Secondhand clothes gross sales to hit $350 billion by 2027
Whereas the marketplace for secondhand garments has been growing for some time, a brand new report wanting on the state of the resale business reveals it has an extended solution to go earlier than it hits the ceiling.
The worldwide used clothes market is anticipated to hit $350 billion by 2027, almost double the place it stands proper now, in response to ThredUp’s 2023 Resale Report. Within the U.S., gross sales are anticipated to hit $70 billion by that point.
Financial situations are one of many main drivers for the surge. Secondhand garments, whether or not offered on-line or in thrift shops, are significantly cheaper than retail. That led 52% of shoppers to buy secondhand final yr. In truth, says the report, considered one of each three attire gadgets purchased in 2022 was secondhand—and two of each 5 gadgets in Gen Z’s wardrobe are secondhand.
Total, the secondhand clothes sector grew at a tempo that was 5 occasions that of the broader clothes business, with U.S. gross sales hitting $39 billion. Examine that simply $20 billion in 2017.
“Secondhand continues to be one of many fastest-growing segments in attire, and on-line resale particularly is seeing stable progress,” stated Neil Saunders, managing director at GlobalData. “What’s significantly putting this yr is new element round how a lot youthful generations are anticipated to account for future progress as their buying energy will increase.”
That’s spurring adjustments for retailers. The variety of retail stores that launched branded resale programs exploded final yr, leaping from 31 to 126.
It’s affecting shopper choice making as properly. In keeping with the report, 82% of Gen Z has thought-about the resale worth of attire earlier than shopping for it, and 64% of Gen Z search for an merchandise secondhand earlier than shopping for it new.