The Standard of Tomorrow in the European Market: Recycled Fiber
- EvRiM ARıCaN
- Apr 19
- 10 min read
Updated: Apr 21
The anatomy of circular transformation in the textile, furniture, and bedding industries.
The fashion and textile industry is among the biggest polluters globally.
Billions of meters of yarn and fabric are produced every year, while millions of tons of clothing that quickly become unusable are either burned or stored for disposal.
According to research by the Ellen MacArthur Foundation, less than 1% of the materials used in clothing production are recycled into new clothing; this translates to a loss of raw materials worth more than $100 billion annually.
In light of this situation, the newly established system is restructuring the textile sector to facilitate its transition from a linear economy model (produce-use-dispose) to a circular economy model (produce-use-recycle-reproduce).
One of the key tools for this transformation is recycled fiber technologies.
This article examines the current state of these technologies, leading companies, how financial crises were overcome, points of resistance to the use of recycled materials, and the comprehensive policy measures taken by the European Union to regulate this area, in order to properly analyze the steps taken to promote the use of recycled materials.
Now I want to explain to you, from many different angles, how the use of recycled materials in textiles has evolved from a trend to a necessity.
If we fail to take a broader perspective on this issue, we risk falling into the trap of viewing it as merely a passing trend, potentially leaving us in an irreversible state of backwardness.
In the European Union, approximately 5 million tons of clothing are wasted every year; this figure translates to 12 kilograms of textiles per person per year.
According to data from the EU Textile Strategy, textile consumption has the fourth highest environmental impact after food, housing and transport; and ranks third in terms of water and land use.
The situation on the production side is similarly worrying.
Between 2000 and 2015, global clothing production nearly doubled, reaching 100 billion units, but the average lifespan of a garment declined by 36% during the same period.
This production-consumption cycle, fueled by the fast fashion phenomenon, has led to a shortage of natural fibers like cotton; this gap has been attempted to be filled with synthetic fibers (polyester, polyamide) derived from fossil fuels.
However, these fibers are neither biodegradable nor technically feasible to recycle. At least not for now.
NGOs like Canopy , however, bring a different dimension to the issue:
The production of cellulosic fibers such as rayon and viscose results in the felling of 5.1 billion trees every year.
A significant portion of these trees come from rainforests that are critical for biodiversity.
Canopy’s CanopyStyle initiative brings together more than 950 brands, manufacturers and innovation partners to work towards protecting the forests from which these fibers are sourced and developing alternative raw material sources.
Recycling in textiles is basically based on two main methods:
• Mechanical recycling: This involves physically breaking down fibers and spinning them back together.
It is fast and inexpensive, but fiber quality decreases with each process; therefore, it is generally used for filling materials or low-quality fabrics.
• Chemical recycling: This involves breaking down fibers at the molecular level using chemical solvents and regenerating them. This method yields fibers of equivalent quality to the original raw material, allowing the cycle to be completed without loss of quality.
The most striking developments in the sector are taking place in the field of chemical recycling.
Seattle-based Evrnu has developed a technology that purifies textile waste by 100%, first liquefying it and then using it in the production of new fibers.
Despite being produced from waste, this fiber exhibits superior performance characteristics compared to standard fibers.
Similarly, Finland-based Infinited Fiber Company , UK-based Worn Again , and Sweden-based Re:Newcell/Circulose are among the pioneering companies implementing new processes on a global scale.
The common denominator of this wave of innovation is the goal of reintegrating textile waste into the supply chain without incurring extra costs or quality losses.
The Revotec denim fabric, developed by İsko , a Turkish denim manufacturer within the Sanko Holding group, using Re&Up fibers since 2014 and containing 78% recycled polyester, or Penn Textile Solutions ' Ecoinnovation collection , developed since 2018, are concrete examples of the manufacturing sector's long-standing efforts to develop solutions in this area.
Swedish-based Circulose is one of the most notable technology companies in this field. The company produces a raw material called CIRCULOSE® from 100% recycled cotton textiles.
This dissolving pulp can be converted into man-made cellulosic fibers (MMCF) such as viscose and lyocell within existing supply chains; thus, paving the way for brands to use recycled fiber without changing their existing infrastructure.
Circulose's Ortviken facility in Sundsvall, Sweden, is the world's first chemical-to-textile recycling plant to operate on a commercial scale.
The company's business model aims to integrate the entire supply chain: brand partners, fiber producers, innovation companies, and value chain partners together form this ecosystem.
Brand partners include major players such as H&M, Mango, Marks & Spencer, C&A, John Lewis, Filippa K, and Bestseller ; while fiber producer partners include Tangshan Sanyou ,Aditya Birla , and Jilin Chemicals .
From Re:Newcell to Circulose:
A Bankruptcy and a Rebirth
To understand Circulose's current structure, it's necessary to look at the company's history. CIRCULOSE® technology was initially developed within Re:Newcell.
