NEWS & CSR

From Waste to Profit: The Huge Potential of Recycled Yarn for the Textile Industry

20 Jan 2026 | 129 Views | News Category: Sustainability

Textiles are an industry that never sleeps. Yet behind the glamour of new collections produced every year, there is a major issue that often goes unnoticed: the growing accumulation of textile waste.
What if this waste could actually become a high-value asset for your business? That is the essence of recycled yarn—yarn made from recycled materials that is increasingly embraced by the industry as both a sustainable solution and a profitable opportunity.

Background: The Growing Problem of Textile Waste Globally and in Indonesia

Textile Waste Worldwide

Every year, the fashion and textile industry generates an alarming amount of waste. According to hijau.bisnis.com, an estimated 92 million tons of textile waste are produced globally each year, with most of it ending up in landfills or being incinerated. Moreover, much of this waste contains synthetic fibers such as polyester, which are difficult to decompose and can pollute soil and water.

The Situation in Indonesia

In Indonesia, textile waste has also become a serious issue. Based on data from Bappenas, the country generates around 2.3 million tons of textile waste annually, yet only a small portion is successfully recycled. The rest is often sent to landfills or burned, contributing to greenhouse gas emissions.

These global and domestic pressures make waste management not only an environmental concern, but also a critical business strategy issue.

What Is Recycled Yarn?

A Brief Explanation

Recycled yarn refers to yarn produced from recycled materials, whether from post-consumer textile waste or pre-consumer industrial waste. The process can involve mechanical recycling (reprocessing waste into new fibers) or more advanced chemical processes that produce higher-quality fibers.

How It Differs from Conventional Yarn

Unlike conventional yarn made from virgin fibers, recycled yarn reuses existing materials. This reduces the need for new raw materials and helps minimize the use of natural resources such as water and energy in your production process.

New Opportunities: Turning Waste into Profit

The Recycled Yarn Market Is Growing

According to recent market reports, the global textile recycling industry is valued at around USD 8.41 billion in 2025 and is projected to reach USD 11.88 billion by 2030, with an average annual growth rate of about 7.2%.
This means that demand for products containing recycled fibers—including recycled yarn—is not a passing trend, but a long-term growth direction.

Business Benefits You Can Achieve

Production Cost Efficiency

By utilizing internal waste as raw material, you can reduce the cost of purchasing new fibers and lower waste disposal expenses, directly cutting operational costs.

Higher Product Value

Products with sustainability labels (such as “Eco-Friendly Yarn”) are increasingly valued by consumers and major retailers, opening opportunities for premium pricing compared to standard products.

Compliance and Competitiveness

As global regulations on textile recycling continue to grow—such as the implementation of Extended Producer Responsibility (EPR) policies in certain regions—using recycled yarn helps you not only comply with regulations but also strengthen your brand image.

Challenges and Practical Steps for You

Challenges to Consider

Despite its strong potential, the adoption of recycled yarn still faces technical challenges, such as:

Recycled fiber quality that can sometimes be lower than virgin fiber
Initial investment in recycling technology, especially for fiber-to-fiber processes

However, these challenges also represent investment opportunities that can deliver long-term efficiency and strong product differentiation.

Implementation Steps

Internal Waste Audit

Identify how much textile waste within your operations can be recycled.

Recycled Yarn Pilot Project

Test the use of recycled yarn on a limited production line before scaling up.

Technology Partnerships

Invest in or collaborate with mechanical and chemical recycling technology providers.

Sustainable Marketing

Communicate clearly to the market that your products support the circular economy.

Recycled yarn offers a strategic opportunity for textile businesses that want to maximize the value of waste while contributing to sustainability goals.
With market demand continuing to grow and global pressure on waste management increasing, now is the time for you to consider integrating recycled yarn into your future business model.

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