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Recycled wool is made from post consumer or post industrial waste. Then it is spun into a new fabric which is less waste to landfills and less of a need to use virgin wool.

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Using recycled wool over virgin wool means lower carbon emissions and energy consumption. And producing recycled wool clothes uses much less water in the manufacturing process. It is also better for the animals, using existing wool instead of increasing the demand for sheep farming. It reduces environmental impact from afterlife wool textiles and wool production.

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Asket, Aiayu, Organic Basics, Colorful Standard and Tentree have collections with recycled wool garments.

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Majority of afterlife wool ends up in landfill and generates substantial toxic chemicals such as methane. Sheep farming for wool production consumes valuable resources, as it involves clearing land and cutting down trees to provide animal grazing space, which results in negative environmental impacts, such as elevated soil salinity and erosion and a decline in biodiversity.

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500,000 liters of water required to raise the sheep and clean the wool fiber to produce one metric ton of wool. Thus, the wastewater is highly polluted and contains residual chemicals such as pesticides, insecticides, and cleaning agents. Recycling wool can sustainably increase the volume of protein fibers without polluting the environment and consuming additional raw materials.

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Open-loop wool recycling faces various challenges, including the low value of recycled products, inferior quality of upcycled products compared to their counterpart, and failure to fit into the business plans. For closed-loop wool recycling, dye removal, poor protein dissolution, and recovery of secondary structures in regenerated fibers are the major challenges for closed-loop wool recycling. Up to 5% of wool textiles are recycled in a closed loop, higher than other textile forms, but the recycling rate is still very low.