Founded in 2012 and built upon research from the KTH Royal Institute of Technology, Re:Newcell has received investment from global brands such as H&M; in 2020, H&M became the first group to launch garments made with ReNewcell fabric.
However, the company experienced a significant crisis in February 2024.
Due to slowing sales and inability to secure financing, ReNewcell filed for bankruptcy.
The bankruptcy caused a major stir in the industry, as the chairman attributed the decision to the fashion sector's inability to adapt quickly enough and to a lack of leadership; the company's partners included giants like Inditex and H&M Group.
Through Canopy's initiatives, in June 2024, investment firm Altor acquired ReNewcell's assets, restructuring the company and renaming its flagship product CIRCULOSE®.
The new commercial strategy centers on brand partnerships and adopts a new pricing model developed in collaboration with Fashion for Good and Canopy.
In this model, brands obtain licenses to source the fiber and undertake long-term commitments in this context.
Circulose CEOJonatan Janmark announced that the Ortviken factory will resume production in February 2026.
This development was also welcomed by Canopy, and the organization emphasized in a statement that reopening the factory is critically important in reducing pressure on forests.
The partnership between H&M Group and Circulose represents one of the most tangible and comprehensive long-term commitments in the industry.
With a long-term agreement signed in July 2025, H&M became one of the first official Scaling Partners for CIRCULOSE®.
With this agreement, the company committed to redirecting a significant portion of its used man-made cellulosic fibers to CIRCULOSE® and replacing a large portion of the raw viscose used across the group with recycled fiber.
H&M Group's Director of Sourcing and Circularity, Cecilia Strömblad Brännsten , emphasized that this collaboration was one of the critical commitments that made it possible for the Circulose factory to resume production, and stated:
'Investing in next-generation materials is essential to achieving our goal of sourcing 100% of our materials from recycled or sustainable sources by 2030.'
During the same period, a similar partnership was established with Mango; the Spanish brand also signed a long-term supply agreement with Circulose.
Ecodesign Regulation and Textile Priority in the EU
The policy response to the need for transformation in the sector has taken the form of a comprehensive strategy at the EU level.
The Sustainable and Circular Textiles Strategy , published by the European Commission in March 2022, offers an integrated approach that addresses the entire life cycle of textiles, from production to consumption, within the framework of the European Green Deal and the Circular Economy Action Plan .
According to the strategy's 2030 vision, all textile products offered to the EU market must be durable, repairable and recyclable; produced largely from recycled fibers and free of hazardous substances.
Ending the fast fashion trend and promoting profitable reuse and repair services are also among the key objectives of the strategy.
The main measures taken or planned as part of the strategy are as follows:
• Mandatory design requirements for textiles to be durable, repairable, and recyclable.
• Digital Product Passport application to ensure product traceability.
• Regulations aimed at reducing microplastics emitted from synthetic textiles.
• Establishment of mandatory and harmonized systems in all EU member states within the framework of Producer Responsibility (EPR) .
• Restricting the export of textile waste
• From 2026 onwards, the destruction of unsold textile and footwear stocks will be prohibited for large businesses, and from 2030 onwards for medium-sized businesses.
This legal framework places concrete pressure on all actors in the sector to increase the use of recycled materials.
Ecodesign Charter and Textile Priority
Another prominent regulation among the EU's policy instruments is the Ecodesign for Sustainable Products Regulation (ESPR), which entered into force in July 2024. A report published in November 2024 by the European Commission's Joint Research Centre (JRC) assessed 33 product categories for the regulation's first Work Plan and recommended regulation in 18 priority categories.
Textiles and footwear are at the forefront of these priority categories, with horizontal requirements regarding durability, recyclability, and recycled content showing the highest potential for effective measures.
The concrete consequences of the regulation for the textile sector can be summarized as follows: Brands will be required to design their products in a way that allows for recycling; recycled fiber content percentages will become mandatory; and traceability of products throughout their lifecycle will be ensured through a Digital Product Passport. This framework creates a regulatory environment that will structurally increase demand for solutions offered by companies such as Re:Newcell/Circulose.
Challenges and Structural Obstacles
Although the technological and policy framework looks promising, there are significant obstacles to the sector's transition to circularity.
As Re:Newcell's bankruptcy in 2024 clearly demonstrated, possessing innovative technology does not automatically guarantee commercial success.
The first problem is creating demand.
Mattias Jonsson , who served as CEO of Re:Newcell from 2016 to 2019, highlighted the slow pace of transformation in the industry, stating that despite major partnerships, brands' modest demands, often limited to capsule collections, were putting the company in a difficult position.
Evrnu CEO Stacy Flynn emphasized that brands are beginning to face reality, but an industry whose supply chains operate with 19th-century equipment and 20th-century logic is struggling to adapt to the realities of the 21st century.
