The global eco-friendly yarn market reached USD 5.5 bn in 2025, with Asia-Pacific holding 43.49%. Recycled, bio-based and biodegradable fibers are becoming the new direction of yarn manufacturing.
Material mix
- Recycled polyester yarn: 37.85% (~USD 2.08 bn), made from recycled PET bottles
- Organic cotton yarn: 30.96% (~USD 1.70 bn), pesticide-free
- Recycled cellulosic yarn: 17.18% (~USD 0.95 bn)
- Recycled wool & nylon: 8.95% (~USD 0.49 bn)
Industry shift
Brands in Europe, Japan and the US now widely use recycled fancy yarns in home textiles such as cushions, carpets and blankets. Manufacturers focus on reducing spinning/dyeing waste, low-impact dyeing (less water and chemicals) and energy-efficient equipment. Textile Exchange projects recycled polyester to exceed 30% by 2030. China expanded green yarn capacity to over 35% of total output in 2025, up 8 points from 2023.