90 percent of US imported second-hand garments are reused domestically in Guatemala
However, a new report from Garson & Shaw, a global wholesale supplier of used clothing, has found that nearly 90 percent of imported clothing to Guatemala is not dumped, but actually reused domestically, challenging misconceptions about textile waste dumping while outlining the innovative recycling solutions that exist for non-reusable products.
The report found that 98.6 percent of secondhand clothing imported into Guatemala originated from the United States in 2023. Equal to more than 131 million kilograms of apparel, this makes the US Guatemala's largest supplier, while also positioning Guatemala as one of Central America's largest markets for used clothing. At the same time, it also underlines the importance of cross-border supply chains when it comes to recycling and circular economy practices. Secondhand clothing imports in Guatemala are driving local value & job creation
The secondhand clothing market in Guatemala is said to operate through both formal and informal channels, according to the report. Megapaca, the country's largest formal retailer, employs over 4,100 people and manages nationwide operations. Next to this, there also exists an extensive informal economy for the used clothing trade, composed of market traders, micro-retailers, and street vendors, who are responsible for last-mile distribution.
Imports are largely in the form of unsorted 'ropa cruda' bales, which are high in demand among local businesses that prefer to handle their own sorting operations. These 'ropa cruda' bales allow domestic stakeholders to conduct local sorting, grading, and pricing, supporting value creation within the country.
'Secondhand clothing shipped to Guatemala goes through multiple layers of value extraction by local sorters, retailers, and vendors,' said Jennifer Wang, founder of Full Cycle Resource and lead author of the report, in a statement. 'In fact, 88 per cent to 92 per cent of clothing is sorted for reuse. What we found is that the activity of sorting locally was not only valued but vital. It adds economic value, creates jobs, and ensures clothing can meet the specific needs of local markets.'
Prices in informal markets range from 0.13 USD for low-grade garments to 6.48 USD for higher-quality items, meaning that it is poised to be a highly lucrative market for traders. Imported clothing undergoes a two-stage sorting process, according to the report. This includes removing non-reusable items and separating accessories and shoes, followed by detailed quality grading. Waste rates for sorted imports sit at approximately 5 percent, compared to 12.2 percent for unsorted clothing, underlining the importance of sorting. How secondhand clothing imports are suporting women's economic empowerment in Guatemala
The report also found that the secondhand clothing market is a notable contributor to women's economic participation. A survey of 382 traders indicated that 60.7 percent were women, with 57.4 percent of all secondhand clothing businesses owned by women, over twice the national average for female business ownership. In addition, 94.2 percent of respondents reported improved household finances, giving Guatemalan women more power in their households. The gender wage gap in this sector is 17 percent, which is below national and regional averages.
Lastly, the report found that Guatemala's overall waste management infrastructure remains limited, with a collection rate of approximately 55 percent and no separate tracking of textile waste. However, waste from the secondhand clothing sector represents a small share of total volumes and is managed more effectively than many other waste streams.
This report is significant because it shifts the conversation from waste to opportunity,' added Lisa Jepsen, CEO of Garson & Shaw. 'It offers concrete evidence that global reuse systems are not only environmentally beneficial but also economically and socially valuable. It highlights the need to integrate international reuse into US waste and circular economy policy.'
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90 percent of US imported second-hand garments are reused domestically in Guatemala
The global secondhand clothing market doesn't necessarily carry a good name, as textile waste from developed countries has been disproportionately impacting countries from Ghana and Kenya to Uganda and Nigeria, according to Bank & Vogue. With many third-world countries lacking the proper infrastructure to handle the sheer volume of imported used clothing, the large majority of these textiles end up in overflowing landfills, creating environmental pollution while hindering local textile and apparel industries. However, a new report from Garson & Shaw, a global wholesale supplier of used clothing, has found that nearly 90 percent of imported clothing to Guatemala is not dumped, but actually reused domestically, challenging misconceptions about textile waste dumping while outlining the innovative recycling solutions that exist for non-reusable products. The report found that 98.6 percent of secondhand clothing imported into Guatemala originated from the United States in 2023. Equal to more than 131 million kilograms of apparel, this makes the US Guatemala's largest supplier, while also positioning Guatemala as one of Central America's largest markets for used clothing. At the same time, it also underlines the importance of cross-border supply chains when it comes to recycling and circular economy practices. Secondhand clothing imports in Guatemala are driving local value & job creation The secondhand clothing market in Guatemala is said to operate through both formal and informal channels, according to the report. Megapaca, the country's largest formal retailer, employs over 4,100 people and manages nationwide operations. Next to this, there also exists an extensive informal economy for the used clothing trade, composed of market traders, micro-retailers, and street vendors, who are responsible for last-mile distribution. Imports are largely in the form of unsorted 'ropa cruda' bales, which are high in demand among local businesses that prefer to handle their own sorting operations. These 'ropa cruda' bales allow domestic stakeholders to conduct local sorting, grading, and pricing, supporting value creation within the country. 'Secondhand clothing shipped to Guatemala goes through multiple layers of value extraction by local sorters, retailers, and vendors,' said Jennifer Wang, founder of Full Cycle Resource and lead author of the report, in a statement. 'In fact, 88 per cent to 92 per cent of clothing is sorted for reuse. What we found is that the activity of sorting locally was not only valued but vital. It adds economic value, creates jobs, and ensures clothing can meet the specific needs of local markets.' Prices in informal markets range from 0.13 USD for low-grade garments to 6.48 USD for higher-quality items, meaning that it is poised to be a highly lucrative market for traders. Imported clothing undergoes a two-stage sorting process, according to the report. This includes removing non-reusable items and separating accessories and shoes, followed by detailed quality grading. Waste rates for sorted imports sit at approximately 5 percent, compared to 12.2 percent for unsorted clothing, underlining the importance of sorting. How secondhand clothing imports are suporting women's economic empowerment in Guatemala The report also found that the secondhand clothing market is a notable contributor to women's economic participation. A survey of 382 traders indicated that 60.7 percent were women, with 57.4 percent of all secondhand clothing businesses owned by women, over twice the national average for female business ownership. In addition, 94.2 percent of respondents reported improved household finances, giving Guatemalan women more power in their households. The gender wage gap in this sector is 17 percent, which is below national and regional averages. Lastly, the report found that Guatemala's overall waste management infrastructure remains limited, with a collection rate of approximately 55 percent and no separate tracking of textile waste. However, waste from the secondhand clothing sector represents a small share of total volumes and is managed more effectively than many other waste streams. This report is significant because it shifts the conversation from waste to opportunity,' added Lisa Jepsen, CEO of Garson & Shaw. 'It offers concrete evidence that global reuse systems are not only environmentally beneficial but also economically and socially valuable. It highlights the need to integrate international reuse into US waste and circular economy policy.'
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