The online clothing rental market size is projected to be valued at USD 2,279.9 million in 2023 and is expected to rise to USD 6,244.1 million by 2033. The sales of online clothing rentals are expected to grow at a significant CAGR of 10.6% during the forecast period. Various factors propelling the demand for online clothing rental are:
For many years, people have rented clothing for theme parties and black-tie events. Furthermore, clothing rental has long been a part of the film, television, and media industries.
Previously, renting clothes meant going to physical stores. However, the online clothing rental market is expanding. eCommerce caters to a different audience and offers a much broader selection of fashion. Furthermore, recurring clothing subscriptions and peer-to-peer sharing have joined traditional one-time rentals.
Millennials and Generation Z are environmentally conscious, and sustainability is important to their purchasing decisions. According to the NRF and IBM report (2022), half of the consumers are willing to pay a premium for sustainability, and 44% identify as purpose-driven, selecting products and brands based on how well they align with their principles.
Rent the Runway (RTR), an online fashion rental company, conducted a study on clothing rental sustainability. RTR's research methodology was concise. They polled users and compared the life cycles of bought and rented clothes. Their findings were very encouraging, indicating that clothing rental could reduce:
| Attributes | Details |
|---|---|
| Online Clothing Rental Market CAGR | 10.6% |
| Online Clothing Rental Market Valuation (2023) | USD 2,279.9 million |
| Online Clothing Rental Market Valuation (2033) | USD 6,244.1 million |
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The global demand for online clothing rental grew at 8.7% CAGR during the historical period of 2018 to 2022. However, with a growing consumer inclination towards adopting rental clothes over purchasing new ones, the overall online clothing rental market is anticipated to grow at an impressive CAGR of 10.6% between 2023 and 2033.
In the past few years, the fashion and clothing industry has made significant progress across the globe. As a result, brand awareness is growing rapidly among consumers. Clothing for various occasions, such as corporate parties, wedding ceremonies, photo shoots, theme parties, and others, has increased demand for renting clothes online.
Also, over the last few years, people have become fashion-conscious due to the rise in social media platforms and are getting influenced to try different varieties of outfits. Further, the increasing impact of social media and the influential impact of online clothing rental portals have effectively resulted in the growth of the online clothing rental market.
Similarly, rise in fashion vlogs, fashion events, evolving trends of adventure events, occasions, advancement of mobile technology, a rise in the spending power of middle-class people, new ways of marketing, rising efforts of providers on a subscription model, and various other factors are expected to contribute to the growth of online clothing rental market over the next ten years.
Rising Awareness About Environmental Sustainability Fueling Market Growth
The global demand for online clothing rental grew at 8.7% CAGR during the historical period of 2018 to 2022. However, with a growing consumer inclination towards adopting rental clothes over purchasing new ones, the overall online clothing rental market is anticipated to grow at an impressive CAGR of 10.6% between 2023 and 2033.
In the past few years, the fashion and clothing industry has made significant progress across the globe. As a result, brand awareness is growing rapidly among consumers. Clothing for various occasions, such as corporate parties, wedding ceremonies, photo shoots, theme parties, and others, has increased demand for renting clothes online.
Also, over the last few years, people have become fashion-conscious due to the rise in social media platforms and are getting influenced to try different varieties of outfits. Further, the increasing impact of social media and the influential impact of online clothing rental portals have effectively resulted in the growth of the online clothing rental market.
Similarly, rise in fashion vlogs, fashion events, evolving trends of adventure events, occasions, advancement of mobile technology, a rise in the spending power of middle-class people, new ways of marketing, rising efforts of providers on a subscription model, and various other factors are expected to contribute to the growth of online clothing rental market over the next ten years.
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The online clothing rental trend is driven by affordability and was especially so during the pandemic-inflicted economic crisis. Consumers have not only reduced their consumption of nonessential items but are buying more low-priced, disposable garments. With low-cost and higher-quality online clothing rentals, the concept and practice complement the vintage fashion phenomenon.
Various consumers discard clothing items every year that have only been worn the least times on average. The clothes can be refurbished and put on rent on online rental clothing websites. This benefits people as they get a chance to try new or expensive clothes at an economical cost, and it also contributes to the environment with a reduction of wastage.
The United States is the biggest consumer of clothing rentals. In the United States, the annual value of clothing rental was around $1.9 billion in 2021, with an online share of around USD 475 million. By 2026, the overall market is expected to be worth $3.7 billion. North America now accounts for 42% of global online clothing rentals. According to market forecasts, the clothing rental market in the United States recovered from the impact of COVID-19 with 26% and 13% annual growth, respectively, in 2021 and 2022.
The German clothing rental market was worth USD 1.2 billion in 2019 and is expected to more than double by 2025. Given that e-commerce accounts for around 25% of total industry turnover, it is estimated that the regional online clothing rental market is likely to be worth USD 300 million. With a 27% market share, it is the second-largest clothing rental region after North America.
