South America Textile Recycling Market Outlook, 2029

South America Textile Recycling Market Outlook, 2029

In the very core of South America lies a magic alchemy that turns regional waste into a really treasured source of sustainability and economic growth is textile recycling. Countries like Brazil, Argentina, and Colombia are experiencing fast urbanization, which increases consumption of textiles and hence generates high volumes of waste textiles. Urban areas are usually faced with huge problems in waste management; textile recycling is fast becoming one of the much-needed measures to help manage this fast-growing stream. The accumulation of population in urban centers increases the accumulation of textile wastes and, therefore, requires efficient ways of recycling. Urban centers also have better infrastructural and facility availability for recycling, which shall enhance the efficiency of textile recycling processes. Innovations in textile recycling technology are transforming the South American market. Among the important developments are automated sorting systems that can accomplish this through advanced sensors and artificial intelligence to sort the textiles by material type and color, hence enhancing efficiency and accuracy in recycling processes. Equally fast-tracked are chemical recycling technologies that break synthetic fibers down to their chemical components, ultimately allowing polyester and other complex materials to be recycled. Other key developments include fiber-to-fiber recycling, where textile fibers are turned into new fibers, with properties and quality retained. Several South American countries have formulated policies and schemes that encourage textile recycling. On the other hand, in Brazil, the National Solid Waste Policy gives incentives to both recycling and other sustainable waste management practices; the Circular Economy Action Plan seeks the reduction of waste generation, with incentives to recycle through mechanisms of regulation and fiscal incentive. Argentina's Extended Producer Responsibility provides for producers to be held liable for the product throughout its whole life cycle, up to and including end-of-life recycling, while the National Recycling Strategy seeks to enhance the recycling infrastructure and improve the recycling rate for a range of waste streams, including textiles. In Chile, the Law on Extended Producer Responsibility and Promotion of Recycling puts in place obligations on producers concerning waste management and promotion of recycling. The National Policy on Integrated Waste Management in Colombia addresses measures for improving textile recycling and clean waste management practices. In June 2022, the Brazilian Association of Cleaning and Waste Companies (ABRELPE) played a significant role in achieving a solid waste recycling rate of approximately 4%. This accomplishment led to the establishment of June 5 as National Recycling Day, aimed at enhancing public consciousness regarding waste collection, segregation, recycling, and repurposing.

According to the research report ""South America Textile Recycling Market Overview, 2029,"" published by Bonafide Research, the South America Textile Recycling market is anticipated to grow at more than 4.6% CAGR from 2024 to 2029. market's ability to produce high returns by riding on global sustainability trends and rapidly rising demand for recyclables that has attracted these investors. Innovative projects have built up the capability for recycling textile wastes in Brazil. An example of this is the ""Ciclo de Moda"" initiative, which advocates closing the loop of fashion by appealing to companies to introduce new clothing lines made from recycled textiles. Argentina's initiatives, such as ""Moda Circular,"" are setting the pace for the circular fashion movement by encouraging the use of recycled and upcycled materials within collections of clothes. Events and initiatives make a difference in raising awareness and developing textile recycling in South America. Across major cities, Sustainable Fashion Week is held, geared toward sustainable fashion through the integration of recycled textiles. It sets a stage for designers, brands, and consumers alike. The Circular Economy Forum takes place annually, bringing together decision-makers from the government, industry, and academia circles to establish a discussion on best circular economy practices and innovations in the recycling sector. The Recycling Innovation Expo is conducted in line with the latest technologies and solutions in recycling while innovations in textile recycling technologies take stage at the Green Latin America Awards, which are hosted to learn, identify, and celebrate initiatives or projects that contribute significant value towards sustainability and the conservation of the environment, hence textile recycling efforts. Geopolitical tensions can exert an extremely influential effect on the textile recycling market in South America. Trade policy changes and the imposing of tariffs could alter the import and export of waste textiles and second-hand clothing, and recycling technology. For example, strained relationships between the US and South American countries may develop into trade barriers, which would impact the dynamics of the market and make required recycling technology and raw materials unavailable. Finally, the full implementation of effective recycling policies is likely to be retarded in some countries in South America where political instability will cause uncertainty due to businesses and investors disrupting investment in recycling infrastructure. Therefore, sharing the best practices and technologies of recycling initiatives, which is essential with regional cooperation, may face impediments to efforts from geopolitical tensions.

