Textile Recycling taps into the trend of converting waste into environmentally friendly clothing.
The textile and clothing industry is the 4th most environmentally impactful industry after the food, construction and transportation industries. [1]Compared to the high use of raw materials and water in the production process. This has caused the fashion industry around the world to pay more attention to the trend of environmentally friendly clothing. Currently, many leading clothing companies have signed and supported the United Nations Fashion Industry Charter for Climate Action, with the goal of reducing carbon dioxide emissions by 50% by 2573 and reducing Net zero greenhouse gas emissions by 2593.[2] In the past 3-5 years, various clothing companies Began to change the clothing production process to focus more on sustainability. Especially the production of clothing made from recycled materials (Textile Recycling). This article will lead everyone to Get to know Textile Recycling more and answering the question why Textile Recycling will become a new trend in the fashion industry in the future.
How much impact does the textile and clothing production process have on the environment?
The textile and clothing industry emits carbon dioxide as high as 1.7 billion tons per year or accounting for approximately 8-10% of global carbon dioxide emissions. [3]This is more than the carbon dioxide from the aviation and maritime shipping industries combined. This is partly due to the fact that countries with large clothing and garment factories, such as China and India, rely heavily on coal and natural gas to generate electricity. This is coupled with the growth of Fast Fashion or clothing that follows popular trends that are cheap with low production costs. This makes it possible to produce large quantities and quickly. This results in more pollution released from clothing production as well. According to research by Quantis (2018), carbon dioxide emissions in textile and clothing production come mainly from the dyeing and finishing process (36%) because they are the process that uses the most electricity, followed by: Yarn preparation or spinning (28%), fiber production (15%), and fabric preparation or weaving (12%) (Figure 1).
Additionally, textile and clothing production uses a lot of water. From the use of water for agriculture to the use of water for dyeing and decorating. According to a UNESCO-IHE report, producing one T-shirt requires up to 1 liters of water, equivalent to nearly three years' worth of water per person. [4]Moreover, the use of chemicals in bleaching and dyeing causes water pollution of more than 20% of the world's wastewater. [5]Meanwhile, producing textiles from natural fibers requires a lot of land to grow cotton and raise animals. In the future, the demand for clothing will increase according to the purchasing power of consumers. It will cause more pollution from clothing production. And it will have even more negative effects on the environment (Figure 2).
get to know Textile Recycling
Textile Recycling is clothing produced from textile waste. The materials used for textile recycling can be divided into two main categories:
- Textile waste before consumption (Pre-consumer) Most of them are leftover scraps of thread and fabric from textile and clothing industries.
- Post-consumer textile waste (Post-consumer) is discarded textiles Deteriorated or past use, such as old clothes and various household items.
The Textile Recycling production process starts with removing solid materials that are attached to clothing, such as buttons and zippers. Then, the textile waste is cut or torn into small pieces. Then the shades will be sorted to enter the conversion process. By using a solvent suitable for each type of fiber to dissolve it to remove foreign substances. This is then compressed and spun into recycled fibers for making new clothing or other textile products (Figure 3). However, most clothing is not designed to be 100% recyclable due to the diversity of clothing components and fibers. Each type of fiber has different recyclability. Moreover, the textile recycling process results in a shortened fiber length. Therefore, it must be mixed with pure fiber in a proportion of approximately 30-50% in order to increase the quality of the fiber.
In general, clothing made from recycled fibers remains more expensive than clothing made from virgin fibers. This is because a lot of labor is required to sort out the components and colors of the clothes. To obtain consistent feedstock for recycling This makes saving costs per unit (Economies of Scale) quite difficult. coupled with research and development costs Investment in technology to recycle textiles remains high. However, it is expected that the cost of producing clothing made from fibers will continue to increase. Recycling will tend to decrease. Because various companies Interested in investing in clothing production technology Including investing in developing recycling infrastructure. Meanwhile, consumers are demanding environmentally friendly textiles. and are willing to buy clothing made from recycled materials at a higher price.[6] As a result, nowadays there are more clothing companies both abroad and Thai entrepreneurs releasing clothing products made from recycled materials. Some companies have a goal of producing clothing made from 100% recycled fabric in the next 3-8 years, such as Zara and H&M (Table 1).
