U.S. Luxury Resale Market Research Report 2021-2030

The luxury resale market in the United States is expected to grow at a CAGR of 7.07% from 2024 to 2030.

IMPACT OF TARIFF ON THE U.S. LUXURY RESALE MARKET

• Luxury goods, being non-essential purchases, are likely to experience a moderate impact from tariffs in the U.S. market. Initially, higher prices on imported luxury items may lead consumers to prioritize essentials, causing a temporary dip in luxury sales. However, demand for premium brands is expected to persist, with many consumers shifting toward the resale or secondhand market in search of more affordable alternatives.
• In the long run, tariffs driving up prices of new luxury items could significantly boost demand for pre-owned products, potentially increasing resale values and accelerating the market shift toward secondhand purchases. Although the U.S. luxury resale market may experience a short-term slowdown due to abrupt pricing adjustments, it is expected to regain momentum in the coming years as consumers adapt and seek cost-effective ways to access premium brands.
• A recent survey by ReturnPro supports this trend, revealing that 59% of American consumers would consider shopping secondhand for clothing and accessories if prices in the primary market continue to rise. This highlights a growing inclination toward budget-conscious purchasing behavior amidst economic pressure and shifting luxury preferences.

LUXURY RESALE MARKET TRENDS

Investing In Exclusivity and Rarity

Exclusivity is the cornerstone of value in the luxury sector, a concept that drives consumer demand and commands premium prices. The luxury second-hand market results from consumers' desire for distinctive, limited-edition products, sometimes unavailable through primary retail channels. The demand for rare goods is a major factor in resale platforms.

Collaborations Between Luxury Resale Platforms and High-End Fashion Brands

High-end fashion brands and luxury resale platforms have been collaborating, which reflects that they are adapting to changing consumer tastes. These collaborations strengthen the value and appeal of the brand as well as prolong the lifespan of luxury goods. For example, in 2023, thredUP and Luxury Handbag Reseller Rebag announced a partnership where Rebag customers can now resell gently-worn items on thredUP for Rebag shopping credit, and thredUP customers can shop select Rebag inventory directly on thredUP. By partnering with thredUP, Rebag is expanding the types of items its customers can send in. As part of the partnership, Rebag has launched a Clean Out program powered by thredUP's Resale-as-a-Service (RaaS), which enables the world's leading fashion brands and retailers to deliver customizable, scalable resale experiences to their customers.

Rise In Technology

Technology is playing a transformative role in shaping the luxury resale experience for customers. Technological innovations enhance the shopping experience and build customer trust in the market. In February 2025, Fashionphile debuted an augmented reality (AR) feature that allows customers to visualize products in their space before purchase. By enabling consumers to evaluate the way goods fit and look in their surroundings, this innovation enhances the online shopping experience and boosts consumer confidence when making purchases.

LUXURY RESALE MARKET ENABLERS

Millennials & Gen Z Influencing the Market

Millennials and Gen Z are major drivers of the U.S. luxury resale market. These generations are highly aware of the environmental impact of fast fashion and are more inclined to buy pre-owned luxury goods as part of their commitment to reducing waste and supporting sustainable practices. Most of the growth in the resale market has been driven by Gen Z shoppers looking for unique, economical, and sustainable buys.

Impact of Tariffs Driving the U.S. Luxury Resale Market

Tariffs are poised to increase the price of all sorts of goods, including apparel. The U.S. imports nearly all of its clothing and shoes from other countries, including from China, which is not exempt from the tariffs and now faces a rate of 145%. As rising tariffs continue to push up the prices of new apparel, consumers are actively seeking more affordable alternatives.

Rising Internet Penetration

The widespread internet access has facilitated the growth of online luxury resale platforms, enabling consumers to buy and sell pre-owned luxury items with greater ease. As of early 2024, the U.S. had approximately 331.1 million internet users, representing an internet penetration rate of 97.1% of the total population. High internet penetration is making it easier for individuals to browse, compare, and purchase luxury goods from the comfort of their homes.

