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Year in Review 2025: Key Policy Shifts, Trade Patterns & Sustainability Milestones in the Used Clothing Industry

Introduction: A Defining Year for Secondhand

In 2025, the used clothing industry continued its transition from a peripheral sustainability solution to a strategic pillar of global fashion systems. Policy action, evolving trade dynamics, and sustained resale growth all pointed in one direction: circularity is no longer optional.

This year-in-review examines the most important developments shaping the sector — from regulation and international trade to market behavior and infrastructure.

 

1. Policy Momentum: Circular Economy Moves from Vision to Enforcement

 

European Union: From Strategy to Implementation

The EU remained a global leader in circular economy regulation in 2025. Building on earlier frameworks such as the EU Strategy for Sustainable and Circular Textiles, member states advanced implementation measures focused on:

  • Extended Producer Responsibility (EPR) for textiles
  • Improved collection, sorting, and reuse infrastructure
  • Increased transparency across textile supply chains

For the used clothing industry, these measures reinforced the role of professional reuse and recycling operators as essential partners in compliance.

 

United States: State-Level Action Drives Change

While the US lacks a unified federal textile policy, 2025 saw continued momentum at the state level:

  • Textile-related EPR discussions expanded
  • Waste diversion and reuse targets gained traction
  • Resale and recommerce were increasingly recognized as waste reduction tools

This patchwork approach continued to challenge operators — but also created opportunities for experienced organizations with scalable reuse systems.

 

Africa & LATAM: Balancing Trade, Waste, and Opportunity

In both Africa and Latin America, 2025 policy conversations centered on managing used clothing imports responsibly rather than eliminating them.

Key themes included:

  • Calls for better quality controls and traceability
  • Recognition of the role secondhand plays in local economies and affordability
  • Increased dialogue between governments, importers, and industry groups



Rather than blanket bans, the year reflected a gradual shift toward regulated participation in global secondhand trade.

 

2. Global Trade Patterns: Adaptation Over Disruption

Despite ongoing geopolitical and economic pressures, global used clothing trade in 2025 demonstrated resilience.

Key trends included:

  • Continued diversification of export and import markets
  • Increased demand for sorted, categorized, and higher-quality goods
  • Greater emphasis on documentation, compliance, and transparency

For wholesalers and recyclers, value increasingly came from sorting expertise and material intelligence, not volume alone.

 

3. Sustainability Milestones: Measuring Impact Beyond Intent

In 2025, sustainability conversations matured. The industry moved further away from aspirational claims and toward measurable outcomes, including:

  • Landfill diversion
  • Material recovery rates
  • Operational integration of returns and unsold stock

Secondhand operators played a central role by extending product life and enabling reuse at scale — often delivering immediate environmental benefits compared to recycling or disposal.

 

4. Resale Growth: From Alternative to Established Channel

Resale continued to grow not as a trend, but as a normalized retail format.

Notable developments included:

  • Increased collaboration between brands and secondhand specialists
  • Expansion of resale into luxury and premium categories
  • Stronger consumer acceptance of reused and upcycled products



 

These shifts reinforced secondhand’s position as a commercially viable and brand-enhancing strategy.

 

5. What 2025 Taught the Industry

Three key takeaways defined the year:

  1. Policy is accelerating, and professional reuse infrastructure matters more than ever
  2. Quality, traceability, and compliance now define competitive advantage
  3. Collaboration across brands, wholesalers, and recyclers is essential for scale

Looking Ahead

As 2026 approaches, the used clothing industry stands at a critical intersection of regulation, innovation, and responsibility. Those who invest in transparency, partnerships, and circular systems will be best positioned to lead.

Because the future of fashion isn’t just new —it’s already in circulation.

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