Secondhand clothing market hits $289bn as AI boosts buyer discovery
Secondhand clothing sales are forecast to surge 12% this year to $289bn, driven by AI-powered discovery tools and social media influencers helping shoppers navigate resale platforms. The market is expected to grow 9% annually over the next five years, reaching $393bn-twice the pace of the broader clothing industry.
Platforms including Vinted, Depop, Vestige, and ThredUp are powering this shift. Resale now accounts for one-tenth of global clothing sales, according to ThredUp's annual report using research from GlobalData. In 2021, the market was worth just $141bn.
AI reduces friction in the buying process
James Reinhart, ThredUp's co-founder and chief executive, said AI is helping platforms catalog vast inventories so buyers find what they want faster. "Netflix and Spotify spent 15 to 20 years building data and algorithms. AI can do it almost instantly," he said.
The technology is also shortening the gap between discovery and purchase. When shoppers spot items on social media, AI-powered platforms now reduce the steps needed to complete a sale.
Major brands entering the secondhand space
Dr Martens, Zara, and Mulberry have launched secondhand offerings or repair services. This signals that established retailers view resale as a legitimate sales channel, not a threat.
ThredUp's sales rose 20% to $310.8m last year. Depop's sales climbed 42% to £101m, and Vinted's grew 36% to €813.4m in 2024. However, profitability remains elusive-ThredUp posted a $20m loss and Depop a £42m loss. Only Vinted turned a profit at €76.7m. Depop was sold to eBay last year after being acquired by Etsy.
Gen Z and millennials driving growth
Those aged 14 to 45 are expected to account for 70% of market growth. Neil Saunders, GlobalData's managing director, said platforms must meet these consumers where they already spend time: social media feeds.
"The global secondhand market is entering a more competitive, structurally complex phase," Saunders said. Platforms will need better technology to make selling easier and ensure enough inventory meets rising demand.
Potential inflation from geopolitical tensions could accelerate the shift. Higher energy and fuel costs for manufacturers may push more consumers toward secondhand items as a way to access desired brands at lower prices.
For sales professionals, this market expansion represents a growing segment where AI for Sales strategies-particularly around customer discovery and inventory matching-are becoming competitive advantages. Understanding how AI for Marketing drives resale growth also matters as traditional retail adapts to this shift.
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