By 2029, the global market for secondhand clothing is projected to rise at a compound annual growth rate (CAGR) of 10 per cent to reach US $ 367 billion, according to the annual Resale Report published by online resale platform ThredUp.
According to this year’s research, which was published in collaboration with GlobalData, the market for used clothing grew five times faster in 2024 than the whole retail clothing market. In 2024, the U.S. market for used clothing expanded by 14 per cent, the most since 2021.
In reaction to changes in the economy, consumers are increasingly choosing used goods when they purchase. Indeed, 59 per cent of customers believe they will choose used clothing if trade policies and tariffs increase the cost of new clothing; among Millennials, this percentage rises to 69 per cent.
Brands are incorporating reselling into their business models as secondhand buying gains popularity. Retail executives claim that 94 percent of their customers are already reselling, which is a new record high.
With 39 per cent of younger consumers having bought used clothing through a social commerce platform in the previous year, social media platforms are starting to play a significant role in the adoption of resale.
Finally, the manner that people purchase used things is being transformed by artificial intelligence. 48 per cent of shoppers now claim that AI-powered search, discovery, and personalisation make buying used goods as simple as purchasing new. In the meanwhile, 58 per cent of retailers intend to introduce AI-powered solutions within the next year, and 78 per cent have already made sizable investments in AI.
