The secondhand clothing market is experiencing a surge in popularity, with projections indicating it will account for 10% of the global fashion market by 2023. This growth is driven by a combination of economic factors and sustainability concerns.
According to a report by GlobalData, global sales of pre-owned clothes increased by 18% in 2022, reaching $197 billion. This growth outpaced the overall fashion retail sector, with the US secondhand market expanding seven times faster than the fashion retail sector.
The growth of the secondhand market is attributed to consumers prioritizing value amidst rising living costs. Over half of all shoppers have purchased secondhand items in the past year, with younger generations leading the trend. Affordability of higher-end brands is a significant factor driving this shift.
Digital platforms such as Vinted, Depop, and ThredUp are fueling the growth of online resales, which is expected to double in the next five years. Mainstream acceptance of pre-loved fashion is also increasing, with initiatives like the reality TV show Love Island promoting secondhand style.
Older shoppers prefer to shop in physical stores such as charity shops and boutiques, while mainstream retailers like Selfridges and Primark are exploring hosting secondhand sellers in their stores. Childrenswear and designer brands are experiencing significant growth in the secondhand market, driven by collaborations with resale specialists and impending legislation aimed at reducing fast fashion waste.
Despite robust sales growth, online fashion resale platforms have faced challenges in turning profits. However, ThredUp anticipates breaking even this year as sales continue to rise and profit margins improve.