ThredUp: U.S. secondhand apparel sales to reach $74B by 2029
Resale — online and in-store — is showing no signs of losing momentum. If anything, it's gaining strength.
The U.S. secondhand apparel market (includes online and in-store resale as well as the donation/thrift sector) grew 14% in 2024, which marked its strongest annual growth since 2021 and outpacing the broader retail clothing market by five times, according to the 13th annual “2025 Resale Report” from online resale platform ThredUp, which was conducted by third-party data analytics firm GlobalData. It is expected to reach $74 billion by 2029, growing 9% annually on average.
Looking strictly at online, resale is expected to nearly double by 2029, reaching $40 billion, representing a compound annual growth rate of 13% annually on average. The report projects 2025 U.S. online resale will hit $26 billion, up from $22 billion last year.
Surveyed consumers plan to spend 34% of their apparel budget on secondhand items in the next 12 months. This figure is higher among younger generations (Gen Z and millennials) who say they will spend nearly half (46%) of their apparel budgets on secondhand.
Close to one-in-three (32%) consumer respondents who bought secondhand apparel in 2024 made a purchase directly from a brand, including 47% of millennial and Gen Z respondents.
In addition, 94% of surveyed retail executives say their customers are already participating in resale – an all-time high and up four percentage points from 2023.
“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale," said James Reinhart, CEO, ThredUp. "From the integration of social commerce and innovative AI applications to the establishment of trade organizations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory."
The survey also analyzed consumer and retailer data related to several hot-button topics:
Tariffs
- Six-in-10 (59%) surveyed consumers say if new government policies around tariffs and trade make apparel more expensive, they will seek more affordable options like secondhand. This figure includes seven-in-10 (69%) surveyed millennials.
- Eight-in-10 surveyed retail executives expect new government policies around tariffs and trade to disrupt their global supply chain.
- Forty-four percent of retail respondents are looking to reduce reliance on imported goods, and 54% believe resale offers a more stable and predictable source of clothing in the face of potential tariff fluctuations.
Social commerce
- Four-in-10 (39%) millennial and Gen Z respondents have made a secondhand apparel purchase on a social commerce platform in the last 12 months. Close to three-in-10 (28%) of all consumer respondents have.
- Half (50%) of millennial and Gen Z respondents who purchased secondhand apparel in the last 12 months purchased to create content or share on social media.
- Three-in-four (76%) retail respondents say social commerce will play a significant role in driving resale adoption within their brand.
- Almost four-in-10 (38%) of retail respondents allow customers to shop secondhand through a social commerce platform. Another 48% are considering integrating social commerce in the future.
- More than one-in-five (22%) retail respondents believe social commerce will generate meaningful (more than 10% of total) revenue within the next three years.
Artificial intelligence
- Close to half (48%) of consumer respondents say personalization, improved search, and discovery make shopping secondhand apparel as easy as shopping new, including 59% of millennial and Gen Z respondents.
- Forty-six percent of all consumer respondents, and 55% of millennial and Gen Z respondents, say if they can find an item secondhand, they won’t buy it new.
- Close to eight-in-10 (78%) retail respondents have already made significant investments in AI and 58% plan to launch AI-powered tools in the next year.
- More than six-in-10 (62%) retail respondents agree that AI has the power to make the secondhand shopping experience more appealing.
- Forty-four percent of retail respondents agree that AI is bridging the gap between secondhand and new apparel.
"Resale continues to outpace the broader retail sector, with online resale in particular driving the sector’s growth," said Neil Saunders, managing director, GlobalData. "Shoppers are prioritizing quality as resale value becomes an increasingly important factor in purchasing decisions, and retailers are evolving their secondhand offerings to meet consumer demand with new avenues like social commerce, further driving adoption and preference for secondhand."
The report’s findings are based on market sizing and growth estimates from GlobalData, a survey of 3,034 U.S. consumers over the age of 18, and a survey of 50 top U.S. fashion retailers and brands.
