Resale’s Growth Offers Hedge Against Tariffs and Competition with Fast Fashion
- Secondhand apparel market grew five times faster than broader retail clothing market in the US in 2024
- Resale projected to reach $74 billion by 2029 with a 9% average annual growth rate
- Global secondhand apparel market could reach $367 billion by 2029, growing 2.7 times faster than overall global apparel market
- U.S. online resale market to nearly double by 2029 with an average 13% annual growth rate
- 58% of U.S. consumers shopped secondhand in 2024, up from 52% in 2023
- 62% of consumers concerned about tariffs making apparel more expensive
- Resale could act as a hedge against tariff impacts on the fashion industry
- Fast fashion and resale at odds with each other, competing for customers
- Resale needs to innovate to match ease of shopping new clothing
- 48% of consumers believe personalization, improved search needed for secondhand apparel
The secondhand apparel market in the U.S. grew five times faster than the broader retail clothing market in 2024, according to ThredUp’s 2025 Resale Report. The report projects that it will reach $74 billion by 2029 with an average annual growth rate of 9%. Globally, the secondhand apparel market could hit $367 billion by 2029, growing 2.7 times faster than the overall global apparel market. The U.S. online resale market is expected to nearly double in that time period, with an average annual growth of 13%. ThredUp’s Alon Rotem suggests that resale could act as a hedge against tariff impacts on the fashion industry due to its domestic supply chain. As tariffs raise concerns about apparel prices, resale’s popularity may counterbalance the effects on traditional retail and fast fashion.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the growth of the resale market in comparison to traditional retail, citing a report from ThredUp and including relevant statistics and quotes from Alon Rotem, chief strategy officer at ThredUp. It also discusses potential challenges for the resale industry. However, it could be improved by providing more context on the overall size of the traditional retail clothing market and clarifying the years for some data points.
Noise Level: 6
Noise Justification: The article provides relevant information about the growth of the resale market and its potential impact on traditional retail and tariffs. However, it contains some repetitive statements and could benefit from more in-depth analysis or discussion of the challenges and opportunities for resale businesses.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the growth of the resale market in the apparel industry and its potential impact on traditional retail, with projections for the secondhand apparel market reaching $74 billion by 2029. It also mentions concerns about tariffs affecting the fashion industry and how resale could serve as a hedge against them. However, there is no direct mention of specific financial markets or companies being impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in this article.
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