The market is expected to grow at a compound annual growth rate (CAGR) of around 12%. When events resumed in 2022, the overall industry recovered from the impact of COVID-19. From 2023 onwards, market growth is expected to slow down and settle on both sides of the 16% mark.
The Asia Pacific region is a growing market for clothing rental services. China is the most important country in the region, with a USD 632 million clothing rental market. Other key clothing rental countries include Japan, South Korea, and India. It currently accounts for slightly more than 20% of the global online clothing rental market, but some forecasts indicate that the Asia Pacific region is likely to account for 44% of the market growth in clothing rental.
Japan is a lucrative market for online clothing rental. Japanese people enjoy experimenting with Western fashion, which drives a high demand for online clothing rentals. Meanwhile, social media trends have a significant impact and influence on consumers' ability to adapt to changing fashion trends all over the world. With rising trends and a variety of events in Japan, online rental service providers are concentrating their efforts on youths and white-collar workers.
For example, in 2021, Reown Inc., a Japanese fashion brand, launched the service kirudake, which translates as "Just Wear It," which provides users with subscription offers ranging from USD 43 to USD 87 per month with a minimum 6-month contract. The service includes seasonal suit sets as well as storage and cleaning after the items have been returned.
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Currently, the male segment is growing at a slower rate than women and children. However, this appears to be changing, with an estimate indicating an above-average CAGR of 12.5%.
One possible explanation for the success of the women's segment is that the sector's largest companies are primarily focusing on women. Women are also more sensitive to changes in fashion, making rental services an appealing option for them.
One-time rentals are better suited for products that are only used on occasions, such as for events and special activities. The subscription model, on the other hand, is better suited to everyday products that consumers buy and use on a regular basis. The casual clothing rental industry is expected to expand significantly in the coming years. Due to the high purchase cost of higher-value segments and luxury items, access-based consumption models in the fashion industry are more profitable. As a result, the pricing pain point for one-time rentals may be higher relative to operational expenses than for low-cost products where the price of a one-time rental barely covers operating costs.
The standalone model allows the consumer to try on rental clothes from various service providers because the offer is only valid for a limited time per cloth. People can try on a variety of clothes from various service providers and are not limited to a single online clothing rental provider. Meanwhile, various service providers' offers entice customers to try on new designs and outfits.
To increase their global presence and capture a large revenue share, market leaders are focusing on new product launches, partnerships, collaborations, mergers and acquisitions, and integrating novel technologies.
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| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Billion for Value |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkiye, Northern Africa, and South Africa |
| Key Segments Covered | Product Type, Consumer Orientation, Business Model, End-User, Age Group, Region |
| Key Companies Profiled | Rent the Runway; Rotaro; GlamCorner Pty Ltd.; Casstle. Inc.; Mine for Nine, LLC; Dress Hire AU; Thread Rentals; Le Tote Inc.; Urban Outfitters; Rent The Front Row LLC; Dress & Go Company; Chic by Choice Company; STYLE Lend Company; RENT It Bae Company; Mr. & Ms. Collection; The Secret Wardrobe; Gap Inc.; MY WARDROBE HQ; By Rotation Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The Online Clothing Rental Market registers USD 2,279.9 million in revenue in 2023.
The global Online Clothing Rental Market revenue is projected to exceed USD 6,244.1 million by 2033.
Sales of clothes online are anticipated to upsurge at a 10.6% CAGR through 2033.
China's prospective inkjet printer market is driven by its vast population, rising disposable income, urbanization, and awareness of home offices.
During the historical period from 2018 to 2022, the demand for online garment rentals increased at a global rate of 8.7% CAGR. With a rising customer preference for renting clothing rather than buying new.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Business Model 6.1. Standalone Model 6.2. Subscription Model 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 7.1. Business to Consumer 7.2. Business to Business 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Age Group 8.1. Below 18 years 8.2. 18-25 years 8.3. 26-34 years 8.4. 35-44 years 8.5. 45-54 years 8.6. 55 Above years 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia 9.5. East Asia 9.6. Oceania 9.7. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Rent the Runway 19.2. Rotaro 19.3. GlamCorner Pty Ltd. 19.4. Casstle. Inc 19.5. Mine for Nine, LLC 19.6. Dress Hire AU 19.7. Thread Rentals 19.8. Le Tote Inc. 19.9. Urban Outfitters 19.10. Rent The Front Row LLC 19.11. Dress & Go Company 19.12. Chic by Choice Company 19.13. STYLE Lend Company 19.14. RENT It Bae Company 19.15. Mr. & Ms. Collection 19.16. The Secret Wardrobe 19.17. Gap Inc. 19.18. MY WARDROBE HQ 19.19. By Rotation 20. Assumptions & Acronyms Used 21. Research Methodology
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Online Clothing Rental Market
