Younger consumers are especially open to online resale.
Resale — online and in-store — is showing no signs of losing momentum. If anything, it’s gaining strength.
The U.S. secondhand apparel market (includes online and in-store resale as well as the donation/thrift sector) grew 14% in 2024, which marked its strongest annual growth since 2021 and outpacing the broader retail clothing market by five times, according to the 13th annual “2025 Resale Report” from online resale platform ThredUp, which was conducted by third-party data analytics firm GlobalData. It is expected to reach $74 billion by 2029, growing 9% annually on average.
Looking strictly at online, resale is expected to nearly double by 2029, reaching $40 billion, representing a compound annual growth rate of 13% annually on average. The report projects 2025 U.S. online resale will hit $26 billion, up from $22 billion last year.
Surveyed consumers plan to spend 34% of their apparel budget on secondhand items in the next 12 months. This figure is higher among younger generations (Gen Z and millennials) who say they will spend nearly half (46%) of their apparel budgets on secondhand.
Close to one-in-three (32%) consumer respondents who bought secondhand apparel in 2024 made a purchase directly from a brand, including 47% of millennial and Gen Z respondents.
In addition, 94% of surveyed retail executives say their customers are already participating in resale – an all-time high and up four percentage points from 2023.
“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale,” said James Reinhart, CEO, ThredUp. “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.”
The survey also analyzed consumer and retailer data related to several hot-button topics:
Tariffs
- Six-in-10 (59%) surveyed consumers say if new government policies around tariffs and trade make apparel more expensive, they will seek more affordable options like secondhand. This figure includes seven-in-10 (69%) surveyed millennials.
- Eight-in-10 surveyed retail executives expect new government policies around tariffs and trade to disrupt their global supply chain.
- Forty-four percent of retail respondents are looking to reduce reliance on imported goods, and 54% believe resale offers a more stable and predictable source of clothing in the face of potential tariff fluctuations.
https://chainstoreage.com/thredup-us-secondhand-apparel-sales-reach-74b-2029