European textile product consumption has the fourth highest environmental and climate impact. Therefore, in 2022, Europe presented its sustainability strategy for the textile industry to make it greener and more competitive, as well as to achieve sustainable development goals defined in the Paris Agreement, looking at the entire life cycle of textiles, thus focusing equally on the environmental, social and economic aspects of sustainability. Significant importance is given to increasing the longevity of textile products and effective textile waste management. Moreover, the proposed revision of the Waste Framework Directive aims to ensure that used textiles are sorted for reuse and that non-reusable textiles are prioritized for recycling; therefore, promoting textile separate collection and development of sorting, reuse, and recycling sector in the EU and beyond and reducing the negative impact of textiles on the natural resources. However, due to the complex nature of textile products, the lack of quality data and infrastructure, circularity and sustainable textile waste management is still ineffective and, in most cases, economically and environmentally disadvantageous.