Second-Hand Clothing Market

Global Second-hand Clothing Market Size (2024 to 2029)

The size of the global Second-hand Clothing market is estimated to be worth USD 159.81 billion by 2029 from USD 97.84 billion in 2024, registering a CAGR of 10.31% during the forecast period.

Current Scenario of the Global Second-hand Clothing Market

The second-hand clothing market continues to grow every year, yet most companies are struggling to make profits or improve their business economics.

The industry has progressed significantly due to rising swaps and sales of celebrity's pre-owned designer apparel. This resulted in the normalisation and glamorisation of purchasing used fashion clothes. Likewise, as of 2024, the industry in the United States and the United Kingdom is rapidly growing. One of the main reasons is tight consumer budgets and reduced spending on unnecessary items. In the UK, as per the statistics, approximately 67 per cent of millennials in the country are actively shopping for second-hand apparel from the physical store and 2 in 5 products are preowned in Generation-Z’s wardrobe which they bought from the online second-hand fashion merchant.

MARKET DRIVERS

High cost of living and sustainability issues drive the second-hand clothing market forward.

Older customers have also entered this industry for preowned garments. Nowadays, shoppers are wearing and speaking about these apparels with pride and not having negative thoughts or feeling ashamed. This change in the perception of bragging about second-hand clothes elevates market demand. As per projections, the sales are on the right course to constitute a tenth of the global fashion market by the end of 2025 as the prolonged cost of living crisis and difficulties related to sustainability have pushed users towards preowned clothing. Moreover, the high food and energy bills worldwide helped the resale industry propel in a challenging environment.

About 18 per cent increase in global sales was registered in 2023 i.e. 197 billion dollars or 156 billion euros and is expected to climb to 360 billion dollars by 2029.

The upward growth trajectory of the second-hand clothing market is also due to its rising popularity across the generations. Industry players observed that value is key when customer sentiments are softer. According to a study, over 50 per cent of all buyers aged between 12 and 43 purchased something pre-owned in 2023 even though this reached 65 per cent of millennials and Generation Z. 38 per cent of customers i.e. 2 in 5 people buy second-hand to shop premium brands.

MARKET RESTRAINTS

The rising cases of fraud and scams are hampering the expansion of the second-hand clothing market. As per the survey data released in 2024, around 32 per cent of consumers and 22 per cent of sellers or traders had experienced a fraud when using them in the last two years. The most common scams comprise receiving nothing or incorrect, fake products and empty packages. This is derailing the market growth rate. Moreover, it was discovered that a large network of Chinese scammers and fraudsters is behind one of the world’s biggest online frauds. Over 800 thousand people in the United States and Europe were tricked into sharing financial, card and other sensitive personal information with a huge network of counterfeit digital designer stores functioning from China.

MARKET OPPORTUNITIES

The second-hand clothing market is rising quickly with more consumers progressively exploring to purchase and sell preowned products online. Considering the volatility in the foreign exchange rates, food and energy inflation and heightening gold prices, this industry is predicted to progress at a faster pace both in developed and emerging economies. Like, Japan and certain APAC countries and Europe.

The rise of sustainable fashion, online sales platforms and demand for engaging experiences are providing potential opportunities for industry players. For the younger generation, the pattern is propelled by the convenience and comfort of the digital preowned stores at websites and applications like ThredUP, Depop and Vinted with online resales in the US anticipated to over double in the forecast period to reach 40 billion dollars.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Second-hand Clothing Market By Product

The dresses and tops segment accounts for the maximum portion of the second-hand clothing market.

This dominance was primarily because of the progressive shift by women towards sustainable fashion. Also, the increased emphasis on ecological problems and climate change has influenced the rise of the used apparel category and fuelled the demand for pre-loved clothes. Apart from this, it is more budget-friendly and helps in surviving the costly lifestyle and food and energy inflation. 

Global Second-hand Clothing Market By Sector

The resale segment is more prevalent among customers and is anticipated to increase in market size during the forecast period.

