Fashion Reincarnated

Resale moves from disruption to structural reset

Fashion resale is no longer niche. Across key European markets and the US, online second-hand apparel is worth c.€68bn and growing at c.30% CAGR in 2025. In the UK alone, the market is nearing £8bn, having grown at c.20% CAGR since 2019. Resale now represents around 9% of transacted apparel value across major markets, and almost one in four fashion transactions in the UK flows through second-hand channels.

This growth is expected to continue: by 2029, second-hand is forecast to account for around 10% of UK online fashion spend, with online resale in some geographies set to more than double by 2030.

A structural consumer shift

Consumers are not temporarily experimenting – they are structurally trading into resale.

Around 50–55% of consumers consider second-hand as a cost-saving alternative, and 35% of the UK population now actively participates in buying or selling resale. Importantly, resale is not just about buying cheaper. Financial motivations underpin both sides of the marketplace: consumers are motivated by saving money, making money, and treasure hunting.

Resale uniquely combines lower price access with the ability to unlock cash or store credit from dormant wardrobes. That liquidity changes the psychology of fashion consumption. At the same time, around half of second-hand volume now cannibalises first-hand sales, particularly in the mass market, underlining that spend is being reallocated.

Platforms have closed the experience gap

The second structural pillar is platform maturation.
Trust and perceived quality scores for leading resale platforms are now close to traditional retailers. AI-enabled listing, pricing, item tracking and authentication are improving sell-through and conversion. Over 90% of online resale spend sits in the mass market, where frictionless P2P and classifieds models have scaled stock liquidity and choice.

Economics are proving viable

Mature classifieds models show the clearest path to profitability, and a number of P2P and consignment players are now profit-positive or close to it. Scale, liquidity and disciplined cost control are translating into sustainable margins.

Vinted achieved profitability in 2023, driven by initiatives such as its own shipping network (Vinted Go), in-app payments (Vinted Pay) and product verification to increase trust and retention. The RealReal reached profitability in 2024 by tightening intake standards, shifting away from low-value items and deploying AI tools such as Athena listing automation and Shield & Vision for authentication.

These are not speculative growth stories; they are operationally disciplined businesses.

Fashion spend is not shrinking, but being rebalanced. Consumers are structurally trading into resale, and platforms have evolved into credible, profitable retail ecosystems.

Our Fashion Reincarnated report explores the full market sizing, growth outlook, operating model economics and playbook for success in detail – and what this means for brands, marketplaces and investors.