Second-Hand Clothing Market Size, CAGR, Ongoing Trends to 2024-2030
The growing Second-Hand Clothing Market
Shoppers gravitate to second-hand clothing due to the lower cost and environmental benefits. The market for resales has become very popular among the younger generation who want to own smaller, but better items to reduce their consumption and care for their wardrobes.
The 2021 Resale report, carried out by the online consignment store ThredUP offers new information about the market. The report also examines how inflation is altering consumer buying patterns and the rise of branded re-commerce.
Second-Hand Clothing Market is estimated to increase at a CAGR 15.98% from $ 14.44 Billion in 2023 to $ 38.78 Billion by 2030
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Competitive Landscape of the Second-Hand Clothing Market Analysis
- ThredUP
- Poshmark
- The RealReal
- Tradesy
- Buffalo Exchange
- eBay
- Mercari
- Alibaba Group
New Developments in Second-Hand Clothing Market
July 17, 2023 (NASHVILLE, Tenn., AND OAKLAND, Calif) — Journeys Announces “Journeys Second-Hand,” a Resale Program Enabled by thredUP’s Resale-as-a-Service®
Journeys, the teen retail leader under Genesco Inc., and thredUP, one of the largest online resale platforms for apparel, shoes, and accessories, announced “Journeys Second-Hand,” a resale program geared towards serving Journeys shoppers with more fashion and apparel options in an environmentally-conscious way. “Journeys Second-Hand” allows customers to shop secondhand apparel directly from Journeys’ website and resell gently-worn items for Journeys shopping credit.
Growth Drivers
With a keen eye in sustainability Gen Z shoppers are taking the lead in the purchase of second-hand clothes. Although they might be tempted to go to PacSun or Zara however, the younger generation are also dedicating as high as 8 percent of their clothing budget to second-hand stores such as Shein Exchange and Thred Up.
It's a trend that numerous brands have observed and are attempting to profit from. Outdoor retailer REI lets you exchange your old gear in exchange for an online gift card to the store and Madewell offers an online resale market that lets customers purchase and sell their used jeans. However, it's the younger Gen Z shoppers who are driving growth in the resale marketplace online that is expected to reach $77 billion by 2025, according to a new report by ThreadUp.
The fashion industry has risen to become one of the largest polluting industries, a lot of people are seeking an environmentally responsible method of consumption. It's not perfect buying second-hand clothing however "it's the closest to being environmentally sustainable as you can get," says Porwal.
"It's already been designed and used by someone else and then discarded." Additionally it has an environmental footprint that is less than purchasing new clothes, according to research conducted by REI, the Waste and Resources Action Program as well as REI.
Although there's much opinions on whether the resale industry has a negative impact on the fashion industry however, there is no doubt that more consumers than ever before are buying secondhand. It's a trend likely to grow when the next generation of consumers enter the market and buy secondhand clothes as their default choice according to Kantar.
As inflation continues to increase, this is a cost-effective option for those with a tight budget as per the 2023 Resale Report from ThreadUp. Actually 37% of shoppers claim that they have spent a larger portion of their clothing budget on secondhand clothing over the last year.
Trend
The resale market for secondhand clothing is growing more quickly than the sales of new clothes. It's due to the fact that more customers are moving away from fashion-driven shopping and opting to thrift or repurchasing clothing from second-hand stores. A study conducted by thredUP revealed that two of three fashion-conscious shoppers are looking to change their shopping habits to second-hand products.
The market for secondhand clothes has increased 21 times faster than the retail sales of brand new clothes in the last three years, as per ThredUP's report on 2022's recommerce. This growth is driven by customers looking for quality, sustainability, and ease of use.
Instead of focusing on replenishing the regular lines of clothing, many companies have responded to the growing consumer demands by introducing resales and takeback programs.
For instance, the REI, an outdoor retailer REI lets customers trade in their old gear and then sell their old clothes. The apparel company Urban Outfitters launched its own Resale platform called Nuuly Thrift. A number of online retailers have begun hosting marketplaces that sell second-hand clothing.
Although resales and takeback programs can be a good way to promote the brands hosting these initiatives, they also cause harm. Most of the companies that initiate these initiatives use them to make greater profits by sustaining their traditional linear models of excessive production and selling surplus. As a result they might not be as long-lasting in the way they are claimed to be.
For consumers, resales and takeback could help to reduce their carbon footprint by cutting down on the amount of trash they leave to Incinerators or landfills. However, the real effects of these programs can be difficult to determine because of the insufficient transparency.
The majority of second-hand stores hide the actual locations of the returned clothes in secret, making it hard to determine the process that takes place after the garments are purchased. In some cases, garments are transported to developing world to be sold as clothing for sale in.
The issue is that this method often leads to the Global North's excess consumption being a burden for the Global South and local garment and textile workers frequently being excluded from the decision-making process.
Regional Perspective
There is a demand for secondhand clothes is increasing in many regions around the globe, and especially in countries that are developing that are struggling to pay for new clothing. This has led to the rag trade which is marked by a frenzied activity around the reselling of and purchasing of old clothes. The selling industry is driven by its being eco-friendly and offers excellent value for the money.
People are becoming more worried about the environmental impacts of fashion and are asking apparel companies to increase their sustainability efforts. This has resulted in the growth of markets for used and vintage clothing that is stylish and sustainable. However, it's not just the fashion companies that are adopting this trend.
Customers have also turned to peer-to -peer rental businesses such as Hurr Collective and By Rotation to get access to a variety of styles at no cost.
According to a report from ThredUP, the industry of resales is more popular than ever before, with those less than 35 comprising the majority of consumers. This is a trend that has been aided by the economic downturn COVID-19 as consumers cut back on unnecessary purchases to cut costs.
The rise in resales is further fueled by the increasing interest in fashion in circularity, which entails making use of existing clothes as the raw material for creation of new pieces.
While some may believe that selling items for sale is illegal however, it can provide the opportunity to express their individuality with clothes while staying within their budget. Additionally, it could be a method of getting distinctive designer clothes that are otherwise outside of the price budget.
In the end, the resale market is growing quickly and is predicted to expand even further in the near future. Although there remain several problems to be addressed however, the marketplace for second hand clothing is set to see a significant expansion.
Segments Covered in the Second-Hand Clothing Market Report
Segment by Type
- Thrift Stores
- Resale Platforms
Segment by Application
- Men’s Clothing
- Women’s Clothing
- Kids Clothing
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