Online Clothing Rental Market Report by Clothing Styles (Western Wear, Ethnic Wear, and Others), End User (Women, Men, Kids), Price Range (Low, Mid, Premium), End Use Sector (Business to Consumer (B2C), Business to Business (B2B)), Business Model (Peer-to-Peer Model, Standalone Model, Hybrid Model), and Region 2024-2032

Online Clothing Rental Market Report by Clothing Styles (Western Wear, Ethnic Wear, and Others), End User (Women, Men, Kids), Price Range (Low, Mid, Premium), End Use Sector (Business to Consumer (B2C), Business to Business (B2B)), Business Model (Peer-to-Peer Model, Standalone Model, Hybrid Model), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A1935
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Global Online Clothing Rental Market:

The global online clothing rental market size reached US$ 2.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 4.7 Billion by 2032, exhibiting a growth rate (CAGR) of 8.3% during 2024-2032. The increasing sustainability concerns, the escalating demand for special occasion attire, and the growing desire for fashion experimentation are some of the major factors propelling the market.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023
US$ 2.2 Billion
Market Forecast in 2032
US$ 4.7 Billion
Market Growth Rate (2024-2032) 8.3%


Online Clothing Rental Market Analysis:

  • Major Market Drivers: The increasing focus on promoting the reuse and recycling of garments is catalyzing the market. Moreover, the widespread accessibility of the internet and the proliferation of e-commerce platforms have made it convenient for customers to browse, select, and order rental clothing online, thereby contributing to the market.
  • Key Market Trends: The rising number of user-friendly interfaces, virtual try-on options, and hassle-free return processes have boosted customer confidence in online rental services, which is bolstering the market. In addition, with fashion trends evolving rapidly, individuals are keen on experimenting with new styles.
  • Competitive Landscape: Some of the prominent companies in the market include Clothing Rental, Dress & Go, Rent it Bae, Glam Corner Pty Ltd., Gwynnie Bee, Le Tote, Rent The Runway Inc., and StyleLend, among many others.
  • Geographical Trends: North America exhibits a clear dominance in the overall market, as consumers in the region are becoming more aware of the environmental impact of fast fashion and are opting for more sustainable consumption patterns.
  • Challenges and Opportunities: Logistical complexities, quality control and maintenance, and high competition among key players are some of the challenges hindering the market. However, continued advancements in technology, such as AI-driven virtual fitting tools, predictive analytics for inventory management, and improved logistics solutions, can enhance operational efficiency and customer experience.
     

Global Online Clothing Rental Market Report


Online Clothing Rental Market Trends:

Adoption of Subscription-based Services

Subscription models offer convenience by providing regular access to new clothing items without the need for frequent browsing and selection. Customers receive curated selections based on their preferences, making it easier to maintain a varied wardrobe. For instance, according to an article published by Pure London, in subscription models, the experience is individualized, as clients are able to fill in their sizes, preferences, wardrobe needs, and other details before receiving things chosen specifically for them. Moreover, subscribers have access to a wider range of clothing options, including seasonal trends, designer pieces, and niche styles. This variety allows consumers to experiment with different looks and styles without the commitment of purchasing. For example, in June 2024, lookingGlass, the on-demand fashion tech platform, launched its new monthly subscription plan, which allowed subscribers to receive on-demand fashion guidance when and when they wanted it. The program was specifically meant to empower millennial mothers by providing fast wardrobe recommendations tailored to their individual style preferences. Apart from this, some subscription services use data analytics and customer feedback to tailor selections to individual preferences, enhancing the personalized shopping experience for subscribers. These factors are further bolstering the online clothing rental market revenue.

Growing Sustainability Awareness

Consumers are increasingly conscious of the detrimental effects of fast fashion, which generates excessive waste and depletes resources. For instance, according to an analysis by Business Insider, fashion production accounts for 10% of total world carbon emissions. It depletes water resources and pollutes rivers and streams, while 85% of all textiles end up in landfills every year. Besides this, online clothing rental addresses this concern by extending the lifespan of garments through multiple rentals, reducing the need for constant production. This eco-friendly approach resonates with environmentally conscious consumers who seek more sustainable alternatives to conventional shopping. For example, as per the article published by Econyl, renting a single piece of clothing can save up to approximately 24% water, 6% energy, and 3% CO2 emissions compared to purchasing a new item. By opting for rental services, individuals actively contribute to the reduction of clothing waste and contribute to a circular fashion economy that aligns with their ethical values. For example, in an article reported by Gwi, 1 in 5 individuals in the United States prefer renting an outfit rather than buying one. This is contributing to the online clothing rental market forecast.

