Study: U.S. secondhand apparel sales grew faster than traditional retail in 2023
Buying secondhand apparel shows no signs of losing its momentum anytime soon.
The U.S. secondhand apparel market grew 11% — or seven times faster than the broader retail apparel market — to $43 billion last year, according to ThredUp’s “2024 Retail Resale Report,” which was conducted by third-party data analytics firm GlobalData. The total, which includes resale sales online and elsewhere as well as traditional thrift and donations, is expected to reach $73 billion by 2028.
ThredUp’s 12th annual resale study, found that buying secondhand is thriving as consumers continue to seek out deals amid the uncertain economy. Sixty-percent of consumers said that shopping secondhand apparel gives them the most bang for their buck, and 55% plan to spend more on secondhand apparel if the economy doesn’t improve. Nearly three in four consumers say when it comes to apparel spend, value is king.
“With more than half of all consumers shopping for secondhand apparel last year, it’s evident that resale is now firmly embedded in the fashion landscape,” said Neil Saunders, managing director, GlobalData.
Online Resale
The report found that online resale is gaining favor versus buying secondhand in stores — particularly with younger generations. Forty-five percent of younger generations prefer to buy secondhand apparel online, compared to 38% who prefer to buy in a brick-and-mortar store.
Also, nearly two-in-three consumers who made a secondhand apparel purchase in 2023 made at least one purchase online — up 17 points from 2022. Online resale is expected to more than double, reaching $40 billion by 2028 and growing at a CAGR of 17%.
Saunders noted that secondhand buying transcends generations, with its role changing throughout consumers’ lives.
“Younger shoppers turn to secondhand for self-expression and to help create their personal style; parents rely on secondhand to outfit their families in a cost-effective and eco-conscious way; and older generations turn to secondhand to snag affordable, higher-end brands and for the thrill of the hunt,” he explained. “Secondhand’s flexibility in meeting such varied needs is a key reason it’s become so popular and has such a promising growth trajectory.”
Branded Resale
More and more brands are getting in on the action, using resale to generate revenue, advance sustainability goals and acquire new customers. ThredUp said that 163 brands now offer resale shops. American Eagle, J. Crew and Kate Spade all launched new resale programs (powered by ThredUp’s Resale-as-a-Service) in 2023.
In related findings:
•Nearly two-in-three retail executives who offer resale say it will generate at least 10% of the company’s total revenue within five years.
•The overwhelming majority (87%) of retail executives who offer resale say it’s advanced their sustainability goals.
•Thirty-eight percent of consumers say they shop secondhand to afford higher-end brands - up 11 points from 2022.
To view the full report, click here.
The report’s findings are based on market sizing and growth estimates from GlobalData; a survey of 3,654 U.S. consumers over the age of 18; and a survey of 50 top U.S. fashion retailers and brands.