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The global textile industry faces an urgent imperative: sustainability. As environmental concerns escalate and consumer demand shifts towards eco-conscious products, a fierce race is underway to determine the dominant fiber of the future. While natural fibers offer inherent advantages and recycled materials promise circularity, Manmade Cellulosic Fibers (MMCs) are rapidly emerging as a frontrunner, poised to redefine the industry landscape.
The competition between various sustainable fibers is complex, with each category presenting distinct strengths and challenges.
The contenders and their strengths, weaknesses
Fibers are broadly categorized into natural, manmade (regenerated, synthetic, inorganic), with bio-based options spanning both.
Natural fibers, under environmental scrutiny: Natural fibers like cotton, hemp, flax, wool, and silk are inherently biodegradable and renewable. However, the sector faces significant challenges. Cotton's water and pesticide intensity are major concerns, despite the sustainability potential of organic and regenerative farming. The natural fiber industry often suffers from fragmented messaging and internal competition.
Regulatory frameworks like the EU’s Product Environmental Footprint (PEF) can inadvertently penalize natural fibers by prioritizing carbon emissions over critical attributes like biodegradability, renewability, and longevity, sometimes favoring synthetics. The Digital Product Passport (DPP) also complicates compliance for smaller natural fiber producers, pushing brands towards more traceable, often manmade, solutions.
While historically dominant, natural fibers' share in global fiber production has seen a decline. Cotton, for instance, now accounts for around 23-25 per cent of global fiber output, down from nearly 40 per cent decades ago, primarily due to the rise of synthetics.
Recycled fibers, seeking scale: Recycling textile waste into new fibers is crucial for a circular economy. However, scaling beyond established methods like recycled polyester (rPET) and mechanical recycling remains a hurdle. Most chemical recycling technologies are in pilot or early commercial stages, not yet cost-competitive or proven at scale. The industry struggles with complex feedstock sorting. Furthermore, recycled synthetics, while reducing reliance on virgin fossil fuels, still shed microplastics and are not biodegradable, posing end-of-life concerns.
Recycled fibers, especially rPET, have seen rapid adoption. Global rPET fiber production reached over 14 million tonnes in 2023, with a projected CAGR of 7-8 per cent through 2030. In contrast, advanced chemical textile-to-textile recycling capacities are still relatively small, estimated in the tens of thousands of tonnes annually, despite significant investments.
Manmade cellulosic (MMC) fibers, a frontrunner: MMCs, derived from wood pulp or other plant-based feedstocks (e.g., viscose, lyocell, modal, and innovative new fibers), are rapidly gaining traction. This sector benefits from a structured industry, often backed by large Nordic forest groups and leading research institutions. Modern MMC production has addressed past environmental concerns through closed-loop chemical systems and sustainable forest management (FSC/PEFC certified).
A key advantage is the innovation in feedstock, with new MMCs utilizing textile waste, cardboard, paper, and agricultural residues. Scaling is rapid, driven by strategic partnerships that meet market demand and price points. Leaders in this category include Ioncell Oy, Spinnova, Kuura, and Infinited Fiber Company. Infinited Fiber, for instance, secured over €200 million in funding for a flagship factory targeting 30,000 tonnes per year by 2026.
Global MMC production reached almost 8.5 million tonnes in 2023, with a projected CAGR of 6-8 per cent through 2030, outpacing many other fiber categories.
Table: Fiber category and growth drivers
|
Fiber type |
Global production (2023 est. tonnes) |
Projected CAGR (2024-2030) |
Sustainability challenges |
Growth drivers |
|
Natural Fibers |
35-40 million |
1-3% |
Water use, pesticides, fragmentation, regulatory bias |
Consumer demand for naturals, regenerative practices |
|
Synthetics |
75-80 million |
3-4% |
Microplastics, non-biodegradability, fossil-based |
Cost-effectiveness, performance properties |
|
Recycled Fibers |
14-15 million (mostly rPET) |
7-8% (overall) |
Scaling chemical recycling, feedstock sorting |
Circularity goals, brand commitments |
|
Manmade Cellulosic (MMC) |
8.5 million |
6-8% |
Chemical processes (improving), forestry impact (managed) |
Innovation, closed-loop, new feedstocks, scalability |
(Note: Figures are approximate and based on aggregated industry reports from sources like Textile Exchange, Lenzing, CIRFS, Grand View Research. Total fiber market is approximately 120-130 million tonnes annually.)