Increasing Demand for Occasional Wear

The rising demand for occasional wear has been a significant driver of growth in the market. Renting clothing for special occasions, such as weddings, parties, galas, and other events, offers a cost-effective alternative to purchasing expensive designer. For instance, in April 2023, the Wedding Wingman company introduced men's wedding attire in the United States. The products are listed on the Men's Wearhouse website. Many consumers prefer to rent rather than buy outfits they may only wear once or infrequently, thereby saving money while still looking stylish. For example, Rent the Runway, one of the key players in online clothing rental, doubled its revenue in Q1, from US$33.5 Million in 2021 to about US$67.1 Million in 2022, while its subscriber base rose 82% by the quarter's end of 2022. Besides this, renting clothing online provides convenience by eliminating the need to visit multiple stores in search of the perfect outfit. Instead, customers can browse extensive online catalogs, select items that fit their style and event requirements, and have them delivered directly to their doorstep. For instance, in May 2024, John Lewis launched a wide selection of menswear brands available for rent on the high street, including BOSS Tailoring, Charles Tyrwhitt, and the new brand Hay Life, among others. Customers can browse the inventory on their website based on the occasion and rent a garment for four, eight, sixteen, or thirty days, with next-day delivery available if needed. Once the items have been chosen, they are shipped directly to the address and will include a pre-paid postal label for returns, which is propelling the online clothing rental market share. 

 

 
 

 

Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.

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Global Online Clothing Rental Industry 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 from 2024-2032. Our report has categorized the market based on clothing styles, end user, price range, end use sector, and business model.

Breakup by Clothing Styles:

 

 
 

 

Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.

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  • Western Wear
  • Ethnic Wear
  • Others
     

Ethnic wear dominates the market

The report has provided a detailed breakup and analysis of the market based on clothing styles. This includes western wear, ethnic wear, and others. According to the report, ethnic wear represented the largest market segmentation.

Ethnic wear encompasses a wide range of traditional attire that resonates deeply with people's heritage, customs, and identity. This segment is not only favored during festivals and special occasions but also in day-to-day wear, making it an integral part of people's wardrobes. Moreover, the global popularity of ethnic wear can be attributed to its adaptability across various cultures and its timeless appeal. As people become more globally interconnected, there is a growing interest in exploring and celebrating diverse clothing styles. Online clothing rental platforms have facilitated access to a rich array of ethnic wear, enabling individuals to experience the richness of different cultures without having to invest in numerous traditional outfits. According to the online clothing rental market statistics, this resonance between tradition and modernity, coupled with the ease of accessibility, makes ethnic wear the largest and thriving segment in the landscape of clothing styles. For instance, in June 2024, Monsoon collaborated with MyWardrobe, a clothes rental company, to launch a capsule collection of bridalwear and occasion gowns for rent.

Breakup by End User:

  • Women
  • Men
  • Kids
     

Women hold the largest share in the market

The report has provided a detailed breakup and analysis of the market based on the end user. This includes women, men, and kids. According to the report, women represented the largest market segmentation.

According to the online clothing rental market outlook, women have historically been more closely associated with fashion and have a broader range of clothing options compared to men. This diversity in fashion choices naturally drives demand for different styles, outfits, and trends. Additionally, the empowerment and equality movements that have gained momentum in recent years have led to an increased focus on self-expression and individuality. Clothing is a significant avenue for women to convey their identity, beliefs, and aspirations. Online clothing rental platforms provide an opportunity for women to experiment with various styles and express themselves without committing to permanent purchases. Furthermore, the rise of social media has amplified the visibility of fashion choices, driving the desire for variety and newness among women. The convenience of online rental services also caters to busy lifestyles, making it easier for women to access a wide array of clothing for different occasions. For instance, in May 2024, Hurr Flex provided customers to rent apparel for £99. Customers can test out "elevated everyday" apparel and accessories from womenswear companies, including Acler, Aligne, Cecilie Bahnsen, Favorite Daughter, Rixo, and Sandro. 

