The secondhand apparel industry in the US and Canada is experiencing growth in popularity, driven by a combination of factors including sustainability, affordability, and convenience. A recent study by Future Market Insights (FMI), the market is expected to grow at a compound annual growth rate (CAGR) of 12.3 per ent from 2023 to 2033, reaching $89.6 billion by 2033. This significant growth reflects a major shift in consumer behavior and the increasing appeal of secondhand clothing.
Sustainability in focus
A key driver of this growth is the rising consciousness about sustainable fashion. Consumers are actively seeking alternatives to fast fashion, which is notorious for its environmental impact. Secondhand clothing offers a more eco-friendly option by extending the life cycle of garments and reducing textile waste. This resonates with environmentally conscious consumers, particularly millennials and Gen Z, who are driving the demand for sustainable practices.
Cost-effectiveness a major allure
Secondhand apparel offers significant cost savings compared to buying new clothes. This affordability is a major draw for budget-conscious consumers seeking quality brands and designer items at a fraction of the original price. This trend is particularly relevant in a time of economic uncertainty.
Also, secondhand platforms boast of a wide variety of clothing options, encompassing diverse styles, brands, and sizes. This caters to a wider range of tastes and preferences, allowing consumers to express their individuality and create unique looks. Thrifting and shopping secondhand have become a way to discover unique pieces and curate a personalized style.
The rise of online platforms
The convenience and accessibility offered by online platforms have significantly pushed up market growth. Shoppers can now browse and purchase secondhand clothing from the comfort of their homes. This shift to e-commerce has made secondhand shopping more accessible than ever before.
Rental services, a new dimension
The emergence of rental and subscription services is adding another dimension to the secondhand market. These services allow customers to enjoy a rotating wardrobe without the commitment of ownership. This caters to a growing desire for flexibility and experimentation with fashion trends.
The US currently dominates the secondhand apparel industry in North America, with Canada holding a smaller but growing share. The market is witnessing increased competition as established players, online platforms, and even traditional retailers are entering the secondhand space, offering a wider selection for consumers. Collaborations, product launches, and acquisitions are becoming commonplace as companies strive to gain a foothold in this rapidly growing market.
Looking ahead, the secondhand apparel industry in the US and Canada is poised for continued growth. With the increasing focus on sustainability, affordability, and convenience, secondhand clothing is becoming a mainstream choice for consumers. This trend is likely to be further fueled by advancements in technology and innovative business models within the industry.
