ThredUp Predicts $40 Billion Online Resale Market by 2029

The online resale market is experiencing a remarkable boom, according to ThredUp's 13th annual Resale Report released this week. The report highlights accelerated growth in 2024 and projects the sector will reach a staggering $40 billion by 2029. This surge is driven by increasing consumer awareness of sustainable fashion choices, the convenience of online platforms, and the growing acceptance of pre-owned apparel.

“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.” – James Reinhart, CEO, ThredUp

Key Findings of the ThredUp Resale Report

• Rapid Growth: The U.S. secondhand apparel market grew 14% in 2024, outpacing the broader retail clothing market by 5X.
• Future Projections: Online resale is expected to reach $40 billion by 2029, growing at a compound annual growth rate (CAGR) of 13%.
• Consumer Adoption: 59% of consumers say they will seek secondhand options if tariffs make apparel more expensive.

Resale is expected to grow 11X faster than broader retail clothing

The report identifies several key factors contributing to the online resale market's impressive growth:

• Sustainability Concerns: The global secondhand market is expected to reach $367 billion by 2029, with a 10% CAGR, reflecting growing awareness of environmental impacts.
• Value Proposition: In the next 12 months, younger generations plan to spend 46% of their apparel budget on secondhand.
• Convenience and Selection: 48% of consumers report that personalization and improved search make shopping secondhand as convenient as buying new items.
• Shifting Consumer Attitudes: 39% of younger shoppers have made secondhand purchases through social platforms, indicating mainstream acceptance.

Retail Industry Insights

The rise of online resale has significant implications for the broader fashion industry. 76% of retail executives say social commerce will significantly drive resale adoption within their brand. This trend signals a fundamental shift in how consumers buy and interact with fashion, with sustainability and circularity becoming increasingly important considerations.

"I think what's really exciting about the resale market right now is how it's not just keeping pace with traditional retail, but actually leading the way. People are starting to think about the value of what they buy in a whole new way—quality matters, and so does the resale value. Retailers are catching on and adapting their secondhand offerings to meet this demand. Social commerce is playing a huge role in this shift, making it easier than ever for shoppers to find and love secondhand items. It's amazing to see how secondhand is becoming the go-to choice for so many people." — Jeanel Alvarado, Founder and CEO of RETAILBOSS

Looking Ahead

As the online resale market continues its rapid expansion, expect further innovation and diversification in the sector. AI-powered tools are driving resale adoption by reducing thrift overwhelm and bridging the gap between shopping used and new, with 78% of retailers having already made significant investments in AI. The future of fashion is undoubtedly becoming more circular, as consumer preferences shift towards sustainability, the line between new and secondhand will continue to blur, creating a more circular and conscious approach to fashion consumption.

To see the 2025 Resale Report, visit thredup.com/resale.