Rising Demand for Sustainability

The U.S. luxury resale market is experiencing a significant shift towards sustainability, driven by evolving consumer preferences, economic factors, and industry innovations. Sustainability is becoming a more important consideration for customers, to lessen their influence on the environment, and more than half of these customers prefer to purchase used goods. With pre-owned luxury goods frequently costing 50-75% less than new ones, younger consumers want distinctive, premium products at more reasonable costs.

INDUSTRY RESTRAINTS

Challenges In Ensuring Authenticity

One of the key challenges in the U.S. luxury resale market is ensuring the authenticity of products. Counterfeit luxury goods can undermine trust in resale platforms and harm the reputation of brands. To address this, platforms like The RealReal and Poshmark are investing in sophisticated authentication processes, including expert appraisers, AI technology, and blockchain for traceability.

Unviable Growth of Secondhand Clothing

The rapid expansion of the second-hand clothing market raises concerns that it may weaken the primary market for new clothing. A significant decline in demand for new garments could increase production costs and slow innovation in textile manufacturing. This may also disrupt global supply chains, potentially limiting the future availability of high-quality second-hand items.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE

The U.S. luxury resale market by product type is segmented into handbags, clothing, shoes, small leather goods, watches, jewelry, and accessories. The handbag segment held the majority of revenue share in 2024 and is projected to continue growing at a CAGR of more than 7.2%. Luxury handbags are often considered a staple of the resale market. This segment is favored by both individual buyers and collectors, driving sustained demand. Furthermore, luxury clothing is a key segment in the US luxury resale market, which accounted for more than USD 1.4 billion in revenue in 2024. It is fueled by consumer interest in high-end brands and sustainability in fashion. With pre-owned clothing often being more affordable, this category remains an attractive option for fashion-conscious buyers.

Luxury footwear, particularly designer sneakers and exclusive limited-edition releases, is increasingly popular in the U.S. luxury resale market. Shoes' resale value is driven by their brand, condition, and exclusivity. Also, items such as wallets, cardholders, and others remain consistently in demand. They offer a more affordable entry point into luxury goods while retaining high resale value.

The luxury watch market has seen strong growth, with certain models achieving investment-grade status due to their brand recognition, rarity, and craftsmanship. Pre-owned and vintage luxury watches from brands like Rolex, Patek Philippe, and Audemars Piguet are highly sought after due to limited supply - nearly 95% of rare and collectible watches are no longer in production, according to Cable News Network in 2024. Discontinuation often boosts demand, much like classic songs at a concert - buyers love "the classics" for their prestige and rarity. Furthermore, pre-owned jewelry from high-end brands is gaining traction in the U.S. luxury resale market, driven by the perception of better value and the sustainable appeal of buying second-hand luxury items. Celebrities are increasingly opting for pre-owned high-end jewellery, proving that second-hand can be just as glamorous as brand-new. Also, luxury accessories, such as scarves, belts, and sunglasses, are thriving in the U.S. luxury resale market, often serving as lower-cost entry points into luxury shopping.

INSIGHTS BY GENDER

The female segment was the major revenue contributor to the U.S. luxury resale market in 2024, growing at a CAGR of more than 7.0%. Women's luxury items such as handbags, clothing, and jewelry dominate resale markets, with a focus on high-quality, timeless pieces. Millennials and Gen Z are adopting secondhand luxury fashion faster than other age groups. Economic factors such as tariffs and a desire for sustainability are influencing women to explore resale options. Furthermore, the male segment also represents a significant share, generating more than USD 3 billion in 2024. Men's resale markets are expanding through growing interest in luxury watches, sneakers, streetwear, and accessories, which hold strong value and appeal to both collectors and trendsetters.

INSIGHTS BY DISTRIBUTION CHANNEL

The online channel was the largest contributor to the U.S. luxury resale market, generating more than USD 6.05 billion in 2024. E-commerce platforms, such as those dedicated to luxury resale, continue to drive the growth of this channel by offering convenience, wider selection, and trusted platforms for buying and selling luxury items. Despite the online growth, the offline channel remains significant, growing at a CAGR of nearly 6.7% during the forecast period. In-person retail offers unique advantages such as the ability to physically verify items, the personal shopping experience, and consumer trust in brick-and-mortar stores.