What the future holds
Growth Drivers and Future Outlook
The shift towards sustainable fibers is due to growing demand from consumers, ambitious brand commitments, evolving regulations (like the EU Green Deal), groundbreaking technological innovation, and investment in sustainable fiber ventures. MMCs will dominate near-term growth and investor attention due to their structured industry approach, demonstrated scalability, proactive addressing of environmental concerns, and versatility in performance.
However, a truly sustainable textile future demands diversity, collaboration, and shared purpose, not fragmentation. Natural fibers must unify messaging, embrace regenerative practices, and enhance traceability. Recycled fibers require continued investment to overcome scaling and feedstock challenges. The race is less about a single victor and more about collective innovation, transparency, and a unified commitment to a genuinely sustainable global textile industry.
A prominent Indian garment manufacturer, Gokaldas Exports is facing a major crisis due to a steep 50 per cent tariff imposed by the United States on Indian goods. In an interview with the Economic Times, Siva Ganapathi, Managing Director, outlines the potential fallout and the company's plan to cope. With India’s garment exports to the US valued at around $5 billion, the entire sector is at risk.
Ganapathi calls the 50 per cent tariff ‘catastrophic,’ arguing. it's more of an embargo than a trade barrier. He explains, a 25 per cent tariff could be managed, but a 50 per cent increase would lead to substantial business losses. The industry is already feeling the pressure, with some brands resorting to ‘shrinkflation’-reducing a product's features to keep prices the same- which could change how consumers shop.
To deal with this crisis, Gokaldas Exports is considering a strategic pivot to European markets. This would require the company to reduce its production in India and look for new opportunities overseas to counter the competitive disadvantage. Ganapathi hopes, a resolution will be found soon, ideally lowering the tariff to a more manageable 20 per cent. If not, the Indian garment industry could face severe consequences.
Ganapathi urges the Indian government to fast-track free trade agreements with the European Union and the United Kingdom, and to negotiate a deal with the US. He suggests, temporary measures, like export incentives, could help ease the financial burden on the industry and protect workers' jobs. Ganapathi points out, countries like China have used similar strategies to protect their industries, highlighting the need for India to act proactively. The future of Indian garment exports now depends on these critical negotiations and policy decisions.
A leading UK event for Home, Gift, and Fashion, Autumn Fair will return to the NEC Birmingham from September 7–10, 2025 with a dedicated Indian Pavilion to celebrate the vibrant craftsmanship and innovation of Indian design and manufacturing.
In collaboration with India’s primary trade promotion body, Federation of Indian Export Organisations (FIEO), the fair will host 20 carefully selected Indian exhibitors. These businesses will showcase a curated collection of homeware, lifestyle products, textiles, gifts, and fashion accessories. A strategic part of India’s internationalization strategy, this initiative aims to connect these companies with UK and European buyers and promote global trade.
The introduction of the Indian Pavilion is particularly timely, following the signing of a landmark UK and India Free Trade Agreement (FTA). This agreement is expected to significantly reduce trade barriers and has the potential to double bilateral trade to $120 billion by 2030. The pavilion will give buyers exclusive access to new-to-market products, ethical production methods, and innovative design from India, a country that is rapidly becoming a key sourcing hub.
Vineet Arora, Deputy Director. FIEO, highlights, participation, under the ‘Brands from India’ banner, will showcase India’s diverse export capabilities and global competitiveness. Nihat Berktas, Head - International Development for Retail & Fashion, Hyve Group, notes, this is the first official participation from India since the FTA was announced and that they anticipate even more Indian brands will join both the Spring and Autumn Fairs in the future.
