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Tipping the Scale: How Recycled Cotton Is Weathering an Uncertain Denim Market

Mills are seeing clients take a more cautious approach to seasonal sourcing, prioritizing versatile, value-driven fabrics over trend-driven novelties and new sustainable ideas. Across the supply chain, companies are tightening investments, reflecting a broader sense of conservatism in challenging times.

“Companies are less likely to experiment with new ideas or products. Everyone—from customers to brands—are really focused on the value proposition of products. Everyone’s goal is to have the best product for a great price,” said Zahra Ahmed, ADM head of sustainability and marketing.

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One area that leading mills hope will remain resilient is the denim industry’s commitment to circularity and recycled cotton. While demand for innovation has softened, Ahmed noted that recycled cotton is increasingly viewed as an industry standard—bolstered by scaled production capabilities and advancements in traceability technology.

Though it ended in early 2026, ADM’s partnership with Recover Textile Systems is an example of how a circular solution, supported by transparent and concise messaging, can scale up. In 2021, the Pakistani vertical mill entered a strategic partnership with the Spanish material sciences company to establish a recycling facility and to use its certified and traceable recycled cotton in its collections. ADM produced 12,000 tons Recover recycled cotton fiber per year at a facility 10 minutes away from its main spinning hub.

Cotton concerns

As with any new idea, it took time to get denim brands to see recycled cotton’s potential. Ahmed saw many clients experiencing innovation fatigue, having seen too many sustainability trends fail to launch.

However, denim continues to be a strong and growing area for Recover. Partnerships with leading brands like Revolve, Lands’ End and Perry Ellis not only demonstrate the increasing demand for sustainable denim solutions, but also the proven performance and quality of the firm’s recycled fiber. At the same time, the company continues to proactively address ongoing concerns around regenerative fiber.

“There are many misconceptions about denim made from recycled cotton fibers, one of the most common being that they don’t respond well to finishing processes. This perception can sometimes hinder wider adoption,” said Alfredo Ferre, Recover chief product, innovation and sustainability officer. “That’s why we continuously challenge the status quo and advocate for the idea that more sustainable fibers are not a barrier to creativity.

Per Recover’s 2024 LCA for production hubs in Pakistan and Bangladesh, the environmental savings of 1 kg of Recover recycled cotton fiber versus conventional cotton are 100 percent water, 93 percent CO2, 99.9 percent eutrophication, 96 percent energy and 100 percent land use.

One way Recover quells concerns is through proof-of-concept collections with supply chain partners. In 2023, Recover launched the Reiconics collection with Spanish finishing technology firm Jeanologia, showing how it’s possible to create stylish and unique pieces using sustainable finishing techniques, with denim containing up to 32 percent recycled cotton.

More recently, Recover partnered with Neela by Sapphire Fibers to develop a circular, dye-free denim with recycled fibers. Ferre said the collection was designed to deliver authentic denim aesthetics while minimizing environmental impact, achieved through zero dyeing, 100 percent traceability, and the integration of our Recover Trace technology, which embeds a physical tracer in the fiber to verify its presence and ensure full transparency throughout the supply chain.

“One of the key considerations when scaling recycled cotton in denim is managing performance expectations. While many brands aim to replicate the characteristics of virgin cotton, it’s important to recognize that recycled cotton behaves differently. Rather than viewing this as a limitation, it opens the door for innovation and collaboration across the value chain,” Ferre said.

Quality over quantity

The perception that recycled cotton compromises quality is increasingly being disproven by innovation and real-world products, according to Laura Vicaria, Denim Deal program director.

Denim Deal helps tackle recycled cotton issues by creating strong cross-value chain collaboration, bringing together recyclers, mills, brands, and other value chain partners to remove the roadblocks together. The industry-leading initiative is committed to standardizing circular practices in denim production and to catalyze the production of 1 billion pairs of jeans containing at least 20 percent post-consumer recycled cotton by 2030.

The 20 percent minimum was established as both an ambitious and achievable starting point for stakeholders. “It sends a strong signal to the market that scaling circularity in denim is possible today, not in some distant future,” Vicaria said. “This threshold strikes the right balance between environmental impact and production feasibility, encouraging brands to act while allowing room for innovation, improvement, and scalability. Our goal is to show that integrating post-consumer recycled at scale is not only necessary but also viable.”

Isko is seeing growing interest in textile-to-textile solutions. “Our clients care deeply about look, feel, and performance and when they see that our recycled denim checks all those boxes, the sustainability story becomes an even stronger bonus. It’s that blend of fashion and function that makes it work,” said Mirela Slowik, Isko category leader.

For Spring/Summer 2026, the Turkish mill introduced Recode Denim, a fabric concept that leverages next-generation recycled fibers and “groundbreaking fiber recovery techniques.”

With Recode, Isko offers greater flexibility in the composition of fabrics, allowing brands to choose varying levels of GRS-certified recycled and FSC/Canopy-certified fibers to better align with their unique circularity goals. The goal is to deliver premium performance and style while maintaining high sustainability standards—proving that elevated design doesn’t have to come at the expense of quality.

“Our approach is now even more strategic: we’re integrating recycled content where it truly performs best. As circularity is at the heart of what we do, this shift helps us get the most value and impact from the fibers we recover,” she said.

