This article digs into the latest forecast for the global secondhand clothing market. It highlights who’s driving growth, how tech is changing the way we find and buy used clothes, and why profitability still stumps some big players.
Drawing on ThredUp’s report and GlobalData insights, the piece explores how platforms like Vinted, Depop, Vestige, and ThredUp are shaking up fashion consumption. Brands are testing the resale model with certified used items and repairs. Macro factors might speed up the shift toward resale, and the sustainability angle for the apparel industry is tough to ignore.
Market outlook for secondhand clothing
The global resale market is set to accelerate, with secondhand clothing sales forecast to rise 12% this year to $289bn. Looking ahead, the market could grow at an average of 9% annually, reaching about $393bn over the next five years.
These figures put resale as a fast-expanding segment within the broader clothing market.
Key market figures
- Market share: Resale makes up about a tenth of global clothing sales, more than doubling since 2021 when the market sat at roughly $141bn.
- Leading platforms: Vinted, Depop, Vestige, and ThredUp are the big movers, growing at about twice the rate of the overall clothing market.
Drivers of growth and consumer behavior
Several things are fueling this growth: people want sustainable options, shopping is more social than ever, and buying used is becoming normal as premium brands try new business models.
Younger shoppers—Gen Z and millennials aged 14 to 45—are expected to drive around 70% of market growth. They’re turning discovery into something that happens on social feeds and through influencers.
Demographic shifts and social discovery
This generation feels at home with social commerce. They expect to buy straight from posts they see in their feeds.
The ease of finding, checking out, and buying used stuff online is changing how people discover brands and products. Resale is moving from a niche thing to just another way to shop.
Technology and the AI advantage
Artificial intelligence is a big deal for handling massive inventories and tricky search flows in resale. AI-powered cataloging, smarter search, and recommendations help match supply with demand and make it easier to go from spotting something on social media to actually buying it.
AI capabilities transforming resale
- Inventory curation: AI catalogs millions of items, even across different platforms.
- Personalized discovery: Recommender systems serve up suggestions tailored to each shopper, a bit like what you see on Netflix or Spotify.
- Search and discovery: Better search helps buyers find what they want faster, which boosts conversion rates.
Brand participation and profitability challenges
More traditional brands are getting into resale by offering certified used items, revivals, or even repair services. Dr Martens, Zara, and Mulberry are among those testing the waters as the line between new and used retail gets blurrier.
Profitability snapshot
- ThredUp: Reported a pre-tax loss of about $20m.
- Depop: Posted a loss of around £42m.
- Vinted: Pulled off profitability with a reported €76.7m profit in 2024.
- Scale dynamics: Depop’s growth hit 42% to £101m in revenue. Vinted climbed to €813.4m/£710m, up 36%.
Macro risks and external pressures
Despite solid growth, margin pressures stick around. Rising costs tied to global tensions—like energy and fuel price hikes from the conflict in Iran—might push more people toward secondhand as a cheaper way to get the brands they want.
Costs and geopolitical considerations
- Cost pressures: Energy and transport costs can squeeze margins for resale platforms, especially as competition heats up.
- Geopolitical risk: Global tensions hit consumer wallets, maybe speeding up the shift to more affordable resale options.
Implications for sustainability, retailers, and policy
The rise of resale ties right into bigger sustainability goals by stretching product lifecycles and cutting waste. For retailers and policymakers, this trend means rethinking product origins, repairs, and what happens at the end of a product’s life.
Everyone in the space needs to find a balance between growth and profitability if they want to keep investing in tech and logistics for the long haul.
What stakeholders should watch
- Investors: Margin management matters a lot as growth keeps rolling. Keep an eye on platform-level profitability and how well companies control costs.
- Brands: There are real chances to team up on certified pre-owned programs, repairs, and revivals. These moves could help brands connect with younger shoppers.
- Consumers: Affordable, sustainable fashion might become easier to find. Still, quality and authenticity will probably stay at the top of shoppers’ minds.
Here is the source article for this story: Secondhand clothes sales forecast to hit $289bn as AI helps shoppers find deals