Across Europe, pre-owned garments are shedding their ‘used’ label and stepping into the spotlight as a mainstream force. A new study by the Circular Fashion Federation in collaboration with KPMG highlights the secondhand market is ready for significant growth. The report projects the resale apparel sector across the continent will grow from €15.9 billion in 2024 to €26 billion by 2030, at an average annual growth rate of 8.5 per cent. This growth is being due to in part, by proactive policy initiatives at both the European Union and national levels, revealing a systemic shift towards a more circular economy.

France leads the charge, Spain set for fastest growth

Currently at the forefront of secondhand’s rise in the continent is France, which generated 26 per cent of Europe's total secondhand fashion revenue in 2024, which was almost €4.1 billion. While France's market share is projected to slightly adjust to 24 per cent by 2030, its revenue is still expected to climb to €6.3 billion, at an annual growth rate of 7.4 per cent.

However, the study highlights Spain as the market to watch, forecasting the most rapid expansion in the secondhand sector with an average annual growth rate of 8.1 per cent over the decade from 2024 to 2034. This high growth is largely attributed to the enthusiastic adoption of resale by younger generations within the country. Italy is also showing strong momentum, with a projected annual growth rate of 7.4 per cent, pushed up by its well-established e-commerce infrastructure.

Germany, on the other hand, is anticipated to experience a more moderate growth rate of 5.4 per cent annually. Interestingly, the UK, despite having a mature and established resale market, is projected to see a 4 per cent annual decline in secondhand fashion sales in coming years, suggesting a potential shift in consumer behavior or market dynamics.

Table: Europe's secondhand fashion market in 2024

Employment growth and physical retail

The secondhand market is not just about economic growth; it's also a significant job creator. The study reveals approximately 119,000 people are currently employed within Europe's secondhand fashion sector. Projections reveal additional 75,000 jobs will generated by 2030, showcasing the sector's economic importance.

Interestingly, despite the rise of online platforms, physical retail such as thrift stores and branded resale stores continue to dominate secondhand purchases. Almost 81 per cent of all secondhand sale currently occur in brick-and-mortar stores, only 19 per cent is online via dedicated secondhand platforms or brands' own resale initiatives. This highlights the continued importance of physical spaces for secondhand sale.

The environmental imperative

The study sheds light on the key drivers behind consumers' attraction of secondhand fashion. While price is a significant factor, environmental consciousness is playing an increasingly crucial role. The report emphasizes the environmental benefits of choosing pre-owned clothing, stating, "Reuse is a key lever for reducing environmental impact: buying a secondhand garment extends its lifespan by an average of 2.2 years, which can reduce its carbon, water, and waste footprint by up to 73 per cent." This underscores the potential of the secondhand market to contribute to a sustainable fashion.

The rise of rental and repair

Beyond resale, the study also examines the growing, albeit smaller, segments of clothing rental and repair. Currently only 0.3 per cent of the global apparel market, is rental but its expected to grow, particularly in the children's wear sector. However, the report notes shifts in consumer behavior are necessary to overcome existing barriers and boost rental services. In contrast, the apparel and footwear repair market is already seeing good growth, particularly in France, where a national incentive program launched in late 2023 has given a boost to this segment. Across Europe, the repair market has grown from €2.2 billion in 2020 to €2.7 billion in 2024, at an annual growth rate of 5.5 per cent. Within this segment, sneaker and shoe repairs are predicted to be the fastest-growing category. The study highlights "repairing an item instead of replacing it can reduce CO₂ emissions by 30 per cent and extend its lifespan by 70 per cent."

France leads the repair revolution

The French apparel repair market is projected to grow at 7.4 per cent annually. Across Europe, this segment is expected to reach €3.7 billion by 2030, at 5. 5 per cent average growth. France's contribution to this growth is substantial, anticipated to rise from €1 billion in 2024 to €1.6 billion within the next five years that is almost 40 per cent of the total European repair market. This growth is also expected to generate around 10,000 new jobs across the region, 3,000 in France alone.

Textile recycling, a steady path

Textile recycling (excluding footwear) is projected to see modest growth. The study suggests without additional public incentives, expansion in this sector will remain limited. The European market for textile recycling is expected to grow from €1.4 billion in 2024 to €1.6 billion by 2030, with France's share at around €249 million within this time. Despite existing technical and infrastructure-related challenges, the sector still holds the potential to generate over 3,500 new jobs.

Circular fashion's growing footprint

When considering all aspects of circular fashion – including resale, repair, rental, and recycling – the sector was a €20 billion market in Europe in 2024. By 2030, this figure is projected to reach €31.3 billion, reflecting at an average annual growth rate of 7.7 per cent. France, currently valued at €5.4 billion across all circular fashion segments, is expected to reach €8.2 billion by the end of the forecast period.

The Circular Fashion Federation emphasizes these circular business models are no longer niche alternatives but rather "concrete tools to meet consumer expectations, enhance environmental performance, anticipate regulatory requirements, and unlock new avenues of growth" for brands. However, the federation stresses that achieving meaningful transformation requires a concerted and collaborative effort involving brands, retailers, policymakers, and consumers alike. The projected growth of Europe's secondhand fashion market and the broader circular economy signals a fundamental shift in how fashion is consumed and valued, paving the way for a more sustainable and economically vibrant future for the industry.