Key Facts
- ✓ The secondhand fashion and luxury market is forecast to grow two to three times as fast as the firsthand market through 2027.
- ✓ Online resale is projected to grow at an annual rate of 16% over the next two years, driven by digital platforms.
- ✓ In 2024, online marketplaces accounted for 88% of all resale spending, highlighting the dominance of digital channels.
- ✓ President Donald Trump's tariffs in 2025 helped boost the US secondhand market as shoppers sought more stable options.
- ✓ Gen Z is the primary demographic driving the growth of resale apps like Depop and Vinted, prioritizing individuality and value.
Quick Summary
The secondhand fashion and luxury market has surged, with Gen Z at the forefront of a retail transformation. Young consumers are increasingly choosing pre-owned items over new apparel, a trend that is reshaping the entire fashion industry.
This shift is not a fleeting moment but a sustained movement. The resale market is forecast to grow two to three times as fast as the firsthand market through 2027, signaling a fundamental change in consumer behavior and industry economics.
The Resale Revolution
Secondhand shopping is becoming the first choice for many consumers, particularly those in younger demographics. This preference is driving significant growth in platforms that facilitate the resale of clothing and accessories.
Online resale is a major engine of this expansion. Market analysis projects that online resale will grow at an annual rate of 16% over the next two years, highlighting the digital nature of this modern retail shift.
The scale of this growth is substantial. According to a November report from The Business of Fashion and McKinsey, the secondhand fashion and luxury market is on a trajectory to dramatically outpace its traditional counterpart.
Key platforms capitalizing on this trend include:
"Shopping for vintage clothes ignites a sense of individuality that fast-fashion can't always achieve."
— Three Gen Z shoppers, Retail Conference
Gen Z's Influence
Gen Z is the primary demographic driving the growth of resale apps. Their shopping habits are fundamentally different from previous generations, prioritizing sustainability, value, and unique personal expression.
At a retail conference in January, three Gen Z shoppers explained their preference for vintage clothing. They noted that shopping for pre-owned items ignites a sense of individuality that fast-fashion brands often cannot achieve.
Shopping for vintage clothes ignites a sense of individuality that fast-fashion can't always achieve.
This desire for unique style is coupled with a practical search for value. The availability of more platforms than ever before makes it easier for consumers to find specific items at lower price points, creating a powerful incentive to choose resale over new.
Economic Drivers
Beyond consumer preference, broader economic conditions have also influenced the secondhand market's expansion. In 2025, President Donald Trump's tariffs played a role in boosting the US secondhand market.
The negotiations and subsequent uncertainty surrounding imported goods created volatility in the new apparel market. This pushed some US shoppers toward more stable and predictable options, such as thrifting and buying pre-owned items.
Online marketplaces have become the dominant channel for these transactions. In 2024, they accounted for an impressive 88% of all resale spending, according to the November report. This underscores the critical role of digital platforms in facilitating the modern secondhand economy.
Market Forecast
The momentum from 2025 is expected to continue into the new year. The resale market is on track to keep growing, with no signs of slowing down as consumer habits solidify.
The forecast through 2027 suggests a continued and robust expansion. The secondhand market's growth rate, projected to be two to three times faster than the firsthand market, indicates a lasting structural shift in retail.
As platforms evolve and more consumers embrace the benefits of resale, the industry will likely see further innovation in logistics, authentication, and user experience. The foundation for a permanent change in how people shop has been firmly established.
Key Takeaways
The data points to a clear and enduring trend: secondhand shopping is no longer a niche activity but a mainstream consumer behavior. Led by Gen Z, this movement is supported by both cultural values and economic realities.
For the fashion industry, this means adapting to a new landscape where resale is a key component of the market. For consumers, it represents more choices, better value, and a greater opportunity for personal expression through style.
