A groundbreaking joint report by Boston Consulting Group (BCG) and Vestiaire Collective, released in October 2025, reveals that the global secondhand fashion and luxury market is now a $210–220 billion industry, on track to reach $320–360 billion by 2030. With an annual growth rate of 10%, secondhand is expanding three times faster than the traditional firsthand market, and it now accounts for 8% of all fashion and luxury sales, a figure projected to rise to 10% by the end of the decade.
The Secondhand Boom
According to a survey of 7,800 members of the Vestiaire Collective community, secondhand fashion and luxury have become mainstream behaviors. Nearly 28% of the average closet is now made up of secondhand purchases, and more than half (55%) of those purchases occur through online multibrand resale platforms like Vestiaire Collective, The RealReal, or Vinted. Categories such as handbags (40%) and clothing (30%) show the highest resale penetration—evidence that today’s consumers see resale as a central component of their wardrobes.
Europe is currently leading the global shift, with favorable regulation driving circularity and growth, while the US market is noted for being particularly transactional and value-focused, with 66% of US handbags owned secondhand compared to 39% in Europe. In both regions, digital platforms are at the core of secondhand’s rapid mainstream adoption.
What’s Driving Secondhand Growth?
Affordability is the primary motivation, with 78% of buyers citing value for money as their top reason for turning to the resale market. For many, secondhand provides the only way to access luxury brands that would otherwise be out of reach. Over half of respondents prefer premium labels secondhand rather than opting for more affordable firsthand items. The thrill of discovery, unique assortment, and sustainability—cited by 40% of buyers—also drive engagement.
Selling, too, is shaped by practical motivations: 66% sell to detox their closets, 44% use proceeds to fund future secondhand purchases, and 41% seek extra income. Among barriers, the most commonly cited is a lack of attractive prices (30%) and time to list items (31%).
Gen Z Leads the Resale Revolution
Gen Z is at the forefront, where up to 32% of items in Gen Z’s closets are secondhand, peaking at 45% for handbags and 36% for clothing. This generation sees secondhand as a discovery channel—80% said they discovered a new brand through resale—and prizes the thrill of the hunt and personal style just as highly as price. Their engagement with resale is significantly above the overall average, reshaping how the industry approaches younger consumers.
Strategic Approaches
Luxury and fashion brands are responding by experimenting with three primary resale models:
- Brand-owned programs: Direct trade-in and resale platforms operated in-house (e.g., Rolex Certified Pre-Owned, Patagonia’s Worn Wear, Rimowa’s RECRAFTED).
- Approved partnerships: Brands offering authenticated resale via co-branded platforms and partnerships (e.g., Chloé x Vestiaire Collective, Coach x Poshmark x EON).
- Light-touch pilots: Consignment, take-back campaigns, or archive drops, often as market tests for larger-scale programs.
Digital Product Passports (DPPs) are emerging as a technological game-changer, storing product information digitally to enable “one-click resale,” ensure authentication, and provide details on material and origin—addressing trust and transparency barriers. 70% of consumers value instant authentication features, while 68% prioritize detailed product specifications. DPPs are particularly valued for high-investment categories like handbags, with 79% of respondents citing this as the most desired category for DPP deployment.
Circularity, Compliance, and Competitive Edge
As the EU’s Ecodesign for Sustainable Products Regulation approaches (with mandated DPPs for textiles), brands with proactive digital strategies will gain first-mover advantage, setting standards for transparency, circular commerce, and post-sale engagement. Ensuring seamless integration of resale into the consumer journey, maintaining price balance between firsthand and resale, and segmenting strategies for different customer groups (e.g., Gen Z for discovery, affluent for curation) will be critical for long-term growth.
For 66% of survey respondents, resale enabled them to purchase from a brand for the first time—highlighting resale as both an acquisition and a loyalty lever that is now impossible for luxury and fashion brands to ignore.
