A recent report from ThredUp projects, the global secondhand apparel market will grow at a 12 per cent CAGR to reach $350 billion by 2028.  

Published in collaboration with retail analytics firm GlobalData, the report states, the global secondhand market surged by 18 per cent to reach a total value of $197 billion in 2023. Recording a 11 per cent growth in 2023, seven times faster than the general retail clothing market, the secondhand apparel market in the United States is anticipated to hit $73 billion by 2028.

By 2025, secondhand sales are forecasted to constitute approximately 10 per cent of the global apparel market, with online resale accounting for half of all secondhand spending. The report also predicts that resale will outpace off-price retailers (such as outlets and discount stores) by six times by 2033.

With 63 per cent of its consumers purchasing secondhand apparels online, Thredup noted a notable increase in 2023, Furthermore, 45 per cent of Gen Z and millennials preferred to shop for secondhand clothes online during the year. 

This growth was mostly driven by the emergence of branded resale programs. James Reinhart, CEO and Co-Founder, Thredup, highlights a paradigm shift in the mindset of apparel brands towards embracing resale as a viable strategy. Reinhart notes a 30 per cent Y-o-Y increase in brands adopting resale programs, with prominent names like Levi's, Kate Spade, J. Crew, and Oscar de la Renta launching their own initiatives. These programs not only align with sustainability objectives but also serve as a means to attract new customers and boost revenue.

Addressing concerns surrounding product cannibalisation and brand dilution, Reinhart states, such worries are diminishing as brands recognise the value of integrating resale seamlessly into their offerings.