Market Drivers
• Growing Environmental Awareness: In South America, there is a rising awareness of environmental issues, which is driving the demand for textile recycling. Increased public concern about pollution, waste management, and resource conservation is leading to more support for recycling initiatives. Governments and non-governmental organizations (NGOs) are actively promoting recycling practices and sustainability through campaigns and educational programs. This heightened awareness is encouraging consumers and businesses to participate in textile recycling, thus expanding the market. Additionally, the environmental impact of textile waste is gaining attention, which is further fueling the push towards more sustainable waste management solutions.
• Economic Benefits and Job Creation: Textile recycling offers significant economic benefits to South American countries, including job creation and income generation. The recycling industry creates employment opportunities across various stages, from collection and sorting to processing and selling recycled textiles. This is particularly important in regions with high unemployment rates or economic challenges. By fostering a recycling industry, governments and organizations can stimulate economic growth and support local communities. The development of recycling infrastructure and facilities also contributes to regional economic development, making textile recycling an attractive option for both economic and environmental reasons.

Market Challenges
• Lack of Infrastructure: A major challenge in South America is the insufficient infrastructure for textile recycling. Many countries in the region lack well-established systems for the collection, sorting, and processing of textile waste. This gap in infrastructure hampers the ability to efficiently manage and recycle textiles, leading to higher waste levels and lower recycling rates. Developing a robust recycling infrastructure requires significant investment and coordination between government authorities, private companies, and local communities. Addressing this challenge is essential for improving recycling rates and achieving sustainable waste management goals in the region.
• Informal Recycling Sector: The informal recycling sector plays a significant role in South America, often operating outside formal regulatory frameworks. Informal recyclers typically collect and process textiles with limited adherence to environmental standards and safety regulations. While this sector contributes to recycling efforts, it can also lead to inefficiencies and lower-quality recycled materials. Integrating informal recyclers into the formal economy and improving their practices can enhance the overall effectiveness of textile recycling. This requires efforts to provide support, training, and incentives for informal recyclers to adopt more sustainable and regulated recycling methods.

Market Trends
• Community-Based Recycling Programs: Community-based recycling programs are becoming increasingly popular in South America, driven by local initiatives and grassroots efforts. These programs often involve partnerships between community organizations, local businesses, and government agencies to promote recycling and sustainability. Activities such as textile collection drives, recycling workshops, and awareness campaigns are being implemented to engage residents and encourage recycling practices. These community-driven efforts help raise awareness about the importance of textile recycling and contribute to a culture of sustainability at the local level.
• Sustainable Fashion Movements: The sustainable fashion movement is gaining traction in South America, influencing both consumers and designers. There is a growing demand for eco-friendly and ethically produced fashion items, which is driving interest in recycled textiles. Fashion designers and brands are increasingly incorporating recycled materials into their collections and adopting sustainable production practices. This trend is supported by consumer preferences for environmentally responsible products and is contributing to the growth of the textile recycling market. The rise of sustainable fashion also fosters innovation in recycling technologies and processes, further advancing the market.

Cotton is dominant in the South American textile recycling market due to the great availability and high rate of recyclability of the fiber, coupled with an increasing emphasis on sustainability and waste reduction.

