Secondhand shopping, specifically thrifting, has seen a significant increase in popularity due to the recession. In 2021, recommerce grew by nearly 15 percent, marking the highest growth rate in the history of the secondhand industry. This growth can be attributed to sustainable shopping habits and the influence of platforms like TikTok. A report from OfferUp, in partnership with GlobalData, states that 272 million Americans, equivalent to the number of smartphone owners, engage in buying and/or selling pre-owned goods. Americans spend an average of 27 minutes per day on digital secondhand marketplaces, driven by the desire to find the best deals. Lower prices and reduced carbon footprint are the main motivators for shopping secondhand. The recommerce market is expected to reach $178 billion in 2022 and $289 billion by 2027. The recession has also led to an increase in selling habits, with many Americans using pre-owned marketplaces as a source of income. Brands, including Urban Outfitters and PacSun, have joined the resale market, indicating the potential future of fashion. Thrifting offers a sustainable alternative to the overproduction and constant replenishment of cheap clothing, making it a positive change in consumer habits.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Recommerce grows by 15% in 2021 | Increase in popularity of secondhand shopping | Secondhand spending hits $178 billion in 2022 and $289 billion by 2027 | Desire to save money and reduced carbon footprint |
| Americans spending more time on digital secondhand marketplaces | Shift in consumer behavior towards online thrift shopping | Increased reliance on digital platforms for secondhand shopping | Desire to find the best deals and convenience of online shopping |
| Lower prices and reduced carbon footprint motivate secondhand shopping | Motivators for shopping secondhand shift towards affordability and sustainability | Increased importance of affordable prices and environmental consciousness | Desire to save money and reduce environmental impact |
| Reselling platforms expected to see increased usage | Growth in buying and selling of pre-owned products through reselling platforms | More Americans engage in buying and selling pre-owned products | Inflation impacts decision to shop secondhand and desire for additional income streams |
| Brands joining the resale market | Brands incorporating pre-owned product lines | More brands offer secondhand products | Profit potential and response to consumer demand for sustainable options |
| Thrifting could be the future of fashion | Thrifting becomes a dominant trend in the fashion industry | Increased adoption of thrifting as a sustainable fashion practice | Growing awareness of the environmental impact of fast fashion and desire for more sustainable alternatives |