By the end of the year, secondhand clothes sales are expected to account for 10 % of the global style industry as more people turn to “pre-loved” items in response to the cost of living crisis and sustainability problems.
Worldwide sales of pre-owned clothing increased by 18 % last year to$ 97 billion, according to a report from GlobalData for sale professional ThredUp, and are expected to increase by$ 350 billion by 2028.
The secondhand market’s growth exceeded that of the general fashion financial sector, with sales falling by seven times that of the fashion retail sector in 2023. James Reinhart, the i- founder and CEO of ThredUp, noted that the resale business has shown endurance in tough economic conditions, as consumers prioritize value when facing higher expenses.
The review found that over half of all visitors had purchased vintage products in the past year, with younger years, especially generation Z and millennials, leading the trend. Nearly 40 % of consumers cited the affordability of higher-end brands as a reason for buying used.
Digital platforms like Vinted, Depop, and ThredUp are driving the growth of online resales, expected to more than double in the next five years to reach$ 40 billion. Additionally, the general acceptance of pre-loved fashion is expanding, with initiatives like the reality TV show Love Island featuring contestants promoting secondhand style.
While mainstream retailers like Selfridges and Primark are considering allowing secondhand sellers to sell in their stores, older shoppers are more likely to shop in physical stores like charity shops and boutiques.
Children’swear and designer brands are growing significantly in the secondhand market, with more labels collaborating with resale experts to offer pre-loved items online or in stores. This trend is also fueled by pending legislation to reduce fast fashion waste.
Online fashion resale platforms have struggled to turn a profit despite strong sales growth. Despite sales growth, Virgin and Depop both reported significant pre-tax losses. ThredUp anticipates breaking even this year as sales increase and profit margins increase.