The pavilion will feature a diverse array of companies, including Agnes Bags and Gloster Limited with eco-friendly products, Neela Home & Prakash Cotton Mills with home furnishings, and Arnika Fashion with luxurious handloom sarees. Other exhibitors include Priniv with sustainable wooden toys, Chopra Musicals with nautical décor, and Haida Tribal Ayurvedic and Handicrafts offering authentic Ayurvedic products. The lineup also includes fashion, jewelry, and lifestyle products from a variety of other businesses, further strengthening India’s presence at the fair.
From January-July 2025, textile and apparel (T&A) exports from Vietnam rose by 9 per cent to over $26.33 billion.
To reach its ambitious annual target of $47–48 billion, the sector now needs to average more than $4 billion in monthly exports for the rest of the year. This is a significant challenge, especially with Vietnamese goods facing tariffs of up to 20 per cent in the US market, which puts them at a disadvantage against competitors.
As the industry prepares for a potentially turbulent second half of the year, leaders are focused on several key strategies. Maintaining a stable workforce is a top priority, with companies being urged to review and upgrade their equipment to handle new orders efficiently. Le Tien Truong, Chairman, Vietnam National Textile and Garment Group (Vinatex), highlights the need for businesses to adjust production plans wisely to secure jobs and income for their employees.
Financial flexibility is also crucial. Firms must adopt smart management strategies to absorb rising costs and adjust pricing to retain orders in a tough market. To boost competitiveness, businesses should fully leverage the 17 new-generation free trade agreements already in effect and stay responsive to global economic shifts.
Additionally, a transition to more advanced production models is essential. Companies are encouraged to move beyond traditional cut-make-trim (CMT) operations to higher-value models like free on board (FOB), original design manufacturing (ODM), and original brand manufacturing (OBM). Coupled with investments in modern machinery and skilled labor, this shift will enhance product value and strengthen Vietnam's position in the global supply chain.
The industry is also calling for more support from the government, including policies on credit, tax, and infrastructure to attract investment and reduce dependence on imported raw materials. Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS), emphasized on the need for businesses to defend their traditional markets while actively seeking new partnerships and building more sustainable supply chains.
A delegation from Australia’s largest single apparel buyer, Kmart met with Mahmud Hasan Khan, President, BGMEA to discuss collaboration opportunities for building a sustainable garment industry.
Held at the BGMEA Complex in Uttara, Dhaka, the meeting included Tristram Gray, Head- Corporate Affairs; Albert Young, Head-Ethical Sourcing; and Obaid Gazi, Ethical Sourcing Manager, Kmart Australia & New Zealand. Senior officials from BGMEA, including Inamul Haque Khan, Senior Vice President also attended.
During the discussion, Gray expressed the company's commitment to strengthening its long-standing business relationship with Bangladesh and increasing future collaborations. The conversation focused on BGMEA’s priorities for a sustainable industry and how Kmart could support these initiatives.
Mahmud Hasan Khan, President, BGMEA highlighted, sustainability is a key focus for the association. He noted, his board has initiated dialogues with all worker federations to foster good industrial relations and shared other measures taken for worker welfare. He also emphasized on the need for a Unified Code of Conduct for the garment industry to simplify the audit process, reduce pressure on factories, and enhance the industry's ethical and sustainable practices.
Both parties also discussed strategies to increase garment exports from Bangladesh to Australia, a promising market due to Bangladesh’s duty-free access. The BGMEA President urged Kmart to strengthen partnerships with suppliers to help them diversify products and enhance production capabilities. The Kmart delegation offered to facilitate communication between any BGMEA trade delegation and Australian government policymakers.
The British Fashion Council (BFC) has launched a curated program of public fashion events and activations titled City Wide Celebration (CWC), in Manchester. This move further strengthens Manchester’s growing reputation as a major fashion hub, following Chanel's high-profile Metiers D'Art show in the city last year.
