The global second-hand apparel market is set to nearly double by 2027, reaching $350 billion, according to the 2023 annual resale report released today by thredUP, a US-based online resale platform.
Media also reported that the report claims that more than one-third of retailers who undertook the survey said that if resale proved to be successful, they would cut production of new products.
Revealing insights about key factors driving market growth, findings of the report show that online resale is the fastest-growing sector of the US and is expected to grow 21% annually on average over the next 5 years.
GlobalData conducted the study with a December 2022 survey of 3,012 American adults over 18, asking specific questions about their behaviours and preferences for second-hand apparel.
According to the findings, 52% of consumers shopped for second-hand apparel in 2022 with 1 in 3 apparel items bought in the last 12 months being second-hand.
Some 37% of consumers spent a higher proportion of their apparel budget on second-hand apparel in 2022, and of those, 63% increased their spend in response to inflation.
Findings also reveal that brands and retailers are embracing second-hand culture with 88 brands having launched a dedicated resale program in 2022 – which is claimed to be a 244% increase from 2021.
And, two in three retailers who offer resale further say that their investment in resale will increase in the next 2 years.