Can the US become a potential sourcing base for clothing made from recycled cotton and what are the opportunities and challenges of using textile recycling to support apparel that is "Made in the USA".

With millions of tonnes of textile waste generated annually in the US and globally, consumers and fashion companies demonstrate a growing interest in using more recycled materials in clothing and building a more circular fashion industry.

Compared to other recycled fibres, such as polyester, which is commonly made from plastic bottles, consumers view recycled cotton as more environmentally sustainable and better able to address the textile waste problem directly.

Meanwhile, whether the United States can become a potential sourcing base for clothing using recycled cotton has gained strong industry interest. On the one hand, with cotton apparel accounting for nearly half of US apparel imports and supported by a relatively advanced used clothing collection and sorting infrastructure, the US holds notable advantages in producing such clothing. Using recycled cotton also aligns with the public perception of clothing “Made in the USA” as more sustainable and environmentally friendly compared to imports from many developing countries. However, on the other hand, as the world’s largest cotton producer, the United States has a sufficient supply of high-quality, lower-cost virgin cotton fibre, which may reduce incentives for US textile and clothing mills to use more expensive recycled cotton. It is also unclear whether recycled cotton’s known limitations in physical properties can meet the technical requirements for “Made in the USA” clothing, which often emphasises high quality.

This feature aims to explore the United States as a sourcing base for clothing using recycled cotton, including the products available in the market and their assortment features. 

We leverage information from fashion companies’ websites to capture detailed production information. Using the United States as a case study deepens our understanding of the unique opportunities and challenges of using textile recycling to support apparel “Made in the USA.” The findings could also offer new insights into the evolving supply chains and sourcing landscape in the era of textile recycling.

Market size and top sellers

Reflecting fashion companies’ interest in carrying more sustainable apparel products to meet consumers’ demand, there has been a notable increase in clothing using recycled cotton in the US retail market since 2022. For example, based on information collected from US apparel retailers’ websites, only about 100 Stock Keeping Units (SKUs) of “Made in the USA” clothing explicitly indicated that they contained recycled cotton in 2022 and 2023, respectively. However, in the first nine months of 2024, this number had already doubled to around 200. Likewise, about 3,700 SKUs of non-US-made clothing claimed to contain recycled cotton in the first nine months of 2024, exceeding the total for all of 2023.

Despite the impressive growth, clothing containing recycled cotton remains a “niche” in the US retail market. As of 2024, the total SKUs of “Made in the USA” clothing containing recycled cotton accounted for only about 0.1% of those made with regular virgin cotton. Similarly, for imported clothing sold in the US retail market, the total count of clothing using recycled cotton also made up just about 1% of those using regular cotton as of 2024. In other words, the growing popularity of sustainable apparel has yet to create a strong interest among US retailers in carrying clothing made from recycled cotton, particularly for items labelled “Made in the USA.”

Meanwhile, measured by SKU count, 70% of “Made in the USA” clothing containing recycled cotton was sold in the mass and value segments in the US retail market from 2022 to 2024.  Top sellers of such items included Nordstrom, Macy’s, Revolve, and Free People, which also primarily targeted consumers in the mass segment. In comparison, over the same period, “Made in the USA” clothing made with regular cotton catered to a more diverse consumer base, with a relatively balanced distribution across the mass and value segment (57%) and the luxury and premium segment (43%). Aligned with the results, leading sellers of “Made in the USA” clothing using regular cotton included both mass-market retailers, such as Madewell, Free People, and Kohl’s, and luxury retailers like Bergdorf Goodman, Burberry, and Saks Fifth Avenue.

Furthermore, by SKU count, over half of non-US-made clothing containing recycled cotton was launched to the luxury and premium segment in the US market from 2022 to 2024, carried by luxury brands like Diesel, Chloé, Burberry, and Hugo Boss. This indicates that clothing made with recycled cotton is not necessarily viewed as low-value-added or unsuitable for the high-end market. Instead, the prevalence of “Made in the USA” clothing using recycled cotton in the mass market segment may be driven by supply-side factors beyond consumer preferences alone.

