The second hand fashion market is soaring – growing three times faster than the first hand sector. Valued between $210-220 billion, it’s expanding at roughly 10% per year, according to Resales Next Chapter, the latest report from BCG and Vestiaire. 

Packed with insights and data, the study sheds light on the rise of circular fashion. We read it, so you don't have to, and here are our key takeaways:

Affordability as the Main Driver

Kicking off the findings, affordability tops the list of motivations for buying pre-loved fashion, cited by 80% of respondents across ages and cultures. Though unsurprising – everyone loves a bargain – the meaning of affordability varies. For some, it's about saving money; for others, its accessing brands otherwise out of reach, or simply avoiding full retail prices. 

In a time of cost of living crises, it's no wonder expense plays such a strong role in buying behaviour. Still, it is somewhat ironic that in a characteristically circular industry, cost takes precedence over environmental motivators. In fact, affordability drives second hand decisions twice as much as sustainability (40%). Additionally, a further 30% of individuals find second hand pricing undesirable.

This shows that while environmental concerns matter more than ever – as this motivation continues to grow – affordable pricing remains essential to the circular models success. 

Gen Z Leads the Way

Also on the rise, is the share of second hand clothing across generations, with Gen Z on the forefront. Pre-used items make up 32% of their wardrobes (and up to 45% for handbags), compared to just 24% for Boomers. Gen Z also scores higher for the “thrill of the hunt” and discovering new brands, showing a stronger emotional connection to second-hand shopping.

Economic pressures, shifting social norms, environmental awareness, and digital savviness all fuel this trend. Furthermore, the consistent growth from Boomers to Gen Z – spanning just a few decades – proves how quickly consumer habits can evolve. A pattern we hope will continue with Generation Alpha.

Europe vs. the US

As well as generations, second-hand behaviour contrasts across continents too. Europe currently leads in circularity legislation and is projected to raise its share of second-hand and luxury sales from 8% to 10% by 2030. Yet, Americans dedicate more wardrobe space to pre-loved fashion – 32% compared to Europe’s 27%. The gap widens with handbags, where Americans own 27% more pre-owned pieces.

The findings reveal nuanced customer mindsets. Affordability plays a stronger role for US consumers, who are more likely to use resale to access luxury brands. Europeans, meanwhile, place greater weight on sustainability (33% versus 28% of Americans). 

Despite varying attitudes, financial realities remain the biggest motivator overall. Once again, reinforcing the cross-regional role that economic factors play in the growing second hand market.

How Income shapes behaviours 

Financial realities also split behaviour by income. “Aspirational” shoppers – those largely using resale to afford premium labels – are 10% more likely to cite this motivation than affluent shoppers, who typically buy luxury resale pieces, often at a markup.

Aspirational consumers have also adjusted their habits the most amid economic strain: 40% reported stagnant or shrinking wardrobes compared to 30% of affluent shoppers. They’re more likely to limit impulse buys, trim their closets, and sell items for extra income. 

Though not unexpected, these patterns reinforce how finances shape second-hand engagement, highlighting the need to serve diverse consumer groups to unlock circular fashion’s full potential.

Digital Product Passports 

Alongside these trends, a key innovation quietly gaining traction is the Digital Product Passport – a digital ID for physical products that tracks materials, manufacturing, repairs, and ownership. Accessible via QR codes or RFID tags, DPPs enhance transparency, traceability, and sustainability from creation to recycling. 

By providing standardised, interoperable information, they allow brands to track data that is often lost after the initial sale. This not only helps brands meet regulations, but also creates real value in resale markets. For consumers, they bring trust and ease, especially in luxury categories like handbags, where there is demand for 79% of shoppers. Beyond resale, DPPs aid better product use, care, and end of life, supporting customers in making more sustainable choices. 

In short, DPPs could be the thread linking brands, products, and consumers long after the sale. If widely adopted, they have the potential to become the digital backbone of a truly circular fashion industry.

Overall, these patterns suggest that second-hand fashion is no longer a trend – it’s the future. Affordability drives it, Gen Z fuels it, and innovations like DPPs are scaling it. The resale market isn’t just growing; it’s rewriting the rules of fashion.

Link to BCG & Vestiaire report