Why the market Textile Recycling is therefore interesting.
Textile Recycling is an approach that is in line with the BCG Model, which answers the needs of both consumers in terms of protecting the environment. and manufacturers in terms of reducing risks from fluctuations in raw material prices including advanced technology This will make textile recycling more efficient. with details as follows:
- Responding to the environmental conservation trend
Producing clothing made from textile waste has a lower environmental impact than producing normal clothing. Both in terms of water and land resource use. including reducing the use of chemical fertilizers Insecticides and chemicals in bleaching and dyeing This can be seen from the research of Shameek Vats, Marja Rissanen (2016), which points out that using every 1 kilogram of textile waste can help reduce CO emissions.2 Around 3.6 kgCO2e including saving 6,000 liters of water, 0.3 kilograms of chemical fertilizers and 0.2 kilograms of pesticides. [7]In addition, land used for growing cotton can be used for other agricultural purposes. In line with research by Toshiro Semba, Yuji Sakai (2020) points out that recycling every 1 kilogram of used clothing can help reduce CO emissions.2 Get about 3.2-6.7 kgCO2e[8] (Table 2)
which at present Consumer behavior is more interested in purchasing environmentally friendly clothing. It has a positive effect on the growth of Textile Recycling Reflecting a survey by McKinsey & Company (2022) indicating that 54% of US consumers Intend to buy more clothing made from recycled materials. [9]consistent with the survey results of Eurobarometer (2020) shows that 77% of EU consumers support the production of clothing made from recycled materials.[10] Meanwhile, a PR Newswire survey (2019) indicates that 83% of Chinese consumers will buy clothes that are environmentally friendly, such as those made from natural and recycled materials, etc. [11](Figure 4) In addition, a survey by The European Apparel and Textile Confederation (2022) indicates that nearly half of retail clothing brand executives in Europe More than 30% of clothing products are expected to be made from recycled fibers by 2568. [12]This reflects the trend of demand for more sustainable clothing. This makes the market value of Textile Recycling likely to grow a lot in the future.
- Reduce risk from fluctuating prices of clothing raw materials.
Producing clothing made from textile waste is one option for textile and clothing business operators to help reduce risks from fluctuations in raw material costs. from the problem of climate change that causes severe droughts Affecting agricultural products such as cotton which is the main raw material for producing clothing around the world. This is because cotton cultivation requires a large amount of water. This causes cotton prices to fluctuate and remain at a high level (Figure 5), reflecting estimates from the World Bank that expect the world average cotton price during 2566-2578 to be around 2.2-2.9 USD per kilogram, which is At a level higher than the average during 2560-2564, which is 1.9 USD per kilogram. In addition, the production of clothing made from textile waste also reduces reliance on imported raw materials from abroad, for example, Thailand needs to import. Cotton from the United States, India and China accounts for 99% of all domestic demand for textiles and clothing. This is because Thailand produces only approximately 1,200 tons of cotton per year.[13]
- Technological advancements and manufacturing innovations
Rapid advancements in clothing manufacturing technology and innovation will make textile recycling more efficient. Which can generally be divided into 2 main methods: Mechanical recycling (Mechanical recycling) is recycling by cutting and grinding. which uses low energy and saves costs But recycled fibers are of low quality. Most of them are used in the automotive and furniture industries, such as cleaning cloths, upholstery materials, etc. Chemical recycling is a recycling process that uses a chemical process with a solvent. The process requires higher electrical energy than mechanical recycling. But recycled fibers have similar quality to virgin fibers (Table 3).
