The initiative, known as the Switch to Upstream Circularity Pilot, took place under the broader SWITCH to Circular Economy Value Chains (SWITCH2CE) programme.
Launched in January 2023 with seven suppliers, the pilot focused on scaling traceable textile recycling and strengthening domestic systems for managing and processing post-industrial cotton waste. By November 2025, supplier participation had grown to 20 factories.
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Over the course of the project, segregated textile waste volumes increased from just over 129 tonnes (t) at baseline to more than 16,000t.
The project saw an expansion in knowledge sharing through 16 workshops and roundtables, eight event presentations, and 21 targeted training sessions involving nearly 5,000 fashion stakeholders.
This activity contributed to a more coordinated ecosystem among manufacturers, waste handlers and recyclers, rising from two to 27 handlers and from two to 26 recyclers during the pilot.
Following training sessions, 14 out of 16 participating manufacturers set up designated waste segregation zones.
Manufacturers also enhanced their data recording systems, tracking up to 20 different fibre composition categories by the end of the project.
This allowed recyclers to better match materials with suitable processes and prompted nine manufacturers to introduce new technical roles focused on recycling and data management.
Commercial trials were initiated between Bestseller’s manufacturers and recycler CYCLO to produce garments using recycled materials. Eight manufacturers reported greater use of recycled inputs over virgin fibres as a result.
Survey data from the end of the pilot revealed that seven manufacturers recorded direct financial gains from selling segregated waste at higher prices.
Across all stakeholders involved, the estimated economic value generated reached approximately €1.07m ($1.2m) based on market prices for selected compositions.
BESTSELLER Recycling & Innovation material manager Alexander Granberg said: “We have gained significant learnings over the past years and developed a much better understanding of the waste structures in Bangladesh. Through this project, we have demonstrated that, together with our manufacturers, it is possible to achieve the segregation and transparency needed to drive material recovery. This represents a first and important stepping stone in further building the recycling capacity in the country.”
The Switch to Upstream Circularity Pilot was implemented with support from UNIDO under SWITCH2CE, along with Global Fashion Agenda, BGMEA and Reverse Resources.
It forms part of an international collaboration including Circle Economy, European Investment Bank and Chatham House, funded by the European Union and Finland.
The pilot aimed to expand traceable textile recycling among Bestseller’s Bangladeshi suppliers, strengthen the resilience of local manufacturing and contribute to the country’s overall recycling capacity.
It also sought to identify scalable domestic recycling solutions, support manufacturers in developing viable business cases for efficient waste management, and encourage industry-wide collaboration to advance new recycling practices across Bangladesh’s textile sector.
UNIDO SWITCH2CE chief technical adviser Mark Draeck said: “Through this pilot, UNIDO worked with a global brand and local suppliers to demonstrate how circular economy innovations can strengthen the competitiveness of Bangladesh’s textile industry.
“The project revealed a strong supplier appetite for improved waste segregation, transparency, and traceability—critical enablers of a circular transition. These insights are now feeding directly into tailored policy advice to help address institutional barriers and scale effective circular solutions at the national level.”
