Germany’s used clothing collection hits major challenges

Newsworm
with
May 26, 2025
Germany’s used textiles collection system is at risk of collapse amid rising contaminants, low-quality donations, and increasing costs. Many collectors face financial struggles, threatening recycling efforts nationwide. Industry experts call for urgent government action, including extended producer responsibility and fair compensation, to protect this vital part of the circular economy.
Photo by Fujiphilm on Unsplash

The used textiles collection and sorting industry in Germany is facing an unprecedented crisis, threatening the sustainability and functionality of this vital part of the circular economy. According to the Association for the Textile Future (GftZ), comprehensive collection and efficient sorting of used clothing have become severely compromised since the start of 2025, putting the entire system under acute pressure.

Major challenges in used textiles collection and sorting

Since January 1, the quality of collected textiles has drastically declined. The industry reports a significant rise in the amount of contaminated and low-quality goods deposited in collection containers. These contaminants include residual waste and worn-out clothing, which complicates sorting and lowers the value of reusable textiles. The misuse of collection containers and the lack of regulatory enforcement have overwhelmed both non-profit and private collectors, causing many to abandon long-standing collection structures. As a result, the availability of used textile collection is no longer guaranteed in numerous regions across Germany.

Adding to these difficulties, transport and personnel costs have surged, making operations financially unsustainable for many collection and sorting companies. Furthermore, Germany’s textile recycling sector suffers from a competitive disadvantage compared to neighboring countries that have already adopted extended producer responsibility (EPR) systems. These economic pressures have led to dissolving partnerships and threaten the solvency of many businesses in the textile recycling chain.

Impact of new EU directive on textile waste

The crisis is partly linked to a new EU directive effective from January 2025, which bans the disposal of textiles and clothing with household waste. While this directive aims to promote textile reuse and recycling, it has inadvertently led to an influx of unusable or heavily contaminated textiles in collection points, further complicating sorting and reducing efficiency.

Consumer protection groups warn that worn-out and dirty clothing, which should be excluded from collection efforts, is increasingly ending up in containers, exacerbating the problem.

Industry calls for immediate political action

Industry stakeholders and the GftZ are urgently calling on policymakers to take swift and decisive measures:

1. Implement Extended Producer Responsibility (EPR) for Textiles: The industry supports the Environment Ministers’ resolution and urges a fast-track legislative process for introducing EPR systems. This would require manufacturers to co-finance the collection and treatment of textile waste, alleviating the financial burden on collectors.

2. Public Waste Management Authorities Must Act: Authorities need to fulfill their obligations by ensuring separate textile collection and offering fair remuneration to third-party collectors, making the system economically viable again.

3. Fair Compensation for Collectors: Both private and non-profit textile collectors must receive appropriate, pragmatic, and uncomplicated payments for their services to sustain operations and partnerships.

4. Enhance Public Awareness and Education: The public must be better informed through waste advisory services to prevent misuse and contamination of textile collection containers.

Without immediate intervention, the used textiles collection system risks collapsing entirely, resulting in the loss of a critical circular economy sector. Stakeholders warn that realistic transitional solutions and a fair distribution of responsibilities are essential to prevent irreparable damage to textile recycling and reuse efforts.

The GftZ emphasizes that the situation is critical and requires political will and industry cooperation to preserve Germany’s leadership in sustainable textile management.