Circulose and Birla Cellulose signed a partnership agreement on December 18, 2025 to intergrate Circulose’s 100 per cent recycled textile pulp into Birla’s massive industrial footprint- the company currently holds a 15.7 per cent global volume share in man-made cellulosic fibers (MMCF).

This collaboration is strategically timed to meet the massive demand spike triggered by the European Union's 2025 updates to the Waste Framework Directive. New Extended Producer Responsibility (EPR) mandates now require brands to finance the management of the 5.2 million tons of textile waste generated annually in the EU. For global retailers, the Birla-Circulose pipeline offers a crucial compliance solution. The company’s partnership with Birla is a cornerstone of their strategy to enable mainstream adoption, states Jonatan Janmark, CEO, Circulose. The alliance effectively de-risks the supply chain for brands by providing a ‘ready-to-weave’ recycled fiber that matches the quality of virgin viscose.

Commercializing the $44 billion next-gen pipeline

While textile-to-textile recycling was once hindered by high capital costs and fragmented collection, the industry is entering a hyper-growth phase. Analysts project the global textile-to-textile recycling market will surge from $4.8 billion in 2025 to a staggering $44.8 billion by 2034. As a case in point, Birla’s consistent ‘Dark Green Shirt’ rating in the 2025 Canopy Hot Button Report underscores the trust global brands place in this supply chain. This partnership solves the ‘scaling gap’ by ensuring that recycled pulp is immediately converted into high-performance staple fiber, allowing fashion houses to meet their 2030 recycled-content targets without compromising on texture or durability.

The pulp and fiber arm of the Aditya Birla Group, Birla Cellulose is a global leader in sustainable Man-Made Cellulosic Fibers (MMCF). Operating 11 manufacturing sites and five advanced R&D centers, the company specializes in viscose, lyocell, and modal fibers. Birla has achieved the highest sustainability ranking in the Canopy Hot Button Report for six consecutive years, driven by its commitment to net-zero carbon emissions by 2040 and a 50% reduction in water intensity by 2025.