While the market for secondhand clothes has been growing for some time, a new report looking at the state of the resale industry shows it has a long way to go before it hits the ceiling.
The global used clothing market is expected to hit $350 billion by 2027, nearly double where it stands right now, according to ThredUp’s 2023 Resale Report. In the U.S., sales are expected to hit $70 billion by that time.
Economic conditions are one of the primary drivers for the surge. Secondhand clothes, whether sold online or in thrift stores, are considerably cheaper than retail. That led 52% of consumers to shop secondhand last year. In fact, says the report, one of every three apparel items bought in 2022 was secondhand—and two of every five items in Gen Z’s wardrobe are secondhand.
Overall, the secondhand clothing sector grew at a pace that was five times that of the broader clothing industry, with U.S. Sales hitting $39 billion. Compare that to just $20 billion in 2017.
“Secondhand continues to be one of the fastest-growing segments in apparel, and online resale in particular is seeing solid growth,” said Neil Saunders, managing director at GlobalData. “What’s particularly striking this year is new detail around how much younger generations are expected to account for future growth as their purchasing power increases.”
That’s spurring changes for retailers. The number of retail stores that launched branded resale programs exploded last year, jumping from 36 to 124.
It’s affecting consumer decision-making as well. According to the report, 82% of Gen Z has considered the resale value of apparel before buying it, and 64% of Gen Z look for an item secondhand before buying it new.
