EYE on RETAIL: Secondhand goods sales to hit $325 billion
w research indicates the market for secondhand merchandise is growing rapidly.
According to the 2023 Reuse Report from online secondhand marketplace Mercari, the The resale market is expected to grow by an estimated 87% to $325 billion by 2031 from $174.1 billion in 2022. Nearly nine in 10 surveyed U.S. consumers planning to shop secondhand in the coming year; and one in three surveyed Gen Z consumers expect to buy more secondhand items and spend more time on online resale platforms.
Online is the fastest-growing channel for secondhand shopping and is forecast to account for more than half (56%) of secondhand spend by 2031. A total of 212 million Americans, or 82% of the adult population, shopped secondhand during 2022, up 7% from 197 million people in 2021
According to the study, kidswear was the fastest-growing resale category in 2022, with a 19% increase annually. Over the next 10 years, resale of kidswear is projected to grow by 146%.
Menswear was the second fastest-growing category in 2022, mainly due to increased participation among men. In fact, male participation in this category was slightly higher than female, which Mercari says can be attributed to growing acceptance of secondhand and the proliferation of resale destinations for things like sneakers and collectibles.
Other findings
- American households are currently sitting on an estimated 21.1 billion unused items. This equates to $559.8 billion in monetary value. Per household, this is an average of 161 items, a total value of $4,267.
- Thirty-seven percent of surveyed U.S. consumers have traded down to cheaper products to save money.
- Nearly one-third (31%) of surveyed Gen Z and millennial consumers plan to spend more money on sustainable brands in the next 12 months.
“It's a transformative time for resale,” said John Lagerling, CEO of Mercari U.S. "We're seeing an uptick in Gen Z and millennials taking part in the circular economy, largely due to their commitment to sustainability and interest in discovering one-of-a-kind items. As more consumers are entering the reuse ecosystem across generations, we anticipate that secondhand will become the first choice for many shoppers."
"Regardless of what draws them in initially, consumers will continue to engage in resale in the next 12 months, both as shoppers and sellers,” said Neil Saunders, managing director of GlobalData.
The 2023 Reuse Report is a follow-up to Mercari's inaugural Reuse Report in 2021. It was produced in association with GlobalData in February 2023.