Isko utilizes Re&Up, the textile-to-textile recycling firm by parent company, Sanko Group, for recycled cotton and polyester. Slowik said recycled cotton continues to be the most in-demand as polyester is more nuanced. Most clients request around 30 percent recycled content to aligns with regulatory benchmarks.

“What sets us apart is how we engineer recycled fibers into the core of the yarn giving us exceptional durability that has tested over three times better than other recycled fabric options currently on the market,” she added.

The optimal percentage of recycled cotton in denim can vary depending on several factors, including brand requirements, performance requirements of the end-product, fiber type, yarn count, spinning system, production setup and even the type of cotton waste used, according to Ferre.

“While there’s no fixed range that guarantees both quality and durability, the most common percentage of mechanically recycled cotton found in denim in the market typically falls between 10 percent and 20 percent,” he said. “This range reflects a balance that many brands strike between improving sustainability and maintaining fabric performance, aesthetics, and durability. As technologies evolve and supply chains adapt, we expect to see this percentage gradually increase across the industry.

He added that it’s worth noting that industry standards like GRS often default to a 20 percent recycled content threshold.

On average, ADM incorporates 20–30 percent recycled cotton into its denim fabrics. According to Ahmed, this range represents the “sweet spot” where the performance and feel of recycled denim match those of non-recycled fabric. Anything higher can impact product viability, she added.

“We never want to degrade a product’s quality to just say that we’re achieving XYZ sustainability goal. The goal is always to keep product integrity at the standards we set for ourselves and what our customers expect from us, while also successfully incorporating recycled component,” Ahmed said.

Jeans made entirely from recycled cotton are now a reality. Last year Gabriela Hearst launched a collection of 100 percent recycled cotton jeans priced at $950. Vicaria said the collection is a powerful statement on what’s possible in sustainable denim design.

“We’ve also seen other brands such as Tommy Hilfiger and Kuyichi reach similar milestones, showing that this is not an isolated effort but part of a broader shift in the industry. More and more brands are aiming for higher recycled content, which speaks volumes about the growing commitment to circularity and specifically, to the use of recycled cotton,” she said.

Vicaria added that in most cases of 100 percent recycled jeans, brands use blends of post-consumer recycled and pre-consumer recycled cotton. “Achieving 100 percent recycled content is still a challenge, particularly when focusing exclusively on post-consumer recycled due to its limited availability and processing complexity. But with continued collaboration and innovation, like what we foster in the Denim Deal, this level of ambition is becoming increasingly feasible,” she said.

While 100 recycled cotton denim collections are important milestones for the industry, Ahmed noted that these jeans may not have broad mass-market appeal—and it’s not only because of the luxury price tag.

The challenge lies in the fabric itself: as the amount of recycled cotton increases, the denim tends to become stiffer due to the shorter staple length of the fibers—an attribute that runs counter to consumer preferences for softness and comfort.

“You can always increase the percentage of recycled content, but then the product begins to change,” she said. “Today, what consumers are looking for is always a soft hand feel.”

Overcoming challenges

While mills remain optimistic about the staying power of recycled cotton amid economic challenges, its position is not entirely secure.

Looking ahead, Ahmed anticipates companies to shift their sustainability focus to actionable items that can deliver both value and quality to consumers. Whether circularity guidelines and ESG targets focused on regenerative fibers will meet these demands remains to be seen.

Slowik points to several key challenges hindering the broader adoption of recycled cotton: limited availability of high-quality fibers, higher costs, technical difficulties in blending, and concerns about product durability.

“There’s definitely a gap and often it comes down to regulations versus intention,” Slowik said. “Many brands are working to meet evolving compliance frameworks, which is a crucial first step. But for recycled fibers to scale meaningfully, they need to be embraced not just as a requirement but as a strategic material choice. That shift is starting to happen, and we believe rising pressure from climate realities and resource scarcity will only accelerate it.”

Vicaria identified sourcing, consistency in fiber quality, and supply chain alignment as some of the most pressing obstacles. She stressed that post-consumer textile recycling requires reliable systems to collect, sort, and process at scale—systems that are still being developed and scaled globally.

Ferre underscored the importance of quality control to ensure consistent integration of recycled cotton into supply chains. “Managing raw material inputs and segmenting textile waste streams is also critical, as each recycler has specific requirements for feedstock quality and composition. Supporting recycling actors with better sorting and classification systems can significantly improve fiber yield and performance,” he said.

However, membership in initiatives like the Denim Deal offers a pathway forward, enabling brands to share knowledge, pool resources and access ready-made solutions like plug-and-play supply chains.

“Denim Deal provides circular guidelines based on industry feedback and legislative requirements. Members benefit from collaboration, education, exchanging information, action-driven pilots and workshops. A collective effort ensures that no single organization is working in isolation, the organization states,” she said.

Ahmed emphasized that meaningful, industry-wide change in recycled cotton adoption hinges on greater commitment from major players.

“Customers have many options, but just a few brands rise to the top when it comes to driving industry change,” she said. “When big brands decide to put their money behind these initiatives, the trickle-down effect is positive because the industry moves at volume. When you have a volume driver that that is sustainable, it all kind of clicks into place.”

This article was published in SJ Denim magazine. Click here to read more.