Secondhand Luxury Goods Market Report

Secondhand Luxury Goods Market Size:

The global secondhand luxury goods market size reached US$ 34.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 72.3 Billion by 2032, exhibiting a growth rate (CAGR) of 8.9% during 2024-2032. The market is primarily driven by the increasing sustainability consciousness, affordability of the product, increasing desire for unique pieces, increased accessibility through online platforms, growing influence of social media, and shifting consumer attituded toward ownership and consumption.

Secondhand Luxury Goods Market Analysis:

• Major Market Drivers: One of the main factors driving the secondhand luxury goods market is the increasing desire of consumers for eco-friendly and sustainable fashion options as they look to lessen their environmental impact. Additionally, consumers on a tight budget who want to purchase premium goods without the high price tag are drawn to the appeal of luxury brands at more affordable price ranges. The industry is expanding as a result of the emergence of internet platforms and resale markets, which have greatly increased the visibility and accessibility of pre-owned luxury items.
• Key Market Trends: Luxury resale markets and online platforms are booming, offering accessibility and ease to buyers and sellers. Furthermore, the concerns of consumers about counterfeit items are addressed by the rise of verification services and open product histories, which promote consumer trust.
• Geographical Trends: United States holds maximum number of shares in the market, driven by the rising environmental consciousness. China is not far behind, with a growing middle-class population and increasing demand for high-end products driving the secondhand luxury goods demand. These trends indicate a positive future outlook for secondhand luxury goods market.
• Competitive Landscape: Some of the major market players in the secondhand luxury goods industry include Fashionphile Group LLC, Fendi, Garderobe, Inseller, Luxepolis, Luxury Closet Inc., So Chic Boutique, The Closet, The RealReal Inc., Timepiece 360, Vestiaire Collective, and Yoogi’s Closet Inc., among many others.
• Challenges and Opportunities: Managing price swings, assuring authenticity, and dispelling the stigma attached to pre-owned goods are among the difficulties are some of the challenges in the market. Opportunities include affordability, sustainability, and easy access to well-known brands.
   

Secondhand Luxury Goods Market Trends:

Growing Awareness about Sustainable Shopping

Presently, the secondhand luxury goods market demand is escalating due to the growing consumer awareness about sustainable shopping methods. Individuals are turning to used luxury products as a more sustainable option as they become more aware of their influence on the environment. By extending the lifespan of products through pre-owned purchases, consumers can minimize the carbon footprint associated with the creation and delivery of new goods, as well as the need for new production. According to recent research by OXFAM, if every adult in the UK bought half of their next wardrobe secondhand, that could have a huge impact on the environment, saving 12.5 billion kilograms of carbon dioxide emissions from entering the atmosphere. This sum is the same as a plane traveling around the earth more than 17,000 times. These results had been released in conjunction with Oxfam's yearly Second Hand September campaign, which encourages individuals in Wales to embrace used clothing and support sustainability by shopping secondhand and donating unwanted goods.

Rising Popularity of Thrifting

The growing popularity of thrifting and the rise in the number of thrift stores, offering pre-owned luxury goods are the primary secondhand luxury goods market drivers. As per a report published by GITNUX, about 70% of consumers have either bought or stated they are open to buying used goods. This finding is significant as it indicates that the thrifting community is becoming more environmentally, morally, and trend-aware. It also depicts the significantly growing popularity of second-hand goods. The aforementioned data highlights opportunities for thrift stores and platforms to expand, and it also highlights the increasing propensity of contemporary consumers to make sustainable and cost-conscious purchases.

Increasing Number of E-Commerce Platforms Selling Secondhand Luxury Items

The growing number of e-commerce platforms offering diverse pre-owned luxury goods is propelling the secondhand luxury goods market growth. As per Forbes, the retail e-commerce sector grew by 16 per cent in 2021, bringing in over 4.9 trillion dollars in sales globally. By 2025, this amount ought to expand by 50% to $7.4 trillion. E-commerce platforms offer a worldwide reach, facilitating connections between vendors and customers around the globe. This expands the number of potential buyers for used luxury products that might have been previously restricted by location. In addition, the emergence of e-commerce sites selling pre-owned luxury products lends credence to the circular economy theory, which holds that commodities should be reused rather than thrown away after usage. This reduces waste and increases the useful life of upscale products.

Secondhand Luxury Goods Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product type, demography, and distribution channel.

Breakup by Product Type:

• Handbags
• Jewelry & Watches
• Clothing
• Small Leather Goods
• Footwear
• Accessories
• Others
   

Handbags accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes handbags, jewelry and watches, clothing, small leather goods, footwear, accessories, and others. According to the report, handbags represented the largest segment.

