Global secondhand fashion market to reach $367 billion by 2029: ThredUp

Online resale platform ThredUp has launched its annual ‘Resale Report’ revealing that the global secondhand apparel market is projected to reach $367 billion by 2029, with a compound annual growth rate (CAGR) of 10%.

This year’s report, released in partnership with GlobalData, highlights that the secondhand apparel market outpaced the broader retail clothing market by five times in 2024. The U.S. secondhand apparel market grew 14% in 2024—its strongest annual growth since 2021.

In terms of shopping behaviour, shoppers are increasingly turning to secondhand options in response to economic shifts. In fact, 59% of consumers say if tariffs and trade policies make new apparel more expensive, they will opt for secondhand, a figure that jumps to 69% among Millennials.

With secondhand shopping becoming mainstream, brands are integrating resale into their business models. Ninety-four percent of retail executives report their customers are already participating in resale, a new record high. Likewise, 32% of secondhand shoppers in 2024 purchased directly from a brand, with nearly half (47%) of Gen Z and Millennial consumers doing the same. 

Social media platforms are becoming an important driver of resale adoption with 39% of younger shoppers having purchased secondhand apparel through a social commerce platform in the past year. Half of Gen Z and Millennial secondhand shoppers purchased items to create content or share on social media.

Lastly, artificial intelligence is revolutionizing the way consumers shop for secondhand goods. Now, 48% of consumers say AI-powered personalization, search, and discovery make shopping secondhand as easy as buying new. Meanwhile, 78% of retailers have already made significant investments in AI, with 58% planning to launch AI-powered tools in the next year.

“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale,” said James Reinhart, CEO, ThredUp.

“From the integration of social commerce and innovative AI applications to the establishment of trade organizations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory.”