Researchers and industry partners in Finland are developing a deposit-return collection machine that uses artificial intelligence and digital product passport data to sort used clothing for resale or recycling. Known as TexMat, the system is designed to simplify textile returns for consumers, remove manual sorting for operators, and improve the flow of reusable garments into second-hand and recycling markets across Europe.
- At the point of return, garments are automatically evaluated and channelled either towards reuse pathways or into textile recycling streams, depending on their assessed condition.
- AI-based imaging and data processing are used to evaluate garment condition and characteristics, drawing on product passport information such as materials, brand, size and manufacturing date.
- Separate textile collection rules are expected to raise volumes, so the project is testing whether automated sorting can move more items into reuse and resale.
- The TexMat project brings together VTT, the University of Vaasa, Pääkaupunkiseudun Kierrätyskeskus and Emmy Clothing Company, alongside a wider consortium of 14 partners from seven EU countries collaborating on development, testing and validation.
THE TRIGGER: Europe’s clothing collection systems are under strain as textile waste volumes continue to rise while reuse rates remain low, exposing the limits of manual sorting and donation-based models. New EU requirements for separate textile collection are expected to increase volumes, but without improving how garments are directed into resale channels, creating a bottleneck between collection, sorting and actual reuse across existing infrastructure.
- Each European citizen discards about 16 kg of textiles annually, yet only a small fraction is reused or materially recycled.
- Separate textile collection rules have raised collection volumes, but they do not directly increase reuse or resale, leaving sorting capacity and resale matching as key constraints.
- Manual sorting remains labour-intensive and often uneconomic, so many collected garments are downcycled, landfilled or incinerated instead of being prepared for resale.
- Deposit-return models are being explored with established second-hand operators, including long-standing reuse organisations involved in validating the system in real-life operating environments.
HOW IT WORKS: The TexMat collection machine uses AI-based imaging and data processing to assess garments at the point of return, drawing on information embedded in digital product passports. Instead of relying on consumers or staff to judge condition and resale potential, the system evaluates each item automatically and assigns it either to resale operators or to textile recycling, depending on assessed suitability.
- Digital product passport data provides details such as brand, materials, size, product category and manufacturing date, all of which influence resale value.
- AI-driven image analysis assesses garment condition and suitability for resale, combining visual inspection with product passport data rather than relying on manual checking.
- Consumers can bring mixed garments together to one location, as the machine sorts items without requiring pre-sorting by condition or intended resale route.
- Items suitable for resale are matched with second-hand operators based on requirements such as brand, category, size or colour, with resale proceeds automatically credited back to consumers.
- Garments without resale value are routed to textile recycling, and the system removes manual sorting by automatically distributing items to the appropriate downstream channel.
WHY IT MATTERS: By combining automated sorting with consumer incentives, the TexMat system aims to address both behavioural and economic barriers that have limited textile reuse in Europe. The approach is part of a multi-year, EU-funded project involving 14 partners from seven countries, designed to make returns effortless for consumers while improving the commercial viability of second-hand operations and aligning collection practices with the upcoming EU Extended Producer Responsibility Directive.
- Incentives and reward mechanisms are being tested to identify what motivates consumers to return used textiles, and what sustains long-term engagement with the system.
- Automated sorting can improve profitability by directing specific garments to operators that have demand for particular brands, sizes or product categories, with the University of Vaasa receiving over €0.5 million in project funding.
- Removing manual sorting is intended to cut operating costs and reduce bottlenecks for reuse and recycling organisations that currently handle mixed-quality inflows.
- The project is funded with €6.25 million under the EU’s Horizon Europe programme through spring 2029, aligning its outcomes with upcoming Extended Producer Responsibility rules.
- Pilot trials will validate performance across different markets, testing whether the model works reliably in real operating environments.
WHAT THEY SAID
VTT is developing AI-based imaging and data-processing technology for the TexMat collection machine, using digital product passport data to assess garment condition and suitability for resale.
— Elina Ilén
Principal Scientist
VTT
For a deposit-return system for textiles to work in practice, it must be easy and convenient for consumers to use. In TexMat, we will explore and test different incentives and reward mechanisms to understand what truly motivates consumers to return used textiles and to validate what drives long-term engagement.
— Kyösti Pennanen
Research Director
University of Vaasa
TexMat represents the kind of systemic innovation Europe needs. By making textile circulation easy for consumers, and commercially viable for businesses, it becomes possible to move from good intentions to real impact. Emmy is proud to contribute its practical expertise in resale and circular economy business models to help build a future in which every garment is given a second life.
— Sienna Kruk
CEO
Emmy Clothing Company
We have been involved in second-hand retail for more than 30 years and have witnessed both the growth of the sector and, particularly, the increasing challenges related to textiles. Through the TexMat project, we are able to exchange ideas with leading European actors and bring our expertise to support the future development of textile circularity.
— Sami Leppänen
Account Manager
Pääkaupunkiseudun Kierrätyskeskus
