This article was written by our expert who is surveying the industry and constantly updating the business plan for a thrift store.
The thrift store market is expanding fast in 2025 due to price-sensitive shoppers and sustainability-driven demand.
Global secondhand sales (including apparel, furniture, electronics, and luxury) are estimated between $264–$289 billion in 2025, up from about $190 billion in 2024, with online resale outpacing brick-and-mortar growth.
If you want to dig deeper and learn more, you can download our business plan for a thrift store. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our thrift store financial forecast.
The thrift store industry is scaling quickly, driven by inflation-led trade-down, mainstream adoption by Gen Z and Millennials, and the circular economy. Online resale platforms are growing faster than physical stores, but curated local stores remain resilient and profitable with the right model.
Below is a concise 2025 snapshot to help you position a new thrift store effectively.
| Indicator | 2025 Snapshot | Why It Matters for a New Store |
|---|---|---|
| Global market size | $264–$289B (all secondhand categories); apparel is the largest slice | Confirms a large, growing demand pool to tap locally and online |
| 5-year trajectory | Up from ~$190B in 2024; double-digit growth since 2021 | Supports confident investment in inventory and omnichannel |
| Forecast CAGR (next 5–10 yrs) | ~12–17% globally; online resale ~13%+ through 2029 | Plan capacity, tech, and staffing for sustained expansion |
| Top demographics | Gen Z & Millennials; growing male participation; 25–44 core | Tailor sourcing, sizing, and marketing to these cohorts |
| Economic drivers | Inflation and value-seeking push shoppers to secondhand | Price architecture and promotions are decisive |
| Sustainability factor | Circular economy and waste reduction boost adoption | Communicate reuse impact; collect-trade programs win loyalty |
| Channel dynamic | Digital resale scaling faster; stores remain experiential | Adopt an omnichannel model and social selling workflows |
What is the global thrift market size now, and how did it change in five years?
Global secondhand sales are about $264–$289B in 2025, up from roughly $190B in 2024 and growing at double-digit rates since 2021.
Apparel is the largest component and could reach ~$350–$367B by 2027–2029 when including all secondhand apparel categories across channels. This rise reflects both online resale expansion and steady growth in physical thrift stores. U.S. thrift retail is estimated around $11–$14.8B in 2025 with rising store counts and footfall.
Price-sensitive consumers and mainstream acceptance drive volume, while better tech and logistics raise throughput per store. These trends show durable demand beyond a short “trade-down” cycle.
You’ll find detailed market insights in our thrift store business plan, updated every quarter.
Use these benchmarks to size your local opportunity and set conservative, base, and upside scenarios.
What growth rates are expected over the next 5–10 years, and what drives them?
Global secondhand is projected to grow ~12–17% CAGR in the medium term; online resale is expected around ~13%+ through 2029.
Key drivers include persistent inflation and value-seeking, sustainability adoption, omnichannel buying habits, and improved inventory flow from trade-in/consignment programs. Digital marketplaces scale supply and demand faster than local stores alone.
Marketing flywheels (social proof, creator content, live selling) reduce acquisition cost and increase repeat purchase frequency. Data-guided pricing and assortment increase sell-through and gross margin dollars per square foot.
This is one of the strategies explained in our thrift store business plan.
Plan capacity and cash cycles around sustained double-digit growth.
Which shoppers drive growth, and how are their preferences changing?
- Gen Z and Millennials are the growth engine; the 25–44 segment is now the core thrifter across urban and suburban areas.
- Male participation is rising quickly, especially in collectibles, performance outerwear, sneakers, and consumer electronics.
- Shoppers value curation, authenticity checks, and fast shipping; they will pay more for verified goods and better presentation.
- Social commerce (live drops, TikTok/IG Reels) shapes discovery; “new with tags” and mid-premium brands turn fastest.
- Sustainability messaging matters: repair, upcycling, and take-back programs increase loyalty and supply.
How do economic conditions (inflation and spending) affect thrift demand today?
High prices for new goods push consumers to secondhand, lifting traffic and conversion at thrift stores.
