Circular Economy and the Textile Sector: Opportunities and Challenges in Italy and the World

Circular economy represents a paradigm shift from the traditional linear economic model based on “take, use and throw.” In a sector such as textiles, known for its high environmental impact, the adoption of circular principles is key to reducing waste, conserving resources, and promoting sustainability. This article explores the intersection of circular economy and textiles, with concrete examples both in Italy and internationally, including insights from the Circular Threads study, which examines sustainability practices in Italy’s textile and fashion industries.


The Environmental Impact of the Textile Sector

The textile sector is responsible for significant greenhouse gas emissions, high water consumption and large amounts of waste.According to the Ellen MacArthur Foundation, every second the equivalent of one truckload of textiles is disposed of in landfills or incinerated. In addition, the production of synthetic materials such as polyester, which is derived from petroleum, contributes to microplastic pollution in the oceans.


The circular economy applied to the textile sector aims to:

  1. 1. Design for durability: Create durable and repairable garments.
  2. 2. Reuse and recycle: Extend the life of products by reusing or recycling materials.
  3. 3. Reduce waste: Optimize production processes to minimize waste.
  4. 4. Adopt innovative business models: Such as clothing rental and second-hand platforms.

The Italian textile sector, a cornerstone of the country’s economic and cultural identity, faces critical environmental challenges. Tondo’s 2021 Circular Threads study highlights that while regions like Lombardy and Piedmont lead in innovation, systemic obstacles such as low recycling rates and reliance on virgin resources persist. Notable progress includes companies adopting regenerative practices, like transforming textile waste into new materials. However, to achieve a fully circular model, enhanced collaboration across supply chains, clearer regulatory frameworks, and increased consumer awareness are vital. These steps will not only address sustainability goals but also secure Italy’s competitive edge in global markets​


Examples of Circular Economy in Textiles in Italy

Manteco: Innovation and Recycling

Manteco, an Italian textile company based in Prato, is a virtuous example of circular economy.Specializing in the production of high-quality textiles through wool recycling, it uses advanced technology to transform textile waste into new materials, significantly reducing the use of natural and chemical resources.


Refashion and Secondhand Platforms

Italian startups such as Armadio Verde promote circularity through platforms that incentivize the exchange and resale of used clothing. These models not only reduce waste, but also promote a cultural shift toward conscious consumption.


Italian Consortium for the Implementation of Sustainable Fashion (CIMS).

CIMS is a consortium of Italian companies committed to sustainable fashion. It promotes textile recycling and the adoption of biodegradable materials, offering technical support and training to companies in the sector.


Italy’s textile and fashion industries, pillars of both its economy and cultural identity, are undergoing a necessary transition toward circular models. Circular Threads, a 2021 study by Tondo, highlights the sector’s challenges: only 1% of textiles are recycled into new apparel, and over 70% end up in landfills or incinerated. However, Italian clusters like those in Lombardy and Piedmont showcase innovative practices, such as reusing industrial waste to create high-quality materials. Yet, barriers persist, including complex textile recycling processes and insufficient circular design standards. Expanding collaboration between companies, institutions, and consumers is key to fostering sustainable practices and boosting economic opportunities​.


Examples of Circular Economy in Textiles Abroad

Patagonia: Sustainability Pioneer.

The American company Patagonia is known for its commitment to the circular economy. Through its “Worn Wear” program, Patagonia repairs damaged clothing and incentivizes customers to return used garments for recycling. This model not only reduces waste but also strengthens customer loyalty.


H&M and the “Close the Loop” Project.

H&M, through its “Close the Loop” initiative, collects used clothing in its stores to encourage material recycling. Although criticized for the risk of greenwashing, the initiative is a step toward integrating circular principles into global fast fashion chains.


Technological Innovations in Finland: Infinited Fiber

Finnish startup Infinited Fiber has developed a revolutionary technology to transform used textiles into regenerated textile fibers, such as cotton. This approach reduces dependence on virgin raw materials and offers an innovative solution for textile waste management.


Industry Collaborations and Technological Innovations

A key aspect of accelerating the adoption of the circular economy in textiles is collaboration between companies, academic institutions, and technology startups. Industrial partnerships, such as those fostered by the European Clothing Action Plan (ECAP), provide a roadmap for optimizing the lifecycle of textile products, from sustainable design to effective recycling. These initiatives not only promote resource efficiency but also encourage innovation in materials science, such as the development of biodegradable fibers and textiles made from recycled content.


Emerging technologies are playing a transformative role in reshaping the textile sector. Blockchain traceability, for example, ensures transparency in supply chains by tracking the origin, processing, and distribution of materials. This innovation helps combat issues like greenwashing and ensures consumers can make informed, sustainable choices. Automation and artificial intelligence (AI) are also enhancing recycling processes, enabling the separation of complex materials and reducing contamination in recycled outputs.


Conclusions

Integrating circular economy principles into the textile sector is not only an environmental necessity, but also an economic opportunity to innovate and stand out in the global market. Examples in Italy, such as Manteco and Armadio Verde, and abroad, such as Patagonia and Infinited Fiber, show that change is possible. However, it is critical to overcome existing challenges through collaborations between companies, institutions, and consumers to build a more sustainable future.


Do you want to find out more information on circular economy and its themes? Visit Tondo’s blog! And if you are interested in finding out more regarding the link between circular economy and the textile sector, you can discover Tondo’s latest project, Circular Threads, a study aiming to observe the level of sustainability and circularity in Italy.

Emma Salioni

WIth a degree in Digital content management for media, enterprises and cultural heritage, Emma Salioni has always had a strong interest in sustainability and circularity. After a period of time spent workin in The Netherlands, she started working with Tondo managing social media and communication, as well as supporting the organization of hackathons and events.

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