The Economic and Environmental Impact of Second-Hand Clothing: Waste Reduction at its Core
A recent Oxford Economics report shines a spotlight on the substantial role the second-hand clothing sector plays in driving sustainable economic growth across Europe and Africa. By reducing textile waste and promoting the circular economy, this industry is both enhancing GDP and creating environmentally conscious, “green” jobs.
Reducing Waste Through Second-Hand Clothing
The second-hand clothing sector directly contributes to reducing global waste by diverting millions of tonnes of clothing from landfills each year. In 2023 alone, this circular industry contributed an estimated €7 billion to the GDP of the EU and UK. Beyond economic growth, the industry helps alleviate the immense pressure that textile waste places on landfills and waste management systems.
Germany and the UK, two of the largest contributors, saw GDP increases of €670 million and €420 million, respectively, thanks to the growing demand for second-hand clothing.
Green Jobs and Environmental Benefits
In 2023, the second-hand clothing sector supported approximately 150,000 jobs across the EU, with 110,000 directly involved in sustainable practices aimed at reducing environmental damage. These green jobs, many of which are located in lower-income EU countries like Bulgaria, Romania, and Poland, are particularly beneficial for people with little formal education, and 79% of these workers are women. The sector is a key player in reducing textile waste, allowing items to be reused rather than discarded, contributing to both employment and environmental preservation.
Circular Economy in Action: International Trade of Second-Hand Clothing
The trade of second-hand clothing not only reduces waste but also fosters global economic partnerships. In 2023, 47% of Ghana’s second-hand clothing imports came from the EU, reflecting the growing importance of textile reuse in Africa. This approach not only helps reduce waste in Europe but also provides affordable clothing options in developing nations.
Countries like Kenya and Mozambique also benefit from these imports, though the share of EU27+ exports to these nations is declining, raising the need for policies that will continue to promote second-hand trade and waste reduction.
Policy Recommendations: Strengthening the Circular Industry
The report, commissioned by Humana People to People and Sympany+, emphasises the necessity of policies that support the growth of the second-hand clothing sector. Strengthening this industry is crucial not only for reducing textile waste but also for driving sustainable economic growth. By backing circular economy principles, governments can ensure that second-hand clothing continues to bridge the gap between environmental sustainability and inclusive job creation.
In conclusion, the second-hand clothing sector is more than just a contributor to the economy; it is a key component in the global fight against textile waste. With the right policy support, it can continue to drive environmental and economic benefits, proving that waste reduction and sustainable development go hand in hand.