Recycled Cotton Fabrics Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product type (Tops & T-Shirts, Bottoms, Jackets & Outerwear, Dresses & Skirts, Loungewear & Sleepwear, Home Textiles, Industrial Textiles), Application (Casual Wear, Formal Wear, Sports Wear, Children’s Clothing, Home Interiors and Loungewear, Industrial Applications), Distribution Channel (Offline, Online), and Region Forecast 2020-2031

Recycled Cotton Fabrics Market size was valued at US$ 6,640.0 million in 2024 and is projected to reach US$ 8,556 million by 2031 at a CAGR of 4.2% from 2025-2031. Moreover, the U.S. Global Recycled Cotton Fabrics Market is projected to grow significantly, reaching an estimated value of US$ 1,466.6 Million by 2031.

The recycled cotton fabrics market refers to the global industry focused on producing and supplying cotton textiles derived from post-industrial and post-consumer cotton waste. Recycled cotton is typically obtained from pre-consumer textile scraps or discarded cotton garments, which are collected, sorted, shredded, and spun into new yarns. These fabrics are used in various applications, including apparel, home textiles, automotive interiors, and industrial products. Recycled cotton fabrics offer a more sustainable alternative to virgin cotton, reducing water consumption, chemical use, and textile landfill waste. The market encompasses both mechanical and chemical recycling processes and caters to brands prioritizing circular economy and eco-conscious manufacturing.

The recycled cotton fabrics market is witnessing robust growth as brands and consumers increasingly emphasize environmental responsibility and circular fashion practices. Driven by strong sustainability mandates, rising consumer demand for eco-friendly products, and stringent global regulations around textile waste, manufacturers are integrating recycled cotton into mainstream collections. Companies are leveraging advanced sorting and fiber processing technologies to improve fabric quality and consistency. While traditionally viewed as a niche, recycled cotton is now gaining traction across premium fashion, casual wear, and home furnishing segments. As the textile industry faces mounting pressure to reduce its carbon and water footprints, the market for recycled cotton fabrics is expected to continue expanding as a critical piece of global sustainable textile strategies.

Facts & Figures

• In fact, over Up to 20,000 liters of water can be saved per kilogram of recycled cotton fabric compared to virgin cotton production.
• Globally, cotton accounts for around 24% of insecticides and 11% of pesticides use, which recycling helps avoid.
• Using recycled cotton can reduce energy consumption by up to 60% compared to processing virgin cotton.
• The textile industry is responsible for nearly 10% of global greenhouse gas emissions, and incorporating recycled cotton helps cut these emissions significantly.
• About 92 million tons of textile waste is generated annually worldwide, with a significant portion being cotton-based — recycling helps divert this waste.
• A typical T-shirt made with recycled cotton can save approximately 1,500 liters of water compared to a similar shirt made from new cotton.

Key Developments

• In May 2025, H&M Group's Weekday launched a creative multi-brand platform, uniting Monki, Cheap Monday, second-hand fashion, and exclusive drops. This new concept celebrates youth expression and style experimentation, debuting in Stockholm with plans to expand across Europe, offering a dynamic space blending fashion, culture, and community.
• In May 2025, Inditex has committed to purchasing €100 million of Infinna™ recycled textile fiber from Infinited Fiber Company, supporting textile-to-textile circularity. Zara has launched a capsule collection using this innovative fiber, made from cotton-rich clothing waste. The partnership aims to scale up recycling technology and reduce virgin material use in fashion.
• In April 2025, Circulose partnered with Tangshan Sanyou to scale up CIRCULOSE® production for ReVisco™ fibers. This strategic alliance strengthens textile circularity through sustainable innovation, leverages China’s large-scale supply chain, and reinforces Circulose’s global expansion post-restructuring, backed by Altor Capital’s investment and leadership focused on circular fashion growth.
• In February 2024, IKEA launched the VÄXELBRUK collection using 300 tons of recycled employee uniforms to create plaids, cushion covers, and curtains. Blending post-consumer fabrics and surplus materials avoided dyeing, conserving resources. Even defective shirts were repurposed into bags and non-woven fabrics, reinforcing IKEA’s.

Recycled Cotton Fabrics Market 

Based on the product type

• Tops & T-Shirts
• Bottoms
• Jackets & Outerwear
• Dresses & Skirts
• Loungewear & Sleepwear
• Home Textiles
• Industrial Textiles

Among the various product segments, tops and T-shirts are anticipated to lead the market, holding an estimated 32.9% share. This dominance is driven by the segment's high-volume demand, versatility, and widespread consumer appeal. Tops and T-shirts are staple items in almost every wardrobe and are frequently purchased due to trends, seasonality, and affordability. As fast fashion brands and premium labels alike push for more eco-friendly collections, recycled cotton T-shirts have become an attractive, accessible option to showcase sustainability credentials without compromising style or comfort. Furthermore, these products are easier to manufacture from recycled cotton because they require fewer performance-specific attributes compared to technical or outerwear garments. Their strong popularity across demographics from youth streetwear to basic casual essentials further reinforces their market leadership. As consumers increasingly seek guilt-free everyday fashion choices, recycled cotton tops and T-shirts are set to anchor future growth in this sector.

Based on the application

• Casual Wear
• Formal Wear
• Sports Wear
• Children’s Clothing
• Home Interiors and Loungewear
• Industrial Applications
• Others

Casual wear is anticipated to dominate the market, accounting for approximately 35% of the total share. This leading position is largely attributed to the rising global demand for comfortable, versatile, and affordable everyday clothing. Consumers, particularly younger demographics, increasingly favor casual styles that blend functionality with eco-conscious materials. Recycled cotton is particularly well-suited for casual wear due to its softness, breathability, and ability to adapt to modern designs without sacrificing comfort. Additionally, fashion brands are strategically using casual collections as a gateway to highlight their sustainability efforts, appealing to consumers who want to make responsible choices in their daily wardrobe. The rise of hybrid lifestyles balancing work, leisure, and home activities further amplifies demand for comfortable casual pieces. As a result, casual wear remains the key driver propelling the adoption of recycled cotton, positioning it as the most influential application segment in the market.

Based on the distribution channel

• Offline
• Online

Offline distribution channels are anticipated to lead the market, commanding nearly 78.7% of the overall share. This dominance is driven by the strong presence of physical retail outlets, department stores, and branded fashion chains that offer tactile engagement with eco-friendly textiles an important factor for many consumers seeking quality and texture confirmation before purchase. Brick-and-mortar stores also allow brands to showcase sustainable collections in curated environments, reinforcing their environmental commitments. Additionally, established supply networks and logistics infrastructure for offline retail continue to support efficient stock turnover and regional demand fulfillment. Many consumers still prefer the traditional shopping experience when it comes to apparel, especially for fit-sensitive items like recycled cotton garments. The trusted physical retail environment, combined with growing in-store sustainability promotions and labeling transparency, positions offline channels as the leading driver in the adoption of recycled cotton fabric products.