Secondhand Market Outpaces Traditional Retail Growth Amid High Prices

Consumers are turning to used goods at a pace that exceeds traditional retail, a shift driven by rising costs and tariff impacts on new imports. The global secondhand shopping market is expected to reach $393 billion by 2030, growing twice as fast as the traditional retail sector, according to a Resale Report from ThredUp. This expansion has led the U.S. Bureau of Labor Statistics to include secondhand purchases in its Consumer Price Index as of early 2025, formally integrating resale transactions into official inflation tracking.

Alon Rotem, chief strategy officer at ThredUp, attributes the surge to energy prices and tariffs that have made imported clothing more expensive than domestic options. Secondhand items are exempt from these tariffs because they circulate within the United States rather than crossing international borders. Stephanie E. Raible, an associate professor of social innovation and entrepreneurship at the University of Delaware, notes that fast fashion, often imported from China, is particularly affected by these trade costs. As the price of new, imported garments rises, shoppers are seeking alternatives that stay within budget.

Participation in the resale economy has expanded beyond just buying. In 2025, 59% of Americans shopped secondhand, a 7 percentage point increase from 2022. Taylor Bowley, an economist at the Bank of America Institute, observes that consumers are increasingly using these platforms to generate additional income. Bank of America data shows that the number of customers selling secondhand clothing rose by 16%. This trend allows individuals to monetize unused items, creating a supplementary income stream while reducing waste.

Major traditional retailers are adapting to this demand by embedding secondhand options into their e-commerce strategies. Brands such as Levi’s, Lululemon, and Patagonia now offer resale services directly through their websites. Raible explains that these companies are developing new branches and strategies to capture this demand, recognizing that customers value both savings and environmental responsibility. The integration of resale into mainstream retail signals a structural change in how clothing is bought and sold.

While environmental concerns influence purchasing decisions, Rotem states that price and product quality remain the primary drivers for most shoppers. The fashion industry is the second-largest polluting industry globally, and over 80% of unworn clothes are eventually discarded. However, for the average consumer, the economic benefit of lower prices takes precedence over sustainability goals. The market is growing four times faster than traditional retail, and Rotem notes that the 14th annual resale report confirms the sector’s continued expansion with larger market entrants each year.