Clothing consumers mostly purchase, use, and dispose of clothing products in a linear business model. This approach pollutes the environment and causes economic and social crises in the ecosystems. This study evaluates the amount of generated postconsumer clothing waste (PCCW) and proposes recycling as a sustainable waste management approach. Data were collected to understand disposal behavior of consumers with 474 respondents selected from households in Bahir Dar city. The findings show that all the determinant factors on the PCCW generation level except religion were significant. The most frequently disposed type of clothing waste is jeans-trouser (51%). The CEBM was used to develop alternative products from a jeans-based clothing waste. The jean's fiber and fabric-reinforced composite materials were developed using unsaturated polyester resin as a sustainable way of PCCW management strategy. The shredded form fiber-reinforced composite was found to have a smoother surface than that of the chopped or cut fabric-reinforced composite. The product was characterized by physical and mechanical properties. The study can be further extended to the scope of the entire consumers in Ethiopia and alternative recyclable products can be studied.