U.S. LUXURY RESALE MARKET REGIONAL ANALYSIS

The Southern U.S. holds the highest share of the U.S. luxury resale market, supported by its large and growing population, rising urban centers, and an expanding base of fashion-conscious and value-driven consumers. The region's strong culture of social events, lifestyle spending, and aspirational purchasing fuels demand for luxury apparel, accessories, watches, and other items, both new and pre-owned. Furthermore, the Western region accounts for a significant share of the U.S. luxury resale market, supported by large urban populations and widespread use of digital resale platforms. Consumers in this region show consistent engagement with resale across both online and offline channels. Luxury resale platforms headquartered in the Western US, such as The RealReal (San Francisco), Poshmark (Redwood City), Rebag (Los Angeles), and Vestiaire Collective (San Francisco), have become integral to the region's luxury resale market.

In the Midwest, growth is supported by the broader adoption of online resale platforms and a value-oriented consumer base. The rising number of affluent young professionals and urban dwellers in cities such as Chicago, Minneapolis, and Columbus is driving the demand for pre-owned luxury fashion, as consumers increasingly prioritize both value and sustainability when purchasing high-end goods. The Northeast accounted for the lowest revenue share in 2024 of the U.S. luxury resale market. New York remains a key driver for the Northeast luxury resale market, as the state not only hosts The RealReal's flagship store in Soho, Manhattan, but also consistently ranks as one of the top states for both luxury item consignments and purchases on major platforms like Vestiaire Collective and The RealReal, reflecting the city's deep-rooted fashion culture and high-end consumer base.

VENDOR LANDSCAPE

In the U.S. luxury resale market, The Real Real, ThreadUp, and eBay are the key players, collectively accounting for a significant percentage of the market share. It is a fragmented market where resale platforms operate with large vendors, creating intense competition and offering a wide variety of second-hand luxury products to meet diverse customer preferences and budgets. Furthermore, to maintain a competitive edge, companies are increasingly focusing on improving service models, authentication processes, and digital user experiences to meet the evolving expectations of both sellers and buyers.

Key Developments in the United States Luxury Resale Market

• In 2024, The RealReal and Conservation International Unite for a Star-Studded Closet Sale. The company has launched its second star-studded sale in partnership with environmental leader Conservation International, featuring 230 luxury pieces consigned by influential women who have shaped fashion, journalism, social justice, and culture.
• In April 2025, eBay and Klarna Deepen Global Strategic Partnership to Empower Flexible Shopping in the U.S. The expanded partnership will give U.S. eBay shoppers more flexible and affordable ways to shop and pay.

Key Company Profiles

• eBay Inc.
• The RealReal
• ThreadUp Inc.

Other Prominent Company Profiles

• 1stDibs.com, Inc.
• Farfetch
• Heritage Auctions
• Poshmark, Inc.
• Most Wanted Luxury Resale
• NET-A-PORTER
• Rebag
• Reloved Luxury
• The Luxury Closet
• Vestiare Collective
• WGACA (What Goes Around Comes Around)
• Ziniosa
• Vinted
• LePrix, Inc.
• Yoogi's Closet, Inc.

SEGMENTATION AND FORECASTS

Segmentation by Product Type

• Handbags
• Clothing
• Shoes
• Small Leather Goods
• Watches
• Jewelry
• Accessories

Segmentation by Gender

• Male
• Female

Segmentation by Distribution Channel

• Online
• Offline

Segmentation by Geography

• U.S.
  • South
  • West
  • Midwest
  • Northeast

KEY QUESTIONS ANSWERED:

1. How big is the U.S. luxury resale market?

2. What is the growth rate of the U.S. luxury resale market?

3. Which region dominates the U.S. luxury resale market share?

4. Who are the key players in the U.S. luxury resale market?

5. What are the significant trends in the U.S. luxury resale industry?