Trade-down from mid-market retail increases demand elasticity, so competitive price ladders and promotions matter. Basket size improves when merchandising surfaces value bundles and outfit builds.
During inflationary waves, households reallocate discretionary spend toward “value and finds,” sustaining revenue even as broader retail slows. Flexible sourcing (buy-outright plus consignment) mitigates supply shocks.
We cover this exact topic in the thrift store business plan.
Design weekly price events tied to intake volume to keep throughput high.
How does sustainability and the circular economy accelerate thrift shopping?
Environmental impact is now a primary reason to buy secondhand, not only a price play.
Thrift stores extend product life, cut textile and e-waste, and align with consumer goals to reduce carbon and landfill impact. Donation and trade-in incentives expand supply without heavy working capital.
Storytelling around reuse impact (items diverted, kg of waste avoided) increases conversion and community support. Partnerships with repair/refurbish players deepen the circular value proposition.
It’s a key part of what we outline in the thrift store business plan.
Publish simple impact dashboards in-store and online to reinforce loyalty.
How do online resale platforms compare to physical thrift stores?
Online resale grows faster and can achieve higher asset turns; physical stores deliver experiential discovery and local supply.
| Dimension | Online Resale / Marketplaces | Brick-and-Mortar Thrift Stores |
|---|---|---|
| Growth | ~13%+ CAGR through 2029; scalable across regions | Solid double-digit in many areas; tied to local intake |
| Profit drivers | Low fixed overhead, dynamic pricing, national reach | Low COGS via donations, curated premiums, add-on services |
| Customer experience | Searchable, authenticated, fast shipping & returns | Treasure-hunt, tactile try-on, community events |
| Supply model | Consignment/trade-in at scale; cross-border catalogs | Local donations, buy-outs, estate/clean-out intake |
| Key risks | Shipping costs, refunds, counterfeit prevention | Space constraints, staffing, inconsistent intake flows |
| Best combo | Marketplace + social selling + mobile app | Storefront + live drops + click-and-collect |
| KPI focus | CAC, repeat rate, net margin after logistics | Sell-through days, GM$/sq ft, labor per processed item |
Which regions are expanding the fastest, and why?
North America and Western Europe show the strongest, most mature growth; GCC and parts of Asia Pacific are accelerating from a lower base.
| Region | 2025 Trend & Drivers | Implications for a New Thrift Store |
|---|---|---|
| North America | High inflation sensitivity; mainstream adoption; dense logistics | Strong opportunity for curated stores + online/social selling |
| Western Europe | Strong circular economy culture; policy support in some markets | Lean into sustainability claims and authentication services |
| GCC | Rapid digitization; rising interest in premium/luxury resale | Offer authentication and VIP sourcing for high-value items |
| APAC (selected) | Urbanization and mobile commerce adoption driving uptake | Mobile-first storefronts; integrate live commerce features |
| CEE | Value-seeking behavior; expanding cross-border platforms | Cross-list inventory to regional marketplaces |
| LATAM | Growing middle class adoption; marketplace penetration rising | Use consignment to balance working capital |
| Africa | Informal markets dominant; digital resale emerging | Pilot pop-ups and WhatsApp commerce flows |
Which product categories grow fastest in thrift store sales?
Apparel leads, with luxury, electronics, and furniture showing outsized growth.
| Category | 2025 Performance & Notes | Store Actions |
|---|---|---|
| Apparel | Largest share; secondhand apparel could hit ~$350–$367B by 2027–2029 | Focus on fast-turn brands, size depth, outfit bundles |
| Luxury fashion | ~9% CAGR into 2030; authentication is central to margin | Offer certified authentication and repair for premiums |
| Electronics | Up to ~15% CAGR; strong demand for refurbished devices | Test & warranty; organize charging/cables and QA station |
| Furniture & home | Bulky but profitable; local delivery unlocks baskets | Highlight refinish/upcycle stories; schedule pickups |
| Kids & baby | Fast churn; parents seek value on short-use items | Safety checks; seasonal bundles; loyalty swaps |
| Collectibles & sneakers | High male participation; social hype drives drops | Drop calendars; verification; consigner partnerships |
| Small appliances | Refurb boosts ASP; test table reduces returns | Basic warranties; spare-part kits; how-to cards |
How are big retailers and brands entering resale, and what does it mean for independents?
