Per ThredUp Resale Report 2025, the global secondhand apparel market is projected to reach $367 billion by 2029 — growing 2.7 times faster than the overall global apparel market. The U.S. market saw its strongest annual growth since 2021 and is expected to reach $74 billion by 2029.
ThredUp
Over the last decade, the accelerated demand for sustainable fashion and affordable luxury has given rise to a number of luxury resale platforms. Widespread store closures during the pandemic affected both the availability and affordability of luxury goods. As a result, platforms specialising in pre-loved luxury goods are becoming increasingly attractive. These platforms often provide competitive prices and access to items that are no longer available or, if available, unaffordable.
ThredUp, one of the largest online resale platforms for apparel, accessories and footwear, released its 2025 Resale Report. Conducted by third-party retail analytics firm GlobalData, the thirteenth annual report serves as the most comprehensive measure of the global secondhand market, with projections through 2034. It also includes new insights about how social commerce and AI are reshaping retail. The findings are based on market size and growth estimates from GlobalData, a survey of 3,034 U.S. consumers over the age of 18, and a survey of 50 top U.S. fashion retailers and brands.
The pre-loved market essentially democratises luxury fashion when we begin perceiving iconic jewellery or watches through new lens. Per the report, 94 percent of retail executives say their customers are already participating in resale while 86 percent say customer demand for secondhand has either increased or stayed the same over the last three years, said the report. And, 41 percent of younger generations say they’re less likely to buy an item of apparel if it doesn’t have good resale value. With this in mind, retailers should look at resale as a new revenue stream.
“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale. From the integration of social commerce and innovative AI applications to the establishment of trade organisations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory,” says James Reinhart, CEO, ThredUp.
Online resale saw accelerated growth for the second consecutive year in 2024. It will nearly double in the next 5 years to reach $40 billion, per the report. Retailers can unlock revenue by integrating social commerce and resale for omnichannel success. 39 percent of younger generation shoppers have made a secondhand apparel purchase on a social commerce platform in the past year — and fifty percent of these shoppers purchased to create content on social media.
AI is also driving resale adoption by reducing thrift overwhelm and bridging the gap between shopping used and new. 48 percent of consumers say personalisation, improved search, and discovery make shopping secondhand apparel as easy as shopping new. 78 percent of retailers have made significant investments in AI and 58 percent plan to launch AI-powered tools in the next year.
“Resale continues to outpace the broader retail sector, with online resale in particular driving the sector’s growth. Shoppers are prioritising quality as resale value becomes an increasingly important factor in purchasing decisions, and retailers are evolving their secondhand offerings to meet consumer demand with new avenues like social commerce, further driving adoption and preference for secondhand,” says Neil Saunders, Managing Director, GlobalData.
ThredUp has a branded resale program with partners like J.Crew, Gap, Reformation and Abercrombie & Fitch. As resale grows, technology will help make the buying experience natural to consumers. the company has already taken advantage of the opportunity to implement systems powered by artificial intelligence in an effort to help consumers do just that. Its Style Chat function allows consumers to use natural language queries like, “I need a dress for a fall wedding in New York,” to receive recommendations on items. It also has a tool that enables consumers to find similar items by uploading an image.
It is very important for retailers to take back pre-loved garments or provide consumers with resources about where they can resell it. Younger generations try to sell 52% of their old or unwanted apparel, on average. 68% say the ability to resell apparel online has made it easier to get rid of items responsibly. And nearly half (47%) of consumers are more likely to make a first-time purchase with a brand if the brand offers shopping credit for trading in used apparel, +25 pts from 2024.
About ThredUp
The world’s largest fashion resale marketplace, ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, it has become one of the world’s largest online resale platforms for apparel, accessories and shoes. Sellers love ThredUp because we make it easy to clean out their closets while doing good for the planet. Buyers love shopping value, at up to 90 percent off the estimated retail price.
In 2019, thredUP announced $175M in funding and formally launched Resale-As-A-Service, a platform powering apparel resale for retailers and brands. The investment was led by Park West Asset Management and Irving Investors with existing investors, Goldman Sachs Investment Partners, Upfront Ventures, Highland Capital Partners and Redpoint Ventures participating.
With ThredUp’s Resale-as-a-Service, some of the world’s leading brands and retailers are leveraging the platform to deliver customisable, scalable resale experiences to their customers. ThredUp has processed over 172 million unique secondhand items from 55,000 brands across 100 categories. By extending the life cycle of clothing, ThredUp is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.
Jasmeen Dugal is Associate Editor at FashionABC, contributing her insights on fashion, technology, and sustainability. She brings with herself more than two decades of editorial experience, working for national newspapers and luxury magazines in India.
Jasmeen Dugal has worked with exchange4media as a senior writer contributing articles on the country’s advertising and marketing movements, and then with Condenast India as Net Editor where she helmed Vogue India’s official website in terms of design, layout and daily content. Besides this, she is also an entrepreneur running her own luxury portal, Explosivefashion, which highlights the latest in luxury fashion and hospitality.
