Secondhand Luxury Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Secondhand Luxury Market is segmented By Product (Handbags, Jewelry, Watches, Clothing, Small Leather Goods, Footwear, Accessories, Others), By Demography (Men, Women), By Distribution Channel (Offline, Online), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Secondhand Luxury Market Overview

Global Secondhand Luxury Market reached US$ 28.7 billion in 2022 and is expected to reach US$ 66.2 billion by 2030, growing with a CAGR of 11.0% during the forecast period 2023-2030.

The market for secondhand luxury goods is driven by the growing disposable income, the rise of e-commerce and sustainability concerns. With growing disposable income globally, consumers have more resources to spend on luxury items, both new and pre-owned. E-commerce platforms have made it easier for consumers to access and purchase secondhand luxury goods which is driving the expand of the market's reach and convenience.

Furthermore, sustainability has become a significant factor, with consumers opting for pre-loved items to reduce waste and support the circular economy. The shift reflects changing consumer values and preferences, with an emphasis on eco-conscious and financially savvy shopping. As these trends continue to gain momentum, the secondhand luxury market is poised for further growth, offering a range of benefits for both consumers and the environment.

Asia-Pacific is experiencing a surge in secondhand luxury sales with the growing e-commerce sector and also driven by millennials and Gen Z growing population. Although initially slow due to counterfeit concerns and new-goods status, changing attitudes and sustainability awareness are boosting the market. Resale platforms are thriving as more embrace pre-owned luxury items, marking a significant shift in the region's luxury market dynamics.

Secondhand Luxury Market Scope and Summary

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Secondhand Luxury Market Dynamics and Trends

Surging E-commerce Sector

The exponential growth of the global e-commerce sector, driven the demand for the secondhand luxury market. In 2020, the pandemic-induced movement restrictions led to a surge in e-commerce, increasing online retail sales' share of total retail sales from 16% to 19%. The shift towards online shopping has created a robust digital marketplace that extends to luxury goods.

As per NIC Global Payment report, the growing e-commerce sector is a driving force behind the increasing demand for the secondhand luxury market. As the global e-commerce market continues to expand, reaching an estimated worth of nearly US$8.5 trillion by 2026, consumers are increasingly turning to online platforms for their shopping needs.

Growing Demand for Sustainability

The increasing demand for sustainability is driving the market for secondhand luxury goods. Luxury fashion brands like Gucci, Alexander McQueen, Chloé and Balenciaga are embracing second-hand sales to tap into the growing interest in pre-loved fashion, particularly among Gen Z consumers. The shift reflects a changing perception of resale, as luxury brands and retailers now view it as a way to support the circular economy and engage younger consumers.

With limited supplies of premium products, consumers are turning to resale as a viable option. The change in attitude is primarily attributed to younger consumers who prioritize sustainability and have little patience for traditional consumption practices. Luxury brands and retailers are responding by incorporating resale as an additional channel to connect with consumers and drive incremental sales. As sustainability becomes a more significant factor in purchasing decisions, the secondhand luxury market is poised for further growth, aligning with evolving consumer values and preferences.

Lack of Trust

The secondhand luxury market is experiencing restraints with the persistent lack of trust among consumers when it comes to buying pre-owned luxury items. Concerns about authenticity, quality and seller credibility can deter potential buyers. Moreover, the rise of e-commerce fraud poses a significant challenge. Scams and counterfeit products is become an issue to build consumer confidence in online platforms, making it harder for legitimate sellers to thrive. 

Furthermore, with the lack of awareness many potential buyers may not be aware of the benefits of purchasing secondhand luxury items, such as cost savings and sustainability. To overcome these challenges there is a need for concerted efforts from sellers, platforms and industry stakeholders to build trust, enhance security measures and educate consumers about the value of the secondhand luxury market.

Secondhand Luxury Market Segmentation Analysis 

The global secondhand luxury market is segmented based on product, demography, distribution channel and region.

Offline Changing Landscape of Luxury Consumer Engagement

The offline distribution channel holds the largest share in luxury market, also there has seen a shift in consumer-brand relationships, with interactions becoming complex and multilayered. E-commerce, social media and mobile technology have blurred the lines between online and offline channels. While physical stores remain a preferred purchase location for many luxury consumers, the distinction between online and offline has faded. Mobile platforms are evolving to enhance the luxury experience, becoming an essential complement to brick-and-mortar boutiques. 

