The textile industry: a decisive transition
Luc Olivier, CFA, Fund Manager for Echiquier Positive Impact Europe
The textile industry is responsible for 8% of greenhouse gas emissions, water consumption equivalent to more than 85 million Olympic swimming pools and 9% of microplastic pollution in the oceans.[1] Its impact is significant and intensifying, particularly with the rapid growth of fast fashion. Currently valued at $1,065 billion, the global textile market is expected to exceed $1,670 billion by 2032.[2] A change of course is therefore crucial. And supporting companies on the path to sustainable transition is essential for long-term investment performance.[3]
Fibres: key to the transition
While the environmental and energy transition of the textile industry covers a wide range of issues, fibres are central to it. More resistant and less expensive than natural fibres, synthetic fibres such as polyester, nylon and acrylic now account for over 60% of the market. However, manufacturing these fossil fuel-based materials has a negative environmental impact, and recycling them is challenging. This has given rise to a twofold priority: to develop fibres that are not only recycled, but which are also more recyclable for tomorrow’s textiles, notably through the use of sustainably managed natural materials. This is an important challenge because although plant fibres are natural, their production can have negative impacts on biodiversity, soil and water resources. In our view, a pragmatic yet ambitious approach combined with synergies between stakeholders is one of the drivers of the transition.
Combining innovation and pragmatism
As impact investors, we focus our Echiquier Positive Impact Europe strategy on companies that have addressed the challenges facing the textile industry by designing innovative processes. Adidas, a giant in the industry, is positioning itself as a pioneer by aiming to be carbon neutral by 2050. Dependent on the technical advantages of synthetic fibres for designing high-performance products, Adidas is developing its own recycling processes. Ten years ago, the German group became the first in the world to produce a line of running shoes made from plastic waste salvaged from the oceans by NGO Parley. Since 2024, 99% of the polyester used in its products has come from recycled fibres. And the company has set itself an even more ambitious target: to source 10% of the polyester it uses from recycled textile waste by 2030.[4]
Initiatives are also emerging further up the value chain. Metsä Group, a Finnish forestry group, and Kemira, a Finnish chemical company, have designed a fibre called Kuura. Produced from renewable wood pulp sourced from low-footprint locations, this man-made cellulose fibre (MCCF) has properties similar to polyester and offers a long-term circular alternative. The MCCF and textile recycling market is expected to grow by more than 8% per year, opening up opportunities for investors.[5]
Although these are only isolated initiatives at present, we believe that the transition of the textile industry, and more broadly the energy and ecological transition, is essential. Faced with converging challenges, investors have a key role to play in supporting companies on this trajectory, providing stable financing and opening a direct dialogue with management. Taking action to promote the transition of the economy towards more sustainable practices is crucial and creates investment opportunities.
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[1] Annual data, Textile industry: how can we make it more sustainable?, United Nations, 2024
[2] Textile Market Size, Share & Industry Analysis, Fortune Business Insight, 2025
[3] SRI Report 2024 page 9, LBP AM
[4] Adidas, Our Targets
[5] CAGR 2024 – 2030, Capital Market Days Kemira, 2024