Ultimately, Second-Hand Clothing Sector Is Vital Part of Creating a Circular Textile Economy

From your release: "The report shows that without the right regulatory framework, this green and sustainable sector risks losing its competitive edge to fast fashion manufacturing giants like China, which continue to dominate global textile markets producing new, cheaper, lower quality garments, at a huge environmental cost." – So, what percentage of second-hand clothing is definitely and surely fast fashion? I would believe the bulk of it would be just that considering that almost everyone is wearing fast fashion and it is not easy for people to give away slow fashion, more expensive products.
Johanna Neuhoff: Collected used clothing goes through a multi-step, rigorous sorting process. Our report shows that depending on the sorting centre and the destination it sorts for, between 90 and 500 different categories exist to account for different quality, value, appearance, purpose, seasonality, branding, fashion, novelty, particular customer needs, etc. And that’s just the first step of the sorting process before clothing is sorted into categories or any “fine” sorting takes place. Only clothing that has been deemed “reusable” will be sorted for exporting.

While it’s true that fast fashion will be entering the second-hand market, it is important to recognise that the second-hand clothing sector plays a crucial role in extending the life of reusable garments. Even if some second-hand clothes will be reusable fast fashion items, their reuse nonetheless reduces the need for new production, mitigates waste, and slows the cycle of disposable fashion. Thus, even when fast fashion enters the second-hand market, as long as it is reusable and has a market, it becomes part of a more sustainable solution by being diverted from landfills and utilised for longer. This repurposing of clothing benefits consumers, communities, and the environment. Furthermore, there is a growing awareness and demand for more sustainable, higher-quality second-hand options, meaning that the sector has the potential to help shift consumer habits over time.

The second-hand clothing sector is the right tool for a circular textile economy and the production of new garments is putting the environment at risk.

"Our findings underscore the need for policies that support and strengthen this circular industry…” – What kind of policies are you talking about? Please elaborate. One size would not fit all. So, what elements of a policy should be the same across geographies, and what elements need to be customised to the local needs?
Johanna Neuhoff: The second-hand clothing sector is a global trade that has thrived for decades through highly organised cross-border processes that keep garments in circulation and provide affordable clothing where it is needed most. The right policies are crucial to strengthening this circular industry, but they must be tailored to each region’s specific needs while ensuring a harmonised global framework to facilitate the flow of goods. The report shows that supporting the second-hand trade is not just about sustainability—it is about creating green jobs, contributing to the GDP of several countries, providing livelihoods, empowering communities, and promoting inclusive and sustainable growth across continents.

For the sector to continue delivering these benefits, policies must be carefully crafted to support its role in a global circular economy. Later this month, trilogue negotiations on the Waste Framework Directive (WFD), which focuses on waste management and ways to reduce waste, are expected to begin. Extended Producer Responsibility (EPR) fees should not be imposed on SHC operators who are keeping clothes in circulation, as they play a crucial role in reducing waste and driving the circular economy. And greater support will be needed for the industry as mandatory textile collection targets in the EU will put greater constraints on operators that will need to sort more clothing volumes without increased profits. With mandatory separate textile collection coming into force across the EU in January 2025, it is imperative for the trilogue negotiations to commence and reach a deal swiftly.

Additionally, the Waste Shipments Regulation (WSR) classifies all separately collected used textiles and textile items as waste under the proposed revised definitions of waste, until they have undergone sorting by a trained sorting operator, which could restrict the export of second-hand clothes and undermine the SHC sector. This would contradict EU Development Policy aimed at alleviating poverty by limiting the availability of affordable clothing in importing countries and potentially jeopardising thousands of jobs created through this trade. Thus, it is vital that policy decisions recognise the role of the SHC sector in promoting sustainable development, employment, and affordable clothing access.

In some African countries import tariffs on second-hand clothing are high compared to other goods. High import tariffs and bans are usually imposed to stimulate local industry—however, this approach rarely leads to a strong revival of local clothing manufacturing. High production costs for local manufacturing and increased competition from cheap, new clothing imports from Asia have made it difficult for local industries to thrive. Instead, high tariff costs are passed onto consumers which risks making second-hand clothing more expensive compared to cheap, new fast fashion garments from Asia. Unlike second-hand clothing, these new fast fashion imports come with a heavy environmental price, driving up global carbon emissions and accelerating resource depletion at a scale that threatens the health of the entire planet.