Brands need to understand that consumers view all touchpoints as part of a holistic brand experience, leading to the concept of "noline" thinking. Successful brands actively engage with consumers across all channels, fostering a seamless omnichannel world. In this evolving landscape, luxury brands must adapt to meet consumers' ever-changing needs at every touchpoint.

Global Secondhand Luxury Market Geographical Share

Asia-Pacific: The Fastest-Growing Hub for Secondhand Luxury

Asia-Pacific is expected to be the fastest growing region in the secondhand luxury market. The region's ecommerce industry experienced robust growth, reaching US$3,468.6 billion in 2022, a 12.53% increase as per TECHWIRE ASIA report. Consumers are increasingly adopting to e-commerce stores for immersive shopping, driving ecommerce players to enhance their strategies and maintain a competitive edge in a saturated market.

Social commerce is a rising trend, integrating buying and selling into daily life through social media platforms like Instagram, TikTok and Facebook. It is expected to grow three times faster than traditional ecommerce, generating US$1.2 trillion by 2025, with Asia-Pacific playing a significant role in this market. Asia-Pacific's prominence in this sector highlights its pivotal role in driving the evolving landscape of luxury resale.

Secondhand Luxury Market Companies

The major global players in the market include Fashionphile Group LLC, Luxepolis, Vestiaircollective, Rebag, 1stdibs, StockX, TheRealReal, Farfetch, and Ziniosa.

COVID-19 Impact on Secondhand Luxury Market

The COVID-19 pandemic had a transformation in luxury shopping habits, with a significant impact on the secondhand luxury market. Younger generations, driven by digital convenience and environmental consciousness, shifted their preferences towards online shopping for luxury items. The pandemic accelerated the adoption of e-commerce and increased acceptance of pre-owned luxury goods. 

Consumers began to prioritize sustainability and unique, vintage pieces over brand-new purchases. The shift in mindset has elevated the demand for secondhand luxury, as shoppers seek eco-friendly, cost-effective and socially responsible ways to indulge in luxury fashion, accessories and other goods. The pandemic's influence on consumer behavior is expected to have a lasting impact on the secondhand luxury market's growth and relevance.

Russia-Ukraine War Impact 

Russia-Ukraine war has had a notable impact on the secondhand luxury market. The sanctions imposed by the EU and other countries on Russia which includes bans and restrictions on various imports and exports, have disrupted the luxury goods trade. An EU export ban on luxury goods specifically targets Russian elites which affects the market for high-end fashion, accessories and other luxury items. 

Furthermore, the measures, coupled with the broader economic and geopolitical uncertainties stemming from the conflict, have created an atmosphere of caution and uncertainty in the secondhand luxury market. Buyers and sellers are navigating a changing landscape influenced by the war's repercussions on trade and international relations, which has impacted the market's dynamics and consumer preferences.

Key Developments

• In January 2023, Reflaunt initiated its expansion into the Middle East luxury resale market through a strategic partnership with the Chalhoub Group, a leading luxury retailer in the region. The move came in response to increasing environmental concerns and regulations emphasizing circular models in the fashion industry. LEVEL SHOES, a renowned luxury retailer under the Chalhoub Group, chose Reflaunt as its trusted partner to enable customers to resell luxury items they no longer use.
• In April 2023, eBay launched the "Certified by Brand" luxury resale program, establishing direct partnerships between the marketplace and luxury brand partners. The program allows participating luxury brands to access valuable consumer insights from eBay's global network of shoppers, enabling them to make informed decisions regarding pricing and product imagery for items sold on the platform.
• In October 2020, Gucci and luxury consignment site The RealReal formed a partnership that highlighted the luxury industry's growing recognition of the booming secondhand market. The collaboration involved The RealReal dedicating a portal on its platform for Gucci products, with over 2,000 items sourced from both The RealReal's customers and Gucci itself. The Gucci items, primarily used for occasions like photoshoots and previously unsold, were made available to consumers. The partnership aimed to promote sustainability by encouraging a circular fashion model, where clothing is reused rather than discarded, aligning with environmental concerns within the industry.

Why Purchase the Report?

• To visualize the global secondhand luxury market segmentation based on product, demography, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of secondhand luxury market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global secondhand luxury market report would provide approximately 61 tables, 60 figures and 194 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies