New data shows that the resale market is thriving, with consumer spending on secondhand goods outpacing traditional retail, driven by budget-conscious and sustainability-focused shoppers.
Consumer Edge, a prominent provider of global consumer data-driven insights, has released new data indicating significant growth in the resale market for consumer goods. This emerging segment, which encompasses platforms allowing consumers to directly buy and sell items, as well as secondhand sales facilitated by brands and traditional retailers, has demonstrated resilience in the face of economic uncertainty throughout 2024.
With consumer spending in the resale sector outpacing traditional retail, the findings suggest a shift in consumer behavior that is being driven by budget-conscious shoppers and a heightened awareness of sustainability. The latest data indicates that, following a low point in summer with a spending decrease of 3%, resale spending experienced a resurgence, achieving a growth rate of 5% by October 2024.
The report highlights several key trends within the industry. Notably, pure-play resale platforms, which specialize exclusively in secondhand sales, have been gaining traction among consumers. Brands such as On and Banana Republic have launched their own resale initiatives in response to this trend; however, these efforts have not yet significantly impacted the popularity or growth of dedicated resale platforms.
Platforms like Grailed and Depop have emerged as leaders within the peer-to-peer marketplace segment, each experiencing dramatic increases in consumer spending. Grailed reported a year-over-year spending surge exceeding 180%, while Depop’s growth approached 90%. Such platforms are appealing to consumers due to their social elements and user-friendly interfaces. Alongside these, Vinted and Vestiaire Collective also saw robust performance, while omni-channel brands such as Clothes Mentor and Goodwill have expanded their e-commerce capabilities to meet rising demand for affordable and sustainable products.
The report also emphasizes the demographic shifts occurring within the resale market. Shoppers aged 25 to 44 have increased their share of resale spending by over 6% compared to the previous year, with middle-income consumers—those earning between $40,000 and $100,000—identified as a crucial contributor to the sector’s growth. Resale brands like Goodwill and the Salvation Army appear to be well-placed to capture this demographic, particularly as consumer priorities pivot towards value-conscious purchasing practices, especially in light of the approaching holiday season.
Michael Gunther, Vice President and Head of Insights at Consumer Edge, noted, “Resale has established itself as a critical growth driver in the apparel, accessories and footwear industry. In a challenging economic climate, brands that recognize changing consumer sentiment and align with demand for affordability and sustainability are well-positioned to thrive in this dynamic market.”
As this market evolves, it remains to be seen how traditional retailers will adapt to this significant shift toward resale and secondhand shopping, which is quickly becoming a cornerstone of consumer shopping behavior.
Source: Noah Wire Services
