The truth about the second-hand industry probably not what you have been told

"Few industries might be so misunderstood as our industry. This is particularly sad when these misconceptions start to influence politicians and other decision makers"

These are the words from Örjan Österdal, CEO of Humana Second Hand Fundraising Projects, one of Europe's largest second-hand clothing enterprises. A non-profit enterprise that´s been a part of the second-hand trading since the nineties.

"I would argue that the second-hand clothing industry is a very well functioning circular economy, but it is now under a threat from politicians whose ambition is just that - to create a circular economy system.

It is a paradox, to put it mildly"

The prevailing media narrative suggesting that 40% or more of second-hand clothes imported into Africa end up in landfills has faced strong criticism from experts and operators within the second-hand industry. These claims are not only unverified and misleading but also disregard the economic logic of the trade.

“It would be both illogical and uneconomical to import clothes that end up being discarded,” says Örjan Österdal.

“First of all, the cost of importing second-hand clothing is extremely high. In Kenya, for example, taxes, tariffs, and fees amount to over 70% of the purchase price.”

Read more: Misconceptions about textile waste in Africa threatens the circular textile economy

But, let´s start from the beginning. How does this industry really work?

The truth about the second-hand industry is probably far from what you've been told

What actually happens to the clothes we drop into collection bins outside shopping centers and recycling facilities? Many people assume that “someone” collects them and ships them off to Africa, where they are left for anyone to take.

For many years, secondhand clothing has been part of a professionalised global industry—a commercial trade spanning multiple wholesale levels across continents and providing employment for millions of people.

The container you place your clothes in is owned by an organisation or company. They are responsible for purchasing and placing the container, regularly emptying it, performing an initial sorting, and then selling the clothes to a sorting company. This process helps fund the collection operation, which requires labor and transportation. Many nonprofit organisations use the revenue from selling unsorted second-hand clothing to finance aid projects, while some for-profit companies also participate in this trade.

Export and import

The sorting company that purchases the clothes conducts a more detailed sorting process—sometimes into more than 400 different categories. Items are separated by type, such as shoes, jackets, pants, and sweaters, and further sorted by size, gender, fashion style, or material. Once sorted and packaged, the clothing is sold either to domestic market retailers or exported to importers in other countries.

Importers then pay duties and taxes before reselling the clothing to shops or smaller wholesalers within their country. These smaller wholesalers, in turn, supply market vendors and secondhand shops. In many African countries, thousands of stores specialize in selling second-hand clothing.

Second-hand industry offers affordable clothing for millions

For many African nations, where a significant portion of the population lives below the poverty line, second-hand clothing offers a vital opportunity to purchase affordable apparel. Unlike in Europe, where second-hand shopping is often viewed as a niche or trendy choice, in Africa, it forms a fundamental part of the clothing market. Studies show that approximately 90% of Africans buy second-hand clothing (source: Institute of Economic Affairs Kenya)

Employment and economic impact

In Kenya alone, government estimates suggest that the second-hand clothing industry employs over 2 million people. The customs and tax revenues generated are substantial, and if second-hand imports were to stop, it would deliver a devastating blow to the national economy, the job market, and the general population.

Redistribution of surplus

Clothing overconsumption in Europe is staggering. In Sweden, for example, the average person is estimated to purchase between 50 and 60 garments per year. Clothes that are no longer wanted are either discarded or, if deemed useful to others, placed in collection bins.

In contrast, the average African citizen buys only 2–4 garments per year and can only afford to spend a fraction of what a European would pay for a single item. This redistribution process extends the lifespan of clothing that would otherwise be incinerated or sent to landfills, while also providing access to quality garments for poorer communities. In essence, it represents a global redistribution of surplus.

Climate impact

A recent study from the IVL Institute in Sweden examines the textile industry's climate impact and compares various methods for managing clothing surplus in European countries.

The findings reveal that reusing textiles provides the most significant climate benefits, regardless of whether the reuse takes place in Europe or elsewhere. This advantage stems from the fact that the highest environmental impact occurs during the manufacturing phase of clothing. By extending the lifespan of garments through reuse, the demand for new production decreases, thereby reducing the overall environmental footprint.

The study also compared the environmental effects of recycling versus incineration with energy recovery. While recycling can reduce water consumption—particularly beneficial for processes like cotton cultivation—the difference in climate impact between recycling and incineration within Europe is relatively minor.

Read More: The IVL report

Conclusions

So what you have been told about the second-hand industry is probably quite far from truth.

Within the industry, there is a strong concern—and perhaps even fear—that exports from Europe to regions such as Africa may be restricted or even banned. The reasons for this include the belief that a significant portion of the clothing ends up directly in landfills in Africa. The troubling aspect of this prediction is that, firstly, the proportion of waste among imported clothing is not as large as often claimed, and secondly, restricting exports would have a highly negative impact on millions of people.

The obvious risk would be that ultra-fast fashion companies, such as Shein, would expand in the African market, which would significantly contribute to growing landfills since their clothes usually are not durable enough for reuse. At the same time, the amount of clothing we are forced to burn in Europe would increase significantly, as we would no longer be able to export them for reuse to parts of the world where they are in demand.

Written by Thomas Lundkvist