Today’s fashion system is built to waste. Every year, millions of tons of textiles goes to landfill, yet the infrastructure to give these materials a second life remains woefully inadequate. The bottleneck isn't collection or consumer willingness to participate in circular programs. It's sorting.
What if we could achieve almost total accuracy in textile sorting, 95% less manual processing time and three times faster throughput? That's exactly what Radio Frequency Identification (RFID) technology is achieving in pilot projects across Europe and North America, using Avery Dennison’s RFID tagging and data management technology. Our new white paper, RFID for Circularity, explores what our collaborative pilot projects confirm: RFID is unlocking circular business models that were previously impossible to scale.
The reverse supply chain revolution
RFID for Circularity envisions a future in which apparel brands adopt the reverse supply chain as a business model. It acknowledges that this can only be achieved through robust data collection and management throughout a garment's lifecycle.
Reverse logistics offers a value-creation opportunity that forward-thinking brands are beginning to capture. When garments reach the end of their first life with a consumer, they can enter multiple pathways: resale in secondhand markets, rental programs, professional repair and refurbishment, material recycling or fiber-to-fiber regeneration as a last resort.
Each pathway requires accurate identification. What's the garment made from? Is it re-sellable? Is it recyclable? Where should it go next? Manual inspection can answer some of these questions, but not quickly enough or accurately enough to build profitable operations.
Consumer demand is accelerating this shift. Shoppers increasingly expect transparency about product lifecycles and want brands to offer sustainable options. Regulatory frameworks are evolving too, with the EU mandating separate textile collection and Extended Producer Responsibility schemes[1], while US states are rolling out their own sustainability requirements. The business case for circularity has never been stronger.
How RFID makes intelligent sorting possible
RFID technology isn't new, but its application to textile circularity is transformative. RFID tags embedded in garments during manufacturing carry comprehensive product data: material composition, manufacturing details, care instructions, original retail information and more. Unlike printed labels that fade or get removed, RFID tags can remain readable throughout a garment's entire lifecycle.
When RFID-tagged garments enter a sorting facility, handheld or strategically positioned readers can instantly identify their composition without line of sight. Multiple items can be scanned at once. The data flows directly into sorting systems that make intelligent routing decisions.
The technology integrates with connected product cloud platforms like atma.io[2], creating digital identities for individual garments. This enables tracking through every stage: collection, sorting, cleaning, repair, resale or recycling. Facilities gain real-time visibility into inventory, processing status and material flows.
Beyond sorting efficiency, RFID delivers multiple business benefits. Brands can authenticate products, preventing counterfeits from entering circular programs. They can streamline their returns operations. With the addition of QR codes, consumers can access the same product histories through smartphone scans, building trust in secondhand purchases. Compliance teams get reliable data for regulatory reporting. The technology scales with ambition, supporting operations from pilot programs to industrial-scale facilities.
RFID in action: Proof from the field
In recent years, Avery Dennison has partnered with pioneering organizations to validate RFID's potential for circularity. The RFID for Circularity white paper explores how our pilots with TEXAID, ReCircled, ACS Clothing and CIRPASS-2 clearly demonstrate what's possible when intelligent technology meets circular ambition.
For example, the RFID-enabled solution ReCircled, piloted with Avery Dennison, transformed their operations. For one participating brand, scanning time dropped by 95.94%. For another, the reduction reached 99.93%. Accuracy jumped to 100%, compared to 89% and 72% with manual methods. With these improvements, circularity moves from a theoretical concept to a commercially viable business model.
Building fashion's circular future
The implications extend far beyond sorting efficiency. RFID enables systemic change across the entire value chain. Suppliers, brands, retailers, consumers, collectors and recyclers can all access the data they need to make circular models work.
Consider the business model innovations this unlocks.
Rental services can track garment condition and usage patterns, optimizing pricing and maintenance schedules.
Resale platforms can verify authenticity and provide verified product histories.
Repair services can access original manufacturing specifications.
Recyclers can route materials to appropriate processes based on precise composition data.
This technology supports the fundamental shift from linear to circular business models. Instead of designing products for single-use and disposal, brands can design for multiple lifecycles. Instead of losing visibility when products leave the retail environment, they can maintain connections throughout products' journeys. Instead of treating end-of-life as waste management, they can capture value from materials that would otherwise be lost.
The sustainability benefits align with profitability. Circular models create new revenue streams while reducing waste. They build brand loyalty amongst environmentally conscious consumers. They prepare organizations for evolving regulatory requirements. They turn compliance from a cost center into a competitive advantage.
So, whether you're navigating EU Digital Product Passport[3] requirements or US state-level Extended Producer Responsibility[4] frameworks, the underlying need is the same: reliable data about products throughout their lifecycles.
The planet demands action
Global apparel consumption is projected to rise by 63% by 2030[5]. Huge efforts are needed today to ensure this growth doesn’t translate into unsustainable pressure on resources and waste systems. That’s something only circular models can realistically address.
As RFID for Circularity demonstrates, RFID provides the data infrastructure to make all kinds of circularity possible at scale. From automated sorting that processes thousands of items per hour, to consumer-facing transparency that builds trust in circular products, this technology addresses the practical barriers that have held circularity back.
Free-to-download, the white paper gives detailed results from four pilot projects, alongside implementation strategies for organizations at different stages of their circular journey.
Download the RFID for Circularity white paper to discover how intelligent sorting technology can transform your approach to textile waste, unlock new revenue streams and position your organization at the forefront of fashion's circular revolution.
Footnotes: [1] European Commission [2] Atma.io [3] European Commission [4] DLA Piper [5] Wrap
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