Breakup by Price Range:

  • Low
  • Mid
  • Premium
     

Low price range dominate the market

The report has provided a detailed breakup and analysis of the market based on the price range. This includes low, mid, and premium. According to the report, the low price range represented the largest market segmentation.

Online clothing rental services catering to the low-price range segment tap into this demand, providing access to trendy and stylish clothing without the burden of high costs. Additionally, the democratization of fashion and the proliferation of online platforms have made fashion more accessible to a broader audience. The low-price range segment ensures inclusivity, allowing individuals from various economic backgrounds to engage in fashion exploration and experimentation. This inclusivity resonates with the ethos of online clothing rental, where diversity and variety are key selling points. Moreover, the rise of conscious consumerism has prompted a shift towards value-based shopping. Customers are increasingly inclined to seek cost-effective options that maintain quality. The low-price range segment addresses this demand by offering a curated selection of clothing that meets both style and budget considerations.

Breakup by End Use Sector:

  • Business to Consumer (B2C)
  • Business to Business (B2B)
     

Business to consumer (B2C) holds the largest share of the market

The report has provided a detailed breakup and analysis of the market based on the end use sector. This includes business to consumer (B2C) and business to business (B2B). According to the report, business to consumer (B2C) represented the largest market segmentation.

The rise of e-commerce and digital platforms has reshaped how consumers access goods and services, with B2C models facilitating direct interactions between businesses and individual customers. Online clothing rental services align seamlessly with this model, providing a user-friendly interface for consumers to explore, select, and receive rental garments. Additionally, the evolution of work culture, including remote work and virtual events, has sparked a demand for flexible and stylish professional attire. B2C online clothing rental caters to this need, allowing individuals to access a variety of business-appropriate outfits without the commitment of ownership. This is particularly relevant for those who seek to maintain a professional image without the need to invest in an extensive work wardrobe. Moreover, the B2C segment aligns with the consumer shift towards experiences over ownership. Renting clothing items provides consumers with the experience of wearing diverse styles, attending events, and expressing themselves without accumulating excessive items in their closets. The convenience of online platforms, coupled with the ability to browse and rent clothing from the comfort of one's home, reinforces the appeal of the B2C model in the online clothing rental market.

Breakup by Business Model:

  • Peer-to-Peer Model
  • Standalone Model
  • Hybrid Model
     

Standalone model dominates the market

The report has provided a detailed breakup and analysis of the market based on the business model. This includes peer-to-peer model, standalone model, and hybrid model. According to the report, the standalone model represented the largest market segmentation.

The standalone model allows for a clear and uncomplicated user journey. This is driving the online clothing rental market demand. Customers can easily access a dedicated platform, browse a curated selection of clothing, and rent items according to their preferences. This straightforward process aligns with the modern consumer's preference for seamless and intuitive online experiences. Additionally, the standalone model fosters brand loyalty and recognition. By exclusively offering rental services, these platforms can focus their resources on curating quality collections, refining user interfaces, and building a distinct brand identity. This specialization often translates into higher customer trust and satisfaction. Furthermore, the standalone model grants greater flexibility in tailoring services to match customer demands. Platforms can swiftly respond to changing trends and customer preferences, enhancing their agility in the dynamic fashion landscape.

Breakup by Region:

 

 
 

 

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  • North America
    • United States
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa
     

North America exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and Middle East and Africa. According to the report, North America accounted for the largest market share.

North America possesses a tech-savvy population with high internet penetration rates, creating an ideal environment for the proliferation of online platforms. This technological readiness has facilitated the growth of online clothing rental services, enabling easy access to a wide range of clothing options. Furthermore, consumers exhibit a strong inclination toward sustainable and eco-conscious practices. For instance, according to a survey conducted in the United States and published in the August 2021 issue of Sustainability, Gen Z adults are becoming more likely to rent clothing rather than buy them. Online clothing rental aligns well with this ethos, offering a sustainable alternative to traditional fast fashion consumption. As environmental concerns continue to shape consumer behaviors, the appeal of renting clothing over owning resonates significantly. Additionally, North America's diverse culture and frequent events fuel the demand for a variety of clothing styles. From everyday wear to special occasions, the convenience of renting outfits for specific events addresses the need for versatility and novelty.

