Produced (Viscose Rayon, Lyocell, Modal, Cupro, Cellulose Acetate, Cotton-Like Regenerated Staple Fibers), By Waste Stream Composition, By Circularity Model, By Application, By Region and Segment Forecasts, 2026 to 2035.
Recycled Cellulosic Fibers and Textile-to-Textile Circularity Market Key Takeaways:
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The textile industry worldwide is presently experiencing a major shift owing to the pressing need for minimizing environmental effects and adopting sustainable resource management. At the forefront of this major shift is the recycled cellulosic fibers & textile-to-textile circularity market a relatively new and rapidly growing market that aims to revolutionize the way fibers and textiles are made, used, and recycled. Recycled cellulosic fibers are produced from waste-based cellulosic materials such as post-consumer clothing, textile scraps, agricultural litters, and wood pulp. Using processes such as mechanical recycling, chemical dissolution, and enzymatic processing, these materials are processed into regenerated fibers like recycled viscose, lyocell, and modal. Textile-to-textile circularity is a process where post-consumer textiles are collected, processed, and recycled into new textile materials, thus completing the production cycle and minimizing landfill dependence. These fibers retain fundamental characteristics like softness, breathability, and biodegradability while using water, carbon, and virgin resources to a minimal extent compared to traditional fibers like cotton and viscose.
The recycled cellulosic fibers find numerous applications in the areas of clothing and fashion, home textiles, technical textiles, and nonwoven specialty products such as medical applications. The use of these recycled cellulosic fibers is expected to increase as manufacturers respond to the rising consumer awareness and pressure for environmental accountability by adopting sustainable product lines and eco-certifications. The market for recycled cellulosic fibers is mainly driven by the growing awareness about sustainability among consumers and businesses, as well as the supporting regulatory policies that support recycling and sustainable production practices. However, The market is also constrained by factors such as the technical challenges involved in the recycling process and the lack of infrastructure for collecting and sorting textile waste.
Driver
Rising Sustainability Commitments and Circular Economy Regulations
The primary driver of the recycled cellulosic fibers & textile-to-textile circularity industry is the accelerating global push toward sustainability and circular economy adoption. The rising concerns about the environmental impact of textile waste, the water-intensive nature of cotton production, and carbon emissions are forcing companies, manufacturers, and governments to focus on sustainable materials and recycled materials. The major fashion brands are setting ESG goals, net-zero strategies, and recycled material requirements, which is a major driving force for the demand for recycled cellulosic fibers. On the other hand, the growing regulations on textile waste management, extended producer responsibility (EPR) policies, and circular economy strategies, especially in Europe and other developed countries, are forcing the market to create significant growth opportunities during the forecast period for textile-to-textile recycling solutions.
Restrain/Challenge
Limited Recycling Infrastructure and High Processing Costs
The key challenge in the recycled cellulosic fibers & textile-to-textile circularity market is the lack of efficient textile waste collection, sorting, and recycling infrastructure, as well as high processing costs. Textile-to-textile recycling requires sophisticated technology to separate mixed textiles and remove dyes or impurities while preserving the quality of the fibers. Such technologies are still in the development stages and tend to have higher capital costs than traditional fiber manufacturing. Moreover, the unavailability of a stable feedstock supply, owing to a lack of effective collection and sorting infrastructure, particularly in emerging markets, hinders commercialization on a larger scale. This, in turn, makes it difficult to achieve cost competitiveness with virgin fibers.
The market for recycled cellulosic fibers & textile-to-textile circularity is expected to be led by post-consumer cotton textiles owing to their widespread availability, high cellulose content, and direct relevance to the objectives of circular fashion. As cotton is one of the most popular fibers used in the global fashion industry, the increasing amount of post-consumer cotton waste generated from discarded garments offers a scalable and steady supply for recycling. In terms of technology, the high purity of cellulose in cotton makes it very amenable to regeneration into new cellulosic fibers using chemical recycling technologies. Furthermore, the increasing industry pressure to manage textile waste, rising concerns about landfills, and strong brand commitments to use recycled materials are pushing the development of post-consumer cotton collection and recycling infrastructure, making this segment the key driver in the market.