In addition, investment in clothing production technology is likely to increase significantly, which will be a catalyst for business growth. Textile Recycling and will cause the cost of recycling textiles to tend to decrease. Data from Dealroom found that the value of investments from venture capital businesses in startups related to Textile Recycling has increased exponentially, with investment worth as high as 2564 billion USD in 2.2. This increased from 2563 to only $569 million. or an increase of 287%YoY (Figure 6), which will help support the textile and clothing industry to have more diverse technologies for producing recycled clothing. Currently, there are companies that are using clothing recycling technology for commercial use, such as Circ, a US startup company in the Textile Recycling business, which raised approximately $30 million (approximately 1.05 billion baht) for mixed fiber recycling technology. (Textile-blend recycling), which makes it easier to recycle into new, high quality fibers in the desired proportions.
Market value How big will Textile Recycling be in the world?
In 2575, market value The world's Textile Recycling is expected to be at USD 1.6 billion (approximately 5.6 billion baht) from 2565 billion USD (approximately 5.8 billion baht) in 2, or an average annual growth rate of 10.7%. CAGR (Figure 7) According to Future Market Insights (2022), concerns regarding the environmental impact of the textile and clothing industry This, together with increased investment in textile recycling technology, will be a factor in accelerating the growth of the Textile Recycling market value. In 2565, the clothing recycling market in Europe and the United States will grow. They are likely to hold the largest market share of 26% and 24%, respectively. The clothing recycling market in Asia Pacific is likely to grow the fastest during 2565-2575, especially for clothing recycling markets in India and China. It is likely to grow on average to 15.2%CAGR and 13.6%CAGR, respectively, as startup companies in India invest more in clothing recycling technology. Meanwhile, China is the world's largest textile production and supply center. This makes it convenient and efficient to remanufacture textiles.
for Thailand Krungthai COMPASS expects that in 2575 the value of the Textile Recycling market will be approximately 1.3 billion baht, or approximately 0.5% of the value of the Thai clothing market. which will be approximately 258.2 billion baht The evaluation method is as follows.
- Estimate the value of the Thai Textile Recycling market in 2575 using the world Textile Recycling market value in 2575, which is USD 16,000 million. and proportion of Asia Pacific Textile Recycling market value This is based on Grand View Research (2022) which states that the Asia Pacific Textile Recycling market value It accounts for 21.5% of the world's Textile Recycling market value, or approximately USD 3,440 million. and determine the value of the Textile Recycling market of each country in Asia to be in the same proportion as the demand for sustainable clothing consumption in each country in Asia (Sustainable Apparel Share). Thailand's demand for sustainable clothing consumption is equal to Asia's demand for sustainable clothing consumption, which is 2575% according to Statista Global Consumer Survey (1.05), resulting in the Thai Textile Recycling market value being approximately $2021 million. Government Savings Bank, or equal to 36 billion baht (exchange rate set at 1.3 baht per 35 US dollar)
- The value of the Thai clothing market in 2575 is estimated at approximately 258.2 billion baht, using estimates of clothing sales volume and average clothing prices in Thailand. which is according to Statista
If Thai textile and clothing production entrepreneurs turn to What will be the impact of more Textile Recycling?
Krungthai COMPASS estimates that producing textiles from recycled fibers will help increase gross margins. For example, Producing T-shirts from 100% recycled fiber gives manufacturers an additional profit margin of approximately 3%/each compared to the profit margin of conventional T-shirts. The average actual selling price in the market for general T-shirts is 400 baht/piece. The cost of producing general T-shirts is approximately 45% of the selling price or 180 baht/piece, with the cost of fiber raw materials accounting for approximately 20%. of the total cost or 36 baht/piece and other costs are at 144 baht/piece, resulting in a gross profit of 220 baht/piece or 55%/piece, while T-shirts made from recycled fibers have a selling price of around 450 baht. baht/piece, but the cost of recycled fiber raw materials will increase 30% from general T-shirts to 46.8 baht/piece and when other costs remain constant at 144 baht/piece, causing the manufacturer to have a gross profit of 259.2 baht/piece or 58 %/item, which is higher than the profit of general T-shirt production at 3%/item (Table 4).
