US Retailers Missing $74B Opportunity in Apparel Resale

Today, ThredUp — one of the world’s largest online apparel resale platforms —
released its 2025 Resale Report. Conducted by third-party retail analytics firm
GlobalData, the 13th annual study serves as the most comprehensive measure of
the secondhand market globally and in the US, with forward-looking projections
through 2034.

The report’s findings are based on market sizing and growth estimates from
GlobalData, a survey of 3,034 US consumers over the age of 18, and a survey of
50 top US fashion retailers and brands about their sustainability and circular
fashion
goals.

Top findings

Resale apparel continues to eclipse conventional retail:

• The global secondhand apparel market is expected to reach $367
  billion by 2029, growing at a compound annual growth rate (CAGR) of 10
  percent.

• The US secondhand apparel market is expected to reach $74 billion
  by 2029. It grew 14 percent in 2024 — its strongest annual growth since 2021
  — and outpaced the broader retail clothing market by 5X.

• In 2024, online resale saw accelerated growth for the second consecutive
  year at 23 percent. It’s expected to nearly double in the next 5 years to
  reach $40 billion by 2029.

• 46 percent of consumers (55 percent of younger generations) say if they
  can find an item secondhand, they won’t buy it new.

Tariffs expected to boost the secondhand market:

• 59 percent of consumers (69 percent of Millennials) say if new government
  policies around tariffs and trade make apparel more expensive, they will
  seek more affordable options such as secondhand.

• Consumers plan to spend 34 percent of their apparel budget on secondhand in
  the next 12 months. Younger generations (Gen Z and Millennials) say they’ll
  spend nearly half (46 percent) on secondhand.

• 80 percent of retail executives expect new government policies around
  tariffs and trade to disrupt their global supply chain. So, 44 percent are
  looking to reduce reliance on imported goods, and 54 percent believe resale
  offers a more stable and predictable source of goods in the face of
  potential tariff fluctuations.

Resale helps retailers stay competitive and acquire new customers:

• 94 percent of retail executives say their customers are already
  participating in resale – an all-time high, +4 pts from 2024.

• 32 percent of consumers (47 percent of younger generations) who bought
  secondhand apparel in 2024 made a purchase directly from a brand.

• 47 percent of consumers are more likely to make a first-time purchase with a
  brand if they offer shopping credit for trading in used apparel, +25 pts
  from 2024.

AI is fueling resale:

• 48 percent of consumers (59 percent of younger generations) say
  personalization, improved search and discovery make shopping secondhand
  apparel as easy as shopping new.

• 62 percent of retailers agree that AI has the power to make the secondhand
  shopping experience more appealing; 58 percent plan to launch AI-powered
  tools in the next year.

Disconnect between shopper priorities and retail execs’ perceptions:

• 74 percent of retail executives agree that thanks to resale, affordability
  and sustainability don’t have to be at odds. Yet nearly half (48 percent)
  say leadership has deprioritized circular business models such as resale
  because sustainability is not perceived as important enough to their
  customers.

• Meanwhile, 56 percent of Millennial and Gen Z shoppers say fashion brands
  and retailers are not doing enough to improve their sustainability practices
  — a number that would likely increase if more consumers knew that most
  apparel retailers throw away, rather than resell, returned
  goods.

• 49 percent of consumers (64 percent of younger generations) say they have
  cut back on buying cheap, lower-quality apparel because of its low resale value.

“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 are increasingly thinking secondhand 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 energized by the
report’s insights and feel a renewed sense of purpose and dedication to shaping
a better future for the fashion
industry.”

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Sustainable Brands Staff

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Published Mar 19, 2025 8am EDT / 5am PDT / 12pm GMT / 1pm CET