Recycled Polyester Yarn Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Recycled Polyester Yarn market is estimated to be valued at USD 7.5 billion in 2024 and is expected to reach USD 14.3 billion by 2031, growing at a compound annual growth rate (CAGR) of 9.3% from 2024 to 2031. This significant growth reflects increasing adoption of sustainable materials within the textiles and fashion industries, driven by heightened consumer awareness and regulatory support aimed at reducing environmental impact.

The market trend highlights a strong shift towards eco-friendly and circular economy practices, with manufacturers increasingly integrating recycled polyester yarn into their production lines to minimize carbon footprints. Innovations in recycling technology, combined with growing demand from apparel, automotive, and home furnishing sectors, are propelling the market forward. Additionally, collaborations between brands and suppliers to promote transparency and sustainability further amplify the trajectory of recycled polyester yarn adoption globally.

Segmental Analysis:

By Raw Material Type: Dominance of PET Bottles Driving Sustainable Fiber Production

In terms of By Raw Material Type, PET Bottles contribute the highest share of the Recycled Polyester Yarn market owing to their abundant availability and established recycling infrastructure. PET bottles, widely used in the packaging industry, offer a reliable and consistent source of raw material for recycled polyester yarn manufacturing. The increasing consumer awareness around environmental sustainability has incentivized collection and recycling programs, ensuring steady feedstock supplies. Moreover, the inherent properties of PET, such as durability and clarity, facilitate efficient processing into high-quality yarns suitable for various applications. The ability to transform post-consumer PET bottles into valuable textile raw material aligns perfectly with global circular economy initiatives, making this segment a preferred choice for manufacturers and brands emphasizing eco-friendly practices. Investment in advanced sorting and cleaning technologies has enhanced the quality and consistency of recycled PET bottle feedstock, thereby reinforcing its dominance in this segment. Additionally, regulatory pressures and bans on single-use plastics in numerous regions have accelerated efforts to divert PET bottles from landfills to recycling streams, further augmenting their prominence as a raw material type in this market. This segment is bolstered by the dual benefit of reducing plastic waste and lowering reliance on virgin polyester, which positions PET bottle-based recycled yarn production as both an environmental and economic imperative.

By Application: Apparel Segment Leading with Sustainability and Consumer Demand

In terms of By Application, the Apparel segment contributes the highest share of the Recycled Polyester Yarn market, driven primarily by the fashion industry's growing commitment to sustainability and ethical manufacturing. Apparel manufacturers are increasingly integrating recycled polyester yarn into their product lines to meet consumer demand for eco-conscious clothing. The versatility, durability, and ease of dyeing recycled polyester yarn make it an attractive alternative to virgin fibers, without compromising on performance or aesthetics. Additionally, major fashion brands have adopted stringent sustainability goals, which emphasize the use of recycled materials, further fueling demand in this segment. The apparel sector's dynamic nature encourages innovation in textile blends and fabric finishes incorporating recycled yarns, resulting in comfortable, stylish, and sustainable garments. The cost-effectiveness of recycled polyester yarn relative to other sustainable fibers also supports its widespread adoption in apparel manufacturing. Furthermore, the rise of athleisure, outdoor wear, and fast fashion, combined with increasing regulatory and social pressure to reduce the environmental footprint, provides continuous growth impetus to this segment. The apparel application benefits from well-established supply chains and consumer awareness campaigns promoting recycled materials, which jointly reinforce the segment's dominant market share.

By Product Type: Draw Textured Yarn Leading Due to Versatile Performance Attributes

In terms of By Product Type, Draw Textured Yarn (DTY) holds the highest market share, attributed to its versatile physical characteristics and broad applicability in the textile industry. DTY offers enhanced stretchability, elasticity, and bulk compared to other types of polyester yarns, making it highly suitable for producing fabrics that require comfort and resilience, such as sportswear, casual apparel, and home textiles. The manufacturing process of DTY, which involves drawing and texturizing, imparts desirable properties including improved moisture wicking, dye uptake, and softness, aligning well with the functional requirements of contemporary textiles. As sustainability increasingly guides product innovation, recycled polyester DTY provides an ideal balance between environmental responsibility and performance, encouraging its extensive use across diverse markets. Additionally, DTY's compatibility with various fabric constructions including knit, woven, and non-woven supports its widespread industrial adoption. The continuous evolution of technical textiles and expanding end-use applications further propel the demand for draw textured recycled polyester yarn. Furthermore, the cost efficiency achieved by combining recycled content with DTY's manufacturing advantages reinforces its preferential status among producers seeking high-quality, sustainable yarn solutions. This segment's growth is supported by technological advancements and growing eco-consciousness that collectively highlight its significance within the recycled polyester yarn product spectrum.