Handbags are stylish accessories manufactured to contain personal belongings such as keys, wallets, makeup, and other necessities. According to a report published by GITNUX, with a 3.5% annual growth rate, the handbag market in Japan is expected to reach $5.5 billion by 2025. Handbags are frequently carried by individuals as practical accessories and fashion statements. They are available in a variety of forms, sizes, materials, and styles. Designers and brands use a variety of materials, such as leather, fabric, and synthetic materials, to produce them. They can be embellished with handles, straps, clasps, zippers, and other items. They are frequently marketed as spacious, open-topped bags that can hold a range of objects. They are frequently utilized for business, shopping, and informal get-togethers. They can also be found as tiny, strapless handbags that are meant to be handled in the hand or tucked under the arm. This versatile nature of handbags is driving its demand in the market.

Breakup by Demography:

• Women
• Men
• Unisex
   

Women holds the largest share of the industry

A detailed breakup and analysis of the market based on the demography have also been provided in the report. This includes men, women, and unisex. According to the report, women accounted for the largest market share.

According to a market report published by GITNUX, from 2020 to 2025, the US women's luxury bag market is expected to expand at a compound annual growth rate (CAGR) of 4.6%, with a projected value of $14 billion. As women buy used luxury products, the cost of ownership is substantially lower than buying them new. This is particularly enticing to women who wish to buy economical luxury goods. In addition, women frequently buy designer goods with distinctive details and patterns in order to change up their appearance and try on various outfits. Besides this, access to sought-after brands and designs that could be challenging to find through traditional retail channels is one of the factors positively influencing the secondhand luxury goods market outlook. In addition, more women are choosing to invest in the future of secondhand luxury goods as a result of the growing availability of limited-edition luxury goods.

Breakup by Distribution Channel:

• Offline
• Online
   

Offline represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes offline and online. According to the report, offline represented the largest segment.

At offline stores consumers can physically inspect things before making a purchase to ensure they are authentic. According to the INDIA BRAND EQUITY FOUNDATION (IBEF), the Indian retail market is expected to reach US$ 1.1 trillion by 2027 and US$ 2 trillion by 2032.Consumers become more confident about the authenticity and quality of the product. Online platforms might find it difficult to match the customized purchasing experience offered by offline retailers. Clients can speak with informed employees that can answer inquiries instantly, offer styling tips, and provide information about the products. Consumer happiness and the shopping experience can be improved by this caliber of customer service. Purchasing something in person instead of waiting for it to be shipped allows consumers to leave the business feeling instantly satisfied.

Breakup by Region:

• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Others
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • Iran
  • United Arab Emirates
  • Others
     

Europe leads the market, accounting for the largest secondhand luxury goods market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others); and the Middle East and Africa (Turkey, Saudi Arabia, Iran, United Arab Emirates, and others). According to the report, Europe represents the largest regional market for secondhand luxury goods.

On account of the growing public awareness about environmental issues and the growing emphasis on sustainable buying behaviors, Europe accounted for the largest proportion of the market. According to a report published by IMARC, the Europe secondhand luxury goods market size reached US$ 18.0 Billion in 2023. In addition, the industry is expanding due to the increasing use of authentication procedures to stop luxury goods from being counterfeited. The industry is expanding as a result of the growing number of flagship stores for luxury brands and thrift shops that offer previously owned luxury goods at reduced costs.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the secondhand luxury goods industry include Fashionphile Group LLC, Fendi, Garderobe, Inseller, Luxepolis, Luxury Closet Inc., So Chic Boutique, The Closet, The RealReal Inc., Timepiece 360, Vestiaire Collective, and Yoogi’s Closet Inc.
• Key companies in the dynamic secondhand luxury market are positioning themselves in a strategic position to take advantage of changing customer preferences and industry developments. Well-known luxury resale marketplaces such as Vestiaire Collective and The RealReal are constantly expanding their product portfolios, improving their authentication procedures, and making technological investments to deliver a flawless buying experience. In order to promote circularity in the market and ease resale, they are also collaborating with luxury labels. Furthermore, fashion rental services such as Rent the Runway are gaining traction, which give consumer the access to designer clothing without the obligation of ownership. Moreover, key players also enter into partnerships, collaborations and acquisitions in order to expand their consumer base. For instance, in October 2022, RealReal Inc. announced a circular partnership with Jimmy Choo on National Consignment Day.

Market News:

• March, 2023: RealReal, Inc. announced that it has improved its consignment service model, now known as RealService. This includes the addition of a Consignor Concierge team to provide sellers with guidance at each stage of the consignment process.
• 2023: Vestiaire Collective and Giglio.com collaborated to launch a circular economy concept that would allow individuals to resell recognizable clothing items from their closets and encourage mindful purchase.

Secondhand Luxury Goods Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the secondhand luxury goods market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global secondhand luxury goods market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the secondhand luxury goods industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.