Secondhand fashion market: The online resale marketplace ThredUp has published its yearly “Resale Report,” estimating that the market for used clothing will increase at a compound annual growth rate (CAGR) of 12% and reach $350 billion globally by 2028.

The analysis, which was created in partnership with GlobalData, shows that the market for used clothing is outpacing the overall retail industry. The U.S. market for used clothing experienced a notable seven-fold increase in growth in 2023 compared to the whole retail clothing market, and it is expected to reach $73 billion by 2028.

The increased inclination among younger groups to buy used clothing online is one of the major trends the survey highlights. Online resale is predicted to grow at a rate of 17% CAGR over the next five years, more than doubling to reach $40 billion by 2028. In addition, over two-thirds of shoppers who purchased used clothing in 2023 made at least one online transaction—a 17-point rise from 2022.

The value argument appeals to resale buyers, since 60% of them believe that purchasing used clothing provides the best value for their money. In addition, if the economy does not improve, 55% of buyers are willing to pay extra on used clothing.

The trend of branded resale is on the rise; as of right now, 163 brands provide resale choices, a 31% increase from 2022. Among the notable acquisitions for 2023 are Kate Spade, American Eagle, and J. Crew.

The potential influence of governmental action in promoting a more sustainable fashion business is also highlighted in the research. 40% of customers say they are more likely to support candidates that favour sustainable fashion, and 42% of consumers support legislative initiatives that promote sustainable fashion.

ThredUp CEO James Reinhart offered commentary on the results, emphasising the market’s continuous expansion for used clothing worldwide and its importance in advancing the development of a circular fashion ecosystem. In his plea for further funding and legislative measures, he underlined the necessity of government action to hasten the sector’s shift to sustainability.

The 12th edition of the Resale Report highlights the significance of industry stakeholders and governmental bodies working together to create a more sustainable and ethical fashion scene, while also providing encouraging predictions for the future of the fashion sector.