Surge in Secondhand Clothing Sales Driven by AI and Social Media

The secondhand clothing market is projected to grow by 12% this year, reaching $289 billion (£217 billion), with expectations of continued growth fueled by artificial intelligence (AI) and social media influencers. According to ThredUp’s annual resale report, which incorporates research from market analysts GlobalData, the sector is anticipated to expand at an average rate of 9% annually over the next five years, potentially hitting $393 billion. This growth rate is notably faster than the overall clothing market, which indicates a significant shift in consumer behavior towards resale.

The Guardian

The rise of platforms such as Vinted, Depop, Vestige, and ThredUp has been instrumental in this market expansion. In 2021, the secondhand clothing market was valued at $141 billion, less than half of the current forecast. Major brands, including Dr Martens, Zara, and Mulberry, are adapting to this trend by selling secondhand items or refurbishing used clothing. James Reinhart, co-founder and CEO of ThredUp, highlighted that resale now constitutes 10% of global clothing sales, with the U.S. secondhand market growing nearly four times faster than the broader market in 2025.

The Guardian

Despite the booming sales, many resale platforms face profitability challenges. ThredUp reported a pre-tax loss of $20 million, while Depop incurred a £42 million loss in recent years. In contrast, Vinted achieved a profit of €76.7 million (£710 million) in 2024. Depop was also sold to eBay by its previous owner, Etsy, indicating a shift in ownership strategies within the sector.

The Guardian

AI is playing a crucial role in enhancing the shopping experience by streamlining the process of finding secondhand items. Reinhart noted that AI reduces the “points of friction” between discovering an item on social media and completing a purchase. This technological advancement is expected to be pivotal in connecting inventory with younger consumers, particularly those aged 14 to 45, who are projected to drive 70% of market growth. Neil Saunders, managing director at GlobalData, emphasized the need for evolving discovery infrastructure to align with the social media habits of these consumers.

The Guardian

As the secondhand market enters a more competitive and complex phase, there are concerns regarding the sustainability of supply to meet rising demand. Critics argue that while technology can facilitate sales, it must also ensure that enough stock is available to satisfy consumer interest. The interplay between market growth, technological advancements, and consumer behavior will shape the future landscape of the secondhand clothing industry.

The Guardian

• “Resale is no longer just growing, it’s taking direct market share,” — James Reinhart, Co-founder and CEO of ThredUp

The Guardian

• “The next phase of this market will be defined by who can best unlock supply and use AI to connect that inventory with the next generation of shoppers,” — James Reinhart, Co-founder and CEO of ThredUp

The Guardian

• “The global secondhand market is entering a more competitive, structurally complex phase,” — Neil Saunders, Managing Director of GlobalData

The Guardian