Running from September 12-16, the CWC will bring the spirit of London Fashion Week to the North of England. The Trafford Centre will be the central venue, hosting a variety of fashion events and immersive experiences. The celebration will also extend to other major UK cities, including London, Liverpool, and Newcastle.
A key part of this year's CWC is the new ‘At Home With’ initiative, a series of talks focused on the cultural and geographic influences of prominent British designers. Manchester’s headline event, presented by 1664 Blanc, will feature a panel discussion at the Trafford Centre on September 13.
The panel will include a diverse group of celebrated designers with strong ties to Manchester including Kazna Asker, a British-Yemeni designer known for blending streetwear with traditional Islamic garments; Liam Winter, the self-taught jeweler behind The Winter House, who creates conceptual, art-inspired pieces influenced by his studies in Performance Design and Film; Nadine Merabi, a designer whose journey began out of a passion for creating bold, glamorous occasionwear that celebrates confidence, inspired by her Lebanese heritage and British upbringing and Matty Bovan, a Central Saint Martins graduate and award-winning fashion knitwear designer who has collaborated with major brands like Marc Jacobs and Miu Miu.
These designers will share an intimate conversation about how Manchester’s unique culture has shaped their creative voices, showcasing the city’s rich influence on the fashion world.
An initiative designed to help women-led businesses engage in global digital trade, the Women Exporter in Digital Economy (WEIDE) grant was recently launched in Abuja. Dr Ngozi Okonjo-Iweala, Director-General, World Trade Organization (WTO) officiated the launch. Nigeria has been selected as a pilot beneficiary of the fund, with the Nigerian Export Promotion Council (NEPC) being one of only four global Business Support Organizations (BSOs), and the sole African representative, chosen to implement the first phase.
This grant aligns with the NEPC's ongoing efforts to empower women in the export sector. According to Nonye Ayeni, Executive Director, NEPC the council has already trained over 100 women-led businesses on increasing the value of spice and herb exports. This was achieved through the use of aggregation centers that streamline supply chains and connect producers to both local and international markets.
Ayeni highlighted, these efforts are part of President Bola Tinubu’s Renewed Hope Agenda, which aims to integrate women and youth into the export ecosystem. The NEPC also hosted a forum to help women-led businesses capitalize on opportunities under the African Continental Free Trade Area (AfCFTA). The goal of these initiatives is to enhance the export competitiveness of women; improve their access to market information and trade facilitation services; boost data collection on women-led non-oil export activities and advocate for more gender-responsive trade and export policies.
In the first half of the year, the NEPC registered 2,285 new exporters and conducted 252 capacity-building programs for over 27,000 participants. These programs covered essential topics like documentation, export readiness, Good Agricultural Practices (GAP), Good Warehousing Practice (GWP), and Good Manufacturing Practice (GMP).
The council also facilitated free international certifications, such as FDA and HACCP, for 200 exporters, which helps them meet global standards, reduce product rejections, and boost competitiveness. As a part of its Corporate Social Investment, the NEPC distributed over 23,000 hybrid seedlings to more than 3,000 farmers to improve the quality and volume of produce for export.
In response to the challenging situation faced by the Indian textile and apparel industry owing to the new 50 per cent tariff imposed by the US administration, the Indian government has reopened the application process for the production-linked incentive (PLI) scheme.
The Union Ministry of Textiles announced it would invite fresh applications for MMF (man-made fiber) apparel, MMF fabrics, and technical textiles. The application portal will be open until August 31 of this year. While the scheme is intended to help the textile industry, it may not benefit the garment sector much, as cotton garment manufacturing is not included.
Approved in September 2021 with a budget of Rs 10,683 crore (~$1.22 billion), the PLI scheme was designed to boost the production of man-made fiber products. Although 80 applicants have been approved, the response has been described as lukewarm, with some committed investors not moving forward. The government aims to disburse Rs 500 crore (~$57.09 million) in incentives during the current fiscal year.
