The annual “Resale Report” published by online resale platform ThredUp projects that the global market for used clothing will increase at a compound annual growth rate (CAGR) of 12% and reach US$ 350 billion by 2028.
This year’s data, co-published with GlobalData, highlights how the used clothing market is expanding at a quicker rate than the retail sector as a whole. After growing seven times faster than the entire retail clothing market in 2023, the used clothing market in the US is expected to reach US $73 billion by 2028.
Consumers, particularly the younger generation, are showing an increasing propensity to buy secondhand clothes online.
It follows that internet resale is expected to more than double over the next five years, expanding at a 17 percent compound annual growth rate (CAGR) to reach US $ 40 billion by 2028. Likewise, a majority of consumers who purchased pre-owned apparel in 2023—a 17-point rise from 2022—completed at least one online transaction.
The fact that buyers of secondhand items are abusing sales is increasingly more apparent. Sixty percent of customers believe that purchasing used clothing gives them the most value for their money, and fifty-five percent of consumers say they will increase their spending on used clothing if the economy doesn’t improve.
Fans can now purchase used goods more easily than ever thanks to the rise in branded resale.
There are currently 163 brands available at resell shops, up 31% from 2022. In 2023, J. Crew, American Eagle, and Kate Spade were among the newcomers.
The research also emphasizes how government assistance may hasten the fashion industry’s transition to a more sustainable future. Notably, 42% of consumers favor legislative steps that encourage sustainable fashion, and 40% of consumers believe that they are more inclined to vote for a candidate that does so.
“The global market for used apparel is still growing, which is evidence of the profound change towards a more circular fashion ecosystem and the inherent value that consumers find in buying used goods,” stated James Reinhart, CEO of ThredUp.
