comprehensive market research on Used Goods in United States 2024

The global secondhand goods market has shown significant growth, driven by economic pressures, sustainability trends, and technological advancements. In 2023, the global market size was estimated at $350 billion, with projections adjusted to $324 billion by 2027 due to revised consumer spending patterns and market dynamics. North America, particularly the United States, dominates this market, holding a 37% share in 2023 and expected to reach $17.3 billion by 2032. This growth is fueled by the proliferation of e-commerce platforms like Craigslist, eBay, and Facebook Marketplace, which facilitate cross-border transactions and enhance consumer convenience.

In the United States, the secondhand apparel market alone reached $43 billion in 2023, growing 11% year-over-year, significantly outpacing the broader clothing market. The U.S. also dominates the secondhand homeware market, generating $8.2 billion in revenue in 2023, with a projected CAGR of 5.8%. This growth is driven by urbanization, which increases demand for affordable and adaptable furnishings, and the rise of short-term rental services like Airbnb, which rely heavily on secondhand goods. Platforms such as Craigslist and Chairish further support this local economy by enabling easy transactions.

The shift toward secondhand goods is largely attributed to economic constraints, sustainability awareness, and technological innovations. Consumers are increasingly drawn to affordable options, particularly in apparel and homeware, where used products dominate with a 71% market share. Major players like ThredUp, Poshmark, and The RealReal have revolutionized the market by offering user-friendly platforms and expanding product categories. These factors, combined with the rise of mobile apps and online communities promoting reuse and upcycling, are expected to sustain market growth through 2025 and beyond.

The U.S. used goods market is a significant contributor to the global secondhand economy, with a market size of $43 billion in the apparel sector alone in 2023. This segment has grown at an impressive rate of 11% year-over-year, outpacing the broader clothing market. The secondhand homeware market is another key area, generating $8.2 billion in revenue in 2023, with a projected CAGR of 5.8%.

Globally, the secondhand goods market was valued at $350 billion in 2023, with North America accounting for a 37% share. The U.S. is expected to reach $17.3 billion by 2032, driven by urbanization, sustainability trends, and the rise of e-commerce platforms. The used goods market is not limited to apparel and homeware; it also includes electronics, vehicles, books, and home appliances, which cater to diverse consumer needs and preferences.

The growth of the used goods market is further supported by technological advancements and the increasing popularity of online platforms. Companies like ThredUp, Poshmark, and The RealReal have made it easier for consumers to buy and sell secondhand items, contributing to the market's expansion.

The U.S. used goods market is a dynamic and rapidly growing sector, driven by factors such as consumer demand for affordability, sustainability, and convenience. This analysis focuses on the segmentation of the market, particularly in the second-hand apparel and homeware sectors, to provide insights into key segments, their characteristics, and potential opportunities and challenges.

Key Segments

Based on the reference information, the U.S. used goods market can be segmented into the following categories:

1. Second-Hand Apparel

   • This segment includes clothing items such as dresses, tops, shirts, t-shirts, sweaters, coats, jackets, jeans, and pants. It also encompasses accessories, footwear, and specialty items like vintage or luxury pieces.
   • Key players include ThredUp, Poshmark, The RealReal, and Depop, which dominate the online resale space, while traditional thrift stores like Goodwill Industries and Salvation Army cater to budget-conscious consumers.

2. Second-Hand Homeware

   • This segment includes furniture, cookware, décor, and other household items. The market is further divided into new (unused) and used products, with the used segment dominating at 71% market share in 2023.
   • Platforms like Craigslist, eBay, and Facebook Marketplace facilitate the buying and selling of these items, while companies like West Elm and IKEA have introduced resale programs to legitimize the market.

3. Other Second-Hand Products

   • This segment includes electronics, vehicles, books, and home appliances. These products are offered in various conditions, from like-new to refurbished, catering to diverse budget and quality preferences.

Segment Comparison

The following table compares the characteristics of the key segments:

Analysis

Second-Hand Apparel

Potential:
The second-hand apparel market is the largest and fastest-growing segment, driven by increasing consumer awareness of sustainability and the affordability of pre-owned clothing. The U.S. market alone reached $43 billion in 2023, growing at a rate seven times faster than the broader clothing market. Online platforms like ThredUp and Poshmark have revolutionized the industry by offering user-friendly interfaces and extensive product selections, appealing to a broad demographic.

