Status Quo Analysis - Textile Sector

4.2. The Value Chain Dynamics

The textile and carpet value chains are characterised by fragmentation, with multiple stakeholders, including raw and recycled material suppliers, manufacturers, distributors, and recyclers. This fragmentation exacerbates the challenge of chemical traceability. Industry 4.0 technologies, particularly blockchain and IoT, offer promising solutions for real-time data sharing across stakeholders in chemical traceability (Khan et al., 2021). However, these technologies face significant implementation challenges, including the complexity of integrating diverse systems across dispersed manufacturing networks and the need for clear objectives and appropriate data granularity throughout the supply chain (Ahmed, 2021).

In textiles, institutional incentives, such as those observed in the Dutch circular textile industry, play a pivotal role in transitioning toward a circular economy. (Fischer and Pascucci, 2017) highlight that enabling policies and financial mechanisms can catalyse material recovery and traceability initiatives. Similarly, in the carpet industry, the push for chemical transparency aligns with corporate sustainability strategies and consumer demand for safe and environmentally responsible products. However, resistance to adopting systemic innovations persists, particularly among stakeholders prioritising short-term economic gains over long-term sustainability.

These value chain dynamics and their associated challenges can be better understood through a system map analysis, which visualises the complex interplay between stakeholders, processes, and challenges in both industries.