The U.S. secondhand market to reach $70 billion by 2027: ThredUp
Online resale platform ThredUp has launched its annual 'Resale Report' revealing that the U.S. secondhand market is expected to reach $70 billion by 2027.
This year's report, released in partnership with GlobalData, shows that in the U.S., online resale is driving the growth. In fact, online resale is the fastest-growing sector of the U.S. secondhand market, and is expected to grow 21% annually on average over the next 5 years.
U.S. consumers who embrace secondhand say that value is the top driver influencing their purchasing decisions. Some 37% of consumers spent a higher proportion of their apparel budget on secondhand last year. Of those, 63% increased their spend in response to inflation.
Shopping resale has also become easier than ever as retailers with branded resale programs skyrocketed in 2022. Eighty-eight brands launched dedicated resale programs in 2022, a 244% increase from 2021.
Looking ahead, we can expect retailers to continue to view resale as a strategic business initiative. Eighty-two percent of retailers who offer resale expect it to generate a positive ROI, while 45% of retail executives who offer resale say they're satisfying investor demands around ESG.
"Secondhand continues to be one of the fastest-growing segments in apparel, and online resale in particular is seeing solid growth. What's particularly striking this year is new detail around how much younger generations are expected to account for future growth as their purchasing power increases,” said Neil Saunders, managing director, GlobalData.
“Traditional retailers are responding to this demand by entering resale and are really the ones driving the market forward, and we expect increased adoption in retail as secondhand becomes more of a lifestyle for consumers."
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