Product features of made in US recycled versus regular cotton 

There appears to be a notable distinction between the product categories of “Made in the USA” clothing using recycled cotton and those made with regular cotton. Specifically, from 2022 to 2024, by SKU count, “Made in the USA” clothing containing recycled cotton mainly focused on basics such as T-shirts (35.6%), jeans (20.1%), other bottoms (20.7%) and other tops (18.4%). 

Particularly, jeans appear more likely to contain recycled cotton than any other apparel category. Besides “Made in the USA” items, jeans also accounted for nearly 29% of imported clothing into the US that used recycled cotton. This interesting phenomenon could be the result of various factors, from the cost structure, product characteristics, and available technology to incorporate recycled cotton into jeans. In contrast, US-made clothing using only regular cotton spans a broader product range, including basics, such as T-shirts and jeans, and more sophisticated categories, like dresses, outerwear, and tailored pieces.

Using recycled cotton also appears to affect clothing’s design patterns. For example, from 2022 to 2024, nearly 85% of “Made in the USA” clothing containing recycled cotton chose plain design patterns compared to only 65% of those exclusively using regular cotton. These results echo findings from previous studies, suggesting that the shorter fibre length and lower quality of recycled cotton may limit the use of more intricate and complex design details. Meanwhile, within those “non-plain” styles, “Made in the USA” clothing using recycled cotton predominantly featured graphics (80%), largely due to the high concentration of T-shirts in the product portfolio. In contrast, “Made in the USA” clothing that exclusively used regular cotton displayed more diverse patterns, such as checks, florals, and abstracts, showing the versatility of cotton in meeting diverse design needs.

Fibre content of Made in US recycled cotton versus regular cotton 

Reflecting the significant limitations of the quality and properties of the fibre, clothing labelled as using “100% recycled cotton” was rarely available in the US retail market from 2022 to 2024, regardless of where the item was made. In most cases, recycled cotton accounted for no more than 30% of the total fibre content in a garment, with typical labels reading “49% cotton, 21% recycled cotton, 17% recycled polyester” (jeans), “Made from 70% cotton and 30% recycled cotton” (T-shirt), and “Made from 70% cotton, 29% recycled cotton, and 1% elastane” (skirt).

Results show that over 95% of “Made in the USA” clothing containing recycled cotton was blended with regular virgin cotton, and 92% of imported clothing did the same. According to textile scientists, this blend helps overcome the physical limitations of recycled cotton and enhances the fabric’s durability and softness. Approximately 14% of “Made in the USA clothing” containing recycled cotton was blended with polyester. This blend was commonly used for jeans and T-shirts to improve durability and flexibility and may also reduce production costs. However, compared with “Made in the USA” clothing made from regular cotton, it was uncommon to see recycled cotton blended with specific fibre types such as nylon, spandex, rayon, and linen. This result again revealed the physical limitations of recycled cotton and explained the narrow range of apparel products currently suited for its use.

Sustainability claims of made in US recycled cotton versus regular cotton 

Fashion brands and retailers have compelling reasons to highlight the sustainability features of “Made in the USA” clothing using recycled cotton. For example, studies show that sustainability benefits are among the most critical factors that drive consumers to purchase clothing made from recycled textile materials. Likewise, in theory, using recycled cotton could also present significant environmental advantages over virgin cotton, particularly in saving water usage and reducing post-consumption textile waste. Additionally, incorporating recycled cotton into clothing may help reduce dependence on synthetic fibres, which often raises ecological concerns, such as ocean microfibre pollution.

In practice, the sustainability claims of “Made in the USA” clothing containing recycled cotton in the US retail market appear to be a “mixed bag.” On the one hand, as anticipated, “Made in the USA” clothing containing recycled cotton seems to be more likely to highlight its sustainability attributes than those using regular cotton only. 