Several South American countries have implemented different programs as well as policies related to the promotion of textile recycling. For example, Brazil, which is ranked among the biggest textile producers on the continent, has developed an interest in sustainable fashion and textile recycling. The Brazilian Association of Textile and Clothing Industry, well known as ABIT, has been in the lead in promoting sustainability initiatives, including textile recycling. Firms like Lojas Renner, a major retailer in Brazil, have set up programs on recycling by providing incentives for customers to return used clothes for recycling, hence reducing textile wastes. The Argentine textile industry is also being taken over by sustainability. Since 2019, the Argentine Chamber of the Textile Industry has been participating in projects with the circular economy and textile recycling. Other initiatives, such as ""Moda Circular,"" are raising awareness for the need to recycle textiles and reduce generated waste. Besides, social enterprises and non-profits play a huge role in collecting and recycling post-consumer cotton waste, providing job opportunities, and helping preserve the environment. Another country that has performed exemplary well in this regard is Chile. The government of Chile has issued policies and regulations with respect to the reduction of wastes and their recycling. This includes an EPR law, making producers liable for the end-of-life management of their products. This has therefore resulted in huge investments in recycling facilities and technologies by textile producers. Companies such as Falabella have designed clothes-return programs so that customers can recycle their clothes, making one of the largest retail chains in Chile advance the circular economy even further. This market growth can be attributed to the raising awareness about sustainability among South American consumers, coupled with the demand. Companies are very sensitive to the economics and green benefits to be realized by bringing in recycled raw materials into their supply chain as consumers shift towards green products. Therefore, such changed consumer behavior and corporate strategy provide a very conducive environment for expansion of cotton recycling initiatives within the region.

High growth in the South American textile recycling market keeps Apparel Waste at the top of the game because the region has a growing fashion industry, coupled with raising environmental awareness.

The textile and apparel industry in South America has been rapidly developing over the past years, especially in countries like Brazil, Colombia, and Peru. Correspondingly, textiles have similarly progressed in increasing their pre-consumer and post-consumer waste to become one of the most acute collection and processing problems. Being diversely rich, as a result of traditional craft and modern manufacturing techniques into textile function, it gives rise to a very wide-ranging waste stream which encompasses many sorts of materials and apparel types. Brazil, as the largest economy south of the Equator, is contributing to this new era in apparel recycling. It is estimated that the country churns up to 170,000 tons of textile wastes yearly, largely emanating from its vibrant fashion industry. This has indeed caused the intervention of governments as well as innovation by the private sector. Policies developed by, for instance, the Association of Brazilian Textile and Apparel Industry, have, therefore, espoused policies promoting the principles of textile recycling and a circular economy among its industry members. Although the industry of text and garment is part of the economy for Colombia, it this sector that leads to the issuance of large garbage volumes. The city of Medellin in Colombia, which is popularly known as the fashion capital of Latin America, has remained in the lead in Africa in handling the issue. It became viable to produce recycled polyester fibers in another of these classic examples of cross-sector recycling factories for the text industry from the investment that was put by Enka and the rest of the similar native firms, PET bottle recycling plants. Even though admired for its brilliant products based on cotton and alpaca wool, Peru has now turned toward sustainability and circular fashion. Initiatives regarding recycling and upcycling of natural fibers are beginning to marry a rich textile heritage with how to clean up an exploding apparel sector. Textile collection and recycling in South America mostly depend on the informal sector. In several cities, waste pickers colloquially known as ""recicladores"" collect and sort discarded clothing, thereby creating a form of grassroots infrastructure for recycling. The formalization and support of these workers by countries such as Brazil and Argentina are gaining ground to achieve better efficiency and scale in operations regarding the recycling of textiles

The post-consumer textile recycling leading in the South American market is that, with its growing economy and increasing urbanization, the government has created a huge demand for responsible and sustainable textile recycling, led principally by Brazil's large and growing market.