Instead, the report suggests an alternative strategy for importing countries: increased collaboration between the SHC industry and other local industries. For example, SHC importers could partner with local recyclers to sort and repurpose garments that can’t be resold. This would provide valuable material for a growing recycling sector and help build a local textile ecosystem, ultimately creating more jobs and boosting domestic capacity.

Ultimately, the second-hand clothing sector is a vital part of creating a circular textile economy. It creates jobs, supports local economies, and provides affordable clothing—addressing social needs and environmental challenges simultaneously. By recognising and adapting policies to its unique role, countries can harness its full potential.

There has been a spate of reports on second-hand clothing and waste in the last few years. Not all, of course, are in sync. So, what was the premise that you started working on? Do you think there is a need to do all these studies from scratch, all over again?
Johanna Neuhoff: Our report focuses on the socio-economic benefits of the second-hand clothing sector in both Europe and Africa. While there has been significant focus on the narrative of waste and environmental impacts, our aim was to showcase the often-overlooked positive socio-economic impacts of this trade. This trade is about maximising the value of existing garments by enabling reuse, reducing the need for new production, and creating a global value chain that benefits people and the planet.

Our goal was not to replicate existing studies but to fill critical knowledge gaps about the value this industry brings to sustainable development. Understanding these benefits is essential for crafting informed policies that support the sector’s role in reducing environmental impacts and promoting social and economic well-being. Without these insights, policies can be better informed and support a sector that plays a vital role in poverty alleviation and global sustainability.

The second-hand clothing sector contributes significantly to the circular economy by ensuring that garments stay in circulation longer, thereby reducing the demand for new, resource-intensive production. But it also benefits economies and people. In Europe alone, the industry stimulated an estimated 7 billion Euros to the region’s GDP in 2023, supporting 150,000 jobs. In the three studied countries in Africa (Ghana, Mozambique and Kenya), over 100,000 jobs are sustained by the second-hand clothing trade, providing crucial income and stability for families and communities. In both regions, these jobs are often held by individuals with limited formal education, offering accessible employment opportunities in areas where few alternatives exist.

While not every study needs to start from scratch, what is needed is a change in perspective: from viewing the trade as simply a way to manage clothing at the end of its first use to recognising it as a dynamic system that promotes resource efficiency, lowers the carbon footprint of the fashion industry, contributes to economies and supports communities worldwide.

It seems to have become a battle of numbers. There have been many reports from western NGOS as also local NGOs funded by Western agencies, the findings of which have been contradicted by organisations that deal with second-hand clothing. How do you react to that? It's now become a war of words. Comments, please.
Johanna Neuhoff: Our new report gives a fuller picture of the second-hand clothing sector focusing on the socio-economic benefits, offering insights that were previously unavailable at such a large scale. The sector is stimulating billions of dollars in GDP contributions and supporting thousands of green jobs across Europe and Africa, playing a key role in advancing sustainable development.

Our report provides a comprehensive view of these benefits, backed by rigorous data, to fill the gaps left by other research that has sometimes presented an incomplete or skewed narrative. For example, some studies claim that over 40% of second-hand clothing exports are waste, but these figures are frequently cited without transparent data to back them up. A 2024 report from the German development agency GIZ, reported findings from a fact-finding mission in Ghana which aimed to establish high waste levels from the second-hand clothing markets, but was unable to do so. This kind of independent, third-party research is crucial to better understand the different impacts of SHC trade. While it is true that waste management infrastructure in some importing countries needs improvement, this issue is not caused by the second-hand clothing sector and is a broader challenge for many industries operating in these countries.

Our report also offers possible solutions to, for example, the existing waste challenge, including the development of a robust waste management infrastructure and the establishment of local sorting centres in African countries, which would allow for the filtering out of unsellable textiles before they reach retail markets. This would reduce the volume of waste and foster local job creation.