AI, Tariffs And The Unexpected Rise Of Secondhand Fashion

Market Trends & Growth - The global secondhand apparel market is expected to reach $367 billion by 2029, growing almost three times faster than the overall global apparel market [3] - The U S secondhand apparel market is expected to reach $74 billion by 2029, growing 9% annually on average [8] - ThredUp reported that revenue grew 34% year-over-year in its third quarter 2025 earnings, with new buyer growth up 54% from the same period last year [12] Consumer Behavior & Preferences - Gen Z shoppers are driving the rise of secondhand fashion, with new shoppers accounting for 60% of all secondhand spending by 2029 and younger generations for nearly 70% [2][20] - Consumers are increasingly turning to resale platforms to save money and earn extra income, viewing resale as just as good as other options like fast fashion and private brands [3][11] - Affordability and sustainability are key values for Gen Z and millennials, making resale an attractive option [19] ThredUp Operations & Performance - ThredUp's warehouse in Suwanee, Georgia can house roughly up to 35 million items [1] - ThredUp processes roughly 40,000 articles of used clothing each day at its Suwanee, Georgia warehouse [1] - ThredUp receives more than 100,000 pieces of clothing every day [1] - ThredUp operates four facilities across the U S, collectively processing hundreds of thousands of secondhand items weekly [6] Impact of Technology & AI - AI tools, like Phia, are making it easier for shoppers to buy secondhand by comparing listings and personalizing results [4][16] - AI is accelerating the adoption of secondhand by providing unlimited search attributes and transforming online shopping [17][18]