Circular Economy

US Retailers Missing $74B Opportunity in Apparel Resale

With consumers increasingly preferring higher-quality apparel at affordable prices and tariffs threatening supply chain stability, ThredUp outlines the win-win online resale offers for retailers and shoppers alike.

Published 3 months ago | About a 3 minute read

Image: ThredUp

Today, ThredUp — one of the world’s largest online apparel resale platforms — released its 2025 Resale Report. Conducted by third-party retail analytics firm GlobalData, the 13th annual study serves as the most comprehensive measure of the secondhand market globally and in the US, with forward-looking projections through 2034.

The report’s findings are based on market sizing and growth estimates from GlobalData, a survey of 3,034 US consumers over the age of 18, and a survey of 50 top US fashion retailers and brands about their sustainability and circular fashion goals.

Top findings

Resale apparel continues to eclipse conventional retail:

The global secondhand apparel market is expected to reach $367 billion by 2029, growing at a compound annual growth rate (CAGR) of 10 percent.
The US secondhand apparel market is expected to reach $74 billion by 2029. It grew 14 percent in 2024 — its strongest annual growth since 2021 — and outpaced the broader retail clothing market by 5X.
In 2024, online resale saw accelerated growth for the second consecutive year at 23 percent. It’s expected to nearly double in the next 5 years to reach $40 billion by 2029.
46 percent of consumers (55 percent of younger generations) say if they can find an item secondhand, they won’t buy it new.

Tariffs expected to boost the secondhand market:

59 percent of consumers (69 percent of Millennials) say if new government policies around tariffs and trade make apparel more expensive, they will seek more affordable options such as secondhand.
Consumers plan to spend 34 percent of their apparel budget on secondhand in the next 12 months. Younger generations (Gen Z and Millennials) say they'll spend nearly half (46 percent) on secondhand.
80 percent of retail executives expect new government policies around tariffs and trade to disrupt their global supply chain. So, 44 percent are looking to reduce reliance on imported goods, and 54 percent believe resale offers a more stable and predictable source of goods in the face of potential tariff fluctuations.

Resale helps retailers stay competitive and acquire new customers:

94 percent of retail executives say their customers are already participating in resale – an all-time high, +4 pts from 2024.
32 percent of consumers (47 percent of younger generations) who bought secondhand apparel in 2024 made a purchase directly from a brand.
47 percent of consumers are more likely to make a first-time purchase with a brand if they offer shopping credit for trading in used apparel, +25 pts from 2024.

AI is fueling resale:

48 percent of consumers (59 percent of younger generations) say personalization, improved search and discovery make shopping secondhand apparel as easy as shopping new.
62 percent of retailers agree that AI has the power to make the secondhand shopping experience more appealing; 58 percent plan to launch AI-powered tools in the next year.

Disconnect between shopper priorities and retail execs’ perceptions:

74 percent of retail executives agree that thanks to resale, affordability and sustainability don’t have to be at odds. Yet nearly half (48 percent) say leadership has deprioritized circular business models such as resale because sustainability is not perceived as important enough to their customers.
Meanwhile, 56 percent of Millennial and Gen Z shoppers say fashion brands and retailers are not doing enough to improve their sustainability practices — a number that would likely increase if more consumers knew that most apparel retailers throw away, rather than resell, returned goods.
49 percent of consumers (64 percent of younger generations) say they have cut back on buying cheap, lower-quality apparel because of its low resale value.

“Throughout the last decade, resale has proven that it has real staying power despite economic uncertainties and the challenges of a fragmented market,” says ThredUp CEO James Reinhart. “As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale – it’s clear why resale is seeing accelerated growth. As we look to the year ahead, we’re energized by the report’s insights and feel a renewed sense of purpose and dedication to shaping a better future for the fashion industry.”