A new report reveals significant growth in the secondhand apparel market, particularly among younger consumers, driven by technology and changing shopping preferences.
A new report from ThredUp, the online marketplace specializing in the resale of women’s and children’s apparel, shoes, and accessories, reveals a significant uptick in the popularity of secondhand shopping among Americans in 2024. The report highlights that a record number of Americans purchased secondhand items last year, with more than half of these shoppers opting for online purchases. This trend is part of ThredUp’s ongoing efforts to track the resale market since 2013 through annual reports.
In the 2025 ThredUp Resale report, it was noted that the U.S. secondhand apparel market experienced a substantial growth rate of 14% in 2024, marking its strongest annual increase since 2021. This rate is five times greater than that of the overall apparel market. Specifically, online resale noted a remarkable growth of 23% during the same period. Projections suggest that online resale could continue to grow at a compounded annual rate of 13% over the next five years, potentially doubling to reach $40 billion by 2029. Globally, the secondhand apparel sector is anticipated to surge to $367 billion by the same year.
The report also highlights a notable shift in consumer behavior, with 58% of shoppers purchasing secondhand goods in 2024, up from 52% in 2023. Particularly prominent among younger consumers, 68% of millennials and Gen Z reported making secondhand purchases. Furthermore, nearly half of these younger shoppers indicated that they prefer seeking secondhand options first when looking for apparel, representing a 7-point increase compared to the previous year.
Alon Rotem, Chief Strategy Officer at ThredUp, commented on this generational trend, stating, “It’s kind of wild to think that in the younger generations, it’s not just that they’re shopping secondhand, but that it’s the first place they’re going.” He points to innovations in shopping technology, particularly artificial intelligence (AI), as key drivers behind this growth, making the secondhand shopping experience comparable to that of buying new merchandise.
Rotem outlined several AI advancements ThredUp has integrated over the past year, including enhanced image search, where shoppers can upload pictures to find matching items in ThredUp’s inventory, and a style chat feature acting like an AI fashion advisor.
CEO James Reinhart referred to the recent AI tools as the “most compelling product” in the company’s history. Speaking during ThredUp’s fourth-quarter earnings call, Reinhart emphasized the strategic advantages of AI in enhancing customer experiences and improving sales metrics, such as conversion rates and customer retention.
The report also notes the impact of social commerce on growing the secondhand market, with Rotem highlighting that it is “the fastest growing way people are shopping online.” In the past 12 months, 39% of younger shoppers made a secondhand purchase on a social commerce platform, with TikTok and TikTok Shop being particularly popular. Among the top 50 fashion and retail executives surveyed for the report, 38% indicated they allow secondhand shopping through social platforms, while another 48% are considering implementing such options in the future.
These findings from the ThredUp report underscore the rapidly evolving landscape of the resale market, driven by technological advancements and changing consumer preferences, particularly among younger demographics.
Source: Noah Wire Services
