- U.S. secondhand apparel sales rose about 14% in 2024, with online resale up 23%, far outpacing traditional apparel growth.
- Sales in the Census “miscellaneous store retailers” category climbed about 8.5% year over year to $147.5B, with economists attributing much of the lift to secondhand spending.
- Consumers, especially younger shoppers, are shifting to resale as tariffs and higher new-goods prices bite and as digital platforms make secondhand easier to shop.
- Growth is strong but faces profitability and scaling risks from supply, logistics, and unit-economics pressures.
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Secondhand retail is no longer a fringe sector—it’s breaking into core retail dynamics and shaping discretionary spend. The data reveal a clear decoupling: while traditional apparel sales are sluggish or modestly growing, resale (both online and in-person) is accelerating, supported by shifting consumer sentiment, policy headwinds for new goods, and rising efficiency in the platforms serving these markets.
Magnitude of growth and projections: In 2024, the U.S. secondhand apparel market expanded ~14%, with online resale growing even faster (23%)—both figures represent the strongest performance since 2021. ThredUp estimates the domestic market will hit ~$74 billion by 2029, with global secondhand apparel expected to reach ~$367 billion in the same timeframe.
The miscellaneous retail boost: The Census “miscellaneous store retailers” category saw an 8.5% increase over 10 months through late 2025, with sales hitting USD 147.5 billion. Economists believe secondhand transactions are a major driver within that uptick—driven by items like used apparel, pet gear, and other resale-friendly goods.
Drivers: value, policy, technology, and acceptance: Rising costs from tariffs and inflation are a strong catalyst. About 59% of consumers say they’ll turn to secondhand if new clothing becomes more expensive due to trade policies; among younger demographics this is even higher. Technology—especially AI—improves discoverability, reduces friction, and aligns resale shopping closer to the experience of buying new. Social commerce too is playing a larger role, especially among Gen Z. Added to this is cultural destigmatization: giving secondhand as gifts, using resale as a budget stretch tactic, and owning used goods is increasingly normalized.
Strategic implications: Retailers are under pressure to integrate secondhand offerings—either via their own resale programs or partnerships—or risk losing share. Brands with legacy inventory or sustainable credentials could leverage resale to preserve margin and engage value-oriented consumers. Investors should monitor unit economics: managing inventory, return rates, authenticity (especially in luxury), and enacted trade/tariff policy will influence profitability.
Risks and open questions: Projections assume continued growth in consumer acceptance and supply availability, but logistical costs (returns, inspection, refurbishing) remain high. Platforms may struggle with true profitability until operational scale and margin leverage improve. Also, policy risks loom—changes in tariff treatment of used goods, supply chain regulations, and environmental legislation could cut both ways. Will the 2025 holiday shift toward secondhand persist once economic pressure eases?
Supporting Notes
- The ThredUp 13th Resale Report states U.S. secondhand apparel grew ~14% in 2024 and online resale ~23%, with forecasts putting U.S. resale market at ~$74 billion by 2029.
- Global used apparel grew 15–18% in 2023, per GlobalData/ThredUp, with secondhand representing close to 10% of global apparel sales, projected to reach $350–367 billion by 2028–2029.
- The miscellaneous store retailer category increased sales by 8.5% year-on-year (10 months), reaching $147.5 billion, with much of that attributed to secondhand sales.
- 59% of consumers say if new apparel prices increase due to tariffs or trade policy, they will shift toward secondhand; among younger demographics this figure is higher.
- Nearly 40% of holiday budgets in 2025 are planned for secondhand gifts, up from ~30% during regular shopping; more than half of shoppers intend to sell personal items to fund gifting.
- Younger consumers are more likely to view secondhand first when shopping for apparel—48% say secondhand is the first place they look; social commerce plays a key channel: 39% of younger shoppers made a resale purchase via social platforms in the past 12 months.
- Despite growth, resale platforms face pressure: for example, some brands report losses; platforms like ThredUp emphasize operational improvements to reach profitability.