Regional Insights:

Dominating Region: Asia Pacific

In Asia Pacific, the dominance in the Recycled Polyester Yarn market is largely driven by the region's well-established textile and apparel manufacturing ecosystem, which demands sustainable raw materials to meet global environmental standards. Countries such as China, India, and Vietnam have integrated recycled polyester yarn into their production processes, supported by robust supply chains and a large, skilled workforce. Government initiatives focused on sustainability and circular economy models, especially in China's green policy frameworks and India's textile modernization programs, further enhance adoption. Additionally, the presence of major industry players such as Jiangsu Ruitai New Materials Co., Reliance Industries Limited, and Toray Industries (with operations in the region) contributes significantly to sourcing innovation and expanding production capacity. Strong export-oriented textile activities and efficient trade logistics also position Asia Pacific as the leading market for recycled polyester yarn.

Fastest-Growing Region: Europe

Meanwhile, Europe exhibits the fastest growth in the recycled polyester yarn market, propelled by stringent environmental regulations and rising consumer awareness regarding sustainable fashion. The European Union's policies promoting circular economies, including strict restrictions on virgin polyester use and incentives for recycling, create strong market pull for recycled fibers. The region's well-developed infrastructure for recycling and advanced research capabilities drive technological advancements in yarn quality and process efficiency. Notable companies like Unifi (with its Repreve brand), Aquafil, and Indorama Ventures (with key European operations) play pivotal roles in product innovation and scaling sustainable substituents in both textile and automotive sectors. Europe's collaborative approach spanning government, industry, and academia accelerates market penetration and expansion of recycled polyester yarn applications.

Recycled Polyester Yarn Market Outlook for Key Countries

China

China's market is a cornerstone of the global recycled polyester yarn industry, supported by its dominant textile and garment manufacturing sectors. The government's strategic emphasis on sustainable development and cleaner production contributes to increasing the recycled polyester share in the raw material mix. Leading companies like Jiangsu Ruitai and Huvis Specialty Fibers have invested heavily in advanced recycling technologies. Additionally, China's role as a major exporter of textile products ensures continuous demand for recycled polyester yarn to comply with international sustainability standards, thereby boosting the market's scale and innovation.

India

India's recycled polyester yarn market grows under the influence of widespread textile production hubs and government policies promoting sustainable textile manufacturing. The Indian government's schemes supporting green technologies and the National Textile Policy encourage industry players to incorporate recycled materials. Reliance Industries Limited, through its significant production of recycled polyester fibers under the VFY brand, has been instrumental in expanding market availability. The country's burgeoning domestic consumption and export activities for eco-friendly fabrics further enhance the demand for recycled polyester yarn.

United States

The United States maintains a progressive market focusing on sustainability-driven innovation and heavy demand from apparel and automotive industries. Driven by consumer preference for eco-conscious products and regulatory frameworks supporting recycled content, major players like Unifi Inc. (Repreve) and Glen Raven, Inc. have led technological advancements and supply capacity expansion. The U.S. benefits from a mature recycling infrastructure and extensive industrial partnerships that facilitate scaling and diversification of recycled polyester yarn applications, making it a vital player in the global value chain.

Germany

Germany's market is characterized by high technological sophistication and stringent regulatory standards on textile sustainability, promoting the use of recycled polyester yarn in various end-use segments such as fashion and automotive textiles. The presence of well-established companies like Aquafil and the country's leadership in circular economy practices drive cutting-edge developments and high-quality recycled polyester yarn production. Robust collaboration between manufacturers, sustainability-focused research institutions, and government policy frameworks boosts market dynamics and innovation capabilities.

Vietnam

Vietnam's recycled polyester yarn market emerges as a key growth area with strong backing from its expanding textile manufacturing sector and export-oriented economy. Government policies aimed at enhancing eco-friendly production processes and increasing foreign direct investment in textile recycling technology support this upward trend. Major manufacturers in Vietnam increasingly incorporate recycled polyester yarn to meet international buyers' sustainability preferences. The combination of competitive manufacturing costs and improving infrastructure positions Vietnam as a promising contributor to the global recycled polyester yarn supply chain.

Market Report Scope

Market Segmentation

Raw Material Type Insights (Revenue, USD, 2020 - 2032)

• PET Bottles
• Textile Waste
• Industrial Waste
• Ocean Plastics
• Others

Application Insights (Revenue, USD, 2020 - 2032)

• Apparel
• Automotive
• Home Furnishing
• Industrial Textiles
• Others

Product Type Insights (Revenue, USD, 2020 - 2032)

• Draw Textured Yarn
• Drawn Yarn
• Fully Drawn Yarn
• Partially Oriented Yarn
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Zhejiang Hengyi Group Co., Ltd.
• Jiangsu Guotai International Group
• Indorama Ventures Public Company Limited
• Far Eastern New Century Corporation
• Alpek S.A.B. de C.V.
• Wellman International Ltd
• Reliance Industries Limited
• Teijin Limited
• Unifi, Inc.
• Toray Industries, Inc.
• M&G Group
• Zhejiang Tongkun Group Co., Ltd.
• Sinopec
• Nan Ya Plastics Corporation
• Hyosung Corporation
• Formosa Chemicals & Fibre Corporation