According to the survey, about 44 per cent of buyers were reducing their expenditure on apparel due to inflated costs. Around 58per cent of customers in the same period purchasing second-hand supported them amid inflation and recession concerns. However, traditional thrift stores are slowly gaining traction with a recent opening in Tokyo, Japan.

Global Second-hand Clothing Market By Target Population

The women segment dominated the second-hand clothing market and is believed to continue this industry trend in the coming years as well.

This is due to the increased demand for high-end women’s apparel consisting of Indo-western clothes, casual wear, jogging jeans and formal items. Another factor accelerating the segment’s market share is the social media influence. Fashion influencers, celebrities and trend bloggers generally encourage sustainable choices and second-hand clothing. Therefore, increasing visibility and normalizing thrift stores or online purchasing among women.

Global Second-hand Clothing Market By Sales Channel

The Online retailers segment market size is rapidly increasing. They have already moved forward and dispatching second-hand clothes for many years and are emphasising expanding beyond the current penetration level of the market for which they have invested huge capital. Despite such efforts, several major companies like ThredUp, The RealReal, etc. are all incurring losses whether they are operating in the US, UK, Lithuania, Korea or any other country.

REGIONAL ANALYSIS

North America is the biggest industry for second-hand clothing and is witnessing huge growth in terms of market share.

This is largely propelled by the expansion of online platforms, rising rental services, increased living costs and focus on sustainability. The United States is dominating the regional industry and its market size expanded seven times faster than the whole fashion industry. Moreover, the industry is experiencing greater competition from prominent companies, digital platforms and traditional vendors to tap the wide customer base. In 2023, the US market reached 43 billion dollars, however, the growth estimates are lower for the coming years.

Asia Pacific is the emerging second-hand clothing market and is rapidly advancing. The APAC is mainly led by China, India, Singapore, Thailand and the new addition Japan.

Moreover, the Indian Market is witnessing a significant consumption of viable, tenable and ethnically made clothing which is influenced by the rising customer understanding and transition to mindful consumerism. Besides this, the used apparel industry in Japan also eventually took off with the first second-hand pop-up shop “Uniqlo” opened in Tokyo.

Europe holds a noticeable portion of the second-hand clothing market share but is currently struggling to make profits.

The European industry is propelled by the extensive penetration of mobile applications and websites for the sale and purchase of pre-owned apparel. Moreover, customers continue to hold tight to individuality by customizing the used garments. In addition, the women’s category dominated in Spain, France, Italy and France with each possessing its unique developmental patterns. Further, the region is also seeing the introduction of DIY shops and personalisation services. Additionally, fashion influencers are encouraging these clothes everywhere but especially among younger generations.

KEY PLAYERS IN THE Global Second-hand Clothing Market

Companies that play a leading role in the global Second-hand Clothing market are Thredup Inc., StockX, The RealReal, Chikatex, Poshmark, HunTex Recycling Kft, Vinted, EBay Inc., Micolet, British Used Clothing Company, Percentil.ma, Tradesy, A&E Used Clothing Wholesale, Thrift+, Mobacotex, and others.

RECENT HAPPENINGS IN THE MARKET

• In May 2024, Rakuten Group from Japan signed a partnership agreement with eBay to examine the demand for used Japanese fashion goods in the United States. In the same month, it commenced operations with only dealers on Rakuten's second-hand goods unit Rakuma to take advantage of currency impact and also of cost-of-living pressures worldwide reducing expenditure.

DETAILED SEGMENTATION OF THE GLOBAL SECOND-HAND CLOTHING MARKET INCLUDED IN THIS REPORT

This research report on the global second-hand clothing market has been segmented and sub-segmented based on product, sector, target population, sales channel.

By Product Type

• Dresses and Tops
• Shirts and T-shirts
• Sweaters, Coats and Jackets
• Jeans and Pants
• Others

By Sector

• Resale
• Traditional Thrift Stores & Donations

By Target Population

• Men
• Women
• Kids

By Sales Channel

• Wholesalers or Distributors
• Hypermarkets or Supermarkets
• Multi-brand Stores
• Independent Small Stores
• Departmental Stores
• Online Retailers
• Other Sales Channel

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa