The Second-Hand Fashion Market: Rethinking Retail
The secondhand fashion market is no longer small-scale or even a budget-friendly alternative. It is now a flourishing, fast-growing sector that is changing fashion retail.
Consumer attitudes towards sustainability, ethics and the importance of individuality have seen second-hand retail gain meaningful momentum, both online and on the high street. This sector, characterised by charity shops that rival high-end boutiques and slick online marketplaces brimming with designer cast-offs, is significantly transforming the way we shop, dress, and interact with the fashion industry.
Although the resale clothing market is expanding at a faster rate than new product sales in some areas, it has not yet “overshadowed” new product sales or become the only driver of volume increases in the clothing category. Perhaps the situation will change in the future.
Studies conducted by OC&C Strategy Consultants indicate that the UK’s secondhand sector is worth more than £7 billion, with about 25% of fashion transactions in the country going for resale. Forecasts indicate that by 2029, this subsector will account for 10% of total fashion expenditure.
Never Miss a Retail Update!Throughout this blog, we’ll look at a few of the causes of this shift, including eco-consciousness, the migration of secondhand retail to the internet and how fashion brands are ramping up or rethinking circular business models to meet demand. We will also briefly discuss best practices, challenges like avoiding greenwashing in fashion and the cultural change that is turning secondhand fashion into a modern wardrobe staple.
A market in transition
Fuelled by increasing consciousness of the environmental impact of fast fashion, the secondhand fashion market has emerged as a global movement, contributing to the growth of a global market for sustainable apparel. The international secondhand clothing market is estimated to hit $367 billion by 2029, tracking a CAGR of 10%, which is a fivefold increase from the general retail clothing industry in 2024.
The United Kingdom’s secondhand apparel industry is anticipated to witness a CAGR of 9.3% through 2034. Faster than the UK retail clothing market as a whole, this indicates a strong consumer appetite for pre-owned clothing. Online resale channels like Vinted, eBay and Depop are leading the way, fuelled in large part by London (as the UK’s capital and fashion hub, it holds about 35% of the UK’s secondhand apparel market share) and the younger generations, where over half of consumers are from the post-millennial generation.
Online second-hand retail is no longer just for basic classifieds and bargain hunters. It now has evolved into curated collections, digital thrift stores, and even the occasional collaboration with a mainstream brand, making thrift shopping accessible to a wider audience.
The collaboration between River Island, Reskinned and eBay to resell pre-loved pieces was one example of how high street brands are embracing a circular economy in retail , which extends the life of their garments.
Another example is the collaboration between Gucci and The RealReal. In 2020, Gucci created a microsite in partnership with The Real Real, the world’s largest online consignment store, where authenticated secondhand Gucci is for sale. It hustled together a luxury mainstream label and a digital resale giant, democratising curated, high-end vintage shopping to a wider range of consumers
Why secondhand fashion is booming
There are a few factors behind the boom in secondhand fashion:
- Sustainability: Shoppers are becoming more eco-aware. Secondhand purchases help divert textile waste from landfill and reduce carbon emissions. Second hand consumption instead of buying new clothes can result in 42% less climate change impact and 42% less cumulative energy demand, as well as 53% less water scarcity footprint per use. The rise of sustainability trends in retail has led to a dramatic increase in the popularity of purchasing previously owned things.
- Cost and value: In a time of rising prices and financial insecurity, used clothing brings us high quality at a lower cost, democratising style. In 2024, 62% of consumers said if new government policies dictate that apparel should be more expensive, they would look for cheaper choices, including secondhand.
- Uniqueness: Shoppers want to find unique items that are not cookie-cutter. Shopping second-hand and pre-loved fashion is like going on a treasure hunt that fast fashion just can’t compete with.
- Corporate social responsibility: Retailers are under increasing scrutiny from CSR groups who want them to demonstrate their dedication to doing business ethically. Brands may show they care about corporate social responsibility in retailing by taking part in secondhand projects that contribute to the retail circular economy.
The rise of second hand retail online
The internet has transformed the way we shop for second-hand clothes. In 2024, 58% of those who bought used clothing for themselves shopped online, and today 56% of younger generations say secondhand is the first place they go to look for clothes. It’s not merely that internet marketplaces have levelled the playing field When it comes to purchasing pre-owned apparel, it is important to allow individuals from all walks of life to obtain vintage, designer, and slightly worn items more easily.
Loopi’s UK launch, due in 2025, will continue to shake up the scene, with the world’s first fully circular platform connecting fashion enthusiasts to inspiring, curated, traceable secondhand fashion. And that’s a very meaningful shift toward tech-driven, scalable resale ecosystems.
Online resales are also making the market more transparent. Shoppers can see the history, condition, and sustainable attributes of items, which sets up an expectation of trust.
Secondhand fashion as a business strategy
Secondhand fashion is rapidly emerging as a crucial component of many brands’ retail strategies.
Throughout the fashion industry, from start-ups to legendary labels, secondhand offerings are benefiting businesses:
- Meet ESG goals: Brands can demonstrate KPIs towards sustainability goals and a smaller environmental footprint by extending the life of garments.
- Activate Gen Z and Millennials: Two-thirds of the younger generations bought secondhand apparel in 2024, and almost half (47%) of all Gen Z/Millennial consumers bought secondhand from a brand. They get their money’s worth from secondhand clothing.
- Drive revenue: Direct-lift provides incremental revenue channels and improves customer lifetime value by keeping customers within a brand ecosystem.
Retailers like H&M, COS, and John Lewis have introduced take-back schemes and resale offerings to position themselves as leaders in ethical leadership. These initiatives not only help to underpin sustainability in retail stores; they also function as a safeguard against the reputational pitfalls of greenwashing.
Ethical fashion and avoiding greenwashing
The more brands join the secondhand bandwagon, the more urgent ethical practices in fashion industry and clear communication become. Retailers must avoid greenwashing in fashion, as consumers are increasingly discerning and expect brands to uphold ethical standards.
Retailers will need to incorporate sustainable practices in retail into every step of the process, from sourcing to packaging to post-sale services such as repairs and resales. Regarding ideas for reducing waste in secondhand retail and reliable environmental claims, consult our sustainable retail packaging guide.
Community, culture, and the secondhand movement
Secondhand fashion is not just a retail model; it’s a cultural movement that aligns with larger values around community, reuse, and conscious consumption.
Events like Oxfam’s Second Hand September and The Good Clothes Show are helping to mainstream the idea of buying secondhand, reaching new audiences and reinforcing the value of shopping secondhand.
Reality shows like Love Island are also helping shift perceptions. For several seasons, eBay has teamed up with stylist Amy Bannerman to dress Love Island contestants in pre-loved apparel, with the goal of changing public perceptions and attitudes towards used clothing.
The role of charity shops and local engagement
The secondhand fashion market still heavily relies on physical shops. Charity shops are still at the heart of sustainable fashion, community and local impacts. They sponsor grassroots movements and have the potential to cut down on product waste, all of which fits into the perfect ethos for a retail circular economy.
Secondhand fashion is the unlikely opportunity for community engagement to save the high street. Partnerships with charity shops, local swap events, and in-store resale boutiques drive foot traffic, encourage brand loyalty, and stimulate local economies.
Building trust through transparency
Trust is everything in the retail as well as resale world. Both online and offline, consumers demand confidence in product condition, value and authenticity.
Retailers entering this market should focus on:
- Clear product descriptions
- Authenticity verification
- Quick return and refund policy
- Transparent sustainability credentials
These factors are crucial to the customer experience and will distinguish the quality from the quantity.
The future of fashion retail is circular
In the future, the secondhand fashion market will probably play a part in the broader fashion ecosystem, instead of being an independent category.
The worldwide secondhand market will surge to $350 billion by 2027, nearly twice the current size, and $367 billion by 2029. 34% of the apparel budget is planned to be spent on secondhand in the next 12 months, with Gen Z and Millennials planning to spend almost half (46%) on secondhand.
In addition, retailers will directly incorporate resale into their e-commerce platforms and automation as AI scales the online secondhand retail market. 48% of consumers say AI-enabled personalisation makes shopping secondhand as easy as buying new.
Businesses that adapt to this change now will not only future-proof their operations but also lead the way in ethical, sustainable fashion retail.
Final thoughts
The second-hand fashion market’s ascent is a reimagining of what fashion retail can be. A chance to marry ethics with innovation, commerce with conscience, and sustainability with style. Whether you’re a shopper seeking a unique wardrobe staple or a retailer strategising your next move, secondhand fashion is emerging as a future-ready solution.
Shopping second-hand isn’t just about cheapness; it’s about responsibility. It’s about saying no to fast fashion and saying yes to quality, ethical, eco-friendly style and supporting a fashion industry that values people and the planet. And in turn, secondhand retail online and offline is redefining fashion and what it means to be a responsible brand.
Why not submit an application for a retail award if your company is currently making strides towards sustainability by participating in the secondhand market and reimagining retail? To bring attention to the significant changes your team is implementing, contact People in Retail Awards.
