Transforming Post-Industrial Textile Waste in Bangladesh: Reflections from the BESTSELLER – Switch to Upstream Circularity Pilot
Bangladesh is one of the world’s largest garment-producing nations, and with that scale comes a significant opportunity to transform post-industrial textile waste into high-value materials. Yet despite this potential, the systems required to capture, classify, trace and recycle textile waste at scale have long remained fragmented mainly because the enabling infrastructure, incentives, and coordination simply weren’t in place to support new practices.
The BESTSELLER – Switch to Upstream Circularity Pilot, delivered under the SWITCH to Circular Economy Value Chains (SWITCH2CE) initiative, set out to address these gaps. Led by UNIDO, and supported by Global Fashion Agenda, BGMEA, and Reverse Resources, the pilot aimed to strengthen the foundations of a domestic textile ecosystem for post-industrial waste. With the pilot now concluded, its learnings offer a clear picture of what it will take for Bangladesh to progress toward recycling at scale. The global SWITCH2CE project is led by UNIDO in collaboration with global partners Circle Economy, the European Investment Bank, and Chatham House, with funding from the European Union and the Government of Finland.
The primary goals of the BESTSELLER – Switch to Upstream Circularity Pilot were to:
At the outset, Bangladesh’s waste ecosystem held clear potential but lacked the reliable systems needed to convert post-industrial waste into valuable recycled feedstock and scale traceable textile recycling. Although suppliers were generating substantial quantities of recyclable cotton, no factory was segregating textile waste at scale, classifications were broad, and fibre composition was rarely recorded. Without that information, recyclers had limited visibility into suitable inputs, inhibiting investment and stalling progress.
Across the seven suppliers initially onboarded in January 2023, over 129 tons of textile waste were segregated against the baseline established in February 2023. While this
provided an important snapshot of available material, only a portion could be channelled into early recycling trials due to limited data availability. These early findings made the opportunity, and the challenge, unmistakable. Bangladesh had the feedstock, the manufacturing capacity, and the ambition to advance circularity, but needed the aligned systems, processes, and partnerships to bring that potential to life.
“Bangladesh’s Ready Made Garment (RMG) sector is steadily advancing toward the formalisation of its recycling industry, however, in order to be fully circular, fundamental changes remain to be finalised in terms of policy regulations, social obligations, technology transfer, access to finance and a tax structure that will incentivise both domestic and international investment in the country. It is also very important to have a structured market place (physical and/or digital) where the waste can be bought and sold while maintaining traceability across the waste supply chain.
In the past couple of years we have seen positive development within the industry as factories have started investing in technology to close the loop and certain brands are now closely working with manufacturers to develop new products for the market. Increased awareness amongst all stakeholders in the supply chain has been one of the key successes of the SWITCH2CE project in Bangladesh as, at source segregation and traceability is also being practiced.
However, as Bangladesh prepares itself to be a resourceful and successful example of a fully integrated circular RMG industry, it is very important to remember that the EU regulatory framework on matters related to the definition of waste, the CSRDDD and even something as specific as paying the right price for this enhanced, sustainable product, all act as key incentives to really make Bangladesh a true success story in achieving global circularity.” – Vidiya Amrit Khan, Deputy Managing Director, BGMEA
As the pilot gained momentum, participation expanded and system improvements began to take shape. Supplier engagement grew from seven to 20 manufacturing facilities. During the pilot, 16 workshops and roundtables, eight event presentations, and 21 targeted training sessions significantly strengthened industry knowledge sharing. The pilot reached nearly 5,000 fashion stakeholders, marking an important shift in industry awareness and readiness for diversity of recycling solutions. Waste handler and recycler participation increased from two to 27 handlers and 26 recyclers, creating a more connected ecosystem capable of supporting textile-to-textile recycling.
With more actors aligned through various trainings, the volume of segregated material rose sharply, from just over 129 tonnes at baseline to over 16.000 tonnes by November 2025. This growth reflected both improved segregation practices and a growing recognition among suppliers that higher-quality waste streams could hold tangible commercial value. Following the pilot trainings, 14 out of 16 participating manufacturers* implemented dedicated waste segregation zones, marking a decisive shift from baseline practices and laying the groundwork for higher-quality textile recycling. Data availability and digital traceability also improved significantly. By the end of the pilot, suppliers were recording up to 20 material composition categories, enabling recyclers to better assess feedstock suitability. This shift, from broad, inconsistent classifications to more granular, reliable data, marked one of the pilot’s most important contributions. For some manufacturers, the pilot also prompted organisational change, with nine reporting the creation of new technical roles related to recycling, traceability, data management and quality control.