Challenges:
The market is highly competitive, with both online resale platforms and traditional thrift stores vying for market share. Additionally, maintaining product quality and authenticity, especially in the luxury segment, remains a challenge.

Second-Hand Homeware

Potential:
The second-hand homeware market is growing steadily, fueled by urbanization and the rise of short-term rental services like Airbnb. The U.S. market generated $8.2 billion in 2023 and is expected to grow at a CAGR of 5.8%. Platforms like Craigslist and Facebook Marketplace facilitate local transactions, while companies like IKEA are legitimizing the market through resale programs.

Challenges:
The market faces challenges related to product condition and logistics, as furniture and homeware items are often bulky and difficult to transport. Additionally, the dominance of the used segment (71%) highlights the need for effective quality control measures.

Other Second-Hand Products

Potential:
This segment caters to a wide range of consumer needs, from electronics to vehicles. The affordability and sustainability of second-hand products make them attractive to budget-conscious and eco-friendly consumers. Online platforms like eBay and local classifieds play a significant role in facilitating transactions.

Challenges:
The market is fragmented, with varying product conditions and quality standards. Ensuring the reliability of refurbished electronics and vehicles remains a key challenge, as does building consumer trust in second-hand products.

The U.S. used goods market is highly competitive, with a mix of online platforms, traditional thrift stores, and niche players catering to diverse consumer preferences. Below are the top 10 key players in the industry, along with their characteristics, advantages, and disadvantages:

1. ThredUp: A leading online resale platform specializing in secondhand apparel. ThredUp’s strengths include its extensive inventory, user-friendly interface, and focus on sustainability. However, its reliance on consignment models can lead to longer processing times for sellers .
2. Poshmark: A social commerce platform for buying and selling secondhand fashion. Poshmark’s strengths lie in its community-driven approach and ease of use. Its weakness is the lack of quality control, as sellers manage their listings independently .
3. The RealReal: A luxury consignment platform offering authenticated high-end items. Its strengths include its focus on luxury goods and authentication process. However, its high commission fees can deter some sellers .
4. Depop: A platform targeting younger, fashion-forward consumers. Depop’s strengths are its trendy collections and social media integration. Its weakness is its limited appeal to older demographics .
5. Goodwill Industries: A traditional thrift store with a strong community presence. Its strengths include its charitable mission and extensive physical store network. However, its online presence is less developed compared to digital-first platforms .
6. Craigslist: A classifieds platform for used goods, including furniture and electronics. Its strengths are its local reach and simplicity. Its weaknesses include a lack of buyer protections and a dated interface .
7. Facebook Marketplace: A popular platform for local buying and selling. Its strengths include its integration with Facebook’s social network and ease of use. Its weakness is the lack of quality control and authentication .
8. OfferUp: A mobile app for buying and selling used goods. Its strengths are its user-friendly interface and local focus. Its weakness is its limited reach compared to larger platforms .
9. The Salvation Army: A thrift store with a charitable mission. Its strengths include its community ties and affordable pricing. Its weakness is its limited digital presence .
10. West Elm (Resale Program): A furniture retailer with a dedicated resale program. Its strengths include its focus on sustainability and brand reputation. Its weakness is its limited product range compared to generalist platforms .

Market Share

The U.S. used goods market is dominated by a few key players, particularly in the secondhand apparel segment. ThredUp, Poshmark, The RealReal, and Depop collectively hold over 60% of the market share in the North America Secondhand Apparel Market . In the broader used goods market, platforms like Craigslist, Facebook Marketplace, and OfferUp also command significant shares, especially in categories like furniture and electronics .

Players Comparison

Analysis

The competitive landscape of the U.S. used goods market is shaped by the interplay of digital innovation, sustainability trends, and consumer preferences. Online platforms like ThredUp, Poshmark, and The RealReal dominate the secondhand apparel segment by leveraging technology to offer personalized shopping experiences and extensive product selections. These platforms cater to a growing consumer base that values affordability and sustainability .

In the broader used goods market, platforms like Craigslist, Facebook Marketplace, and OfferUp thrive by focusing on local transactions and user convenience. These platforms benefit from the increasing demand for affordable and adaptable home furnishings, driven by trends like urban living and short-term rentals .

