New Report Urges U.S. to Prioritize Secondhand Clothing Exports to Solve Domestic Waste Crisis and Boost Global Economic Inclusion

ATLANTA, July 30, 2025 /PRNewswire/ -- A groundbreaking new report, commissioned by Garson and Shaw, reveals for the first time how secondhand clothing exports from the United States to Guatemala move through the value chain, delivering environmental benefits at home and inclusive economic opportunities abroad.

Conducted by Full Cycle Resource, the report presents the most in-depth analysis to date of how the secondhand trade reduces U.S. textile waste sent to landfill and incineration while powering local jobs, entrepreneurship, and circular economy practices in Central America's largest economy.

The U.S. generates one of the highest volumes of textile waste globally, with nearly 85% of used clothing ending up in landfills or incinerators each year. As fashion consumption grows, so too does the environmental burden of discarded textiles. However, in Guatemala, what US consumers discard fuels a thriving reuse economy from market stalls to large enterprises employing thousands of employees.

Lisa Jepsen, CEO of Garson & Shaw, said: "This report is significant because it shifts the conversation from waste to opportunity. 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 U.S. waste and circular economy policy."

98% of Guatemala's used clothing in 2023 (131 million kilograms) came from the U.S., making it the country's largest supplier. Survey findings suggest that nearly 90% of these imported garments are reused domestically, challenging misconceptions about textile waste dumping and outlining the innovative recycling solutions that exist for non-reusable items.

The study highlights the powerful role of the trade in advancing gender equity. Nearly 60% of secondhand clothing businesses surveyed were women-owned, which is more than double the national average. In a country where over half the population lives in poverty, the trade offers access to much-needed affordable clothing as well as vital income and entrepreneurial pathways.

Secondhand clothing typically arrives in Guatemala in bales that are either "sorted" or "unsorted." Sorted bales have been pre-categorized by item type and quality, while unsorted bales contain a mix of garments in their original collected state. The report finds that, surprisingly, there is high demand for unsorted bales, because they allow local businesses to perform their own sorting – a process that creates local jobs, adds market-specific value, and offers the flexibility to meet diverse consumer preferences.

"Second-hand 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 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."

Guatemala-based Megapaca, Central America's largest used clothing importer, underscored the importance of the trade: "Unsorted bales are the backbone of what we do. They allow us to create thousands of jobs in our sorting centers and stores, while enabling us to meet demand across diverse markets and income levels," Mario Peña, Co-founder and General Manager, said.

To ensure the continued success of Guatemala's model and the same for other importing countries, the report provides clear recommendations for U.S. policymakers, including:

• Enhancing public education on responsible textile donating.
• Improving textile collections by harmonizing collection regulations.
• Ensuring new Extended Producer Responsibility (EPR) policies fully account for the global reuse economy and avoid unintentionally hindering trade, increasing costs, or reducing the availability of quality second-hand garments.

"To build truly circular economies, the Global North must recognize its role in supporting reuse systems that work," Jepsen concluded. "By doing so, we can reduce waste at home and contribute meaningfully to sustainability and economic inclusion abroad."

The full report can be downloaded here.

About Garson & Shaw LLC:
Based in Atlanta, Georgia, Garson & Shaw LLC is a leading global wholesaler and exporter of secondhand clothing, committed to maximizing textile reuse and supporting sustainable economic growth worldwide.

About Full Cycle Resource:

Full Cycle Resource (FCR) is a research-driven company specializing in capturing economic and trade dynamics within the global textile industry to advance transparency, circularity, and sustainability.

About Megapaca:

Megapaca is the largest importer and retailer of secondhand clothing in Central America, sourcing primarily from the United States. With 145 stores across Guatemala, Honduras, and El Salvador, it stands as the leading force in the region's used clothing market promoting reuse and sustainability.

Photo: https://mma.prnewswire.com/media/2738987/Guatemala_markets_Garson_Shaw.jpg