Online resale platform ThredUp has released its latest Resale Report, forecasting the global second-hand apparel market to reach $367 billion by 2029, with a compound annual growth rate (CAGR) of 10%. Developed in partnership with GlobalData, the report highlights that the second-hand apparel sector outpaced the broader retail clothing market by a factor of five in 2024. The U.S. market alone experienced a 14% surge, marking its strongest annual growth since 2021.
This rapid expansion is largely driven by shifting consumer behaviour, as economic pressures push shoppers towards second-hand options. If new clothing prices rise due to tariffs or trade policies, 59% of consumers say they would opt for second-hand, with this figure climbing to 69% among Millennials. As resale becomes increasingly mainstream, brands are integrating it into their business models, with a record 94% of retail executives reporting that their customers already participate in resale. In 2024, 32% of second-hand shoppers bought directly from brands, with this trend more pronounced among Gen Z and Millennials at 47%.
Adding to this momentum, social media is playing a key role in driving resale adoption. Over the past year, 39% of younger shoppers purchased second-hand apparel through social commerce platforms, while half of Gen Z and Millennial second-hand shoppers bought items specifically to create content or share on social media.
Artificial intelligence is also transforming the shopping experience, with 48% of consumers stating that AI-powered personalisation, search, and discovery make buying second-hand as seamless as purchasing new. Retailers are investing heavily in AI, with 78% having already made substantial commitments and 58% planning to introduce AI-powered tools in the next year.
“Throughout the last decade, resale has proven that it has real staying power despite economic uncertainties and the challenges of a fragmented market,” says ThredUp CEO James Reinhart. “As consumers increasingly think second-hand first, the retail industry is adopting powerful new pathways for resale – it’s clear why resale is seeing accelerated growth. As we look to the year ahead, we’re energised by the report’s insights and feel a renewed sense of purpose and dedication to shaping a better future for the fashion industry.”
