Thred Up predicts resale industry growth to 41 billion dollars in 2022

As retail has been in decline the past few years, it seems that it might be time for a new category of the industry to rise. Resale distributors have been creating a comeback in recent years as part of a new trend in fashion. According to the 2018 report by resale company Thred Up, resale apparel has been moving forward in the industry capturing more market share than ever before.

The company's 6th Annual Resale Report states that in 2017, 44 million women tried secondhand shopping increasing significantly from the 35 million women who used secondhand stores the previous year. According to the Thred Up report, one in three women ages 18 and over shopped secondhand year, creating a more mainstream trend for thrift shopping. From 2017 to 2018, leading resale disruptors include ThredUp with 130 million dollars in funding, The RealReal with 173 million dollars in funding, and Poshmark with 153 million dollars in funding. Additional players in the resale market also include Depop, Rebagg, Tradesy, and Grailed.

Resale continues to emerge in the fashion industry moving past retail

The report also shows that resale is growing at a faster rate than retail. The analysis shows growth rates from 2017 resulting in a 49 percent increase, in comparison to a 2 percent increase in apparel retail. Currently, apparel accounts for 49 percent of the current resale market, resulting in a worth of 20 billion dollars. Thred Up's report shows that the resale market is highly likely to reach 41 billion dollars by 2022. Also, 70 percent of Thread Up customers had never secondhand shopped before, according to the report.

As the trend continues, it's interesting to see what will end up happening in the world of resale. The report shows that according to a poll, 71 percent of consumers are more likely to spend their money on resale shopping. With millennials continually striving for eco-friendly and sustainable ways to improve fashion, it's likely that Thred Up's prediction on the future of resale may prove to be true.

Images: Thred Up