A sheet manufacturing apparatus can determine if the sheets supplied as feedstock have already been recycled. The sheet manufacturing apparatus has a supply unit configured to supply feedstock; a defibrating unit configured to defibrate the feedstock; an depositing unit configured to deposit defibrated material defibrated by the defibrating unit; a forming unit configured to form a sheet from a web laid by the depositing unit; a marking unit configured to apply a mark to at least one of the web and the sheet; and a reading unit configured to read the mark imparted to the feedstock when a sheet having mark imparted thereto is supplied as the feedstock.