Global Online Clothing Rental Market Size, Share, Growth Analysis, By End-User(Men, Women), By Dress Code(Formal, Casual) - Industry Forecast 2023-2030

Global Online Clothing Rental Market size was valued at USD 1.23 Billion in 2022 and is poised to grow from USD 1.33 Billion in 2023 to USD 2.56 Billion by 2031, at a CAGR of 8.5% during the forecast period (2024-2031).

The online clothes rental sector is anticipated to witness growth in tandem with the expansion of online retail, serving as a primary driver for the industry's expansion. Technical advancements, increased internet penetration, and the rising popularity of online shopping portals have been pivotal factors propelling this growth. Additionally, the surge in popularity of fashion-related content, including vlogs, movies, and television, is expected to further contribute to market expansion. The preference for renting clothes instead of purchasing them is driven by factors such as the demand for short-term clothing needs and the evolving fashion choices of consumers. However, the COVID-19 pandemic had a detrimental impact on the online garment rental business. Lockdowns and restrictions disrupted production and delivery, leading to closures of businesses except for essential services. The shift to remote work and the postponement or cancellation of events significantly reduced the demand for clothing rentals, especially as many individuals began working from home. According to a 2021 report by the Royal Geographical Society and IBG, consumer expenditure on clothing dropped by more than 50% at the onset of the pandemic in key markets like the United States, the United Kingdom, and Germany. Despite these challenges, the market is expected to rebound, driven by the rising influence of e-commerce, particularly in the Asia Pacific region. However, factors such as inadequate regulations, low consumer awareness, and limited societal acceptance may impede the market's growth to some extent. The adoption of a subscription model in the online garment rental market is a notable trend, offering a new approach that generates seasonal income alongside catering to customer preferences. One significant constraint faced by the industry is the variability in clothing sizes, as rented items cannot be adjusted to fit individual preferences. In response, companies are exploring innovative solutions such as online consultations with fashion professionals, and some may even provide the same item in multiple sizes to allow customers to choose the best fit.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Online Clothing Rental Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Global Online Clothing Rental Market Segmental Analysis

The global online clothing rental market is segmented on the basis of end-User, dress code, and region. Based on end-user, the market is segmented into men, women, and children. In terms of dress code the market is segmented into formal, casual, and traditional. Based on region, the global online clothing rental market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Online Clothing Rental Market

The ascent of the sharing economy has played a pivotal role in propelling the online clothing rental market, serving as a prominent driver of its growth. Consumers are progressively adopting the idea of resource-sharing and minimizing ownership, favoring rental services as a sustainable and economical alternative to conventional clothing purchases.

Restraints in the Global Online Clothing Rental Market

A notable challenge in the online clothing rental market revolves around guaranteeing accurate sizing and fit for customers. In the absence of the chance to try on clothes prior to renting, there exists a potential risk of customer dissatisfaction if the rented garments do not align well with their preferences. To tackle this concern, companies must dedicate efforts to developing precise sizing algorithms, providing comprehensive product descriptions, and implementing flexible return policies.

Market Trends of the Global Online Clothing Rental Market

Many online clothing rental platforms are adopting subscription-based models, enabling customers to pay a monthly fee for a predetermined number of clothing items each month. This model enhances convenience and encourages continuous engagement, leading to recurring revenue for the companies.

Companies in the online clothing rental sector are leveraging technology and data analytics to enhance the customer experience. Virtual fitting tools, AI-driven recommendations, and personalized styling services based on customer preferences and rental history contribute to improved customer satisfaction and loyalty.

Online clothing rental platforms are expanding their reach beyond traditional urban areas and targeting new demographics. They are reaching out to customers in suburban and rural locations, as well as diversifying their offerings to include clothing suitable for different age groups, body types, and occasions.

With increasing consumer awareness of environmental issues and ethical fashion practices, online clothing rental platforms are emphasizing sustainability. These companies highlight the reduced environmental impact of renting clothes compared to fast fashion consumption and demonstrate a commitment to circular fashion and reducing textile waste.

Customization and personalization are gaining importance in the online clothing rental industry. Companies offer options for customers to personalize rental orders, such as choosing specific styles, sizes, or colors. Some platforms also provide additional services like alterations or styling consultations to enhance the overall rental experience.

Initially concentrated on women's fashion, online clothing rental platforms are expanding into menswear and accessories. Recognizing the potential in the men's fashion rental market, companies are diversifying their offerings to include a range of clothing options and accessories, catering to male customers.