Secondhand Apparel Market

Key Points Covered in the Secondhand Apparel Market Study

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on XYZ and How to Navigate
• Recommendation on Key Winning Strategies

2016-2020 Secondhand Apparel Market Outlook Compared to 2021-2031 Forecast

Driven by increasing focus on affordability various fashion retailers are incorporating recycling programs and introducing new collections with eco-friendly fibers to retain existing customers and attract new ones. The secondhand apparel market will rise at 11.2% CAGR between 2021 and 2031 in comparison above 8.9% CAGR registered during 2016-2020.

The fashion industry accounts for more than 10% of the world's carbon footprint. Customers and companies are becoming aware about the need for fashion renovation, with consumers expecting transparent procedures. Fast fashion, which contributes to pollution, climate change, and unethical labor practices, has given way to the sustainable fashion movement.

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Stella McCartney, a British fashion designer, is one of the first to advocate for environmentally friendly, cruelty-free, inclusive, and ethical fashion. This artist is constantly experimenting with new eco-friendly materials and technology.

Organic cotton, ethically sourced wool, regenerated cashmere, and recycled textiles are popular options. Secondhand garments save an enormous amount of unwanted clothing from landfills and dumps.

Other well-known businesses combine high-quality natural and recycled materials to offer a diverse range of adventure and outdoor apparel, including sustainable and ethical trousers and T-shirts. Recycled polyester outerwear and fair-trade sweaters composed of recovered cotton, are likely to remain popular through the coming decade.

What is the Impact of the COVID-19 Crisis on the Secondhand Apparel Market?

The secondhand apparel market was largely affected by lockdowns in many countries. During the pandemic, transportation-related delays owing to travel restrictions created roadblocks to supply chains.

Affordability is driving the demand for secondhand clothes, especially since the onset of the COVID-19 economic crisis. Consumers are not only using non-essentials, but they are also purchasing low-cost, disposable items.

With political involvement, eco-fashion and sustainable fashion concepts have emerged as solutions to the industry's current environmental challenges. As supply and distribution networks rebuild, company activity will develop steadily through 2021 and beyond. In light of this, the pandemic is unlikely to have a long-term impact on the used clothing industry.

Country-wise Insights

How is the Secondhand Apparel Market Faring in Sub-Saharan Africa?

Middle East & Africa is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, Sub-Saharan Africa is expected to account for 54.5% of market share through 2031.

Consumers all over the world are concerned about using environmentally friendly commodities. Clothing designers have taken notice of the trend and have developed innovative solutions, such as upcycling from recycled and renewable materials.

Recycled and environment friendly materials, such as low-impact, biodegradable fibers, have been used by a few businesses. Furthermore, the MEA remains one of the world's largest markets for secondhand apparels owing to the high demand for used clothes.

What are the Factors Supporting Sales of Secondhand Apparel in India?

Demand in the Indian market is expected to rise at nearly 11.3% CAGR over the forecast period. When it comes to formal attire, Indians are among the leading buyers in the region.

Furthermore, local celebrities are making pre-owned products fashionable, and customers are displaying interest in secondhand apparel trends for purchase and rentals in the region.

Moreover, promotional activities, presence of several major players, and changing consumer preference is creating attractive opportunities for the secondhand apparel market in the country.

Why is the Secondhand Apparel Market Growing in the U.S.?

The U.S. is a major exporter of worn clothing. By 2031, it is expected to grow by 2.7% CAGR for secondhand apparel sales within North America.  In a world of fast fashion and outsourced clothing manufacturing, secondhand clothing is a popular method to address the environmental effects and labor concerns associated with the apparel sector.

This could be due to the fact that fashion trends can last for a long time, and vintage clothing has niche value. Americans are displaying interest in standing out from current fashion trends with secondhand clothing.

How is Social Media Boosting Secondhand Apparel Sales in Australia?

In 2021, Australia will account for 72.6% of market share in Oceania. Over the next few years, the expansion of multinational secondhand apparel shops in Australia is expected to boost growth of the industry.

Increased demand from consumers who have been exposed to global brands through social media will give multinational labels the confidence to expand in Australia.

As a result of growing affluence, customers are preferring designer clothing. Rather than spending high sums on buying designer apparel for occasional events, users are opting for rentals.

Besides, celebrities or fashion influencers are renting such designer outfits which will support growth prospects of the market in the long term.

Category-wise Insights

Why is the Demand for Shirts & T-shirts Key Rising?

