USA & Canada Secondhand Apparel Market

The USA & Canada Secondhand Apparel Market Outlook (2023 to 2033)

According to Future Market Insights (FMI), the USA & Canada secondhand apparel market is estimated to surge at a CAGR of 12.3% during the forecast period 2023 to 2033. The market value is projected to increase from US$ 28,095.0 million in 2023 to US$ 89,624.4 million by 2033.

The USA & Canada secondhand apparel industry was valued at US$ 24,929.0 million in 2022 and is estimated to exhibit Y-o-Y growth of 12.7% in 2023.

The secondhand apparel market in the United States and Canada has seen significant growth in recent years. Factors such as environmental concerns, cost savings, and the desire for unique fashion have contributed to its expansion.

E-commerce has transformed the entire shopping experience. An increasing share of consumers around the world prefers to buy goods, select services and purchase goods via the internet. Subscription models, home delivery, and other perks are driving this change in the market.

Product ratings and other e-commerce structures help merchants study audience behaviour. This includes their likes and dislikes, and trends to advance products that meet audience needs and transform them into potential buyers. Online sales have therefore driven the development of the second-hand market.

Online platforms like ThredUp, Poshmark, and eBay, as well as physical thrift stores, play a crucial role in facilitating the buying and selling of used clothing. Sustainability and the circular economy are driving consumer interest in secondhand fashion.

The market is particularly popular among Gen Z and millennials. Traditional retailers and fashion brands are also recognizing the market's potential from these age groups and incorporating it into their business models.

Challenges include ensuring quality control and addressing the stigma associated with wearing secondhand clothing. Despite these challenges, the market is projected to continue growing as more people embrace secondhand clothing as a sustainable and affordable fashion option.

Large players in the second-hand clothing market are strategically focused on expanding their business by launching new brands and expanding their inventory portfolios. They are also directing on eco-friendly business, such as presenting eco-friendly used clothes.

Key Trend Listed by Future Market Insights:

• Consumers are becoming more aware of the environmental impact of fast fashion and are actively seeking alternatives that promote sustainability. Second-hand apparel allows consumers to extend the life cycle of clothing, thereby reducing waste and carbon footprint.
• Social media platforms play an important role in promoting second-hand fashion. Influencers and content creators are showcasing second-hand and second-hand apparel and encouraging followers to buy second-hand.
• Online marketplaces and second-hand clothing platforms such as thredUP, Poshmark, Depop and The RealReal are experiencing significant growth. These platforms offer individuals a convenient and accessible way to buy and sell used clothing.
• The luxury sector of the second-hand apparel market experienced strong growth. Luxury mail order platforms are becoming increasingly popular, allowing individuals to buy and sell high quality designer items.
• Thrift shops and vintage boutiques are making a comeback. Offering a unique, curated selection of second-hand clothing, these physical retail spaces attract fashion-conscious people who appreciate unique items, retro style, and the thrill of treasure hunts.
• Mainstream fashion brands are incorporating sustainability initiatives into their business models. Some brands have introduced special lines of used or recycled clothing, encourage customers to return used clothing for in-store credit, or have recycling programs in place.

As an alternative to buying new clothes, fashion rental platforms are becoming more popular. These services allow individuals to rent clothing for a period of time, thus reducing the need to regularly update their wardrobes. Rentals promote the sharing economy and reduce demand for new products.

2018 to 2022 Global the USA & Canada Secondhand Apparel Market Outlook Compared to 2023 to 2033 Forecast

During the historical period 2018 to 2022, the market expanded at a decent 11.4% CAGR, and reached a valuation of around US$ 24,929 million by 2022-end. It is expected to continue growing due to increasing consumer demand for sustainable fashion and conscious consumption.

Online platforms play a significant role in the market's expansion, offering convenience and a wide range of options. The stigma surrounding secondhand clothing is diminishing, thanks to the involvement of mainstream retailers and brands. Improved authentication and quality control measures will enhance consumer trust.

Rental and subscription services are gaining popularity, providing additional avenues for market growth. Collaboration between platforms, retailers, and brands will drive innovation and customer engagement. As a result, the USA & Canada secondhand apparel market is estimated to surge at a rate of 12.3% CAGR through 2033.

The growing popularity of second-hand clothing is due to its accessibility and low cost, changing lifestyle and fashion preferences. The rapid adoption of online shopping boards offering a varied range of second-hand clothing is some of the key aspects driving demand in the market.

The fashion industry has transformed intensely since the globalization movement began. Lifestyle changes driven by urbanization, industrialization, economic growth, and market globalization have strengthened over the last decade. This has impacted individual living standards, especially in emerging markets and countries undergoing rapid socioeconomic change.

While living situations have enhanced and access to services amplified, global competition has introduced a range of new product inventions. This includes selling and recycling discarded clothing.

The shift in consumer behavior from immediate fashion purchases to resale is one of the leading factors emerging as a driver of second-hand clothing demand. Growing awareness of ethics and sustainability has led consumers to look to thrift to decrease harmful production.

Key Dynamics in the USA & Canada Secondhand Apparel Market Worldwide

• Wider Mainstream Acceptance

Over time, the stigma surrounding secondhand clothing has been eroding, leading to increased mainstream acceptance. Consumers are becoming more open to purchasing and wearing pre-owned items due to several factors.

• First, there is a growing awareness of the environmental impact of fast fashion and a desire to embrace more sustainable consumption practices.
• Second, the quality and condition of secondhand clothing have significantly improved, with several items being nearly indistinguishable from new ones.
• Third, the involvement of mainstream retailers and fashion brands in the secondhand market has further validated its credibility and attractiveness.

As more well-known brands and retailers offer secondhand options, it helps normalize and legitimize the practice. This encourages more consumers to consider and embrace secondhand clothing.

