According to ThredUp’s 2025 Resale Report, in 2024, the secondhand apparel market in the U.S. experienced significant growth, outpacing the broader retail sector. The online resale market saw a remarkable 23% increase, marking the second year of consecutive growth. Projections suggest the resale market will continue to expand, potentially reaching $40 billion by 2029. As consumers become more focused on affordability, partly due to potential impacts from government policies on tariffs and trade, 59% of shoppers indicated they would opt for secondhand options if new clothing became more expensive. Younger generations, particularly Millennials and Gen Z, are driving this shift, with nearly half of their apparel budgets expected to go toward secondhand purchases in the coming year. The survey was conducted in partnership with GlobalData, with 3,034 adult consumers in the United States participating along with 50 fashion brands and retailers.
ThredUp CEO James Reinhart said, “As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale. From the integration of social commerce and innovative AI applications to the establishment of trade organizations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory.”
Social commerce and AI are playing pivotal roles in reshaping how consumers engage with secondhand apparel. About 39% of younger shoppers made secondhand purchases through social commerce platforms in the past year, and half of them did so to create content for social media. Retailers are recognizing this trend, with 76% of retail executives noting the importance of social commerce in driving resale adoption. Furthermore, AI technologies are enhancing the secondhand shopping experience by improving search functionality and personalizing recommendations. In fact, 48% of shoppers admitted that improved search functionalities and personalization make it easy to shop. To meet these needs, 78% of retailers have invested in AI, while 58% plan to incorporate AI tools over the next year.
The resale market’s appeal is also increasing among consumers who prioritize quality over price. Moreover, 46% of shoppers said they would avoid buying new items if a secondhand option were available. Additionally, 32% of consumers made secondhand purchases directly from brands, and 47% of younger generations engaged in this trend, showing a clear shift in how secondhand apparel is perceived.
Read the entire report here: https://www.thredup.com/resale