Australia Textile Recycling Market

Australia Textile Recycling Market Overview:

The Australia textile recycling market size reached USD 108.00 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 133.93 Million by 2033, exhibiting a growth rate (CAGR) of 2.42% during 2025-2033. Australia's textile recycling market is being propelled by escalating consumer demand for sustainable fashion, stringent government regulations promoting circular economy practices, and technological advancements enhancing recycling processes, collectively aiming to reduce textile waste and foster a more sustainable and efficient textile industry.

Australia Textile Recycling Market Trends:

Growing Environmental Awareness and Sustainability Initiatives

Australia's textile recycling industry is significantly driven by a higher public and governmental interest in environmental sustainability. In the last ten years, mounting concerns over the environmental contribution of textile waste - most notably its role in filling up landfills as well as adding to greenhouse emissions – have motivated consumers as well as policymakers towards more sustainable choices. Australians throw away an estimated 800,000+ tons of textiles and clothing each year, with most of it finding its way into landfills. The eco-footprint of textile manufacturing (overuse of water, chemical contamination, and greenhouse gas emissions) is also facing increasing scrutiny. This is being translated into real action through government-backed sustainability initiatives, including the National Waste Policy Action Plan and multiple state-based circular economy initiatives. These efforts focus on the value of textile recovery and encourage extended producer responsibility (EPR) programs, which ask clothing manufacturers to take responsibility for the end-of-life phase of the product. Educational campaigns are increasingly being done by schools, charities, and independent businesses in an attempt to change consumer habits towards reuse and recycling.

Advancements in Textile Recycling Technologies and Infrastructure

Australia's textile recycling industry is also witnessing rapid development as a result of technological leaps and enhanced infrastructure. Conventional textile recycling processes—like downcycling into rags or insulation—were not very scalable or economically feasible. Recent developments in fiber-to-fiber recycling and chemical separation technologies have created new avenues for recovering raw materials from used clothing and recycling them into high-quality textiles. Australian startups and research centers are actively developing technologies like enzymatic sorting of mixed textiles and mechanical fiber recovery technologies that maintain the integrity of natural fibers like cotton and wool. For example, textile recovery plants now have AI-assisted sorting technologies that automatically detect and sort the type of fabric for proper processing. This has made textile recycling more economical and efficient.

Australia Textile Recycling Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on product type, textile waste, distribution channel, end use, and region.

Product Type Insights:

• Cotton Recycling
• Wool Recycling 
• Polyester and Polyester Fiber Recycling
• Nylon and Nylon Fiber Recycling
• Others 

The report has provided a detailed breakup and analysis of the market based on the product type. This includes cotton recycling, wool recycling, polyester and polyester fiber recycling, nylon and nylon fiber recycling, and others.

Textile Waste Insights:

• Pre-consumer Textile
• Post-consumer Textile 

A detailed breakup and analysis of the market based on the textile waste have also been provided in the report. This includes pre-consumer textile and post-consumer textile.

Distribution Channel Insights:

• Online Channel
• Retail and Departmental Store

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes online channel and retail and departmental store.

End Use Insights:

• Apparel 
• Industrial 
• Home Furnishings 
• Non-woven 
• Others

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes apparel, industrial, home furnishings, non-woven, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania 
• Queensland 
• Northern Territory & Southern Australia 
• Western Australia 

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Textile Recycling Market News:

• February 2025: ​Pact Group and BlockTexx signed a memorandum of understanding to assess the feasibility of establishing a comprehensive recycling operation for polyester and cotton-blend garments in Australia. The proposed system would encompass collection, sorting, and chemical recycling of textiles into raw materials suitable for new clothing, packaging, or other sustainable applications.
• April 2024: ​Textile Recyclers Australia (TRA) partnered with the ARC Research Hub for Microrecycling of Battery and Consumer Wastes, directed by the UNSW SMaRT Centre, to develop scalable technologies that transform textile waste into new materials and products. This collaboration aims to address Australia's high textile consumption and landfill rates by advancing circular solutions for hard-to-recycle fabrics. By integrating TRA's recycling expertise with the Hub's research capabilities, the initiative strengthens the textile recycling market through innovation, industry collaboration, and the promotion of sustainable manufacturing practices. ​

Australia Textile Recycling Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia textile recycling market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia textile recycling market on the basis of product type?
• What is the breakup of the Australia textile recycling market on the basis of textile waste?
• What is the breakup of the Australia textile recycling market on the basis of distribution channel?
• What is the breakup of the Australia textile recycling market on the basis of end use?
• What is the breakup of the Australia textile recycling market on the basis of region?
• What are the various stages in the value chain of the Australia textile recycling market? 
• What are the key driving factors and challenges in the Australia textile recycling market?
• What is the structure of the Australia textile recycling market and who are the key players?
• What is the degree of competition in the Australia textile recycling market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia textile recycling market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia textile recycling market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia textile recycling industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.