Second-hand clothing market to reach US $350bn by 2028

Category: General

Country: Bangladesh

By Nurnahar Akter Tania
4th April, 2024 1:50 PM

The global market for used clothing is expected to expand at a compound annual growth rate (CAGR) of 12% and reach $350 billion by 2028, according to the annual "Resale Report" released by online resale platform ThredUp.

According to this data, the market for used clothing is growing faster than the whole retail industry. The used clothes market in the United States is predicted to grow to $73 billion by 2028, having grown seven times faster than the whole retail clothing market in 2023.

It is projected that secondhand sales will account for 10% of the global garment market by 2025, with online resale accounting for half of all secondhand spending during that time.

According to research by Thredup, 63% of consumers who shopped for used clothing in 2023 did it online—a rise of 17% from the year before—and 45% of Gen Z and millennials said they preferred to purchase online.

When it comes to their purchasing habits, people—especially younger ones—are becoming more and more inclined to purchase used clothing online.

Likewise, nearly 2 in 3 consumers who made a secondhand apparel purchase in 2023 made at least one purchase online, up 17 points from 2022.

Courtesy: ThredUp.

James Reinhart, CEO, ThredUp said, “The global secondhand apparel market continues to burgeon – a testament to the intrinsic value shoppers find in the secondhand experience and proof of the seismic shift towards a more circular fashion ecosystem.”

Notably, 42% of consumers express support for legislative measures promoting sustainable fashion, and 40% of consumers say they’re more likely to vote for a candidate that supports sustainable fashion.

Courtesy: ThredUp.

Thredup produced a list of the top resale brands for 2023, based on sell-through and the quantity of goods sold on its platform.

Besides, second hand clothing make a significant portion of spend and closet. As a result resilient shoppers turn to secondhand apparel amid economic challenges.

52% of consumers shopped secondhand apparel in 2023, which is up 5pts from 2022. In last 12 months 2 in 5 second-hand apparel items bought by consumers.

Courtesy: ThredUp.

"We've spoken with hundreds of apparel brands over the years, and it's been encouraging to witness the conversation shift from why a retailer should get into resale to how they can make resale work for their brand,” James Reinhar said.

Many fashion brands — Levi's, Kate Spade, J. Crew and Oscar de la Renta, to name a few — have launched their own resale programs in recent years, offering incentives to shoppers who both sell and shop. Not only can this fuel a company's sustainability goals, but it can also help acquire more customers and generate more revenue.

Courtesy: Textiletoday.com.bd