US Secondhand Apparel Market Trends

• ThredUp's Resale Report for 2024 highlights the growth, trends, and impacts of the secondhand apparel market.
• The global secondhand apparel market is projected to reach $350 billion by 2028.
• This growth is estimated to be three times faster than the overall global apparel market.
• The global secondhand apparel market grew by 18% in 2023.
• By 2025, secondhand is expected to constitute 10% of the global apparel market.
• Between 2023 and 2028, the secondhand apparel market should experience a Compound Annual Growth Rate (CAGR) of 12%.
• The U.S. secondhand apparel market is forecast to hit $73 billion by 2028, growing at an annual rate of 11% on average.
• In 2023, the U.S. secondhand apparel sector increased by 11%, outpacing the broader retail clothing market's growth sevenfold.
• Between 2023 and 2028, the secondhand sector is anticipated to see a CAGR of 11%.
• By 2028, new consumers will drive 65% of the increase in secondhand spending.
• Resale is growing 15 times faster than the general retail sector in 2023.
• Resale is slated to more than double by 2028, expanding 6.4 times faster than the wider retail clothing sector, marking a 17% CAGR.
• The market share of resale should more than double over the coming decade, increasing at an 11% CAGR.
• Resale is predicted to grow six times faster than off-price by 2033.
• Online resale experienced faster growth in 2023, with a growth rate of 23%.
• Online sales are expected to make up half of all secondhand spending by 2025.
• The online resale market is expected to more than double over the next five years, reaching a CAGR of 17% to reach $40 billion in 2028.
• 52% of consumers engaged in secondhand apparel shopping in 2023.
• Gen Z and Millennials outpace this, with 65% shopping secondhand, up 5 points from 2022.
• Two in five apparel items purchased in the last year were secondhand.
• Of those who bought secondhand apparel online in 2023, 63% made an online purchase.
• This is an increase of 17 points from 2022, and 71% of Gen Z and Millennials purchase online.
• 45% of Gen Z and Millennials favor online shopping, compared to 38% preferring brick-and-mortar stores.
• More than half of those who prefer to buy secondhand directly from a brand's website express increased trust in brands over marketplaces.
• 44% note the ease of comparing items side by side.
• Another 41% appreciate a more curated selection available from specific brands.
• About half of the consumer apparel budget is spent on secondhand purchases in the last 12 months.
• Social media makes up 23% of the channel breakdown for those who prefer shopping secondhand online.
• 20% are buying directly from a brand's website.
• Managed marketplaces account for 20%, livestream shopping for 18%, peer-to-peer marketplaces for 13%, and finally 6% have no preference.
• Nearly three in four customers prioritize when it comes to apparel spend, value is king.
• 59% of consumers will not make a purchase if they can't find a good deal on an apparel item.
• On average, consumers plan to purchase 7% less apparel at full price in 2024 than they did in 2023.
• 55% of consumers stated that if the economy doesn't improve, they'll spend a higher proportion of their apparel budget on secondhand.
• 60% of consumers say shopping secondhand apparel gives them the most bang for their buck.
• 41% of consumers say when seeking a deal on apparel, secondhand is the first place they look.
• 25% of consumers resold apparel in 2023.
• This is nearly at parity with 2021 figures when activity was elevated, however lower than 33% among Gen Z and Millennials
• Nearly half of those who resell use the cash to pay for essentials like food and bills.
• Gen Z are most likely to put it into savings (41%).
• Consumers resell to make extra money, to clean out their closet, and to sustainably get rid of apparel.

Generational Shopping Habits

• Gen Z - 51% prefer to shop online, mainly via livestream shopping to better express personal style.
• Millennials - 55% prefer to shop online, mainly on managed marketplaces, in order to outfit their family.
• Gen X - 69% prefer brick and mortar stores to afford higher-end brands.
• Baby Boomers and Silent Generations - 82% prefer brick and mortar for the thrill of the hunt and to get better deals.
• Branded Resale saw 31% year-over-year growth.
• 74% of retail executives who don't currently offer resale either are considering or planning on getting into resale in the future, up 5 points from 2022.
• Retail executives say their customers are already participating in resale-an all-time high, up 4 points from 2022.
• 62% of retail executives say their customers care about their brand being sustainable.
• Consumers say resale value is an important factor in purchasing apparel.
• Consumers shop secondhand to afford higher-end brands, up 11 points from 2022.
• 27 % of consumers have traded in apparel with a brand in exchange for shopping credit to that brand.
• 90% are more likely to shop with a brand that offers secondhand apparel alongside new apparel.
• 23% prefer to buy a secondhand item from a brand before committing to purchasing new for the first time.

Brands and Sustainability

• Consumers are more inclined to make a first-time purchase with a brand if they offer shopping credit for trading in used apparel.
• Advanced sustainability goals (87%, up 5 points from 2022) is a top benefit for brands that offer resale.
• Brands offer resale to generate more revenue (80%, up 7 points from 2022)
• Brands offer resale to acquire more customers (67%, up 22 points from 2022)
• Brands considering resale want to acquire more customers (89%)
• To generate revenue (85%, up 7 points from 2022) is also a consideration for brands who offer resale.
• Consider to advance sustainability goals (77%, up 3 points from 2022).
• A main reason brands say they're considering resale to stay competitive with other brands who offer it.
• Brands not interested in resale stated their is just too complex (67%)
• They don't know where to start (56%), and have higher priority initiatives demanding resources (56%)
• Voters favor candidates who support circularity.

Government Impact

• 65% of retail executives and 43% of consumers believe the government isn't doing enough to lessen fashion's environmental impact.
• Consumers believe the government should take legislative action to help help promote sustainable fashion and view circular textile policy as a non-partisan issue.
• 40% of consumers say they're more likely to vote for a candidate supporting sustainable fashion.
• Of consumers, 65% say sales tax on secondhand apparel should be eliminated.
• Most consumers and Gen Z and Millennials say they'd buy more secondhand apparel if there were no sales tax.
• Of retail executives, 58% say they'd invest in sustainable business or incentivized with government grants.
• Of retail executives, 52% were of a mind to adopt circular business models like resale if there were government-sponsored financial incentivizes for doing so.

The U.S. secondhand apparel market is projected to reach $73 billion by a specific year. Resale growth significantly outpaces the broader retail clothing sector. Value remains a critical factor in consumer apparel spending, influencing preferences for online secondhand shopping and brand websites.