My summary of the amazing Thredup Resale Report reveals that the secondhand fashion market is going gangbusters! If you forget everything after reading this please remember this, the second-hand apparel market is outpacing the broader fashion retail market.
Key findings from the report indicate that the global secondhand apparel market is projected to reach $350 billion by 2028, with a compound annual growth rate (CAGR) of 12%.
The global second-hand apparel market grew by 18%. By 2025 10% of global apparel will be second-hand.
In the U.S., the secondhand market is expected to grow by 11% each year reaching $73 billion by 2028.
Online resale is driving much of this growth, with the segment expected to double in the next five years, growing at a CAGR of 17% and is predicted to reach $40 billion by 2028. Online retail will make up half of second-hand apparel purchases by 2025.
According to the ThredUp report, several factors are fueling this shift toward second-hand shopping.
The Economy
In 2024 consumers identified they would spend more on second-hand if the economy does not rebound. Whilst in 2023, 3 in 4 consumers stated value as the most critical consideration when it comes to spending on apparel.
Personal Expression
Younger consumers are turning to secondhand apparel for reasons other than affordability.
Many Gen Z and Millennial shoppers see secondhand clothing as a way to express their style and make eco-conscious choices.
More than half surveyed said that shopping secondhand gave them the best value for their money, with many expecting to increase their spending in this category if economic conditions remain uncertain.
Earn Extra Cash
In 2023 peer-to-peer reselling of apparel at 25% was almost the same as 2021 reflecting post-pandemic clearouts. Gen Z and Millennial consumer figures were even higher at 33%.
Almost half used the money made from resale for daily living whilst the younger Gen Z used it for saving. Consumers cited other reasons for reselling including clearing out their closets and sustainable fashion disposal.
Branded Resale
The report also highlights the rise of branded resale programs, with 163 brands offering resale options in 2023 (up by 34).
This trend is expected to continue as more retailers recognize the business potential of resale.
Nearly 87% of retail executives said resale advanced their sustainability goals, 80% said it generated more revenue, 67% agreed to resale driving new customers and 63% expected resale to contribute at least 10% of their revenue in the next five years. Whilst 74% of brands who have not started resale programs state they are actively looking into resale.
Popular brands such as J.Crew, American Eagle, and Kate Spade have already jumped on board with new resale initiatives powered by ThredUp’s Resale-as-a-Service (RaaS).
Of course, much of this data is US-based and ThredUp is promoting its second-hand marketplace, however, with an estimated 100 billion garments produced a year second-hand is an important part of reducing fashion’s impact on the environment.
The report points to a promising future for resale, with the potential to reshape the fashion industry by reducing waste and promoting sustainable consumer behaviour.
ThredUp is an online peer-to-peer consignment marketplace where consumers can buy and sell secondhand clothing. Read their full report here.
NB Please note this article is using the report as a basis to discuss fashion brands considering second-hand as a sustainable option, this is not an endorsement of their services or brand.