Secondhand Clothing Market Set to Capture a Tenth of Global Fashion by Next Year

Secondhand clothing sales are poised to grow, driven by the cost of living crisis and growing concerns over sustainability. As consumers seek more affordable and environmentally friendly options, the demand for pre-loved garments is skyrocketing. This shift reflects a broader trend towards conscious consumption and highlights the fashion industry's evolving landscape.

Rapid Growth in Pre-Loved Fashion

Global sales of pre-owned clothes soared by 18% last year, reaching $197 billion, and are projected to hit $350 billion by 2028, according to a report by GlobalData for resale specialist ThredUp. In the US, the secondhand market grew seven times faster than overall fashion retail, where sales remained stagnant from 2023.

Resale Sector's Resilience

James Reinhart, co-founder and chief executive of ThredUp, noted that interest in secondhand items is expanding beyond younger shoppers to span generations. He also emphasized the sector's resilience amid economic challenges. 

"When consumer sentiment is softer, value is key," he said. "People are looking to shop secondhand to drive more value." 

Digital Platforms and Generational Trends

The report found that more than half of all shoppers bought something secondhand in the past year, with this figure rising to 65% among Gen Z and millennials. Nearly 40% of consumers shop secondhand to afford higher-end brands. Digital platforms like Vinted, Depop, and ThredUp have facilitated this trend, with online resales expected to more than double in the next five years to $40 billion.

Expansion of Secondhand Sectors

Childrenswear is now the fastest-growing sector of secondhand fashion. Designer brands are joining the trend, partnering with companies like ThredUp to host resale of their products online or in stores. Consumers are increasingly recognizing the value of their wardrobes to fund new purchases.

Legislative and Economic Pressures

Reinhart pointed out that impending legislation to limit throwaway fashion is motivating brands to participate more in the resale market. 

"It's hard not to believe there will be some activity in that space in the next three to five years given how much apparel ends up in landfill," he said.