The largest market for post-consumer textile recycling in South America is Brazil, basically due to its huge and growing population, coupled with initiatives put in place by the government and increasing urbanization. The Brazilian government has developed initiatives for sustainable development, such as the ""National Solid Waste Policy,"" which includes measures for waste reduction and increased reutilization and recycling rates. Brazil hosts one of the largest textile industries in the region. Due to the massive volume of this industry, a huge amount of textile waste is generated, and so the opportunity for post-consumer textile recycling has grown correspondingly. Most of the Brazilian companies, such as Santista Textil and Alpargatas, are investing in post-consumer textile recycling technologies and infrastructure to reduce the generation of wastes and enhance sustainability. The growing environmental awareness of pollution, waste management, and climate change is also a major driving force for post-consumer textile recycling in South America. Consumers are becoming more environmentally aware and are demanding sustainable, eco-friendly products. It means that due to this high demand for recycled textiles, companies had to invest in post-consumer textile recycling technologies and related infrastructure. For example, a technology for the recycling of polyester fiber from post-consumer textiles, to be used in producing new clothes and textiles, was developed by a Chilean company called Polpaico.

Mechanical recycling drives the textile recycling market in South America because it is inexpensive and there is a growing emphasis on sustainability within the growing textile industry in the region.

Over the last couple of decades, the textile industry has grown considerably in South America, mainly in countries like Brazil and Argentina. This raise resulted in a subsequent increase in waste textiles, becoming both a challenge and opportunity for recycling. Mechanical recycling, where such waste textiles will be physically broken down into fibers to be used again, is particularly suited to the diverse textile waste found in the region, spanning cotton, polyester, and other materials. This route is preferred in that it requires a lower initial investment compared to the chemical routes of recycling, making the business more accessible to local businesses and entrepreneurs who would like to enter the recycling market. Government policies in most South American countries are more proliferating towards recycling, considering the rising awareness on environmental issues. For instance, Brazil has been implementing a number of strategies meant to enhance the sustainability in the textile industry, including its National Policy on Solid Waste, that encourages the practice of recycling and reduces the generation of waste. Such policies really aid the Mechanical Recycling market growth due to the incentives sometimes attached to them, which companies find attractive in participating in sustainable practices. Sustainability awareness among consumers is also growing in South America. Increasingly aware of the high environmental cost of fast fashion, most consumers are putting a demand on products to be made from recycled materials.

Brazil is leading the textile recycling market on the basis of the well-established and highly efficient recycling infrastructure, supported by robust governmental policies and wide community participation.

The Brazilian government has implemented a lot of programs and regulations aimed at reducing textile wastes and increasing their recycling. One example is EPR laws, which hold manufacturers responsible for the entire lifecycle of their products from production to disposal and recycling. This kind of regulation makes a company responsible for the ecological effects of their products and therefore puts them in a position to become more sustainable and invest in recycling technologies. Added to this are tax incentives and subsidies for the recycling businesses, further fueling the growth and innovativeness of the sector. In this case, well-developed recycling infrastructure in Brazil entails an extended structure of collection points, sorting facilities, and processing plants. This would be supportive of managing huge volumes of textile wastes arising from the country's robust textile and apparel industry. Collection points are located throughout both urban and rural areas to provide consumers with easy, responsible ways of disposing of unwanted textiles. These collected textiles will then go out to a number of sorting facilities to be sorted according to fiber type, color, and condition.
• In April 2023, In collaboration with Zara, Circ debuted a womenswear line composed of polyester and recycled lyocell that had been isolated from mixed textile waste. It is anticipated that during the projection period, this kind of cooperation will provide the market profitable prospects.
• In June 2020, the PET recycling facility of AG Resinas Ltda. Was acquired by Indorama Ventures Public Company Limited through one of its subsidiaries. The company acquired a 100% equity stake. AG Resinas is located in Juiz de Fora, Brazil, and processes post-consumer PET into recycled flakes and pellets of PET.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Textile Recycling market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Material
• Cotton
• Polyester & Polyester Fiber
• Nylon & Nylon Fiber
• Wool
• Others

By Source
• Apparel Waste
• Home Furnishing Waste
• Automotive Waste
• Others

By End-Use Industry
• Apparel
• Home Furnishings
• Industrial & Institutional
• Others

By Textile Waste
• Post-consumer
• Pre-consumer

By Process
• Mechanical
• Chemicals

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Textile Recycling industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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