As the European Union intensifies its efforts to tackle the growing crisis of textile waste, the implications of low-value fast fashion loom large. The surge in cheap, disposable clothing has created an unsustainable cycle that not only fills landfills but also puts immense pressure on the textile recycling industry. Experts warn that the sector faces a potential collapse due to these compounding challenges.
According to the Textile Recycling Association (TRA), this situation has reached a critical juncture. The association recently expressed concern that the recycling sector is confronting “an unprecedented crisis, even more significant than during the Covid-19 pandemic.” A troubling 2023 report indicated that the price of processed secondhand garments has now fallen below the cost of sorting and recycling them. This economic strain, if left unaddressed, threatens widespread bankruptcy in the industry.
A combination of elements contributes to this crisis. Geopolitical tensions, particularly heightened by conflicts in Eastern Europe and the Middle East, have disrupted important trade routes. This has led to increased logistical costs for the rag trade, which operates on razor-thin margins. Alongside this, stricter regulatory frameworks are causing additional uncertainty about the future of textile recycling operations. However, the most significant factor complicating the situation is the influx of low-quality fast fashion products which disrupt the delicate economics of textile recycling.
The demand for low-cost, trendy clothing has resulted in obvious economic repercussions. Mohammed Patel, business development manager for TRA, described this as a “perfect storm” of challenges. The rag trade has traditionally relied on sifting through large volumes of discarded clothing to find “cream” – the high-quality items that provide profitable returns. However, as businesses grapple with overflow from the fast fashion cycle, they find that the overall quality and value of incoming materials are diminishing.
Francois Souchet, managing director of consultancy Swanstant, elaborated on this shift, noting, “Volumes keep going up and the overall value has been going down.” This drastic decline in quality directly impacts the profitability of the rag trade. A decade ago, approximately 67% of the textiles collected in Europe, particularly in regions like Scandinavia, Germany, Austria, and Italy, could be reused. That figure has now dropped to around 64%, indicating a troubling trend towards even lower quality materials entering the recycling system.
As if these challenges were not enough, the geopolitical landscape complicates matters further. Prior to the war in Ukraine, Eastern Europe was a lucrative market for high-value secondhand textiles. The ongoing conflict has severed trade routes and suppressed trade, forcing companies to seek more competitive markets, such as those in Africa. Meanwhile, as China ramps up its exports of both new and used clothing, the competition intensifies.
Steven Bethell, co-founder of leading used-clothing firm Bank & Vogue, notes that the industry’s thin margins are heavily impacted by these geopolitical issues. He stated, “These things add up,” reinforcing the notion that external pressures significantly influence the fragile textile recycling market.
Moreover, the fast fashion phenomenon has raised ethical considerations linked to environmental degradation. As countries such as Ghana and Chile grapple with the influx of cheap, unviable clothing, they become more like dumping grounds for wealthy nations’ textile waste. Eye-catching photographs of vast heaps of imported clothes in Ghana’s Kantamanto market and the Atacama Desert in Chile have become stark reminders of the environmental implications of our throwaway culture.
Liz Ricketts, co-founder of The Or Foundation, a nonprofit organization operating within Ghana’s secondhand market, highlights how European textile waste is unmanageable for local traders who face the brunt of this crisis. “Whatever the European exporters are feeling today is just a pinch of the devastation that traders in Kantamanto have faced for many years,” she noted.
Compounding the complexity of the recycling situation is the EU’s evolving regulatory framework. Policymakers have identified the textile industry as one of the most significant polluters within the EU. By 2025, member states are required to institute systems for collecting textile waste, as regulations are being proposed around extended producer responsibility, compelling brands to take accountability for the end-of-life management of their textiles.
Industry representatives are advocating for a balanced approach that includes short-term financial incentives and investments in new recycling technologies. They warn, however, that regulations should not isolate the fast fashion industry or exacerbate existing pressures. If policies do not address the root issue of excessive fast fashion consumption, there’s a risk of introducing temporary measures that fail to create lasting change.
Ultimately, the narrative of fast fashion illustrates a broader issue within consumer culture—one where items are often perceived as disposable or lacking intrinsic value. Advocates stress the need for a mindset shift to see clothing as valuable, both socially and environmentally. Ricketts emphasizes this point: “Fast fashion is a business model of volumes over value and this business model is killing the global secondhand market.”
Manufacturers and consumers alike must recognize the role they play in sustaining or dismantling the cycle of textile production and disposal. Until fast fashion consumption is meaningfully curtailed, the prospects for recycling efforts remain bleak, indicating that the drive to recycle low-value clothing might not be worth the effort.
