Reselling is a booming market with no signs of stopping.

The secondhand market is booming. From eliminating production pollution to creating a circular economy, it’s quickly becoming fashion’s hottest trend.

The fashion resale market is growing at an exponential rate. According to ThredUp, one of the world’s largest online thrift stores, resale is growing 21 times as fast as the broader retail sector and is estimated to reach a value of $80 billion by 2029, doubling the size of fast fashion. This growth is being driven by several factors, including a shift in consumer attitudes towards sustainability, the increasing availability of technology, and the rise of Gen Z consumers.

With respect to sustainability, the secondary market is an important part of creating a circular economy. By selling or donating used clothing and accessories, consumers can reduce their environmental footprint by avoiding the production of new products or landfilling them when they are no longer needed. This has become increasingly important as the fashion industry is responsible for 10% of global carbon emissions and is one of the most polluting industries in the world. The secondhand market has also helped to address the issue of overproduction and overconsumption, which is a major contributor to the environmental crisis.

In addition to sustainability, the secondhand market is appealing to Gen Z consumers because of its affordability and accessibility. Customers can find more affordable items compared to shopping on a brand’s home site, which appeals to Gen Z’s interest in finding good deals. The secondhand market is also increasingly becoming available online, which makes it easier for consumers to shop for secondhand goods.

The secondhand market has also seen success due to the elevated prices it can accrue due to trending brands, collaborations, limited-edition items, or artificial demand driven by bots. Products from luxury designers such as Hermès can be anywhere between 2,554%-5,308% more expensive than on its ecomm site, while popular sportswear labels like New Balance can experience a 71%-140% uplift.

As a result of its success, more companies are investing in the secondhand market.