The secondhand apparel market is experiencing explosive growth, according to a new report by online consignment platform ThredUp. The report, conducted in partnership with retail analytics firm GlobalData, predicts the global market will reach a staggering $350 billion by 2028, with a compound annual growth rate (CAGR) of 12%.
This growth significantly outpaces the overall apparel market, highlighting the increasing popularity of thrifting and resale. In the United States alone, the secondhand market is expected to hit $73 billion by 2028, growing at a rate seven times faster than traditional clothing retail.
Key Takeaways:
Surging popularity: The global secondhand market ballooned by 18% in 2023, reaching $197 billion.
Online dominance: Nearly two-thirds (63%) of U.S. secondhand shoppers made online purchases in 2023, with online resale projected to reach $40 billion in the next five years.
Consumer motivations: Resale offers affordability (60% of consumers see it as the best value) and sustainability. Over half of consumers say they'll increase secondhand spending if the economy weakens.
Branded resale on the rise: The number of brand-operated resale shops surged by 31% in 2023, with companies like J.Crew and Kate Spade embracing resale opportunities.
Government action sought: 42% of consumers believe governments should promote sustainable fashion through legislation.
A bright future, but challenges remain
While the report paints a rosy picture for the secondhand market, some challenges persist. Major players like ThredUp are still working towards profitability, despite steady progress. Additionally, some consumers may require a nudge towards resale, with a significant portion calling for government incentives for sustainable fashion practices.
ThredUp's report underscores the secondhand market's transformation into a mainstream force. Driven by consumer preferences, economic factors, and environmental concerns, resale is poised for continued growth in the coming years.
