The global market for secondhand clothing and apparel is set to reach $367 billion by 2029, growing at a CAGR of 10%, a new report by ThredUp has found.
According to ThredUp’s 13th annual Resale Report, produced in association with GlobalData, the secondhand apparel market in the United States grew by 14% in 2024, reporting its strongest annual growth since 2021 and outpacing the broader retail clothing market by a factor of five.
The U.S. secondhand apparel market is expected to reach $74 billion by 2029, the report added.
Online resale experienced 23% growth last year, its fastest rate of growth since 2021, with the online resale market in the U.S. set to double over the next five years to reach $40 billion, a CAGR of 13%.
‘Pathways for resale’
“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale,” commented James Reinhart, CEO, ThredUp. “From the integration of social commerce and innovative AI applications to the establishment of trade organisations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory.”
According to the report, changing trade policies are likely to drive further consumer interest in secondhand goods, with 59% of consumers to ThredUp’s U.S. based survey saying they would likely seek more affordable options like secondhand apparel if tariffs or trade changes make new clothing more expensive. This sentiment rises to 69% among Millennials.
Increased spending
In terms of consumer spending habits, respondents said that they plan to allocate 34%, on average, of their apparel budget to secondhand purchases over the course of the next year, a percentage that rises to 46% among Gen Z and millennials.
Just under a third (32%) of secondhand buyers in 2024 made purchases directly from brands, the study found, with retailers responding to these changes – 94% report that their customers are already participating in resale practices.
Some three quarters (76%) of retailers that currently don’t offer resale are considering getting into this market in the future, a two-percentage-point increase on the previous year.
Outpacing the retail sector
“Resale continues to outpace the broader retail sector, with online resale in particular driving the sector’s growth,” commented Neil Saunders, managing director, GlobalData.
“Shoppers are prioritising quality as resale value becomes an increasingly important factor in purchasing decisions, and retailers are evolving their secondhand offerings to meet consumer demand with new avenues like social commerce, further driving adoption and preference for secondhand.” Read more here.
