Apparel Industry Experiencing a Slump
The second-hand clothing industry in Europe, particularly in Germany, is facing a significant crisis. The EU directive, aimed at promoting recycling and reuse, has highlighted the need for change as only one percent of new clothing currently consists of recycled fibers.
In densely populated areas of Berlin, donation containers are disappearing faster than new ones can be set up. This shortage is causing problems for donors, who often find containers already full or are forced to take detours to recycling centers. Many companies are withdrawing their collection containers or operating them on a limited basis due to the revenue no longer covering the costs.
The crisis is also affecting the second-hand clothing industry's supply chain. Long transport times, rising collection costs, and fragility due to geopolitical risks and concentrated production in Asia are adding to the problems. The kiloprices for textiles have significantly decreased, making collection and processing economically unviable for some companies.
Consumer concerns about product condition and lack of warranties could slow market momentum despite strong growth driven by cost-of-living pressures and environmental awareness. Textile recycling difficulties arise from low-quality, mixed-composition textiles and regulatory gaps, limiting the scale of effective circular fashion practices.
The new EU directive on waste management, which aims to increase textile recycling rates and circular economy adoption, is set to affect the industry. The directive introduces Extended Producer Responsibility (EPR) for textiles, meaning textile companies will be legally responsible for organizing and financing the recycling of their products. This encourages better design and recycling practices. However, progress has been slow, and the full impact will depend on how effectively these regulations are implemented across member states.
The directive aims to benefit the second-hand and re-commerce sectors in Europe by improving sustainability standards and regulatory clarity. Projections suggest a possible collapse of the used clothing industry system if the fees are not refinanced, for example, via manufacturer contributions as intended by the EU directive.
In light of these challenges, consumer centers and clothing banks are urging people to donate only wearable textiles directly to charitable collectors like the Red Cross, Caritas, or the Berlin City Mission. Heavily soiled or damaged goods impair the recycling process and additionally burden the collectors. Damaged or heavily soiled textiles can still be disposed of in the rest of the trash under the new EU directive.
Markets in Africa and Eastern Europe are collapsing due to being flooded with cheap Chinese imports or blocked by the Ukraine war, making the market for reusable textiles difficult. Such used textiles belong in the rest of the trash or at BSR's recycling centers for proper disposal. Several sorting companies are already insolvent or operating on a limited basis, leading to irregular collections.
This creates an ecosystem where the second-hand clothing market is growing rapidly but must adapt to tougher sustainability regulations and consumer expectations. Sascha Uhlig, a journalist who enjoys long bike tours, photographing nature, and meeting interesting Berlin personalities, resides in Lichtenberg. His work often focuses on the challenges and solutions faced by the second-hand clothing industry in Europe.
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