The transition toward a circular economy in the textile sector has brought with it multiple ways of understanding and applying sustainability. One of the most relevant—and often misunderstood—concepts is circularity itself, and alongside it, the distinction between closed-loop and open-loop circularity. Both models have a role to play within the value chain, but the reality is that they do not generate the same type of impact.

The closed-loop model seeks to reintegrate textile waste back into the same production system from which it originated, maintaining its original function. In other words, turning discarded clothing into new garments, fibers into new textiles, without significant loss of quality or value. This is what we often call Textile-To-Textile (T2T) recycling.

The advantages of a closed-loop circularity system are multiple, but its greatest strength lies in keeping the material within the textile ecosystem. This enables multiple life cycles for the material and enhances its traceability.

However, it’s not all as simple as it sounds. Today, closed-loop systems are still conditioned by both technical feasibility and market viability—a topic I would like to delve deeper into separately—which ultimately determines the possibility of implementing a fully closed cycle for textile waste.

So, what is open-loop circularity?

In an open-loop model, the recycled material does not return to its original system but instead finds a second life in a different sector. Construction, automotive, and industrial insulation are common destinations. This shift implies a loss of value from a textile perspective: the material can no longer re-enter the system it came from. But that doesn’t mean it has no value.

The truth is that open-loop circularity reflects something not often acknowledged openly: the reality of textile waste is complex, diverse, and difficult to control. Today, not everything can be recycled back into textiles. There are impossible blends, finishes that distort classification, fibers that do not respond to current recycling technologies. Expecting all textile waste to fit into a closed system would mean ignoring that reality.

That’s why, far from being a failure, open-loop circularity gives us breathing space. It offers a pathway to valorise significant volumes of textile waste that otherwise would have no viable outlet.

A clear example is the use of post-consumer textile waste to manufacture acoustic or thermal insulation materials in construction. It’s what we often refer to as “downcycling.” It’s not perfect. But it is necessary. And in a truly circular system, utility also matters.

What system are we building today?

For a long time, talking about textile circularity has largely meant talking about open-loop models. They were—and in many cases still are—the most immediate solutions: the ones that allow us to act on waste, even if not always within the same textile system. But that is beginning to change.

There is a growing number of examples showing that closed-loop recycling is no longer just a future promise but a reality starting to consolidate. We are no longer just talking about “what could be done,” but about projects that are happening, technologies that are working, and alliances that are building closed circuits with sense, quality, and viability.

This shift is being driven by several converging factors:

• Advanced classification technologies, such as NIR and artificial intelligence, that finally allow us to accurately identify what we are dealing with.
• Collaboration across the value chain, from brands to recyclers and through technology developers.
• Increasing investment in infrastructure, specifically designed to scale Textile-To-Textile recycling.
• Stronger regulatory pressure, translating into concrete requirements: traceability, recycled content mandates, extended producer responsibility.

But above all, the key lies in something more fundamental: aligning the available materials and their compositions with the right recycling technologies. Not every material can—or should—go through the same process. Ensuring that each waste stream finds its most appropriate treatment path—whether closed-loop or open-loop—depends on understanding exactly what we have in hand.

That’s why accurate classification and characterisation of textile waste is not a technical detail, but a cornerstone of any serious circularity strategy. Knowing what’s in the waste allows us to design valorisation routes that are not only technologically viable, but systemically intelligent.

Now is the moment. In Europe, different forces — regulation, technology, market demand — are converging to create real possibilities for change. At COLEO, together with some of the most important textile brands, we are not just observing this shift: we are leading it, turning opportunity into reality.

Is it enough? Not yet. Are we building the perfect system? Not quite. But what matters is that we’re no longer just imagining a circular textile system—we are starting to build it, with the right tools, and with a clearer sense of direction.

Post by: Sara López – Coleo