At first it seemed like a unexpected consequence of the pandemic and the supply chain meltdown that accompanied it. But the market for secondhand apparel – and some home products too – is starting to take its place within the retail scene. In fact last year the secondhand apparel market grew 11% — or seven times faster than the broader retail apparel market — to $43 billion in the U.S.
Total secondhand sales online and elsewhere including traditional thrift and donations is expected to reach $73 billion by 2028 according to the “2024 Retail Resale Report,” which was conducted by data analytics firms GlobalData, although it was commissioned by ThredUp, the big seller in the field which of course had good reason to promote the findings.
“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. ThredUp is working with a number of well-known national brands like J.Crew, American Eagle and Kate Spade on resale business launches.
The results of the study found that buying secondhand is thriving as consumers continue to seek out deals amid the uncertain economy. Close to two-thirds of consumers said that shopping secondhand apparel gives them the most bang for their buck and just over half said they plan to spend more on secondhand apparel if the economy doesn’t improve.
Among the other findings of the study were that online resale is gaining over shopping in person in stores, especially with younger shoppers. Just about half of younger generations prefer to buy secondhand apparel online, compared to 38% who prefer to buy in a physical store, GlobalData said.
Resale is more than a generational trend, however, Saunders said. “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 said.
“Secondhand’s flexibility in meeting such varied needs is a key reason it’s become so popular and has such a promising growth trajectory.”