There are two kinds of recycled yarns - those that have been respun from fibres and those made from fabric scraps. Both reduce the amount of waste that ends up in landfills and oceans. Some are soft and feel like cotton or wool while others are much sturdier - depending on the source fabric used to make them. Recycled yarns are becoming more common and it's easy to find them in your local yarn shop or online.
The global recycled yarn market is booming as more and more people are trying to do their part for the environment by reducing the amount of waste they produce. The market is split up into different categories based on the type of recycled yarn being made and also by geography.
For example, recycled PET (plastic) yarns are made from all the old plastic bottles you might toss into your recycling bin, or that may have been collected by a charity/thrift store and donated. These are then gathered and sent to a PET reclaiming plant where the bottles are separated out by colour - clear bottles will result in white-ish polyester yarn while green ones will produce a green-ish yarn. Then the individual strands of PET are spun together to create a strong and durable yarn that can be knitted or crocheted.
In general, these yarns are pretty sturdy and they do a good job of keeping the colour stable - even after repeated washings. They're also softer than some other types of recycled yarns which can be very stiff and harsh on the hands when knitting.
A second kind of recycled yarn is those made from fabric scraps - these are often called up-cycled or re-purposed yarns. These are made from leftover bolts of fabric (often denim, t-shirt material or sari fabric) that are cut into strips and then joined together to form the yarn. These are often a bit rougher on the hands to knit or crochet with but they do produce some very sturdy projects such as rugs and floor mats.
Another way that fabric-based recycled yarns are produced is by twisting strips of fabric into a chain, and then winding it up into a ball. This can be quite hard on the hands to knit or crochet with but it does produce a very firm and sturdy yarn that's great for projects such as rugs, bath mats and other homewares.
Both these types of recycled yarn are very good choices for those looking to add a little extra ‘green’ to their stash. They are a great way to help the environment by keeping waste textiles out of landfills and by giving new life to those old clothes you no longer wear. But there are some things to remember when choosing a recycled yarn - the 'construction' of the yarn can be different from what you're used to and the colours will vary from one skein to the next, so it's always a good idea to get a few skeins at once for a project so that your finished piece has consistent colours.