Secondhand clothes sales forecast to hit $289bn as AI helps shoppers find deals

"The rise of sites such as Vinted, Depop, Vestige and ThredUp is expected to power an average 9% annual growth over the next five years to reach $393bn, twice the pace of the overall clothing market."

"Resale is no longer just growing, it's taking direct market share, said James Reinhart, the co-founder and chief executive of ThredUp, with its report finding resale now accounts for a 10th of global clothing sales."

"However, resale sites have found it hard to profit from the boom, with ThredUp making a $20m pre-tax loss and Depop a 42m loss in those years."

"Reinhart said that potential inflation, as the conflict in Iran pushes up energy and fuel prices for clothing manufacturers and retailers, could prompt more consumers to turn to secondhand items in order to get the brands they wanted more cheaply."

Secondhand clothing sales are expected to surge 12% this year to $289bn, with a projected average annual growth of 9% over the next five years. The market, valued at $141bn in 2021, is anticipated to reach $393bn, significantly outpacing the overall clothing market. Brands are increasingly selling secondhand items or reviving used products. Resale now accounts for 10% of global clothing sales, with notable growth in the US market. Despite rising sales, profitability remains a challenge for many resale sites, with only Vinted reporting a profit in 2024.

Read at www.theguardian.com