Industry Overview - The old clothing recycling industry in China is undergoing a significant transformation from extensive recycling to refined resource circulation, with a projected discarded volume of 99.82 million tons in 2024, representing a year-on-year increase of 23.89% [1][9][10] - The current recycling system is underdeveloped, with limited channels leading to a high volume of discarded clothing being landfilled or incinerated, causing resource waste and severe environmental pollution [1][9][10] - The complexity of clothing materials, including cotton, wool, and synthetic fibers, increases sorting and processing difficulties, raising recycling costs [1][10] Industry Development History - The industry has evolved through five stages: exploration (pre-1996), social donation (1996-2008), policy promotion and market exploration (2009-2015), rapid development (2016-2020), and standardization and diversification (2021-present) [4][5] - The establishment of the first licensed company for comprehensive recycling in 2008 marked the beginning of professionalization in the industry [4] - Recent years have seen the introduction of national policies aimed at increasing recycling rates and promoting sustainable practices [5][21] Current Industry Status - The industry is experiencing a shift towards refined resource circulation, with a significant increase in discarded clothing volume indicating rising recycling pressure [9][10] - The lack of public awareness and low participation rates hinder the expansion of recycling channels [1][10] Key Companies and Their Operations - Companies like Zhejiang Jiaren and Puliang Environment are leading in technology-driven recycling, focusing on sorting technology and regeneration processes [14][18] - Puliang Environment utilizes AI sorting systems to achieve a classification efficiency of 0.3 seconds per item, processing 30,000 tons annually [14] - Zhejiang Jiaren has developed a unique chemical recycling process that converts waste polyester clothing into high-quality fibers, with plans for significant capacity expansion [18][20] Industry Trends - The industry is moving towards high-value transformation driven by technological advancements, with national policies aiming for a 25% recycling rate by 2025 [21] - The rise of the Z generation as a consumer force is reshaping industry models, with a growing preference for sustainable fashion and second-hand platforms [22][23] - Globalization is accelerating, with companies adapting to international policies and expanding into new markets, particularly in Southeast Asia and Africa [24]