Circularity and Digitalisation in German Textile Manufacturing: Towards a Blueprint for Strategy Development and Implementation

Textile and clothing (T&C) production and consumption have been steadily increasing for many years, accompanied by significant resource consumption, waste generation, and environmental impact. Germany holds a pivotal position in the industry, both within the EU and globally, as a leading producer, importer, and exporter of T&C. The circular economy (CE) concept has emerged as a promising solution to address the industry’s negative impacts by emphasising the reduction, reuse, and recycling of resources across the value chain. Digital technologies (DTs) are increasingly recognised as key enablers and facilitators of this transition, promoting both efficiency and circularity in manufacturing processes. However, the extent to which these are implemented in the German T&C industry remains largely underexplored. This study seeks to investigate the role of DTs in advancing CE practices within German T&C manufacturing. Employing process mapping and technology profiling, this research adopts an inductive, qualitative approach based on primary interview data to explore three key areas: (1) current CE practices, (2) the deployment of supportive DTs, and (3) the challenges in implementing the CE and DTs. The findings reveal that CE adoption is set to accelerate among T&C manufacturers, driven by regulatory compliance and market pressures, with DTs playing a critical role in enabling this transition. This study proposes a new operational framework designed to facilitate the shift towards a more circular textile sector, aligning with the ambitious goals of the European Union and broader environmental and societal objectives.