Primark has agreed to purchase textile-to-textile recycled polyester produced at the industrial facility Circ plans to build in Saint-Avold, France, with supply expected to begin in 2029; the two parties are locking in future capacity through a long-term offtake agreement. The significance of such agreements lies in providing recyclers with a clear long-term buyer and future revenue path, thereby supporting them in completing financing before commercial production begins.

Key points

  • Primark signs with Circ to purchase textile-to-textile recycled polyester from the Saint-Avold plant in France, with supply starting in 2029.
  • Similar agreements are spreading: H&M Group reached a 7-year, US$600 million offtake arrangement with Syre, while Inditex signed multi-year purchase commitments with Ambercycle and Infinited Fiber Company.
  • Next-generation recycled fibers currently cost about 30% to 80% more than virgin fossil-based polyester or bottle-derived recycled polyester.

Why offtake agreements matter

Recycling plants require large capital investment before reaching commercial-scale operations, and investors want to see that the output material can actually be sold. Long-term offtake agreements fill exactly this gap, making future revenue more predictable. The Primark-Circ partnership aims to support this planned French plant and to push recycled polyester made from discarded textiles into mainstream apparel production. According to Letsrecycle, the arrangement is part of broader efforts to scale textile-to-textile recycling rather than relying only on recycled plastic bottles.

The premium and cost reality

While demand is being secured, price remains an obstacle. Next-generation recycled fibers currently cost about 30% to 80% more than virgin fossil-based polyester or bottle-derived recycled polyester. This premium comes from the process itself: chemical recycling requires expensive equipment, large amounts of energy, and a stable and suitable waste feedstock; collection networks remain inadequate, and dyes, finishing agents, elastane and other components in blended fabrics also make recycling harder. For brands, paying more may be a necessary cost to meet public targets and upcoming rules; for spinners and garment makers, the economics are harder to justify—they still have to balance fabric strength, color variation, shrinkage and production efficiency, and cannot let every sustainability upgrade erode already thin margins.

European regulation applies pressure from both sides

The EU is increasing urgency through regulation. New rules around unsold clothing, producer responsibility, product information and circular design are pushing fashion companies to think about where garments go both before and after sale. Europe generates a huge volume of textile waste, but only a small share is currently collected, sorted and likely to enter recycling. Industry estimates cited by Textile Today show that by 2035 Europe will need to recycle millions of tonnes of textile waste into new fibers each year, requiring billions of euros in investment. This creates an imbalance: demand for recycled materials is accelerating while the infrastructure needed to produce them remains limited. Brands that lock in capacity early may gain a practical advantage even if short-term material costs are higher.

Factory waste may be an easier feedstock to start with

Consumer-discarded clothing attracts the most attention, but production waste may become the faster starting point. Cutting scraps, defective fabrics and unused rolls are usually cleaner, more uniform and easier to sort and process than old clothes collected from households. If suppliers digitally record these materials and avoid contamination, waste could shift from a disposal burden to a more reliable feedstock. This also gives manufacturers room to act: spinning mills adapt to recycled chips and staple fibers, weaving mills optimize performance, and garment factories track material flows more carefully.

Industry implications

The recycled fiber market is moving toward a more industrialized structure: brands provide demand, recyclers develop technology, producers turn recycled materials into usable fibers, and manufacturers scale them into clothing. Environmental benefits still depend on the energy used by plants and the distance waste is transported—if fossil energy is used or transport is inefficient, recycling is not automatically low-carbon. Overall, this is no longer just another green label, but a race around feedstock, plant capacity and stable buyers; whoever can make recycled fibers ordinary, consistent and affordable may help shape fashion's next material system.

Source: Major fashion brands sign long-term offtake agreements to secure recycled fiber supply · Originally published on 2026-10-06