Traditional players like Goodwill Industries and The Salvation Army maintain their relevance through community-oriented missions and physical store networks. However, their limited digital presence poses a challenge in competing with tech-savvy platforms .

Overall, the market is characterized by a dynamic mix of players, each differentiating through unique value propositions such as sustainability, affordability, and convenience. This competitive landscape fosters innovation and drives the mainstream adoption of secondhand goods, reflecting broader consumer shifts toward eco-friendly and cost-effective shopping practices .

The U.S. used goods market is experiencing significant growth, driven by a combination of economic, environmental, and technological factors. Sustainability has emerged as a key trend, with consumers increasingly prioritizing eco-friendly shopping practices. Platforms like ThredUp, Poshmark, and The RealReal have capitalized on this shift, offering extensive inventories of secondhand apparel and homeware. The rise of thrifting and vintage culture has also normalized the purchase of used items, particularly among younger demographics like Millennials and Gen Z4.

Economic pressures, such as rising costs of new products and income inequality, have further fueled demand for affordable alternatives. The secondhand apparel market alone reached $43 billion in 2023, growing at a rate seven times faster than the broader clothing market6. Technological advancements, including mobile apps and personalized recommendations, have made secondhand shopping more accessible and convenient, attracting a broader consumer base5.

The market is also influenced by urbanization and the rise of short-term rental services like Airbnb, which drive demand for adaptable and affordable homeware. The secondhand homeware market generated $8.2 billion in 2023, with a projected CAGR of 5.8%5. Overall, these trends highlight the growing mainstream acceptance of used goods, driven by affordability, sustainability, and technological innovation.

The U.S. used goods market appeals to a diverse demographic, shaped by economic, environmental, and lifestyle factors. Millennials and Gen Z are the primary drivers of demand, drawn to the affordability and sustainability of secondhand products. These younger consumers are tech-savvy, leveraging platforms like ThredUp, Poshmark, and Facebook Marketplace for convenient access to used goods4. Urban residents, who often face space constraints and seek cost-effective solutions, are also significant contributors to the market, particularly in the homeware segment5.

Income levels play a crucial role in shaping purchasing behavior. Budget-conscious consumers, including those with lower to middle incomes, gravitate toward used goods for their affordability5. However, higher-income individuals are increasingly participating in the market, driven by sustainability concerns and the appeal of unique, vintage items4.

The rise of e-commerce platforms and mobile apps has democratized access to used goods, making it easier for consumers across income levels to participate5. Additionally, the growing awareness of environmental sustainability has encouraged consumers of all ages to embrace secondhand shopping as a way to reduce waste and promote circular economies1.

Consumer purchasing behavior in the U.S. used goods market is driven by a combination of affordability, sustainability, and convenience. The decision-making process often begins with identifying a need, such as updating a wardrobe or furnishing a home. Consumers then explore options on platforms like ThredUp, Poshmark, and Craigslist, which offer a wide range of products at discounted prices45. Factors such as product quality, brand reputation, and the ease of transaction influence the final decision5.

Cost savings are a primary driver, with consumers drawn to the significant price discounts offered by secondhand products compared to new items3. Sustainability is another key factor, as consumers increasingly prioritize eco-friendly shopping practices1. The appeal of unique or vintage items also plays a role, particularly among younger consumers4.

Seasonal spikes in demand for items like sweaters and coats highlight the practicality of secondhand purchases4. The rise of short-term rental services like Airbnb has also fueled demand for temporary furnishings, further boosting the market5. Overall, the market is evolving with a focus on technology-driven platforms and innovative business models that enhance customer experience4.

The U.S. used goods market is influenced by several key regulations, including product safety standards, consumer protection laws, and environmental regulations. These regulations ensure the quality and safety of secondhand items, particularly in online marketplaces2. The need for thorough inspection, cleaning, and refurbishment of secondhand goods adds operational complexity and costs, which can deter smaller players from entering the market2.

Established platforms like ThredUp and Poshmark benefit from these regulatory barriers, as they have robust systems for compliance4. Consumer protection laws also enhance trust in the market, encouraging more consumers to participate in the secondhand economy5.

