texfash: The EuRIC statement of 21 October warns of an "unprecedented crisis." How would a breakdown of the system look on the ground? Overflowing garbage bins? Bankruptcies? Different sectors of the recycling ecosystem blaming each other?
Julia Ettinger: We’re already seeing the signs and results of this crisis. This year alone, several EU textile sorting and recycling companies have filed for insolvency. The reasons are largely what we outlined in our our latest statement: the collapse of traditional markets in Eastern Europe and rising competition from Asian markets are putting immense pressure on European markets. If this trend continues, we fear even more textile sorters and recyclers in Europe to file for bankruptcy in the coming months.
Another concrete sign of the current unprecedented crisis is the piling up of bags of clothing at collection and sorting centres. Take France, for example, (recently highlighted by France 3 Normandie). Many small associations and sorters have already gone out of business in the last months. Consequently, everything goes into the bins and accumulates. It’s a crisis that’s hard to ignore.
Your statement mentioned the gap between the oversupply of used textiles and a decline in the demand from export markets as one of the main reasons for this. The way things stand, the demand from export markets may not go up any time soon. That would mean Europe would have to deal with its own waste—the waste it generates. Would that be a fair assessment of the situation?
Julia Ettinger: Absolutely, and this is a key point. First, it is crucial to clarify that second-hand clothes should not be considered as waste – they only become waste once they have served their second life as second-hand garment. But yes, the decline in the demand from traditional second-hand markets, especially in Africa, is real. Europe’s second-hand clothes is now competing with ultra-fast fashion in these markets, which is driving prices down and reducing demand.
In this context, we need to find other viable markets and opportunities for the used clothes we are sorting in our sorting centres in Europe. But let’s be clear: sorting for recycling is one option, though it’s not a profitable one right now. Textile sorters aren’t making money on non-reusable textiles, and the demand in Europe isn’t high enough to absorb all that surplus.