Textile Recycling Firms Expanded Capacity in Early 2026
Industrial recycling efforts grew in H1 2026, even as the sector faced persistent market demand and financing challenges.
Updated on Sept. 28, 2026 in Fashion
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Textile recycling companies increased their industrial capacity throughout H1 2026, supported by new investments in Sweden and the Netherlands. Despite these developments, less than 1% of global fiber production currently comes from recycled textile waste.
Why it matters
The industry requires an estimated 8 billion to 11 billion euros in initial investment to build necessary capacity in Europe. Furthermore, a lack of long-term purchase agreements currently hinders financing for new commercial facilities.
European textile waste reaches 6.9 million metric tons annually, with chemical recycling costing approximately 0.85 euros per kilogram. Recycled fiber production costs remain 15% to 35% higher than virgin fiber production.
The players
Circulose
This company is a producer of recycled textile fibers that recently resumed its commercial production operations in Sweden.
Reju
This organization secured 135 million euros in funding to establish a specialized polyester recycling plant in the Netherlands.
Althenia
This firm is currently finalizing the construction of a 4,000-square-meter textile recycling facility located in Antequera, Spain.
ShareTex
This company is collaborating with Ence to develop a new pilot chemical recycling plant that is slated to launch in 2027.
The details
Companies like Althenia are scaling infrastructure, including a 4,000-square-meter plant in Antequera, to manage waste volumes. While the global market is projected to reach 20.2 billion dollars by 2031, manufacturers currently struggle with the high price premiums required for recycled materials.
Timeline
H1 2026 was the period during which textile recycling industry progress was reported.
A pilot chemical recycling plant is scheduled to open in 2027.
The global textile recycling market is projected to reach its valuation in 2031.
Roadmap
The transition toward a circular fashion economy requires massive capital outlays to overcome the inherent cost advantages of virgin materials. This industrial pivot represents a fundamental shift in how the global textile market manages raw material procurement versus waste processing.
Consumers may notice a gradual shift toward more recycled-content garments as companies scale production, though higher processing costs could influence retail pricing. The availability of these items depends on the industry's ability to secure long-term supply chains and lower manufacturing overhead.
The takeaway
Achieving scale in the recycling sector requires solving the bottleneck of high production costs relative to cheaper virgin raw materials. Success for the industry relies heavily on establishing long-term purchase agreements that can attract the billions of euros needed for new infrastructure.
Further reading
Explore the latest developments in sustainable apparel production at Fashion.
Source note: This article includes information reported by Modaes.
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