Generation Z becomes the main force! The scale of the second-hand clothing market in the United States will exceed 70 billion US dollars!

According to ThredUp's "Resale Report 2023", driven by the Generation Z consumer group, the second-hand clothing market in the United States will usher in explosive growth. By 2027, the global second-hand clothing market is expected to double to $350 billion, of which the US market will reach $70 billion.

Generation Z drives growth

Last year, the global secondhand clothing market reached $177 billion, and the US market reached $39 billion. More than half (52%) of US consumers purchased secondhand goods in 2022. One out of every three pieces of clothing purchased by US consumers is secondhand.

The report shows that Generation Z is the main driving force behind the growth of the second-hand market. Currently, two-fifths of the items in the wardrobe of Generation Z in the United States are second-hand. On the other hand, more than half of Generation Z are more likely to buy brands that offer both second-hand and new products, an increase of 6% compared to 2021.

Additionally, 82% of Gen Z consider the resale value of clothing before purchasing it, and 64% look for secondhand items before buying new.

The study found that online resale is the fastest growing area of ​​the U.S. second-hand market, with an average annual growth rate of 21% expected over the next five years, reaching a market size of $38 billion by 2027.

Retailers turn to the second-hand market

The report also shows that resale is playing an increasingly important strategic role in the retail market, with more and more retailers offering brand resale programs. Currently, 86% of retail executives say their customers are already involved in resale, an increase of 8 percentage points from 2021.

58% of retail executives say offering customers a resale option is becoming table stakes to drive transactions, up 6 percentage points from 2021.

In addition, 82% of retailers offering resale services expect it to generate a positive return on investment. 45% of retail executives offering resale said they are meeting investor demands for ESG (environmental, social and governance). More than a third of retailers said they would cut back on new product production once resale business is successful.

Most popular brands

According to ThredUp, the top five most popular brands in the resale space are Torrid, Lululemon, Madewell, Zara and Free People. Rounding out the top 10 are Patagonia, Reformation, Urban Outfitters, Everlane and Vuori.

The report from ThredUp also found that value is the top driver for resale purchase decisions, followed by quality, selection and convenience. 37% of consumers spent a higher percentage of their budget on secondhand clothing last year, of which 63% increased spending due to inflation. In 2022, American consumers purchased 1.4 billion pieces of secondhand clothing, a 40% increase from 2021.

Editor ✎ Nicole/

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