A pilot project in Bangladesh’s textile sector has demonstrated that improved segregation of post-industrial waste can unlock new commercial opportunities for garment manufacturers, as the industry moves towards circular production models.
The initiative, led by Danish fashion group Bestseller, was implemented under the SWITCH to Circular Economy Value Chains (SWITCH2CE) programme. It aimed to strengthen recycling systems and improve the management of textile waste within Bangladesh’s garment supply chain.
Bangladesh, one of the world’s largest garment exporters, generates significant volumes of textile waste each year. Much of this waste has traditionally been underutilised due to limited segregation and traceability, reducing its potential value for recycling and reuse.
The pilot, launched in January 2023 with seven suppliers, expanded to include 20 factories by November 2025. The project focused on improving waste sorting practices, increasing transparency and building stronger connections between manufacturers, waste handlers and recyclers.
Over the course of the initiative, segregated textile waste volumes increased significantly. Baseline levels of just over 129 tonnes rose to more than 16,000 tonnes, highlighting the impact of improved systems and training.
Knowledge-sharing played a central role in the project. Organisers conducted multiple workshops, roundtables and training sessions, reaching thousands of stakeholders across the textile value chain.
These activities contributed to the development of a more coordinated recycling ecosystem. The number of waste handlers increased from two to 27, while the number of recyclers rose from two to 26, indicating rapid growth in local recycling capacity.
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Manufacturers also made operational changes as a result of the pilot. Most participating factories established dedicated waste segregation zones, allowing for more efficient sorting and handling of textile waste.
In addition, companies improved their data management systems, enabling them to track a wider range of fibre compositions. This improved transparency allowed recyclers to better match materials with appropriate recycling processes.
The project also encouraged the creation of new roles within factories. Several manufacturers introduced positions focused on recycling operations and data management, reflecting a shift towards more structured and professionalised waste handling practices.
Commercial trials formed an important part of the initiative. Manufacturers collaborated with recycling companies to produce garments using recycled materials, demonstrating the feasibility of integrating circular inputs into production.
Some manufacturers reported increased use of recycled fibres over virgin materials, signalling a gradual shift in sourcing practices. This aligns with growing global demand for sustainable textiles and reduced environmental impact.
Financial benefits were also observed. Several manufacturers reported higher revenues from selling segregated waste, as improved sorting increased the value of recyclable materials.
Across the pilot, the estimated economic value generated reached more than €1m, based on market prices for selected materials. This highlights the commercial potential of circular practices within the textile sector.
Industry experts say the findings underline the importance of traceability and transparency in enabling circularity. By improving data systems and collaboration across the value chain, manufacturers can unlock new revenue streams while reducing waste.
The project was implemented with support from international and local partners, including UNIDO, Global Fashion Agenda and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
It forms part of a broader international effort to promote circular economy solutions in textile production. Stakeholders are increasingly focusing on scaling these models to strengthen resilience and sustainability across global supply chains.
Participants say the pilot has provided valuable insights into how circular practices can be integrated into Bangladesh’s garment industry. The lessons learned are expected to inform future policies and industry initiatives.
As global brands push for greater sustainability, Bangladesh’s textile sector is under pressure to adapt. Projects such as this pilot demonstrate that improved waste management can deliver both environmental and economic benefits.
The results are likely to support further investment in recycling infrastructure and policy development. Industry leaders say scaling such initiatives could play a key role in shaping the future of textile production in Bangladesh.
