Major apparel groups - including Inditex, H&M Group, adidas, and Bestseller- have launched the Apparel Recovery Coalition (ARC) to establish scalable reverse logistics and extended producer responsibility (EPR) frameworks across critical global trade corridors. While mechanical and chemical recycling technologies advance, circularity efforts have faced a structural barrier: insufficient capital allocations for sorting infrastructure and complex fiber separation.
Financial commitments driving infrastructure and circularity scalability
The ARC model introduces voluntary brand-level contributions designed to finance secondary-market waste infrastructure, particularly in high-volume export regions across Europe, North America, and Africa. Industry estimates value the global textile waste management market at $10.05 billion in 2026, with forecasts reaching $13.87 billion by 2030 as regulatory compliance tightens.
Technology is no longer the primary hurdle in textile-to-textile recycling; the deficit lies in funding execution networks at scale, notes Marcus Thorne, Chief Supply Chain Analyst, Global Retail Insights. By commercializing collection hubs and standardizing feedstock sorting, the coalition aims to convert structural waste liabilities into secure raw material pipelines, he adds.
Regional pilot project demonstrates commercial feasibility
A recent pilot project executed across European municipal markets illustrates the economic viability of integrated recovery platforms. Between 2023 and 2025, systematic sorting investments raised regional collection volumes from 10,000 to 16,500 tons. This operational shift delivered an 82 per cent increase in landfill diversion, elevated localized recycling rates from 18 per cent to 34 per cent, and yielded $2.3 million in annual municipal savings.
Focusing on easing operational bottlenecks
The Apparel Recovery Coalition is an international industry alliance dedicated to establishing circular supply chains, scalable reverse logistics, and standardized recycling infrastructure for post-consumer garments. Operating across major European, American, and African trade networks, ARC targets cross-category apparel and industrial textiles. Formed in late 2026 by leading global retail groups, the coalition focuses on expanding regional sorting hubs, easing operational bottlenecks, and aligning sector practices with emerging Extended Producer Responsibility mandates.
