Economic Recession and Value Consumption... Choosing Used Clothes Over New Ones

Used Clothing Market Share Expected to Reach 18.1% This Year
Projected to Rise to 24.3% by 2027 Due to Rational Consumption

As the economic downturn and value consumption trends converge, the market for secondhand clothing?where consumers purchase affordable used products or resell items they no longer use?is expanding.

According to market research firm Statista on the 16th, the domestic clothing market size in South Korea is expected to reach approximately $38 billion (about 51.25 trillion KRW) this year. The domestic clothing market sales, which sharply declined during the COVID-19 pandemic, recovered to around $35 billion last year and are expected to continue growing this year. However, the annual growth rate is projected to slow to 0.7% from this year through 2027, with the market size remaining at about $39 billion (approximately 52.65 trillion KRW) in 2027.

In contrast to the overall clothing market’s slowing growth, the secondhand clothing market is expected to maintain its growth momentum. This year, the domestic secondhand clothing market share is anticipated to reach 18.1% of the total market, a 1 percentage point increase from last year. The secondhand clothing market is projected to continue growing, with its share rising to 24.3% of the total clothing market by 2027.

Amid the ongoing economic downturn, the spread of rational consumption culture is believed to be driving the expansion of the secondhand clothing market. An industry insider stated, “When the economy worsens, one of the first areas where consumers cut back is fashion. Recently, as various secondhand platforms have activated secondhand transactions, the perception that secondhand trading is a rational consumption pattern is spreading, so the secondhand market is expected to grow further in the future.”

As the secondhand clothing market shows growth, it was found that 3 out of 10 domestic female clothing buyers have experience with secondhand clothing transactions. According to a survey by the Korea Federation of Textile Industries, 35.0% of female clothing buyers responded that they had engaged in secondhand clothing transactions within the past year. Specifically, both purchase experience (21.2%) and sales experience (20.4%) recorded figures above 20%. By age group, 20-somethings accounted for 47.4%, nearly half of respondents, who had secondhand transaction experience. This was followed by those in their 30s (35.5%), 40s (34.4%), and 50s (22.2%), indicating that younger age groups have less resistance to secondhand clothing transactions.