From 2022 to 2024, by SKU count, more than 23.1% of “Made in the USA” items containing recycled cotton mentioned the word “sustainable” in the product description or label, and another 16.2% mentioned “eco-friendly.” In comparison, less than 2% of “Made in the USA” clothing made from regular cotton included these two terms. Similarly, a higher percentage of “Made in the USA” clothing using recycled cotton also featured other sustainability-related terms such as “impacts,” “waste,” and “certified,” compared to those made from regular cotton.

On the other hand, however, the sustainability claims of “Made in the USA” clothing containing recycled cotton are not without concerns. For example, in many cases, the product descriptions or labels provide no detailed and verifiable information about the actual “sustainability benefits” of producing and consuming clothing made from recycled cotton aside from vaguely saying the product was “sustainable,” “eco-friendly,” or “certified.” As consumers become more educated and wary of “greenwashing,” this lack of transparency could undermine the credibility of recycled cotton clothing as genuinely sustainable. Additionally, because recycled cotton often represents only a small percentage of the total fibre used in a garment, it can be challenging to accurately estimate and describe its sustainability benefits, such as total water savings and textile waste reduction.

To complicate the issue further, as clothing made from regular cotton increasingly emphasises its sustainability benefits as a natural fibre, it somehow diminishes the exclusivity of recycled cotton as a sustainable option. For example, there is no clear evidence indicating that consumers generally perceive clothing using “recycled cotton” as more or less sustainable than those using “organic cotton” or cotton certified by reputable programmes such as the “Better Cotton Initiative, BCI” and the “US Cotton Trust Protocol.” 

In other words, “recycled cotton” faces intense competition as the preferred sustainable fibre among many choices available to fashion companies, including regular cotton. 

Pricing of made in US recycled cotton versus regular cotton 

Results show that “Made in the USA” clothing containing recycled cotton is not always “cheap” for US consumers. For instance, for those targeting the mass market segment, between 2022 and 2024, adding recycled cotton increased the selling price of “Made in the USA” clothing by more than 10% compared to items made with virgin cotton, with jeans being the only exception (i.e., 12% lower).

Price data also shows that “Made in the USA” recycled cotton items generally have higher price tags than comparable non-US-made items across both mass and premium markets, particularly in popular categories like T-shirts and bottoms. This trend suggests that higher US domestic production costs, particularly the higher wage level compared to Asian countries, could contribute to these elevated prices.

Interestingly, in the luxury segment, non-US-made recycled cotton clothing often carries comparable or even higher prices than US-made counterparts, as many of them are made in Europe, such as Italy, where the production costs could be even higher. The brand positioning for these luxury items may also be a critical factor behind the higher pricing.  

Conclusion and reflections on the Made in US recycled cotton market 

In conclusion, this study offers valuable insights into the availability of “Made in the USA” clothing made with recycled cotton, along with the unique product assortment and characteristics of these items. As the findings highlight, while visibility is increasing, promoting recycled cotton in clothing still encounters significant challenges. For instance, technical advancements in the quality of recycled cotton fibre are critical to enhancing its competitiveness among other “preferred sustainable fibres,” raising its perceived market value and enabling its use across a broader range of clothing categories beyond T-shirts and jeans.

Notably, due to slow progress in improving the physical properties of recycled cotton, some have seemingly “given up” on using it for clothing and suggest focusing more on repurposing recycled cotton for other categories, such as non-wovens, carpets, packaging, and home textiles. 

However, as sustainability legislation, such as the Extended Producer Responsibility (EPR) law, increasingly mandates fashion companies to recycle textile waste, not promoting recycled cotton could lead to greater reliance on recycled polyester or other man-made fibres in clothing, which may not serve the long-term business interests of the cotton industry.

Additionally, educating consumers on recycled cotton’s environmental benefits is essential to make the fibre a more visible part of the US apparel market. For “Made in the USA,” clothing containing recycled cotton, providing detailed, science-backed information and data on water and energy savings, carbon emission reductions, and textile waste management could be especially well-received by US consumers and add creditability to the sustainability claims of such products.

By Just Style