Second-Hand Textile Markets: Sustainable Solution or Superficial Trend?

In recent years, the second-hand textile market has grown significantly, driven by shifting consumer preferences toward sustainability, affordability, and unique fashion finds. This shift is particularly fueled by Gen Z consumers of which 83% state to have shopped or are open to shopping second-hand apparel (1). What was once a niche segment has become mainstream. Established brands are launching resale programs alongside dedicated second-hand platforms and new business-to-business models are evolving to help scale the single item sales process (2). The global second-hand market is expected to make up 10% of the total fashion market by 2024 and projected to reach $350 billion by 2027 (up from $138 billion in 2021) (3). The growth outpacing that of the traditional retail market by ~300% (4), has resulted in a tremendous growth rate of brands that launch their own resale stores (i.e., the number of store launches in the US market grew by 4.5x from 2021 to 2023 (5)) and attracted major brands across different segments like Patagonia, Levi’s, and H&M.

However, while these programs promote sustainable consumption on the surface, questions arise about their true impact on the overall textile industry. Do second-hand markets effectively reduce the need for new products, or are they simply creating an additional market layer that fuels consumption in a new form?

The Second-Hand Market Within the Fashion Ecosystem

Systems theory views industries as interconnected networks where each component affects the others. Second-hand markets are part of the broader fashion ecosystem, alongside primary production, distribution, and consumer behaviors. This interconnectedness means that while second-hand markets can extend garment life, they might also reinforce fast-fashion cycles.

These effects can create feedback loops. Positive feedback loops could amplify consumption by making clothing more accessible and affordable, while negative feedback loops might slow down production if second-hand purchases replace newly produced items. The true impact of second-hand programs depends on whether they prioritize genuine sustainability or merely add another layer and revenue stream to the fast-fashion model.

Extending Product Life vs. Increasing Market Volume

Considering the stock and flow perspective to assess the balance between resources entering and leaving a system, ideally, second-hand programs would extend the product life cycle of clothing “in stock”, thereby reducing the need for newly produced stock.

Despite the rise of second-hand programs, global apparel production has continued to grow. Between 2000 and 2014, textile production nearly doubled, with the fashion industry contributing 1.2 billion tons of CO₂ emissions annually (6). The yearly production totals up to over 100 billion new garments globally (7). In theory, considering the current second-hand market growth rate, if retailers produced one fewer item for every item that consumers purchased secondhand instead of new, it could curb production by nearly 8% by 2027 (8). However, the reality is often more complex.

Patagonia’s Worn Wear program, for example, promotes durability, repair, and resale. Since its inception, Worn Wear has diverted over 350 tons of clothing and saved an estimated 20-30% in CO₂ emissions per item compared to new production (9). Despite these achievements, Worn Wear accounted for only $5 million of Patagonia's business while their overall revenue has consistently exceeded $1 billion annually since 2019 (10).

Similarly, Levi’s SecondHand allows customers to trade in their used Levi's denim for store credit, with the company reselling these items online. Customers receive between $15 and $35 in store credit for resellable items. These garments are then sold on the SecondHand marketplace for approximately $30 to $100 (11). While the program prolongs some items’ life cycles, it is directly targeting new purchases through offering credits.

H&M has actively engaged in the second-hand market to promote sustainability and circular fashion. For example, H&M invested in Sellpy, a Swedish second-hand platform, and launched the H&M Pre-Loved initiative integrating second-hand clothing into its online store. However, H&M’s model of rapid new releases—up to 16 collections per year (12) — and a 6% increase of net sales in 2023 (13), indicate that while resale initiatives are part of H&M's strategy, new product sales remain the dominant revenue stream.

These examples highlight both the potential and limitations of second-hand programs. While they can reduce waste, they must also be part of a larger shift toward reduced consumption and a rethinking of fashion cycles.

Conclusion: The Role of Second-Hand Markets in Sustainable Fashion

The second-hand textile market offers a promising step toward sustainability, but it is not a complete solution. It can be clearly observed that second-hand programs are associated with both positive and negative aspects. They can reduce waste and extend product life, but their impact depends on broader changes in consumer behavior and production practices.

For second-hand markets to drive true sustainability, they must discourage overconsumption, reduce new production, and promote responsible purchasing decisions. Brands and platforms should prioritize educating consumers on mindful consumption, aligning second-hand initiatives a genuine commitment to reducing environmental harm. Without this shift, the second-hand market risks becoming another form of disposable fashion.

Ultimately, the second-hand market should be one component of a comprehensive sustainability strategy in the fashion industry, not just a marketing tool. Only with a systemic approach can the second-hand market contribute to a lasting reduction in fashion’s environmental impact and help pave the way for a more sustainable industry.

References / Used Sources

ThredUp Resale Report, 2023 [https://cf-assets-tup.thredup.com/resale_report/2023/thredUP_2023_Resale_Report_FINAL.pdf]
Manager Magazin, “Milliardenmarkt für Gebrauchtes: Goldene Zeiten für Secondhand-Kleidung“, 2023 [https://www.manager-magazin.de/unternehmen/handel/vinted-momox-about-you-goldene-zeiten-fuer-secondhand-kleidung-a-e64237c3-acb4-4008-83d0-a4aacc29cccd]; Example of new business model / third party vendor reverse supply [https://www.reverse.supply/]
ThredUp Resale Report, 2023 [https://cf-assets-tup.thredup.com/resale_report/2023/thredUP_2023_Resale_Report_FINAL.pdf]
ThredUp Resale Report, 2023 [https://cf-assets-tup.thredup.com/resale_report/2023/thredUP_2023_Resale_Report_FINAL.pdf]
The Recommerce 100, 2024 [https://www.recommerce100.com]
Climate Council, 2021 [https://www.climatecouncil.org.au/resources/fast-fashion-climate-change/]
ThredUp Resale Report, 2023 [https://cf-assets-tup.thredup.com/resale_report/2023/thredUP_2023_Resale_Report_FINAL.pdf]
ThredUp Resale Report, 2023 [https://cf-assets-tup.thredup.com/resale_report/2023/thredUP_2023_Resale_Report_FINAL.pdf]
Patagonia, 2021 [https://www.patagonia.com/stories/our-quest-for-circularity/story-96496.html]
Statista [https://www.statista.com/chart/28257/patagonia-inc-revenue-company-db/]
Levi’s, 2020 [https://www.levistrauss.com/2020/10/08/making-levis-secondhand-second-nature-for-fans/]
Retail Dive, 2017 [https://www.retaildive.com/news/report-ultra-fast-fashion-players-gain-on-zara-hm/443250/]
H&M, 2024 [https://hmgroup.com/news/h-m-hennes-mauritz-ab-full-year-report-16/]

Author: Josephine Angermeier, Student of MBA Sustainability Management Class 2 (2024-2026)