Major brands and retailers are building or partnering on resale programs, normalizing thrift and widening the buyer pool.
Partnerships with marketplaces and in-house take-back schemes expand authenticated supply and create loyalty loops. This raises consumer expectations for condition standards and speed.
Independent thrift stores win by specializing: curation, hyper-local intake, VIP consignment, and community events. Co-selling on marketplaces while protecting in-store treasure-hunt experiences maximizes reach.
Get expert guidance and actionable steps inside our thrift store business plan.
Define a niche and build moats around curation, speed, and service.
Which business models and operating strategies work best for thrift stores?
- Omnichannel: storefront + marketplace cross-listing + social live selling.
- Mixed intake: donations, buy-outs for fast movers, consignment for premiums.
- Dynamic pricing: AI-assisted tags, weekly markdown cadence, sell-through targets.
- Back-of-house flow: triage → QA → photo → list → stage; hours-to-live KPI.
- Community engine: trade-in events, repair/upcycle workshops, school/charity drives.
How is technology (AI pricing, apps, inventory systems) shaping the market?
Tech compresses time-to-list, improves prices, and reduces labor per unit processed.
| Tool | What It Does in a Thrift Store | KPIs It Improves |
|---|---|---|
| AI pricing | Suggests optimal price bands by brand/condition/season | Sell-through days, gross margin %, SKU turns |
| Mobile listing apps | Photo → title → auto-attributes → cross-list in minutes | Hours-to-live, labor minutes per item, listing accuracy |
| Inventory OMS | Tracks intake, locations, and online/offline availability | Stock accuracy, no-show rate, GM$/sq ft |
| Authentication tools | Verify luxury and sneakers; reduce returns and chargebacks | Return rate, NPS, premium ASP |
| POS with loyalty | Unified customer profile; points for trade-in and referrals | Repeat purchase rate, LTV/CAC, supply inflow |
| Live-commerce | Host drops; shoppable video with real-time bids | Sell-through on new intake, audience growth |
| Analytics dashboards | Daily visibility on intake, pricing ladders, markdowns | Gross margin dollars, cash conversion cycle |
What regulatory, cultural, and logistical risks could slow growth—and how to adapt?
- Product safety & hygiene: follow local rules for electronics, kids’ items, and PPE; implement QA and testing logs.
- Counterfeits in luxury: formal authentication and audit trails reduce liability.
- Data/privacy in digital resale: comply with payments and consumer data standards.
- Cultural hesitance: education and quality presentation overcome “used goods” stigma.
- Logistics: plan space for sorting, steaming, photo, and returns; coordinate bulky pickup/delivery.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to launch a successful thrift store?
Explore our step-by-step resources below for strategy, operations, pricing, and finance.
Sources
- Diligence Insights — Second-Hand Products Market
- AMRA & ELMA — Thrift Store Statistics
- FashionUnited — Secondhand Fashion Reshaping Apparel
- MarkNtel Advisors — Re-Commerce Market
- The Business Research Company — Second-Hand Product Global Report
- Placer.ai — Thrift Store Visit Growth
- Yahoo Finance — Secondhand Apparel Market Assessment
- Forbes — Secondhand Goes Mainstream
- Future Market Insights — Secondhand Apparel in GCC
- Capital One Shopping — Thrifting Statistics
- Thrift Store: Complete Guide
- How to Open a Thrift Store with No Money
- Thrift Store: Key Customer Segments
- Thrift Store: Inventory Cost Estimation
- Tool: Thrift Store Budget
- Tool: Thrift Store Revenue
- Thrift Store: Competition Study
- Thrift Store Pricing Strategy
- Is a Thrift Store a Good Business?