According to the annual resale report released by online resale platform ThredUp, the global second-hand clothing market is expected to expand at a compound annual growth rate (CAGR) of 12%, reaching $350 billion by 2028.
According to this data, the growth rate of the second-hand clothing market has exceeded that of the entire retail industry. It is expected that by 2028, the second-hand clothing market in the United States will grow to $73 billion, seven times faster than the growth rate of the entire retail clothing market in 2023.
It is expected that by 2025, second-hand clothing sales will account for 10% of the global clothing market, with online resale accounting for half of all second-hand clothing expenditures during the same period.
According to Thredup's research, 63% of consumers who purchased second-hand clothes in 2023 made purchases online, an increase of 17% from the previous year, while 45% of Generation Z and Millennials indicated that they prefer to make purchases online.
In terms of purchasing habits, people (especially young people) are increasingly inclined to buy second-hand clothes online.
Similarly, nearly two-thirds of consumers who purchased second-hand clothing in 2023 have purchased at least one item online, an increase of 17 percentage points from 2022.
James Reinhart, CEO of ThredUp, said, "The global second-hand clothing market continues to thrive, which demonstrates the intrinsic value that shoppers discover in their second-hand experiences and a significant shift towards a more circular fashion ecosystem."
It is worth noting that 42% of consumers expressed support for legislative measures to promote sustainable fashion, and 40% of consumers indicated that they are more likely to vote for candidates who support sustainable fashion.
Thredup has compiled a list of top resale brands for 2023 based on sales volume and the number of products sold on the platform.
In addition, second-hand clothes account for a significant portion of expenses and wardrobes. Therefore, in the face of economic challenges, resilient shoppers are turning to second-hand clothing.
In 2023, 52% of consumers purchased second-hand clothing, an increase of 5 percentage points from 20222. Over the past 12 months, two-thirds of the purchases made by consumers were second-hand clothing.
James Reinhar said, "Over the years, we have had conversations with hundreds of clothing brands, and it is encouraging to see the topic shift from why retailers should enter the resale field to how resale can be effective for our own brand."
Many fashion brands - Levi's, Kate Spade, J Crew and Oscar de la Renta, among others, have recently launched their own resale plans to provide incentives for shoppers who both sell and shop. This can not only drive the company to achieve sustainable development goals, but also help attract more customers and generate more revenue.