thredUP releases the 10th Annual Resale Report with insights into a decade of resale
10th annual study reveals second hand is becoming a global phenomenon, led by North Americawith the US used market expected to more than double by 2026 $82 billion. This year’s study unveils new insights into the key factors driving market growth, why consumers think of second-hand first, and the rise of branded recommerce among retailers. It also includes a one-off special section examining the impact of inflation on the consumer and a look back at 10 years of the last decade in resale.
“The last 10 years of resale have been dominated by marketplaces, but brands and retailers are driving the next second-hand wave. We are still at the very beginning of this trend, but accelerating resale adoption is a positive signal with huge benefits for This year’s report proves that with the collective power of conscious consumers, resale marketplaces and forward-thinking brands and retailers, we can drive a more sustainable future for the fashion industry .” – Jacob ReinhartCEO and co-founder of thredUP
Notable results from thredUP’s 2022 Resale Report (all US numbers unless otherwise noted):
Second-hand is becoming a global phenomenon, led by the US
- The global second-hand apparel market will grow by 127% by 2026 – three times faster than the global apparel market as a whole.
- The US used goods market is expected to more than double and reach by 2026 $82 billion.
- Second-hand saw record growth of 32% in 2021.
- Resale is expected to grow 16 times faster than broader apparel retail by 2026.
Technology and online marketplaces are driving the growth of the US used goods market.
- Online resale is the fastest growing second-hand sector and is expected to grow almost fourfold by 2026.
- By 2024, 50% of all secondhand dollars will come from online resale.
- 70% of consumers say it’s easier to shop secondhand today than it was 5 years ago.
In an inflationary environment, resale is a bright spot for the consumer.
- 58% of consumers say second-hand has helped them in some way during times of inflation.
- 80% of consumers buy the same or more used clothing items compared to 49% of consumers who buy the same or more clothing items overall.
- 25% of consumers say they will consider buying second hand if the prices of clothing, shoes and accessories continue to rise.
Brands and retailers are turning to resale to meet consumer demand, and resale is becoming an inevitable part of retail.
- Brands with resale stores are up 275% in 2021 compared to 2020, according to the resale 100.
- 78% of retail executives say their customers are already participating in resale – up 16 points from 2020.
- 52% of retail executives say offering resale is becoming a staple for retailers – up 16 points from 2020.
- 88% of retail executives who currently offer resales say it helps increase sales.
Resale is a powerful solution to waste in the fashion industry.
- Second hand displaced almost a billion new clothing purchases in 2021.
- Almost 2 in 3 consumers believe their individual consumption habits have a significant impact on the planet.
Consumers think second-hand first.
- 41% of consumers say second hand is the first place they look when buying clothes.
- 62% of Gen Z and Millennials say they look for a second-hand item before buying a new item.
- 46% of Gen Z and Millennials consider the resale value of a garment before purchasing it.
Social pressure fuels consumer addiction to disposable fashion.
- 62% of fast fashion shoppers say fast fashion retailers encourage people to buy things they don’t need.
- 1 in 5 fast fashion shoppers say they feel pressured to have the latest styles because of social media.
- 65% of those who bought their first second-hand item a year ago say they want to stop buying fast fashion.
- 65% of consumers who buy fast fashion say they strive to buy more second-hand fashion.
“Resale has emerged from the pandemic in an extremely strong position. More consumers are buying second-hand, growth has accelerated and interest from traditional retailers has increased. The economic outlook remains uncertain, but inflation is driving clothing prices ever higher, with more shoppers appearing to be turning to second-hand to stretch their budgets. These things will ensure that resale remains a disruptive part of the market and a positive force when it comes to helping people shop sustainably.” – Neil SaundersManaging Director, Global Data
The full results of the study can be found at http://www.thredup.com/resale. Download report images here and social media assets here.
About the 2022 resale report
thredUP’s annual resale report includes research and data from GlobalData, a third-party retail analytics company. GlobalData’s assessment of the Second Hand market is driven by consumer survey, retailer tracking, official public data, data sharing, store observation, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market share. In addition, for the purposes of this report, GlobalData has a January 2021 Survey of 3,500 American adults over the age of 18 who asked specific questions about their behavior and preferences for second-hand goods. In addition, GlobalData surveyed the top 50 US fashion retailers and brands in January and December February 2022 to get their opinion on resale. The thredUP Resale Report also leverages data from the following sources: research by Green Story Inc. and internal thredUP customer and brand performance data.
Disclosure: All third party brand names and logos appearing in this report are trademarks or registered trademarks of their respective owners. Such appearance does not imply affiliation with or endorsement by thredUP.
thredUP is transforming resale with technology and a mission to inspire a new generation of consumers to think second-hand first. By making it easy to buy and sell second hand, thredUP has grown into one of the world’s largest online resale platforms for women’s and children’s clothing, shoes and accessories. Sellers love thredUP because we make it easy for them to declutter their closets and unlock value for themselves or the charity of their choice, while doing good for the planet. Shoppers love value, premium and luxury brands in one place, with up to 90% off estimated retail price. Our proprietary operating platform is the foundation of our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems, and data science expertise. With thredUP’s Resale-as-a-Service, some of the world’s leading brands and retailers use our platform to offer their customers customizable, scalable resale experiences. thredUP has processed over 125 million unique second-hand items from 35,000 brands in 100 categories. By extending the lifecycle of clothing, thredUP is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.
This press release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Except as required by law, thredUP undertakes no obligation to update these forward-looking statements to conform these statements to actual results or changed expectations.