The United Kingdom is all set to rewrite the future of fashion waste. In a bold, future-facing move the country is preparing to launch a National Textile Recycling Hub — a game-changing infrastructure project that promises to curb the country’s textile waste crisis, revitalize regional economies, and anchor Britain’s fashion sector in circularity. At the heart of this transformation is a joint vision spearheaded by the UK Fashion & Textile Association (UKFT) and Circle-8, detailed in a comprehensive new report by Oxford Economics and backed by the Circular Fashion Innovation Network (CFIN).
With over one million tonnes of textiles discarded each year, the UK is Europe’s highest per capita clothing consumer. The proposed hub — anchored by three automated sorting facilities (ATSPs) and a dedicated chemical recycling plant — offers a systemic shift, aiming not just to reduce waste, but to recycle and reintegrate textiles into the fashion economy. More than an environmental win, the plan stands to unlock £53 million in annual GDP and support over 700 jobs nationwide.
Tackling the textile tsunami
The UK currently faces a major challenge with textile waste. As the European country with the highest per capita clothing purchases, over one million tonnes of used textiles are generated annually. Alarmingly, approximately one-third of this volume, deemed non-rewearable, ends up in incineration, landfill, or is exported for recycling in countries with lower labour costs. This not only poses a severe environmental threat but also carries a hefty economic burden, costing the UK economy an estimated £200 million per year in disposal fees.
The proposed national textile recycling hub offers a robust solution. Once fully operational by 2031, the three ATSPs are projected to pre-process nearly 150,000 tonnes of textile waste annually. This is a critical first step in the recycling process. These facilities will employ advanced automated sorting technologies to efficiently categorize textiles, separating them based on their material composition.
Following this pre-processing, 50,000 tonnes of the sorted textile waste will be directed to the accompanying chemical recycling plant in the East Midlands. Here, these materials will undergo a sophisticated chemical process to break them down into their constituent fibres, which can then be re-spun into new, high-quality clothing fibres. The remaining 100,000 tonnes of sorted material, while not suitable for chemical recycling, will be channeled towards alternative textile recycling methods, ensuring maximum resource utilization and minimizing waste.
This multi-stage process, from automated sorting to advanced chemical recycling, represents a significant leap forward from traditional, often manual, sorting methods. It promises to enhance efficiency, purity of recycled materials, and ultimately, the economic viability of textile recycling.
A boost for the economy
The economic benefits of this national textile recycling hub are substantial, spanning both its development and operational phases. The project requires a total investment of £277 million, with £58 million of this directly realized within the UK economy.
Development phase (2025-28)
During the three-year development phase, the project is expected to generate significant economic activity
|
Metric |
Direct (£2022m) |
Indirect (£2022m) |
Induced (£2022m) |
Total (£2022m) |
|
GVA |
20 |
13 |
13 |
46 |
|
Job Years |
220 |
220 |
190 |
620 |
|
Wages |
12 |
8.5 |
5.5 |
26 |
|
Taxes |
1.9 |
1.1 |
1 |
4 |
Source: Oxford Economics, Circle-8 (Note: May not sum due to rounding)
The manufacturing sector will reap the lion’s share, with 240 job years and a £22 million GVA contribution — largely due to facility fit-outs and equipment installation.
Operational phase (fully operational by 2031)
Once fully operational, the recycling hub will continue to deliver impressive economic returns:
|
Metric |
Direct (£2022m) |
Indirect (£2022m) |
Induced (£2022m) |
Total (£2022m) |
|
GVA |
26 |
15 |
12 |
53 |
|
Jobs |
340 |
210 |
170 |
720 |
|
Wages |
12 |
8.7 |
5.5 |
26 |
|
Taxes |
3.7 |
3.8 |
2.1 |
9.6 |
Source: Oxford Economics, Circle-8 (Note: May not sum due to rounding)
The hub is projected to directly support 340 jobs across the four sites, with an average annual wage of £35,300. Through indirect and induced channels, a further 380 jobs will be created across the national economy, bringing the total employment impact to 720 jobs. The annual GVA contribution to national GDP is estimated at £53 million, with a collective fiscal benefit to the UK Government Treasury of £9.6 million per year.
