The Secondhand Revolution: A 2025 Reality Check
If you think resale is just a “trend” for Gen Z to find vintage Levi’s, the 2025 ThredUp Resale Report just handed us a $367 billion reality check. We aren’t just looking at a shift in how we shop; we’re looking at a fundamental rewiring of the global supply chain, powered by AI, social commerce, and a looming “Tariff Tailwinds” era.Earlier this week I reported on the fact I am following Vinted’s push into the US this year. This Thredup report will make for helpful material for this.
Here is the breakdown of the “Secondhand First” economy.
1. The Macro: 2.7X Faster Than Retail
The global secondhand market is on track to hit $367 billion by 2029. To put that in perspective, it’s growing 2.7X faster than the overall global apparel market.
Global Pulse: In 2024, the market grew by 15%, now accounting for 9% of all global apparel spend.
The U.S. Story: The U.S. market specifically reached a new milestone, growing 5X faster than broader retail in 2024. By 2029, it’s expected to be a $74 billion powerhouse.
2. The Human Element: “Thrift Overwhelm” & The AI Cure
We’ve hit a friction point. 40% of consumers (and over half of younger generations) say they feel “overwhelmed” by the sheer volume of choices in secondhand. This is where the “Human-AI” partnership becomes the MVP.
The AI Bridge: 62% of retail executives believe AI will finally make secondhand as seamless as buying new.
Personalization is Table Stakes: 48% of shoppers say improved search and discovery tools make them choose used over new.
The V. Spot Take: We have a “curation” problem. The brands that win won’t just have the most inventory—they’ll have the best filters.
3. The “Tariff Tailwind”: A New Strategic Hedge
This is the most “candid” insight of the 2025 report. Retailers are no longer looking at resale just for ESG (Environmental, Social, and Governance) points; they are looking at it as a supply chain hedge.
The StatThe Impact80% of execs expect trade policies to disrupt supply chains.Secondhand is a “stable and predictable” domestic source.59% of consumers will flee to resale if prices rise.Resale becomes the “affordability safety net”.44% of execs want to reduce import reliance.Resale offers a way to “source” within our own borders.
Like the clothing, this is not new news.
4. Branded Resale: The New “Rising Stars”
Direct-to-consumer resale is no longer optional. 94% of retail executives say their customers are already participating in resale elsewhere. If you don’t own your secondhand market, someone else will.
The 2025 Leaders:
Top 3 Best Brands in Resale: Vuori, Lululemon, and Quince.
The “Rising Star” to Watch: The Limited claimed the #1 spot for growth in 2025.
Final Thought: The Power of “Resale Value”
We are entering an era of “Apparel as an Asset.” 47% of consumers now consider an item’s resale value before they even buy it new. For the younger generations, that number jumps to 64%.
We aren’t just buying clothes anymore; we’re managing a portfolio.