ThredUp, the leading online resale platform, has unveiled its annual Resale Report, forecasting that the global secondhand apparel market will hit an impressive $367 billion by 2029. This represents a compound annual growth rate (CAGR) of 10%. Released in collaboration with GlobalData, this year’s report reveals that secondhand fashion is outpacing the broader retail clothing market, growing five times faster in 2024.

The report highlights that the U.S. secondhand apparel market experienced a notable 14% growth in 2024, marking its strongest annual increase since 2021.

Shifting Shopping Behavior: Why Consumers Are Turning to Secondhand

Consumers are increasingly opting for secondhand apparel, driven in part by economic shifts. A significant 59% of consumers say they would choose secondhand clothing if tariffs or trade policies raise the cost of new apparel. Among Millennials, this figure rises to 69%.

The rise of secondhand shopping has led many brands to incorporate resale into their business strategies. A record 94% of retail executives report that their customers are already participating in resale, signaling a major industry shift. Additionally, 32% of secondhand shoppers in 2024 bought directly from brands, with nearly half of Gen Z and Millennial consumers (47%) engaging in this trend.

Social Media and AI Fueling the Growth of Secondhand Fashion

Social media platforms are emerging as key drivers in the adoption of resale, with 39% of younger shoppers purchasing secondhand fashion through social commerce platforms in the past year. Furthermore, 50% of Gen Z and Millennial secondhand shoppers made purchases to create content or share on social media.

Artificial intelligence is also playing a transformative role in how consumers shop for secondhand goods. According to the report, 48% of consumers say AI-powered tools, including personalized recommendations and search features, make shopping for secondhand items as easy as buying new. Retailers are embracing this shift, with 78% already investing heavily in AI, and 58% planning to launch AI-driven tools within the next year.

The Future of Resale: A Promising Trajectory

“As more consumers choose secondhand first, the retail industry is rapidly adopting innovative resale models,” said James Reinhart, CEO of ThredUp. “The integration of social commerce, the rise of AI, and the establishment of trade organizations and government interfaces are all contributing to the accelerated growth of resale and its bright future.”

With the global secondhand fashion market poised for significant growth, the future of sustainable shopping looks promising, driven by consumer demand, technological advancements, and industry adaptation.