Recycling roots across Britain
The hub’s nationwide footprint ensures that its benefits are equitably distributed, with each facility serving as a micro-center of regional regeneration.
East Midlands: The heart of recycling innovation
The East Midlands is poised to receive the largest share of the economic impact, hosting both an ATSP and the chemical recycling facility. By 2030, once fully operational, the region is estimated to benefit significantly:
|
Metric |
Direct (£2022m) |
Indirect (£2022m) |
Induced (£2022m) |
Total (£2022m) |
|
GVA |
17 |
12 |
9.4 |
38 |
|
Jobs |
140 |
170 |
130 |
440 |
|
Wages |
4.9 |
7 |
4.3 |
16 |
Source: Oxford Economics, Circle-8 (Note: May not sum due to rounding)
North West: A growing hub for textile recycling
|
Metric |
Direct (£2022m) |
Indirect (£2022m) |
Induced (£2022m) |
Total (£2022m) |
|
GVA |
4.8 |
3.2 |
2.4 |
10 |
|
Jobs |
100 |
40 |
30 |
170 |
|
Wages |
3.5 |
1.7 |
1.1 |
6.4 |
Source: Oxford Economics, Circle-8 (Note: May not sum due to rounding)
The region is expected to see 170 jobs supported and a £10 million GVA contribution, highlighting the localized benefits of the recycling infrastructure.
South West: Embracing the circular economy
The South West will also host an ATSP, reaching full operational capacity by 2031, with notable economic impacts:
|
Metric |
Direct (£2022m) |
Indirect (£2022m) |
Induced (£2022m) |
Total (£2022m) |
|
GVA |
4.7 |
2.3 |
2.1 |
9.1 |
|
Jobs |
100 |
30 |
30 |
160 |
|
Wages |
3.5 |
1.2 |
0.9 |
5.6 |
Source: Oxford Economics, Circle-8 (Note: May not sum due to rounding)
The South West will benefit from 160 jobs and a £9.1 million GVA contribution, further demonstrating the widespread positive effects of the national hub.
Catalytic benefits and policy alignment
Beyond the quantifiable economic impacts, the national textile recycling hub aligns perfectly with the UK's green policy objectives and international commitments, such as those discussed at COP29. The fashion and textiles industry accounts for an estimated 8-10 per cent of global greenhouse gas emissions, making a transition to a circular economy imperative for achieving net-zero targets.
The hub is projected to facilitate an annual saving of over £24 million in combined landfill and incineration gate fees by 2028, a direct financial benefit stemming from reduced waste disposal. Furthermore, impending legislative changes, including the expansion of the UK Emissions Trading Scheme (ETS) to include energy from waste plants and a 22 per cent rise in landfill gate fees, will make textile recycling an even more economically attractive and environmentally responsible option.
This ambitious project positions the UK at the forefront of sustainable fashion innovation, ensuring it remains competitive and resilient in a global market increasingly prioritizing circularity. By adopting advanced recycling technologies and fostering domestic infrastructure, the UK is not only addressing its waste crisis but also cultivating a new era of green growth and job creation.
Benefits from cost savings, productivity initiatives and a strengthened balance sheet has led to HanesBrands Inc raising its full-year outlook despite challenges in Intimate Apparel business and impact of foreign exchange rates on international sales.
Recording better-than-expected financial results, HanesBrands Inc reported 1.8 per cent increase in net sales in Q2, FY25 to $991 million with its operating profit and earnings per share also increasing significantly.
However, Hanesbrands faces significant financial challenges due to a decline in its revenue and profitability. Technical indicators suggest bearish momentum, further weighing on the evaluation. Despite a positive earnings call and corporate developments, the overall risk profile remains concerning due to financial instability and market headwinds.
A global leader in everyday iconic apparel, Hanesbrands Inc focuses primarily on basics, activewear, and intimate apparel. Known for its innovation and brand investments, the company focuses on the US and international markets.