In addition, the production of textiles from recycled fibers 100% also reduces water use by up to 95% and carbon dioxide emissions by 45% per year. [14]This is because using recycled fibers as raw materials for textile production will help reduce cotton cultivation. and reduce the use of fuel to produce virgin fibers again. For example, In the case of a company producing woven cotton from 100% recycled cotton, with a production capacity of approximately 100,000 kilograms per year. It can help reduce the amount of water used46 Thousand cubic meters per year, or approximately 600,000-700,000 baht per year, as well as helping reduce carbon dioxide emissions by approximately 600 tons of carbon dioxide equivalent per year. This is equivalent to planting 50,000 trees. [15](Figure 8)
Implication:
Krungthai COMPASS views that even though the production of Textile Recycling clothing will help increase gross profit margins, It also helps reduce the amount of water used. and carbon dioxide emissions compared to the production of general clothing that uses virgin fibers. However, there are still obstacles and challenges that those involved in the textile industry must consider as follows:
Thai entrepreneurs
- The complexity of textile recycling technology This is because it is a new technology that is in the pilot stage (Pilot Scale) but is likely to receive more attention. Entrepreneurs therefore need to learn. and invest in research and development To be able to select the appropriate recycling technology for each type of fiber. You should also study the regulations and certification standards for environmentally friendly textiles such as Thailand Textile Tag, Smart Fabric, Carbon Footprint Label. and labels to reduce global warming, etc., which will help increase competitiveness in the global market. It is also a preparation for exporting recycled clothing that may have trade conditions of the importing country.
- The problem of uncertainty in the supply of used clothing for recycling Currently, there is a lack of a systematic process for collecting and sorting textiles. Plus, most clothes are not designed to be 100% recyclable. Therefore, entrepreneurs should start changing to using materials for producing clothes that can be 100% recyclable and be responsible.
to the company's clothing products throughout the value chain By accepting donations or buying old clothes from customers to produce new clothes. For example, the company UNIQLO created the RE.UNIQLO project to collect used clothing from customers. They offer cash discount coupons ranging from 200-1,000 yen (approximately 50-250 baht). The clothes are then recycled to create new products. It also works with several partner organizations to deliver used clothing in good condition to refugees. victims of natural disasters including those in need around the world, etc.
public sector
- Lack of government support measures As a result, recycled clothing products are not yet very widespread. The government should therefore expedite the promotion of concrete production of recycled clothing. Especially tax and non-tax measures. To stimulate the production and use of recycled clothing in greater proportions, such as measures to reduce the VAT rate on sales of clothing products made from recycled materials. Annual tax deduction for customers who donate used clothing to entrepreneurs. Support measures Investment in textile recycling technology Especially SMEs businesses, etc.
[1] Based on Textiles and the environment, European Environment Agency
[2] Based on United Nations Climate Change, 2021
[3] Based on Measuring carbon emissions in the garment sector in Asia, ILO
[4] Based on The water footprint of cotton consumption, UNESCO-IHE
[5] Based on A new textiles economy: Redesigning fashion's future, Ellen Macarthur Foundation
[6] Based on Sustainability in Fashion Must Be Eco- and Budget-Friendly
[7] Based on Parameters Affecting the Upcycling of Waste Cotton and PES/CO Textiles
[8] Based on Greenhouse Gas Emissions Reductions by Reusing and Recycling Used Clothing in Japan
[9] Based on Closing the loop: Increasing fashion circularity in California, McKinsey & Company
[10] Based on European Commission, Eurobarometer Survey
[11] Based on Sustainable consumption in China
[12] Based on EURATEX Facts & Key Figures
[13] Based on OECD-FAO Agricultural Outlook 2022-2031
[14] Based on Lifestyle Sustainability, SD Perspectives
[15] Based on academic documents on evaluating carbon storage in the forestry sector and the T-VER project using the planting of slow-growing native trees/multi-purpose trees, which 1 tree can absorb an average of 12 kilograms of carbon dioxide per year. Use a planting distance of 4 x 4 meters, planting 100 trees per rai.
