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Global secondhand market to grow at 11.2% CAGR from 2021-2031: Study


Global secondhand market to grow at 11.2 CAGR from 2021 2031 Study

Increasing focus on sustainability is propelling the growth of global secondhand apparel market that is likely to expand at 11.2 per cent CAGR from 2021-2031. Sales through online channels are likely to grow at 17.9 per cent CAGR through the assessment period, says latest Future Markets Insights report.

Accounting for over 10 per cent of the world’s carbon footprint, the fashion industry is becoming more eco-conscious. With consumers expecting more transparent processes, the industry is championing the cause for a sustainable fashion movement while abandoning fast fashion that contributes to pollution, climate change and unethical labor practices.

One of the first to advocate for environment-friendly, cruelty-free, inclusive and ethical fashion, British fashion designer, Stella McCartney, is experimenting with new eco-friendly materials and technologies like organic cotton, ethically sourced wool, regenerated cashmere and recycled textiles. Other designers are also fusing high-quality natural and recycled materials to create a diverse range of adventure and outdoor apparel, including sustainable and ethical trousers and T-shirts.

Affordability driving second’s demand

The demand for secondhand apparels is being driven by affordability with consumers looking to buy low-cost disposable items. Sustainable fashion is emerging as one of the industry’s leading necessities with a large part of this change being driven by the pandemic. Used clothing market is also being driven by owning a pre-owned fashion product by local celebrities becoming a trend. Brands and manufacturers are launching several promotional activities to boost market for secondhand clothing.

One of the major exporters of used clothing in the US is expected to grow 2.7 per cent CAGR within North America region. Within the Oceania region, Australia will account for 72.6 per cent of the market Australia. Expansion of multinational secondhand apparel shops in the country will boost industry’s growth. Increased preference for designer clothes will also boost growth. These clothes are being rented rather than bought. They are also being leased by celebrities or fashion influencers driving up long term growth.

Growth trends

The shirts & T-shirts segment of the global secondhand apparel market is expected to grow at a 14.2 per cent CAGR during the forecast period. This will be driven by apparel companies’ increasing commitment towards sustainability. Online retailing is expected to grow at a CAGR of 18.7 per cent with retailers in the secondhand apparel market shifting focus to online used clothing platforms.

Maximum revenues in the seconds market will be by women consumers who will account for 45.2 per cent of the total share. During the pandemic, around 30-45 per cent women consumers purchased designer secondhand apparel online. The demand for secondhand clothing is also being driven by growing sales of luxury clothing in Europe.

To expand their business, secondhand apparel sellers are opting for strategic collaborations and marketing strategies. In July 2021, Madewell partnered ThredUp to sell secondhand clothes while in 2020, Tradesy, a designer reseller, acquired Fitz, a styling service, to compete with The RealReal.


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