ThredUp's recent release of its 12th annual comprehensive Resale Report, produced in collaboration with the retail analytics firm GlobalData, offers a deep dive into the secondhand apparel market’s trajectory, both globally and in the U.S. This year’s report includes fresh perspectives on online resale growth, momentum in branded resale, and an exclusive section on the government’s impact on fashion sustainability ahead of this year’s U.S. election.
The secondhand apparel market is growing faster, dramatically outpacing the broader retail sector. In 2023, the U.S. secondhand apparel market grew seven times faster than the general retail clothing market. Projections suggest that in 2028, the U.S. market will swell to $73 billion, while the global market will hit a staggering $350 billion. This expansion, propelled by a compound annual growth rate (CAGR) of 12% globally, signifies a shift towards a more sustainable and circular fashion ecosystem.
Consumer behavior heavily favors online shopping, with over 63% of U.S. consumers who purchased secondhand in the last year doing so online, marking a 17-point increase from 2022. Particularly noteworthy is the preference among younger generations for online channels over traditional brick-and-mortar stores.
Branded resale is rising, with 163 brands now offering resale shops through platforms like ThredUp’s Resale-as-a-Service (RaaS), up 31% from last year. Notable new participants include J. Crew and Kate Spade. Nearly two-thirds of retail executives acknowledge that resale will constitute at least 10% of their total revenue within five years, with 87% citing significant advancements in their sustainability goals.
Government policies also play a crucial role in this sector. About 42% of consumers believe legislative measures are necessary to promote sustainable fashion, and 40% are more inclined to support political candidates who favor such policies. More than half of retail executives agree that government-sponsored financial incentives could encourage the adoption of circular business models.
As ThredUp’s CEO James Reinhart says, “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. As we celebrate this progress, we also recognize the powerful role the government can play in accelerating the transition to a more sustainable future for fashion. Now in its 12th year, the Resale Report shows some of the most promising signals of what that future could look like with increased levels of support. Until fashion is no longer one of the most damaging sectors of the global economy, we will continue to advocate for the government to help drive adoption and behavior change in fashion."
