Is the Kid's Clothing Resale Market Growing?

The children's clothing resale market is experiencing significant expansion as parents increasingly turn to secondhand shopping for affordability, convenience, and sustainability.

While the overall U.S. secondhand apparel market grew 14% in 2024—outpacing traditional retail by a factor of five—the kids and baby resale segment is growing even faster, driven by economic pressures, improved online platforms, and shifting consumer attitudes toward circular fashion.

Despite this momentum, resale still represents a relatively small share of total children's apparel sales, pointing to substantial untapped potential as the market matures.

Key Data Points

• The U.S. secondhand apparel market grew 14% in 2024, approximately five times faster than broader retail clothing growth (ThredUp 2025 Resale Report / GlobalData)
• Online resale jumped 23% year-over-year in 2024 and is projected to nearly double by 2029, reaching approximately $40 billion (ThredUp 2025 Resale Report)
• The kids & baby resale market was valued at $7 billion in 2021 and is projected to reach $12.8 billion by 2030 (Mercari Reuse Report 2023)
• Nearly 59% of U.S. parents rely on secondhand products for family needs, with about half using social or online marketplaces (Morning Consult, March 2025)
• The global secondhand fashion market is forecast to reach $367 billion by 2029, with the U.S. accounting for roughly $74 billion (ThredUp / Sustainable Brands)
• North American secondhand apparel is expected to grow from $22.4 billion (2023) to $58.3 billion by 2032, representing an 11% compound annual growth rate (Credence Research 2024)

The Resale Market Continues to Outpace Traditional Retail

The contrast between resale and new apparel growth represents one of the most significant retail trends of the past decade.

While the broader U.S. apparel market is projected to grow at roughly 2% annually through 2029, the secondhand sector is expanding at more than five times that rate. In 2024 alone, the U.S. secondhand apparel market grew 14%, driven largely by online platforms that saw 23% year-over-year increases.

This digital acceleration is expected to continue.

Online resale is projected to nearly double from current levels to reach approximately $40 billion by 2029, representing an average annual growth rate of 13%. Globally, the secondhand fashion market is on track to reach $367 billion by 2029, with the United States representing roughly $74 billion of that total.

The North American secondhand apparel market specifically was valued at $22.4 billion in 2023 and is forecast to reach $58.3 billion by 2032, reflecting an 11% compound annual growth rate.

To put this in perspective, if these projections hold, the secondhand market will more than double in size within a single decade—a rate of expansion typically associated with disruptive technology sectors rather than traditional retail categories.

Parents Are Leading the Secondhand Shift

Parents represent one of the most active demographics in the resale economy.

According to March 2025 data from Morning Consult, nearly 59% of U.S. parents say they rely on secondhand products for family needs, with approximately half of those using social or online marketplaces to buy and sell pre-owned items.

This behavioral shift is particularly pronounced in the kids and baby category.

The dedicated kids and baby resale market—which includes apparel, toys, and baby gear—was valued at $7 billion in 2021 and is projected to reach $12.8 billion by 2030, according to Mercari's 2023 Reuse Report. This represents an 83% increase over the decade.

The appeal of secondhand shopping for parents is multifaceted.

Children outgrow clothing at a rapid pace, often before items show significant wear. A newborn onesie might be worn for just weeks before it no longer fits. This creates a natural lifecycle for children's clothing that makes resale both economically sensible and environmentally responsible.

There's also a generational component to this shift.

Millennial and Gen Z parents—who now make up the majority of parents with young children—came of age during the rise of the sharing economy. They're comfortable with platforms like Facebook Marketplace, Poshmark, Mercari, and ThredUp in ways that previous generations might not have been.

For many of these parents, buying secondhand isn't a compromise; it's a deliberate choice that aligns with their values around sustainability and conscious consumption.

Despite this robust expansion, kids clothing resale still represents a modest portion of total children's apparel sales, signaling considerable room for market penetration.

What's Driving the Acceleration?

Several interconnected factors are fueling the resale market's rapid growth.

Economic Pressures and Affordability: Inflation and cost-of-living concerns have made affordability a primary driver for secondhand shopping.

ThredUp's 2025 Resale Report identifies economic value as one of the leading reasons consumers choose resale over new retail. With the price of new children's clothing rising alongside other household expenses, the ability to purchase quality items at a fraction of retail price has become increasingly attractive.

Platform Innovation and User Experience: Improved personalization, search functionality, and user experience on online resale platforms have made buying and selling secondhand items significantly easier than ever before.

The 23% year-over-year growth in online resale reflects both technological improvements and increased consumer comfort with digital secondhand shopping. Modern resale platforms have solved many of the friction points that once made secondhand shopping inconvenient—limited selection, difficulty finding specific items, and cumbersome transaction processes.

Behavioral Normalization: A majority of parents are already active in the secondhand economy, often using online or social marketplaces as a regular part of their shopping routine.

This normalization of resale shopping—particularly among younger millennial and Gen Z parents—is creating sustainable demand that extends beyond economic necessity into lifestyle preference.

Social media has played a significant role, with parents sharing secondhand finds and styling inspiration that positions resale as aspirational rather than necessity-driven.

Retail Integration and Brand Participation: Traditional brands and retailers are increasingly launching or expanding their own resale programs to meet consumer demand.

According to the Business of Fashion and McKinsey's State of Fashion 2025 report, this integration of resale into mainstream retail represents a significant shift in industry strategy.

Major retailers that once viewed resale as competition are now seeing it as complementary to their core business—a way to build customer loyalty and participate in the full lifecycle of their products.

Sustainability as a Secondary but Growing Motivator

While economic factors remain the primary driver of resale adoption, environmental concerns are playing an increasingly important supporting role.

The fashion industry is one of the most resource-intensive sectors globally, and children's clothing presents unique sustainability challenges due to the short lifespan of items that are quickly outgrown.

Resale offers a practical solution that extends the useful life of clothing and reduces waste.

For environmentally conscious parents, buying secondhand allows them to align their purchasing behavior with their values without sacrificing quality or style. As awareness of fashion's environmental impact continues to grow, this sustainability dimension is likely to become a more prominent factor in parents' resale adoption.

The Opportunity Ahead

The children's clothing resale market sits at an inflection point.

With nearly six in ten parents already engaging with secondhand products and online platforms experiencing sustained double-digit growth, the infrastructure and consumer appetite are clearly in place. Yet resale's relatively small share of total kids apparel sales suggests the market is still in its early stages.

Several factors point to continued growth.

As platforms continue to refine their user experience, adoption is likely to spread beyond early adopters to more mainstream shoppers. The integration of resale programs by major retailers will bring secondhand shopping to customers who might never have visited a dedicated resale platform.

And as economic pressures persist alongside growing environmental awareness, the value proposition of resale will likely strengthen.

For brands operating in the children's apparel space, this shift presents both challenges and opportunities.

Companies that can successfully integrate resale into their business models—whether through buy-back programs, certified pre-owned offerings, or partnerships with resale platforms—may find themselves better positioned to build customer loyalty. Those that ignore the trend risk losing market share to competitors who embrace the circular economy.

As economic pressures persist, platforms continue to improve, and circular fashion becomes increasingly normalized, the kids clothing resale sector appears positioned for sustained expansion well into the next decade.