Competitive Landscape:

Numerous leading players have invested heavily in building user-friendly and intuitive online platforms. These platforms offer seamless browsing, selection, and checkout processes, enhancing the overall customer experience and encouraging repeat usage. Additionally, partnerships with fashion brands and designers have enabled these players to expand their inventory and offer a diverse range of clothing options to customers. Collaborations with renowned designers create exclusivity and entice customers with high-end choices they might not have access to otherwise. Moreover, an emphasis on sustainability is evident through efforts to minimize waste and carbon footprints. Key players often prioritize circular fashion practices by ensuring garments are well-maintained, repaired, and cleaned to extend their lifespans. In line with this, personalized recommendations and virtual try-on technology have been integrated into platforms, enhancing customer engagement and addressing the challenge of ensuring the right fit and style for customers' preferences. Furthermore, data analytics and AI-driven insights have been employed to predict fashion trends, optimize inventory management, and tailor offerings to meet consumer demands.

The online clothing rental market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • Clothing Rental
  • Dress & Go
  • Rent it Bae
  • Glam Corner Pty Ltd.
  • Gwynnie Bee
  • Le Tote
  • Rent The Runway Inc.
  • StyleLend
     

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Online Clothing Rental Market Recent Developments:

  • June 2024: Monsoon collaborated with MyWardrobe, one of the online clothing rental companies, to provide a capsule collection of bridalwear and occasion gowns.
  • May 2024: John Lewis launched a wide selection of menswear brands available for rent on the high street.
  • May 2024: Hurr introduced Hurr Flex, a new system that can allow individuals to rent many pieces for extended periods of time for less.


Online Clothing Rental Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
  • Clothing Styles
  • End User
  • Price Range
  • End Use Sector
  • Business Model
  • Region
Clothing Styles Covered Western Wear, Ethnic Wear, Others
End Users Covered Women, Men, Kids
Price Ranges Covered Low, Mid, Premium
End Use Sectors Covered Business to Consumer (B2C), Business to Business (B2B)
Business Models Covered Peer-to-Peer Model, Standalone Model, Hybrid Model
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Clothing Rental, Dress & Go, Rent it Bae, Glam Corner Pty Ltd, Gwynnie Bee, Le Tote, Rent The Runway Inc., StyleLend, etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


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 online clothing rental market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global online clothing rental 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 online clothing rental industry and its attractiveness.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global online clothing rental market was valued at US$ 2.2 Billion in 2023.

We expect the global online clothing rental market to exhibit a CAGR of 8.3% during 2024-2032.

The sudden outbreak of the COVID-19 pandemic has led to the rising adoption of subscription-based models by numerous clothing rental companies, owing to the changing consumer inclination towards online retail platforms for renting clothes.

The growing fashion consciousness, the increasing demand for high-end designer clothing to keep up with the changing fashion trends, and the rising adoption of smartphones with improved internet connectivity are primarily driving the global online clothing rental market growth

Based on the clothing styles, the global online clothing rental market can be segmented into western wear, ethnic wear, and others. Currently, ethnic wear holds most of the total market share.

Based on the end user, the global online clothing rental market has been divided into women, men, and kids. Among these, women currently exhibit a clear dominance in the market.

Based on the price range, the global online clothing rental market can be categorized into low, mid, and premium. Currently, low price range accounts for the majority of the global market share.

Based on the end use sector, the global online clothing rental market has been segregated into Business to Consumer (B2C) and Business to Business (B2B), where Business to Consumer (B2C) currently holds the largest market share.

Based on the business model, the global online clothing rental market can be bifurcated into peer-to-peer model, standalone model, and hybrid model. Currently, the standalone model exhibits a clear dominance in the market.

On a regional level, the market has been classified into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market.

Some of the major players in the global online clothing rental market include Clothing Rental, Dress & Go, Rent it Bae, Glam Corner Pty Ltd, Gwynnie Bee, Le Tote, Rent The Runway Inc., StyleLend, etc.

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Online Clothing Rental Market Report by Clothing Styles (Western Wear, Ethnic Wear, and Others), End User (Women, Men, Kids), Price Range (Low, Mid, Premium), End Use Sector (Business to Consumer (B2C), Business to Business (B2B)), Business Model (Peer-to-Peer Model, Standalone Model, Hybrid Model), and Region 2024-2032
Purchase Options Year End sale




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