Textiles markets under real strain

The global used textiles market continues to face significant challenges, with limited signs of improvement since mid-year. Across Europe, Asia, and Africa the underlying imbalance between supply and demand persists. While some operators report that prices for certain quality grades have stabilised, the overall market remains fragile, with oversupply continuing to depress values and squeeze margins.

For many collectors and sorters, operational costs are rising while revenue opportunities remain limited. Long payment cycles, volatile resale values and inconsistent demand are making it increasingly difficult for smaller operators to remain viable. The disparity between highly reusable garments, which can still achieve reasonable prices, and lower-value textiles destined for recycling, has widened leaving recyclers and sorters exposed to financial losses. Industry insiders note that even with improvements in efficiency and logistics, the underlying structural pressures show no signs of abating.

TEXAID DEUTSCHLAND FAILS

A significant development in Europe has been the insolvency of Texaid Deutschland, the German arm of the Texaid group. The company entered insolvency proceedings in self-administration, reflecting the severe financial pressures currently affecting the sector. While the move highlights the difficulties of operating in a market characterised by oversupply and low prices, many in the industry have expressed a general hope that the Texaid group will navigate this challenging period and emerge in a stronger position. It is widely recognised that Texaid has been a longstanding and influential player, and the industry collectively wishes the group every success in stabilising its operations and continuing to contribute to the circular textiles ecosystem.

INNOVATION AND POLICY

Despite these economic pressures, innovation in textiles recycling continues apace. Advances in automated sorting, AI-enabled quality assessment and fibre-to-fibre recycling technologies offer tangible opportunities to improve efficiency and increase the yield of recycled materials. However, without policy and market support, these technical developments are unlikely to translate into commercially sustainable outcomes.

Stakeholders consistently highlight the need for robust and harmonised extended producer responsibility (EPR) frameworks, clearer definitions for recyclable versus reusable materials and demand-side incentives for recycled content. In the absence of such support, even the most promising technological interventions may struggle to reach scale, and the imbalance between surplus supply and limited demand will persist.

UNDER STRAIN

Overall, the global used textiles market remains under strain, with little indication of a near-term recovery. Supply continues to exceed demand, and margins for collectors and sorters remain under pressure. The sector’s outlook is challenging but innovation, collaboration and thoughtful policy interventions could offer pathways to stabilisation. Meanwhile, the industry watches the Texaid group closely and hopes that it will overcome current difficulties, continue to prosper, and remain a key part of the European and global textiles recycling landscape.