The fashion and textile industry are currently operating in a linear system of take-make-waste, which has a deteriorating effect on climate and biodiversity. In the last 30 years the production of MMCF has double and it is expected to increase in the future. The production of MMCF is linked to the usage of hazardous chemicals and endangered forest as feedstock. According to Canopy one third of the trees used to produce MMCF are ancient or endangered forests. Innovation in textile-to-textile recycling could accelerate the transition to a circular model for MMCF production, however there are still lot of barriers that needs to be overcome in order to facilitate innovative solution for textile-to-textile recycling.

Cellulose based textile waste could present an efficient feedstock to replace the use of wood in the production of MMCF. Currently the main method at scale to recycle cellulose based textile waste is mechanical. However, mechanical recycling has some limitations such as shortening the fibre, hence downgrading its quality. For this reason in order to produce a recycled fibre often it is needed to blend in a virgin fibre to keep it at a quality level for market requirements. Chemical recycling could potentially present a solution in terms of efficiency, however it is not yet developed at scale and one of its challenges is the lack of investments in this emerging industry. Chemical recycling present the advantage that the output fibre is of an equal or superior quality compared to its feedstock and if it uses a truly close loop system can avoid to release chemicals in the environment. The 'Zero Discharge of Hazardous Chemicals' is addressed by an industry-led Roadmap program in order to ensure that hazardous chemicals are released in the environment by companies using chemical substances.

Canopy's Generation Action Plan aim to avoid the usage of wood coming from engendered or ancient forests to produce wood pulp and it identifies 5R in order to address this issue:

Reuse, Reduce, Recycle, Replace and Regenerate.

In terms of textile-to-textile recycling for cellulose based fibres, Fashion for Good highlighted some key players and innovators such as Asahi Kasei, Birla Cellulose, Evrnu, Infinited Fibre Company, Renewcell, Saxcell, Blocktexx, Phoenxt, Tyton BioScience, Worn Again, Algalife, Orange Fibre, Spinnova and The Hurd Co.