The shirts & t-shirts segment is expected to exhibit a comparatively higher CAGR of 14.2% in the global secondhand apparel market, owing to changing consumer preference which is creating a demand for formal and casual shirts among working women labor force.

Consumers have become aware of the impact of clothes production on the environment, and they are increasingly demanding apparel companies to increase their commitment to sustainability, which in turn will drive the secondhand shirts & t-shirts growth forecast.

Why is Online Retailing Emerging as Preferred Sales Channel for Secondhand Apparel?

Online retailing is expected to exhibit a comparatively higher CAGR of 18.7% in the global secondhand apparel market. Retailers in the secondhand apparel market are considerably shifting their focus from traditional thrift stores to online used clothing platforms to boost their sales and to expand their customer base.

E-commerce will continue to grow in popularity among consumers of all ages. Millennials and Gen Z consumers drive secondhand apparel sales via online sales channels, thus creating attractive prospects for the expansion of the market.

Why Does Women’s Clothing Hold a High Share in Global Secondhand Apparel Market?

Women consumers are expected to contribute maximum revenue share of 45.2% in the global secondhand apparel market owing to the rising number of fashionable clothing producers.

During the pandemic, the share of women consumers who had purchased designer secondhand apparel online ranged from 30% to 45% in major European markets. As Europe is considered the major hub for branded goods. Luxury clothing is popular among women. As a result, used clothing, fashion accessories, and other goods are gaining ground.

Competitive Landscape

Companies operating in the secondhand apparel market are aiming for strategic collaborations and marketing strategies to expand their business and attract a larger customer base.

• For instance, in 2020, Tradesy, a designer reseller, acquired Fitz, a styling service, to compete with The RealReal.
• In 2019, Farfetch teamed up with Thrift+, a secondhand clothes platform, to allow shoppers to give unwanted things to charities in exchange for store credit. Thrift+ is an online store that sells used clothing and contributes a portion of the proceeds to one of the UK's 160,000 registered charities.
• In July 2021, Madewell partnered with ThredUP to sell secondhand apparel through its online sales platform.

Scope of Report

Key Questions Answered in the Report

• What is the current valuation of the secondhand apparel market?

  The secondhand apparel market is expected to surpass a valuation of US$ 32 billion by 2021.

• At what rate did the secondhand apparel market expand in the last 5 years?

  The secondhand apparel market exhibited impressive growth at 10.5% CAGR in the last five years from 2016 to 2020.

• What is the demand outlook for the secondhand apparel market?

  The secondhand apparel market will register gradual rise in demand. As per FMI, the market will register a CAGR of 11.2% between 2021 and 2031.

• What are the key trends shaping the secondhand apparel market?

  Key players in secondhand apparel markets are looking to offer eco-friendly fashion products with recycled materials while targeting low-income consumer demographics.

• What are the key factors driving secondhand apparel sales?

  A strong rise in environment consciousness among consumers is a key factor driving sales in the secondhand apparel market.

• What is the North America secondhand apparel market outlook?

  North America is a potentially lucrative market for secondhand apparel, estimated to rise ant 4.1% CAGR, during the assessment years.

• What is the cumulative share of the top five companies in secondhand apparel market?

  The top five key players in secondhand apparel market include ThreadUp Inc., The RealReal, Poshmark, Vinted, and Micolet These players are estimated to hold a market share of 18.3%.

• At what rate will the secondhand apparel market grow in Europe?

  FMI has forecast the Europe secondhand apparel market to exhibit a CAGR of 9.2% between 2021 and 2031.

• Which are the top 5 countries exhibiting high demand for secondhand apparel?

  Sub-Saharan Africa, Northern Africa, Pakistan, China, and GCC countries are among leading markets for secondhand apparel, exhibiting consistently high demand.

• At what rate will the South Korea and Japan secondhand apparel market grow?

  As per FMI, the South Korea and Japan secondhand apparel markets are expected to hold a 25.9% and 33.3% share of East Asia in 2021.

Secondhand Apparel Market by Category

By Sector:

• Resale
• Traditional Thrift Stores and Donations

By Product Type:

• Dresses & Tops
• Shirts & T-shirts
• Sweaters, Coats & Jackets
• Jeans & Pants
• Others

By Target Population:

• Men
• Women
• Kids

By Sales Channel:

• Wholesalers/Distributors
• Hypermarkets/Supermarkets
• Multi-brand Stores
• Independent Small Stores
• Departmental Stores
• Online Retailers
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa (MEA)