thredUP releases 10th annual resale report with insight into a decade of resale
The 10th Annual Study Reveals Opportunity is Becoming a Global Phenomenon Led by North Americathe US used market is expected to more than double by 2026, reaching $82 billion. This year’s study reveals new insights into key factors driving market growth, why consumers think first of opportunity, and the rise of branded recommerce among retailers. It also includes a unique special section exploring the impact of inflation on the consumer and a 10-year look back at the last decade of resale.
“The last 10 years of resale have been dominated by marketplaces, but brands and retailers are driving the next wave of second-hand. We’re still at the very beginning of this trend, but the acceleration of resale adoption is a positive signal with huge benefits for This year’s report proves that with the collective power of conscious consumers, resale markets and forward-thinking brands and retailers, we can be the frontrunners a more sustainable future for the fashion industry. James ReinhartCEO and co-founder of thredUP
Notable findings from thredUP’s 2022 resale report (all US numbers unless otherwise noted):
The opportunity becomes a global phenomenon, led by the United States
- The global second-hand clothing market will grow 127% by 2026, which is 3 times faster than the global clothing market as a whole.
- The US used market is expected to more than double by 2026, reaching $82 billion.
- The opportunity saw record growth in 2021 at 32%.
- Resale is expected to grow 16 times faster than the overall retail apparel sector by 2026.
Technology and online marketplaces are driving growth in the US used market.
- Online resale is the fastest growing second-hand sector and is expected to grow almost fourfold by 2026.
- 50% of total used dollars are expected to come from online resale by 2024.
- 70% of consumers say it is easier to buy second-hand than 5 years ago.
In an inflationary environment, resale is a beacon of hope 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 used clothing items overall.
- 25% of consumers say they will consider buying more second-hand goods if prices for clothing, shoes and accessories continue to rise.
Brands and retailers are embracing resale to satisfy consumer demand, and resale is becoming an inevitable part of retail.
- Retailers with resale stores grew 275% in 2021 compared to 2020, according to the Retrade 100.
- 78% of retail executives say their customers are already participating in resale, up 16 points from 2020.
- 52% of retail executives say resale is becoming an issue for retailers, up 16 points from 2020.
- 88% of retail executives who currently offer resale say it helps generate revenue.
Resale is a powerful solution to waste in the fashion industry.
- Occasion moved nearly a billion new apparel purchases in 2021.
- Nearly 2 in 3 consumers believe that their individual consumption habits have a significant impact on the planet.
Consumers think first of the occasion.
- 41% of consumers say that when shopping for clothes, second-hand is the first place they look.
- 62% of Gen Z and Millennials say they look for a used item before buying a new one.
- 46% of Gen Z and Millennials consider the resale value of an item of clothing before buying it.
Social pressure is fueling consumers’ 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 yearn 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 skyrocketed. The economic outlook remains uncertain, but With inflation driving up apparel prices, more and more shoppers seem to be looking to the occasion to increase their budgets.These elements will ensure that resale remains a market disruptor and a positive force in helping people to buy sustainably.” – Neil SaundersManaging Director, Global Data
To see the full results of the study, visit http://www.thredup.com/resale. Download report images here and social media assets here.
About the 2022 resale report
thredUP’s Annual Resale Report contains research and data from GlobalData, a third-party retail analytics company. GlobalData’s assessment of the second-hand market is determined by consumer surveys, retailer tracking, official public data, data sharing, store observation and secondary sources. This data is used by analysts to model and calculate market sizes, channel sizes and market shares. In addition, for the purposes of this report, GlobalData conducted a January 2021 survey of 3,500 American adults over the age of 18, asking specific questions about their behaviors and occasion preferences. GlobalData also surveyed the top 50 US fashion retailers and brands in January and February 2022 to gather their opinions on resale. The thredUP Resale Report is also based on data from the following sources: Green Story Inc. research and thredUP’s internal 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 holders. Such appearance does not imply any affiliation with or endorsement by thredUP.
thredUP transforms resale with technology and is on 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 become one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes and accessories. Sellers love thredUP because we make it easy to clean out their closets and unlock value for themselves or the charity of their choice while doing good for the planet. Shoppers enjoy bargain value, premium and luxury brands all 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 resale as a service from thredUP, some of the world’s leading brands and retailers leverage our platform to deliver customizable and scalable resale experiences to their customers. thredUP processed over 125 million unique pre-owned items from 35,000 brands across 100 categories. By extending the lifecycle of apparel, 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 any of these forward-looking statements to conform them to actual results or revised expectations.