US second-hand clothing market to reach $77 billion in the next five years

The U.S. secondhand clothing market is expected to reach $77 billion in the next five years, according to a recent research report . Analysts say a confluence of forces is driving shoppers to “think secondhand first.”

A new study from ThredUp, based on findings from GlobalData, confirms U.S. consumers’ preference for more sustainable fashion choices. The report found that a record 33 million people purchased secondhand clothing and accessories for the first time in 2020. Of these first-time buyers, 76% plan to increase their share of resale purchases over the next five years. “We are in the early stages of a radical transformation of the retail industry as consumers prioritize sustainability and retailers begin to embrace resale,” commented James Reinhart, co-founder and CEO of thredUP .

Currently, the U.S. secondhand clothing market is valued at $36 billion, and market analysts predict it will grow 11 times faster than the retail clothing industry to reach an estimated $77 billion.

Financial struggles and growing environmental awareness are the main drivers behind this growth. According to the survey, one-third of shoppers said they care more about sustainable clothing now than before the pandemic, and 51% of consumers surveyed explained how they are now more opposed to environmental waste in general.

ThredUp says a “purge wave” is coming in the wake of the pandemic, with 80% of U.S. consumers planning to update their wardrobes by clearing out items they no longer need or buying new. As consumers prioritize sustainability, shoppers are looking for ways to reduce their impact on the environment and embrace circularity in fashion.

It is reported that Etsy recently acquired Depop for US$1.6 billion. The application has more than 30 million registered users and was called "the resale home of Generation Z" by Etsy CEO Josh Silverman, with huge expansion potential.

The United States is the world's largest economy and the world's second largest e-commerce market (China is the first), with sales of $587 billion in 2020, and online sales accounting for 11.3% of total sales. At the same time, the United States is a developed country with a high level of consumption, and the US market is very attractive in cross-border trade. The second-hand clothing market is developing rapidly, and there may be new business opportunities.

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