Textile & Clothing Recycling

Collect and recycle used clothing, textiles, and fabric waste from various sources

Startup Cost
$25,000-$80,000
Difficulty
Intermediate
Time to Profit
6-12 months
Profit Potential
$7,500-$33,000/month

Overview

Textile recycling businesses earn $0.05-$0.40 per pound for collected textiles.

Processing 40,000-200,000 pounds monthly generates $90,000-$400,000 annually with 30-50% margins after collection, sorting, transportation, and processing.

In 2025, fast fashion waste creates mountains of textile waste, while demand for recycled textiles and export markets makes textile recycling viable.

Services include placing collection bins at businesses and public locations, collecting clothing donations from retailers and municipalities, sorting textiles by quality and type (reuse, rags, fiber recycling), baling materials for transport, selling to thrift stores and exporters, processing unusable textiles for industrial rags or fiber recovery, and providing businesses with textile waste diversion.

Successful businesses place hundreds of collection bins in high-traffic locations, efficiently sort high volumes, understand markets for different grades, partner with thrift stores and textile processors, and may operate thrift retail alongside recycling.

Retailers increasingly seek textile takeback programs.

Sorted clothing sells to thrift stores, exporters, and vintage dealers.

Lower grades become industrial wiping rags or fiber for insulation and carpet padding.

Required Skills

  • Textile Knowledge
  • Sorting & Grading
  • Logistics
  • Export Markets
  • Bin Placement
  • Material Processing

Pros and Cons

Pros

  • Growing textile waste streams from fast fashion
  • Multiple revenue streams (reuse, rags, fiber)
  • Environmental mission appeals to conscious consumers
  • Can combine with thrift store operations
  • Collection bins provide passive inventory

Cons

  • Labor intensive sorting and processing
  • Textile export markets can be volatile
  • Need warehouse space for sorting and storage
  • Quality of donations varies significantly
  • Competition for prime bin locations

How to Get Started

  1. Research textile processors and export markets
  2. Invest in collection bins and truck
  3. Secure warehouse for sorting and processing
  4. Place bins at high-traffic business locations
  5. Develop efficient sorting and grading system
  6. Build relationships with thrift stores and processors
  7. Market textile takeback programs to retailers

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