Online resale is expected to more than double in the next 5 years, reaching
$40B by 2028; 40% of voters say they’re more likely to vote for a candidate
that supports circularity in fashion.
Today, ThredUp — one of the largest online resale
platforms for apparel, shoes, and accessories, — released the results of its
2024 Resale
Report.
Conducted by third-party retail analytics firm GlobalData, the 12th annual study
serves as the most comprehensive measure of the secondhand market globally and
in the US, with forward-looking projections through 2033. It also includes
new insights about trends driving online resale’s growth, momentum in branded
resale, and a special section about the government’s role in reducing fashion’s
impact and potential implications for this year’s election.
The report’s findings are based on market sizing and growth estimates from
GlobalData; a survey of 3,654 US consumers over the age of 18; and a survey of
50 top US fashion retailers and brands.
“With more than half of all consumers shopping for secondhand apparel last year,
it’s evident that resale is now firmly embedded in the fashion landscape,” says
Neil Saunders, Managing Director at
GlobalData Retail. “Secondhand buying transcends generations, with the role of
resale changing throughout consumers’ lives. Younger shoppers turn to secondhand
for self-expression and to help create their personal style; parents rely on
secondhand to outfit their families in a cost-effective and eco-conscious way;
and older generations turn to secondhand to snag affordable, higher-end brands
and for the thrill of the hunt. Secondhand’s flexibility in meeting such varied
needs is a key reason it’s become so popular and has such a promising growth
trajectory.”
Top 5 trends from ThredUp’s 2024 Resale Report (all figures pertain to the US unless otherwise noted)
The secondhand apparel market is outpacing the broader retail sector at a
notable clip. Online resale is seeing accelerated growth.
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The global secondhand apparel market is projected to reach $350 billion by
2028, growing at a compound annual growth rate (CAGR) of 12 percent.
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The US secondhand apparel market grew 7 times faster than the broader retail
clothing market in 2023. It’s expected to reach $73 billion by 2028.
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Online resale is expected to more than double in the next 5 years, reaching
$40 billion by 2028 and growing at a CAGR of 17 percent.
Shoppers gravitate towards buying secondhand apparel online. For the first
time ever, younger generations prefer buying online versus in a brick-and-mortar
store.
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Nearly 2 in 3 consumers who made a secondhand apparel purchase in 2023 made
at least one purchase online — up 17 points from 2022.
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45 percent of younger generations prefer to buy secondhand apparel online,
compared to 38 percent who prefer to buy in a brick-and-mortar store.
Resale thrives in a value-seeking environment where shoppers are buying on a
deal.
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Nearly 3 in 4 consumers say when it comes to apparel spend, value is king.
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60 percent of consumers say shopping secondhand apparel gives them the most
bang for their buck.
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55 percent of consumers say they’ll spend more on secondhand apparel if the
economy doesn’t improve.
Branded
resale
is booming: Retailers are generating revenue, advancing sustainability goals
and acquiring new customers.
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163 brands now offer resale shops, according to ThredUp’s Recommerce 100 —
up 31 percent compared to 2022. New entrants in 2023 included American
Eagle, J. Crew and Kate Spade. FULLBEAUTY Brands, ELOQUII,
Modcloth and Betabrand all announced new resale programs powered by
ThredUp’s Resale-as-a-Service® (RaaS®) today.
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Nearly 2 in 3 retail executives who offer resale say it will generate at
least 10 percent of the company’s total revenue within five years.
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87 percent of retail executives who offer resale say it’s advanced their
sustainability goals.
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38 percent of consumers say they shop secondhand to afford higher-end brands
— up 11 points from 2022.
Government action could accelerate the transition to a more sustainable future
for fashion. Voters say they’ll favor candidates who support circularity.
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42 percent of consumers say the government should take legislative action to
help promote sustainable fashion.
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40 percent of consumers say they’re more likely to vote for a candidate that
supports sustainable fashion.
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52 percent of retail executives say they’d adopt circular business models if
there were government-sponsored financial incentives for doing so.
“The global secondhand apparel market continues to burgeon — a testament to the
intrinsic value shoppers find in the secondhand experience and proof of the
seismic shift towards a more circular fashion ecosystem,” says ThredUp CEO
James Reinhart. “As we celebrate
this progress, we also recognize the powerful role the government can play in
accelerating the transition to a more sustainable future for fashion. Now in its
12th year, the Resale Report shows some of the most promising signals of what
that future could look like with increased levels of support. Until fashion is
no longer one of the most damaging sectors of the global
economy,
we will continue to advocate for the government to help drive adoption and
behavior change in fashion.”
Published Mar 27, 2024 2pm EDT / 11am PDT / 6pm GMT / 7pm CET
Sustainable Brands Staff