ThredUp has reported the findings from its 2025 Resale Report, conducted by third-party retail analytics firm GlobalData, including insights about tariff and trade implications, how social commerce and AI are reshaping retail and the U.S. government’s role in managing textile waste.

“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale,” suggested CEO James Reinhart at ThredUp. “From the integration of social commerce and innovative AI applications to the establishment of trade organizations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory.”

The Top 5 Trends from ThredUp’s 2025 Resale Report
(all figures pertain to the U.S. unless otherwise noted)

1) In 2024, the U.S. secondhand apparel market had its strongest growth since 2021. Online resale saw accelerated growth for the second consecutive year.

  • The global secondhand apparel market is expected to reach $367 billion by 2029, growing at a compound annual growth rate (CAGR) of 10 percent.
  • The U.S. secondhand apparel market is expected to reach $74 billion by 2029.
  • The U.S. secondhand apparel market grew 14 percent in 2024, seeing its strongest annual growth since 2021 and outpacing the broader retail clothing market by 5X.
  • In 2024, online resale saw accelerated growth for the second consecutive year at 23 percent, growing at its strongest rate since 2021 and expected to nearly double in the next 5 years, growing at a CAGR of 13 percent to reach $40 billion by 2029.

2) Tariffs are expected to provide a tailwind to the secondhand market as shoppers prioritize affordability and retailers seek stability.

  • 59 percent of consumers said if new government policies around tariffs and trade make apparel more expensive, they would seek more affordable options, including secondhand. This figure is highest among Millennials at 69 percent.
  • Consumers plan to spend 34 percent of their apparel budget on secondhand in the next 12 months. This figure is higher among Gen Z and Millennials, who said they would spend nearly half (46 percent) on secondhand.
  • 80 percent of retail executives expect new government policies around tariffs and trade to disrupt their global supply chain.
  • 44 percent of retail executives are looking to reduce reliance on imported goods, and 54 percent believe resale offers a more stable and predictable source of clothing in the face of potential tariff fluctuations.

3) Retailers view resale as a new revenue stream that helps them stay competitive and acquire new customers.

  • 94 percent of retail executives said their customers are participating in resale, an all-time high, +4 pts from 2023.
  • 32 percent of consumers who bought secondhand apparel in 2024 purchased directly from a brand, including 47 percent of younger generations who have.
  • 47 percent of consumers are more likely to make a first-time purchase with a brand if they offer shopping credit for trading in used apparel, +25 pts from 2023.

4) Retailers can unlock revenue by integrating social commerce and resale for omni-channel success.

  • 39 percent of younger generation shoppers have made a secondhand apparel purchase on a social commerce platform in the last 12 months, including 28 percent of consumers overall
  • 50 percent of younger generation shoppers who purchased secondhand apparel in the last 12 months purchased it to create content or share it on social media.
  • 76 percent of retail executives reported that social commerce will significantly drive resale adoption within their brand.
  • 38 percent of retail executives allow customers to shop secondhand through a social commerce platform. Another 48 percent are considering integrating social commerce in the future.
  • 22 percent of retail executives believe social commerce will generate meaningful (> 10 percent of total) revenue within the next 3 years.

5) AI is driving resale adoption by reducing thrift overwhelm and bridging the gap between shopping used and new.

  • 48 percent of consumers said personalization, improved search and discovery make shopping secondhand apparel as easy as shopping new. Fifty-nine percent of younger generations said this.
  • 46 percent of consumers said if they can find an item secondhand, they won’t buy it new. Fifty-five percent of younger generations said this.
  • 78 percent of retailers have made significant investments in AI, and 58 percent plan to launch AI-powered tools in the next year.
  • 62 percent of retailers agree that AI has the power to make the secondhand shopping experience more appealing.
  • 44 percent of retailers agree that AI is bridging the gap between secondhand and new apparel.

“Resale continues to outpace the broader retail sector, with online resale in particular driving the sector’s growth,” added Neil Saunders, managing director at GlobalData. “Shoppers are prioritizing quality as resale value becomes an increasingly important factor in purchasing decisions, and retailers are evolving their secondhand offerings to meet consumer demand with new avenues like social commerce, further driving adoption and preference for secondhand.”

ThredUp’s annual resale report contains research and data from GlobalData, a third-party retail analytics firm. GlobalData determines its assessment of the secondhand market through consumer surveys, retailer tracking, official public data, data sharing, store observation, and secondary sources.

Go here to view ThredUp’s 2025 Resale Report.

Image courtesy ThredUp