Swedish Innovation Paves the Way for Circular Fashion

In an era where sustainability is strategic for business development in European apparel companies, and both consumers and investors show an increasing interest, apparel companies are actively addressing the challenge of how to reduce their products’ climate impact and prepare for producer responsibility for discarded textiles. In this context, Rewin is a key player with its groundbreaking technology for recycling discarded polyester textiles, working in close partnership with leading Nordic apparel brands.

Rewin collaborates with well-known apparel companies such as Kappahl, Helly Hansen, and Gina Tricot to develop sustainable solutions that can be integrated into their value chains. This partnership is important, where major players are actively participating in the development of circular solutions. The collaboration demonstrates the textile industry’s proactive approach to reducing climate impact and meeting future regulatory requirements.

— Our collaboration with leading apparel brands demonstrates a strong market demand for sustainable textile solutions. It's a clear indication that the textile industry is ready for fundamental change, says Niklas Jakobsson, CEO and co-founder of Rewin.

Technological Innovation Meets Market Needs 

Rewin's process, based on chemical recycling of polyester from collected textiles, has the potential to drastically increase the recycling rate in the textile industry. With plans to establish a test facility in Malmö in 2025, the company is strategically positioning itself to meet the growing demand for recycled material.

— At Gina Tricot, we're committed to driving sustainable change in the fashion industry. Our collaboration with Rewin within the “Production demonstration for industry scale polyester recycling research project” aligns with our goal to offer products made from 100% more sustainable materials by 2028. Innovative fiber recycling technology is a crucial step towards achieving our circular ambitions and reducing our climate impact, says Rebecca Watkins, Global Sustainability Manager at Gina Tricot.

Economic Drivers for Transition 

— We see great potential in integrating recycled materials into our collections and are already increasing the volume of recycled materials in our apparel every season. We  produce products meant to last for generations, and we want to continue developing materials in our garments to achieve the lowest possible climate impact. By collaborating with Rewin, we are contributing to a more sustainable future for both our business and our consumers, says Åsa Andersson, Sustainability Director at Helly Hansen.

For apparel companies, access to recycled materials is not just an environmental issue but also an economic necessity. Analysts point to several factors driving this development. Firstly, upcoming EU legislation on producer responsibility creates a strong incentive for companies to invest in circular solutions. Additionally, growing consumer awareness is driving demand for sustainable products, influencing companies' brand strategies and product development. Furthermore, in an industry known for high resource consumption, recycling can lead to significant long-term cost savings. Lastly, sustainability has become a key factor for investors.

Market Potential and Future Outlook

With polyester accounting for approximately 60% of all newly produced textiles, but with less than 1% currently being recycled, the market potential for Rewin's technology is significant. Industry experts estimate that the market for recycled polyester could grow exponentially in the coming years.

— Our interest in Rewin is the promising technology for textile-to-textile recycling to produce high-quality fibers with low energy use. By 2030, the garments we produce will be designed for long life in a circular business model and made in raw materials that are either sustainably recycled or sustainably sourced bio-based materials, says Sandra Roos, Vice President Sustainability at Kappahl Group.

Rewin's project, in collaboration with the apparel companies, represents not only a technological innovation but also a potential catalyst for more sustainable material to become a part of the textile industry. As regulatory requirements tighten and consumer awareness increases, companies that can offer sustainable solutions will have a significant competitive advantage, something that these apparel brands have been well aware of and have been working towards for many years. For investors and industry players, it is becoming increasingly important to follow developments in circular economy and textile recycling, as these areas may reshape the entire value chain of the textile industry in the coming years.