• Industry Collaboration & Partnership

Collaboration between secondhand platforms, traditional retailers, and fashion brands is expected to increase in the future. Partnerships can take several forms, including the establishment of brand-specific resale platforms. It can also lead to the creation of in-store consignment sections, or joint marketing efforts.

These collaborations offer unique shopping experiences to consumers by combining the appeal of established brands with the affordability and sustainability of secondhand items. For instance, a traditional retailer may partner with a secondhand platform to provide a curated selection of pre-owned clothing alongside their new collections.

• Increasing Online Presence

Online platforms have been instrumental in the growth of the secondhand apparel market, and their importance is expected to continue expanding. The convenience and accessibility of online shopping have made it a preferred choice for several consumers. These platforms offer a wide variety of options, ranging from everyday wear to designer brands and vintage pieces.

As technology advances, online platforms are likely to become even more sophisticated, offering improved user experiences through features such as personalized recommendations, virtual try-on, and seamless transactions. This will further enhance the appeal of online shopping for secondhand clothing and attract more consumers to the market.

Sudip Saha

Principal Consultant

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Country-wise Insights

How is the Secondhand Apparel Market Shaping in the USA?

Rental and Subscription Services to Boost the USA Market

The USA secondhand apparel was valued at US$ 21,364 million in 2022. Rental and subscription services have become a significant trend in the USA's secondhand apparel market. These services allow customers to rent clothing items for a specific period, providing access to a variety of styles without the need for long-term ownership.

This model addresses the desire for novelty, promotes sustainability by reducing clothing waste, and offers a cost-effective alternative to purchasing expensive garments.

Rental services provide convenience, flexibility, and specialized offerings tailored to specific customer needs. Collaboration between rental platforms and fashion brands further expands the market's appeal.

Is Canada Likely to Retain Steady Demand for Secondhand Apparels?

Enhanced Authentication Process and Focus on Quality for Secondhand Apparel

Enhanced authentication and quality control measures are crucial for the continued growth and success of the secondhand apparel market in Canada.

Players are implementing stringent authentication processes using technologies like AI and machine learning to prevent counterfeit items from entering the Canada market. Thorough product inspections and grading systems ensure that items meet quality standards and provide detailed information to buyers.

Collaboration with industry experts and professional appraisers adds credibility and trust to the market. Furthermore, blockchain technology has enabled transparent and traceable records, enhancing authenticity verification.

Seller verification processes and reputation systems ensure the legitimacy and trustworthiness of sellers. The Canadian secondhand apparel market was valued at US$ 3,315.6 million in 2022.

Category-wise Insights

Which Segment Dominates the Market based on Product Type?

Dresses & Tops Segment Will Drive Sales

Dresses & tops are popular in the secondhand apparel market due to their versatility, reflecting current fashion trends, offering a variety of styles, being suitable for different occasions, catering to seasonal needs, and providing access to designer brands.

As a result, the segment contributed about 35.4% of the share in 2022. Their ability to be dressed up or down, combined with their affordability, attracts consumers looking for fashionable options without the high price tag.

The wide range of choices in dresses & tops allows individuals to find styles that suit their preferences and flatter their figures. These factors contribute to the ongoing popularity of dresses & tops in the secondhand market.

By Consumer Orientation, Which Group Accounts for the Majority of Sales in the Market?

Women Account for Majority of Sales in the Secondhand Apparel Market

Women account for the leading sales in the USA & Canada secondhand apparel market due to factors such as their higher interest in fashion and personal style. With a larger selection of clothing options available for women, and societal and cultural influences, the availability of secondhand options will establish a market catering to their preferences.

Aided by such factors, the women segment contributed a key revenue share of 44.1% in 2022. The segment is projected to continue its dominance throughout the forecast years; however, the market is evolving to include a broader range of consumers. Efforts are being made to offer more diverse secondhand options.

Which Sales Channel is Estimated to Gain Prominence in the USA & Canada?

Online Retailers Are Gaining Momentum in the USA & Canada

Online retailers are projected to experience significant growth in the secondhand apparel market, with a CAGR of 10.9%. This growth is expected to revolutionize the industry and transform the way secondhand clothing is sold.

Retailers in this market are increasingly shifting their focus from traditional thrift stores to online platforms, aiming to enhance sales and attract new customers. The rising popularity of e-commerce, especially among Millennials and Gen Z, is driving this shift, with smartphones playing a significant role in facilitating online retail transactions.

Competitive Landscape

The competitive landscape of the USA & Canada secondhand apparel market is characterized by a mix of established players and emerging online platforms. The market is witnessing increased competition as both traditional retailers and fashion brands enter the secondhand space, offering a wider range of options for consumers.

The players have increased focus on partnerships & collaborations along with enhanced product offerings. Key players are directed towards mergers, product launches, and acquisitions to enhance their market presence.

For instance:

• In 2021, Depop was acquired by Etsy, an online marketplace for handmade and vintage items. This acquisition provided Depop with access to Etsy's resources and customer base, enabling further growth and expansion of its secondhand fashion platform.
• In 2020, The RealReal launched the "RealReal Remade" initiative, focusing on sustainable fashion and upcycling. The company partnered with luxury brands like Gucci and Stella McCartney to create limited-edition collections using repurposed materials, highlighting their commitment to environmental sustainability.

Scope of Report

The United States & Canada Second-hand Apparel Market Outlook by Category

By Product Type:

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

By Sector:

• Resale
• Traditional Thrift Stores & Donations

By Consumer Orientation:

• Men
• Women
• Kids

By Sales Channel:

• Direct Sales
• Hypermarkets/Supermarkets
• Thrift Stores/Resale Stores
• Online Retailers
• Other Sales Channel (Independent Small Stores)

By Country:

• The United States
• Canada