Central America's second-hand or used clothing industry is experiencing a boost due to the growing demand for affordable clothing among the majority of the population with limited resources and the global trend towards recycling and reusing garments.

“Central America has become a market for second-hand textiles from countries such as the United States, Canada, the European Union, China, and South Korea”, according to a report titled "Reuse before throwing away" by the U.S. consulting firm Garson & Shaw.

The report presented in Costa Rica revealed that over four million tons of used clothing is traded annually, with the used clothing industry in Guatemala, El Salvador, Honduras, and Nicaragua growing by $274 million between 2011 and 2021.

The report estimates that the used clothing sector will provide over three million jobs in the four Central American countries by the early 2040s and generate nearly $200 million in profits through taxes. Nicaragua experienced the fastest and most significant growth in this industry, with 80% of its population purchasing used clothing or footwear. In 2021, Nicaragua imported 52,500 tons of used clothing, ranking 19th among the world's largest importers. The benefit through taxes for the state was $23.7 million in that year alone, and the industry is expected to account for 1% of the national GDP.

Guatemala is another country with a high need for affordable clothing, and demand for used textiles remains strong. In 2021, the country imported 130,000 tons of used clothing, ranking as the ninth-largest importer of these products in the world. The benefit through taxes for the state amounted to $40.2 million in that year, and imports have grown by 10% since 2017.

Honduras imported 66,000 tons of second-hand clothing in 2021, ranking 17th among the world's largest importers. The tax benefits delivered to the state by the used clothing industry amounted to $34.1 million in that year, representing 1.6% of Honduras' GDP.

El Salvador imported 35,000 tons of used clothing in 2021, ranking 23rd in terms of imports worldwide. The second-hand textile industry accounts for 1.4% of the national GDP, and the government collected $16 million in taxes through this industry.

The used clothing industry in Central America is proving to be a vital contributor to the economy, providing affordable clothing to the majority of the population with limited resources, creating jobs, and generating significant tax revenues for the governments of these countries.