The increased understanding of waste streams structures and processes between BESTSELLER’S manufacturers and recyclers paved the way for the first commercial trials. BESTSELLER worked with its manufacturers and nominated recycler CYCLO to continuously create garments containing recycled materials. Beyond piloting new systems, these changes translated into measurable outcomes and impacts, with eight of participating manufacturers reporting increased use of recycled materials in place of virgin inputs.
“We have gained significant learnings over the past years and developed a much better understanding of the waste structures in Bangladesh. Through this project, we have demonstrated that, together with our manufacturers, it is possible to achieve the segregation and transparency needed to drive material recovery. This represents a first and important stepping stone in further building the recycling capacity in the country.” – Alexander Granberg, Materials Manager – Recycling & Innovation, BESTSELLER
“We are willing to stop untraceable waste trading at the factory gate, but we need a simplified disposal channel.” – Manufacturing representative (RMG Factories)
For many manufacturers, these changes also translated into tangible commercial value. End-of-project survey responses indicate that seven participating manufacturers gained direct financial benefits from selling segregated textile waste to waste handlers at higher market value. Across all actors, the pilot generated an estimate of approximately EUR 1,071,826 in economic value, based on waste volumes shipped by manufacturers and sold to global market prices for selected compositions. More broadly, the project generated industry awareness and demonstrated the commercial viability of recycling post-industrial waste in Bangladesh through a business case template and toolkit. This momentum is set to continue beyond the pilot, with 12 participating manufacturers indicating plans to invest further in mechanical recycling practices of post-industrial cotton following its conclusion.
The progress achieved through the pilot is promising, but the barriers to large-scale uptake of recycled textile waste remain significant. Recycled fibres continue to be more expensive than virgin alternatives, limiting uptake in the absence of market incentives or supportive policy frameworks. Waste quality outside the pilot remains inconsistent, driven in part by continued reliance on informal collection systems. Without predictable, traceable waste flows, recyclers face uncertainty that constrains investment in domestic fibre-to-fibre capacity.
Infrastructure constraints also persist. While domestic recycling capacity is growing, it is not yet sufficient to absorb the rising volumes of segregated material, meaning only a portion, approximately 10% at present, can be fully channelled into textile-to-textile recycling. And while pilot suppliers have adopted more robust digital systems, widespread adoption across the sector will be essential to take hold at national scale.
“Traceable and segregated textile waste is critical for recyclers as it ensures feedstock integrity, enables precise fiber characterization, minimizes cross-contamination, and optimizes process efficiency. This enhances yield, reduces operational complexity, and supports production of high-performance recycled fibers at industrial scale.” – Recycler representative (Recover)
The pilot has laid important groundwork for an updated system to handle textile waste in Bangladesh. The BESTSELLER – Switch to Upstream Circularity Pilot has reached its conclusion, but its insights will continue to guide the transition of Bangladesh’s textile industry. By strengthening segregation at source, improving data visibility, and demonstrating early market-ready outputs, the pilot has shown that textile-to-textile recycling is both feasible and increasingly commercially relevant. We now hope to see sustained collaboration, and the collective ambition of industry, government, and international partners, to build on this momentum and help Bangladesh realise its potential.
“Through this pilot, UNIDO worked with a global brand and local suppliers to demonstrate how circular economy innovations can strengthen the competitiveness of Bangladesh’s textile industry. The project revealed a strong supplier appetite for improved waste segregation, transparency, and traceability—critical enablers of a circular transition. These insights are now feeding directly into tailored policy advice to help address institutional barriers and scale effective circular solutions at national level.” – Mark Draeck, SWITCH2CE Chief Technical Advisor, UNIDO
*Based on responses to the Switch end-of-project survey. Response rates varied by stakeholder group.
About SWITCH to Circular Economy Value Chains (SWITCH2CE)
The SWITCH2CE project is an initiative that assists EU multinational companies and their suppliers in developing countries to switch to more circular economy approaches and practices in three selected value chains: Plastic Packaging, Textile & Garments, and ICT and Electronics. The overall goal is to support the ‘Transformation towards a circular economy’, including contributing to sustainable growth, low-carbon and climate-resilient development, decent jobs creation, and a safer, healthier, and pollution-free environment. SWITCH2CE is co-funded by the European Union and the Government of Finland, and implemented by UNIDO, in collaboration with Circle Economy, Chatham House, and the European Investment Bank.
Learn more at: www.switchtocircular.eu
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