Textile production relies on 99.7 per cent virgin materials

The global textile industry operates almost entirely in a linear fashion, consuming 3.25 billion tonnes of materials annually while achieving just 0.3 per cent circularity, according to a comprehensive new analysis from Circle Economy and the H&M Foundation.

Despite increasing sustainability efforts, the industry remains heavily dependent on virgin materials—particularly oil-based synthetics. These synthetic fibres, derived from fossil fuels, make up 63 per cent of raw materials used in textile production, entrenching a take-make-waste paradigm that strains planetary resources. The vast majority of discarded textiles—61.4 per cent—end up in landfills or are incinerated, while just 8 per cent are reused or exported, and 6.3 per cent enter cascading recycling systems.

"We supported this report to provide the textile industry with actionable insights," says Christiane Dolva, Head of Innovation, Research & Demonstration at the H&M Foundation. "It emphasises the most impactful circularity efforts. While not a complete solution, circularity can drive meaningful change."

Environmental footprint

The environmental impact of textile production extends far beyond material consumption. The industry contributes to over 5 per cent of marine eutrophication and more than 4 per cent of global freshwater eutrophication, primarily through fertiliser runoff from cotton farming and chemical discharge from dyeing processes.

The sector accounts for 3.5 per cent of total water scarcity impact from global manufacturing, often operating in regions already facing water shortages. The dyeing and finishing stages alone consume approximately 93 billion cubic metres of water annually. Additionally, the industry contributes almost 3.5 per cent of global greenhouse gas emissions, with material production accounting for 55 per cent of these emissions.

Social impact

The industry's social footprint is equally significant, employing approximately 140 million people globally, with 89 per cent working in manufacturing. In regions like Asia, informal employment is widespread, with over 90 per cent of textile workers in countries such as Bangladesh and India employed without proper workplace regulations. These workers often face hazardous conditions, low wages, and lack social protections.

Across most regions, wages in the textile sector fall considerably below the average industrial wage. In Africa, textile workers earn 44 per cent less than those in other sectors, while in Asia, the wage gap reaches 41 per cent. Even in Europe, where regulatory frameworks are stronger, textile wages remain 31 per cent lower than industry averages.

Regional impact

The analysis revealed two textile-consuming and producing giants: the United States and China. Both nations drive the largest environmental impacts from consumption and production-based perspectives. China, as the world's largest textile producer, accounts for 40 per cent of the global material demand for production, while the US leads in consumption with textile-driven environmental impacts five to eight times higher than the global average.

The international trade in used clothing has grown nearly sevenfold over the past 30 years. In 2021, the EU accounted for 30 per cent of global used clothing exports, followed by China at 16 per cent and the US at 15 per cent. Major importing regions include Asia at 28 per cent (led by Pakistan), Africa at 19 per cent (led by Ghana and Kenya), and Latin America at 16 per cent (primarily Chile and Guatemala).

Global capacity for textile recycling remains severely limited. For example, the Sorting for Circularity Europe report assessed textile waste in six European countries and found that 74 per cent of low-value post-consumer textiles—amounting to 494,000 tonnes annually—could be suitable for fibre-to-fibre recycling. However, appropriate infrastructure for processing these materials at scale is still lacking.

Six circular strategies examined in the report demonstrate potential to triple the industry's Circularity Metric and reduce environmental impacts by up to 50 per cent. These strategies include shifting to more natural and recycled fibres, increasing garment durability, embracing slow fashion, and transforming regional supply chain dynamics.

In the 'moderate' scenario, which reflects the lowest level of ambition, environmental impacts were reduced by 17 to 20 per cent. A more progressive approach, the 'optimistic' scenario, achieved reductions of 26 to 35 per cent. Ultimately, the 'ambitious' scenario demonstrated that each environmental impact could be reduced by 35 to 50 per cent.