Among recycling technologies, chemical recycling & regeneration is expected to grow at the highest rate in the recycled cellulosic fibers & textile-to-textile circularity market. This market is gaining traction because of its capability to recycle post-consumer textiles, including cotton-rich blends and dyed textiles, while preserving the quality of the fibers. Unlike mechanical recycling, which reduces the length of the fibers and restricts their use to specific applications, chemical recycling breaks down cellulose and re-creates it into high-quality fibers like viscose, lyocell, and other MMCFs. With rising investments in advanced dissolution technologies, increasing demand for high-quality fibers, and strong brand commitments to closed-loop textile production, chemical recycling is expected to witness the highest growth rate during the forecast period.
The Asia Pacific represented the leading market for recycled cellulosic fibers & textile-to-textile circularity due to its preeminent position in the global textile production industry, coupled with its high capacity for the production of man-made cellulosic fibers. The Asia Pacific region also produces a high quantity of textile waste, while at the same time, it is driving a high demand for recycled materials, thus making it easy to integrate circular solutions into the existing supply chain.
The region is home to major textile production countries such as China, India, Bangladesh, and Vietnam, which create favorable conditions for the production of recycled cellulosic fibers on a large scale.
December 2025: Circulose and Birla Cellulose signed a strategic partnership to accelerate textile recycling. Under the agreement, Circulose will supply pulp made from 100% recycled textile waste, and Birla Cellulose will convert it into viscose staple fiber using CIRCULOSE® pulp for distribution to Circulose’s brand partners, strengthening end-to-end circular solutions across the textile value chain.
| Report Attribute | Specifications |
| Growth Rate CAGR | CAGR of 22.4%% from 2026 to 2035 |
| Quantitative Units | Representation of revenue in US$ Bn and CAGR from 2026 to 2035 |
| Historic Year | 2021 to 2025 |
| Forecast Year | 2026-2035 |
| Report Coverage | The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
| Segments Covered | By Feedstock Source, Recycling Technology, Output Material, Fiber Type Produced, Waste Stream Composition, Circularity Model, Application, and By Region |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
| Competitive Landscape | Circulose (formerly Renewcell), Circ, Södra (OnceMore®), Ioncell (Aalto University consortium), Infinited Fiber Company, Evrnu, Spinnova, TreeToTextile, Tyton BioSciences, Lenzing Group, Birla Cellulose (Aditya Birla Group), Sateri, Tangshan Sanyou Chemical Fiber, Yibin Grace, Worn Again Technologies, Ambercycle, Re&Up, Reju, Recover Textile Systems, Procotex, Hilaturas Ferre, Filature du Parc, TextileGenesis, Pellenc ST, Valvan Baling Systems, Picvisa |
| Customization Scope | Free customization report with the procurement of the report, Modifications to the regional and segment scope. Geographic competitive landscape. |
| Pricing and Available Payment Methods | Explore pricing alternatives that are customized to your particular study requirements. |
This study employed a multi-step, mixed-method research approach that integrates:
This approach ensures a balanced and validated understanding of both macro- and micro-level market factors influencing the market.
Secondary research for this study involved the collection, review, and analysis of publicly available and paid data sources to build the initial fact base, understand historical market behaviour, identify data gaps, and refine the hypotheses for primary research.
Secondary data for the market study was gathered from multiple credible sources, including:
These sources were used to compile historical data, market volumes/prices, industry trends, technological developments, and competitive insights.
Primary research was conducted to validate secondary data, understand real-time market dynamics, capture price points and adoption trends, and verify the assumptions used in the market modelling.
Primary interviews for this study involved:
Interviews were conducted via:
Primary insights were incorporated into demand modelling, pricing analysis, technology evaluation, and market share estimation.
All collected data were processed and normalized to ensure consistency and comparability across regions and time frames.
The data validation process included:
This ensured that the dataset used for modelling was clean, robust, and reliable.
The bottom-up approach involved aggregating segment-level data, such as:
This method was primarily used when detailed micro-level market data were available.
The top-down approach used macro-level indicators:
This approach was used for segments where granular data were limited or inconsistent.
To ensure accuracy, a triangulated hybrid model was used. This included:
This multi-angle validation yielded the final market size.
Market forecasts were developed using a combination of time-series modelling, adoption curve analysis, and driver-based forecasting tools.
Given inherent uncertainties, three scenarios were constructed:
Sensitivity testing was conducted on key variables, including pricing, demand elasticity, and regional adoption.