Considering that identifying problems is the first step towards a solution, it cannot be underestimated that these assessments have played a major role in shaping the structure to its current form.
The second problem is scaling.
Chemical recycling plants require high capital investment; the transition period between the introduction of the technology to the market and achieving industrial scale makes entrepreneurial companies in this field financially vulnerable.
Circulose’s new pricing model and licensing system based on long-term brand commitments represent a structural response to mitigate this vulnerability experienced with Renewcell.
The third problem is raw material logistics.
Securing sufficient quantities of waste with specific characteristics and suitable for processing in recycled textile production requires an independent supply chain.
Changing consumer behavior, establishing collection infrastructure, and classifying waste are essential links in this chain.
The fourth issue is price competitiveness.
Recycled fibers are still generally more expensive than raw viscose or standard polyester.
Circulose's licensing model and Canopy's pricing mechanism are concrete steps taken to close this gap; however, both increased scaling and the implementation of regulatory tools are needed for the cost equation to truly change.
Critical Steps Towards Circularity
Despite all these challenges, the sector is heading towards transformation. Several critical factors will accelerate this transformation in the coming years.
Legal requirements will have a decisive impact.
The EU's unsold stock incineration bans for 2026 and 2030, EPR schemes , and the mandatory Digital Product Passport will make the use of recycled materials a necessity rather than an option.
Big brand commitments will shape the market.
H&M's goal to source all its materials from recycled or sustainable sources by 2030 necessitates that other actors in its supply chain also invest in this direction.
If Mango, C&A, Marks & Spencer, and other major players make similar commitments, the demand base will reach a level of maturity sufficient to support the financing of recycling facilities.
Technological diversity will distribute the risk.
Chemical recycling technologies are rapidly maturing not only for cellulosic fibers but also for synthetic fibers such as polyethylene terephthalate (PET).
As technologies develop that can process blended fabrics containing polypamide or polyester, the supply of recycled fibers will increase.
Canopy's $2 billion investment plan, announced in January 2026, is a concrete example of the effort to create the financing ecosystem needed to scale up next-generation raw material alternatives.
This plan aims to produce 60 million tons of Next Gen solutions by 2033.
In the textile industry, the use of recycled yarn and fabric has moved beyond a mere statement of intent; it has ushered in an era where the first commercial-scale factories are commissioning, major brands are making long-term commitments, and regulatory frameworks are rapidly maturing.
Re:Newcell's bankruptcy should not be seen as a story of failure, but rather as the growing pains of a phase where the industry has not yet reached sufficient scale and demand has not yet matured.
Renewcell's rebirth as Circulose and the subsequent wave of brand partnerships demonstrate that the market is taking steps to overcome these difficulties.
The real question is no longer whether recycled textiles will be successful, but how quickly they will become widespread.
The factors that will determine this pace are interconnected: how big the commitments brands make, how strong the enforcement mechanisms regulators establish, how quickly the technology scales up, and how much consumers prioritize circularity in their clothing purchases.
One thing is certain: the industry's linear production model is not sustainable. Recycled fiber will play a central role in changing this equation.
In summary, the use of recycled raw materials is moving away from the perception of being a "product with weak strength and inadequate response to processes." Instead of remaining merely a marketing element in capsule collections, these materials are truly taking their place in the A-quality product class with the development of new technologies and chemicals.
With major players announcing their goals of using 100% recycled raw materials by 2030, it is inevitable that our country's textile production will also take concrete steps in this transformation.
I realize this is a long article; however, I believe this content has archival value.
I hope this article will illuminate your path as you follow, with all the connections, the stories behind the EU's steps to promote the use of recycled fibers, how recycled raw material production has transformed, and the impact of NGO work in this process.
Take care…
Below is a tiny heart in need of love, waiting for your attention. Please don't pass by without giving it a loving touch. ❤️
Evrim Arican
Sources
1. Canopy (2026). Statement from Canopy welcoming announcement of Circulose mill reopening; Next Gen Solutions. https://canopyplanet.org
2. Circulose (2026). Circulose Restarts Commercial-Scale Production at Ortviken Plant; product and impact information. https://www.circulose.com
3. WWD / Women's Wear Daily (2018). What to Watch: Resource Recovery and Circular Economy Drive Textile Innovations. https://wwd.com
4. IHKIB (2024). Textile Recycler Renewcell to Announce Bankruptcy. https://www.ihkib.org.tr
5. Fashion Dive / Green Retail World (2025). H&M Group inks multi-year Circulose partnership. https://www.fashiondive.com ; https://greenretail.world
6. European Commission (2022). EU Strategy for Sustainable and Circular Textiles. https://environment.ec.europa.eu/strategy/textiles-strategy_en
7. JRC - Joint Research Centre of the European Commission (2024). Designing more sustainable products: 18 categories with high potential. https://joint-research-centre.ec.europa.eu
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