Secondhand fashion market to reach $350 billion by 2028: ThredUp

Online resale platform ThredUp has launched its annual ‘Resale Report’ revealing that the global secondhand apparel market is projected to reach $350 billion by 2028, growing at a compound annual growth rate (CAGR) of 12%.

This year’s report, released in partnership with GlobalData, highlights that the secondhand apparel market is outpacing the broader retail sector. In fact, the U.S. secondhand apparel market grew seven times faster than the broader retail clothing market in 2023, and is expected to reach $73 billion by 2028.

In terms of shopping behaviour, consumers increasingly prefer buying secondhand apparel online, especially younger generations. Hence, online resale is anticipated to more than double in the next five years, reaching $40 billion by 2028 with a CAGR of 17%. Likewise, nearly 2 in 3 consumers who made a secondhand apparel purchase in 2023 made at least one purchase online, up 17 points from 2022.

Resale shoppers are also more clearly buying on a deal. Sixty percent of consumers say shopping secondhand apparel gives them the most bang for their buck, while 55% of consumers say they’ll spend more on secondhand apparel if the economy doesn’t improve.

For resale enthusiasts, shopping resale has never been easier with branded resale on this rise. Today, 163 brands now offer resale shops, up 31% compared to 2022. New entrants in 2023 included J. Crew, American Eagle, and Kate Spade, among others.

The report also underscores the potential impact of government action on accelerating the fashion industry’s transition to a more sustainable future. Notably, 42% of consumers express support for legislative measures promoting sustainable fashion, and 40% of consumers say they’re more likely to vote for a candidate that supports sustainable fashion.

“The global secondhand apparel market continues to burgeon – a testament to the intrinsic value shoppers find in the secondhand experience and proof of the seismic shift towards a more circular fashion ecosystem,” said James Reinhart, CEO, ThredUp. 

“As we celebrate this progress, we also recognize the powerful role the government can play in accelerating the transition to a more sustainable future for fashion. Now in its 12th year, the Resale Report shows some of the most promising signals of what that future could look like with increased levels of support. Until fashion is no longer one of the most damaging sectors of the global economy, we will continue to advocate for the government to help drive adoption and behavior change in fashion.”