The regulatory environment presents both risks and opportunities. The operational burden of compliance can be a significant risk, especially for smaller businesses. However, companies that invest in efficient warehousing, inventory management, and logistics partnerships can turn these challenges into competitive advantages2. Additionally, the growing emphasis on sustainability and consumer protection creates opportunities for platforms that can align their operations with these trends5.

The regulatory environment indirectly supports the economic growth of the used goods market by fostering consumer confidence and ensuring product quality. This, in turn, drives market expansion, as evidenced by the $8.2 billion revenue in the secondhand homeware market and the 5.8% CAGR projected for the forecast period5. Furthermore, the emphasis on local transactions through platforms like Craigslist stimulates local economies5.

The demand for used goods in the United States is heavily influenced by macroeconomic factors such as income inequality, rising costs of new products, and urbanization. As consumers seek affordable alternatives, the second-hand market has grown significantly. For instance, the U.S. second-hand homeware market generated over $8.2 billion in revenue in 2023, with a projected CAGR of 5.8% during the forecast period5. This growth is driven by the need for cost-effective solutions, particularly in urban areas where living spaces are smaller and temporary furnishings are in high demand due to short-term rental services like Airbnb5.

Regional economic variations also play a role in shaping the market. The United States dominates the North American second-hand market, accounting for approximately 80% of the region's second-hand apparel market4. This dominance is attributed to a large and diverse consumer base, high awareness of sustainable fashion, and the presence of established resale platforms like ThredUp, Poshmark, The RealReal, and Depop4.

Economic trends such as the increasing cost of new products and the popularity of sustainable practices are further driving the second-hand market. Consumers are embracing upcycling, repurposing, and vintage fashion, which adds value and uniqueness to pre-owned goods1. Additionally, the cost benefits of second-hand products, which often offer significant discounts compared to new items, are attracting budget-conscious buyers3.

The used goods market in the United States is heavily influenced by technological advancements, particularly in e-commerce and digital platforms. Companies like ThredUp, Poshmark, The RealReal, and Depop have revolutionized the market by leveraging technology to create seamless buying and selling experiences. These platforms use advanced algorithms, mobile apps, and user-friendly interfaces to attract a broad consumer base, making second-hand shopping more accessible and convenient4. Additionally, the integration of AI and machine learning has improved product recommendations and pricing strategies, enhancing customer satisfaction and retention4.

The competitive landscape in the U.S. used goods market is dominated by platforms that prioritize technological innovation. ThredUp and Poshmark, for instance, have differentiated themselves by offering intuitive mobile apps and robust search functionalities, while The RealReal focuses on luxury goods authentication using advanced verification technologies2. These platforms collectively hold over 60% of the market share, showcasing their technological edge4.

Technological advancements have significantly reshaped the market structure by reducing barriers to entry and enabling small sellers to participate in the second-hand economy. Platforms like Poshmark and Depop have empowered individual sellers to reach a wider audience, democratizing the market4. For consumers, technology has made it easier to compare prices, assess product quality, and access a diverse range of second-hand goods, fostering trust and encouraging repeat purchases5.

Consumer feedback in the used goods market, particularly in the United States, highlights both positive and negative aspects. On the positive side, there is a growing acceptance of secondhand apparel, driven by sustainability concerns and cost-effectiveness. However, significant challenges persist, such as misrepresentation of product condition, undisclosed damages, and sizing discrepancies. These issues often lead to dissatisfaction and returns, negatively impacting the overall customer experience4.

Competitor feedback reveals varying strengths and weaknesses across platforms. For example, Competitor A excels in sustainability messaging and transparent condition reports but struggles with high return rates due to sizing issues. Competitor B offers affordable pricing and a wide product variety but faces frequent complaints about undisclosed damages. Competitor C provides excellent customer service and fast shipping but is criticized for misrepresenting product condition4.

To address consumer concerns, companies in the used goods market should focus on enhanced product descriptions, stricter quality control, and consumer education campaigns. Detailed and accurate descriptions, including high-quality images and precise sizing information, can help build trust. Implementing stricter quality checks can minimize undisclosed damages and misrepresentation. Additionally, educating consumers about the value and sustainability benefits of secondhand goods can shift perceptions and drive broader market adoption4.