The global fashion resale market is expected to grow 127% by 2026, three times faster than the wider retail clothing industry, according to a new report from ThredUp.
The research reveals that this growth will be driven by the US, where the second-hand market is expected to more than double to 82 billion dollars by 2026.
In addition, the US resale market recorded record growth in 2021, up 32%.
The younger generation remains the most open towards pre-loved fashion, with 62% of Gen Z and millennials saying they look for a second-hand item before buying a new one.
The report also found that 58% of consumers say second-hand shopping has helped them in some way amid rising inflation.
A further 25% say they will consider buying more second-hand items if clothing prices continue to rise.
Online marketplaces are also becoming easier to navigate, with 70% of consumers saying it is easier now to shop for pre-loved products than it was five years ago.
In fact, online resale is the fastest sector of second-hand and is expected to grow by nearly four times by 2026.
The report also revealed that 52% of retail executives say offering resale is becoming “a must” for retailers, while 88% of retail executives who currently offer the service say it is helping increase revenue.
“The last 10 years of resale were dominated by marketplaces, but brands and retailers are driving the next wave of second-hand,” ThredUp co-founder and chief executive James Reinhart said.”
“We’re still in the very beginning of this trend, but the acceleration of resale adoption is a positive signal with enormous benefits for the planet.”