Mercari's 2023 Reuse Report Predicts Secondhand Market Will Double to $325 Billion by 2031

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Jul 25, 2023, 09:00 ET

With an average of 161 unused items per household, Americans could be earning more than $4,000 through resale

PALO ALTO, Calif., July 25, 2023 /PRNewswire/ -- Mercari, the online marketplace that connects millions of people across the U.S. to shop and sell items that are no longer being used, today released its 2023 Reuse Report. The research report, conducted in partnership with third-party retail analytics firm, GlobalData, takes a deep dive into the state of the resale market across household categories, what's driving its popularity and what to expect in the next 12 months.

Mercari's 2023 Reuse Report Predicts Secondhand Market Will Double to $325 Billion by 2031

Mercari's 2023 Reuse Report reveals that despite overall economic uncertainty, the resale market is among the fastest-growing segments for consumer spending. More than half of Americans say that shopping secondhand is now a lifestyle choice for them, driven by a desire to save money, be more sustainable or find unusual and interesting items. With more Americans choosing to buy and sell secondhand, the reuse market is expected to grow by an estimated 87% to $325 billion by 2031. It's clear that consumers are embracing reuse as a norm.

"It's a transformative time for resale, with nearly nine in ten consumers planning to shop secondhand in the coming year," said John Lagerling, CEO of Mercari U.S. "We're seeing an uptick in Gen Z and millennials taking part in the circular economy, largely due to their commitment to sustainability and interest in discovering one-of-a-kind items. As more consumers are entering the reuse ecosystem across generations, we anticipate that secondhand will become the first choice for many shoppers."

The 2023 Reuse Report At A Glance

The secondhand side hustle is strong, but there's more money to be made. Making money is a major motivator in selling secondhand, followed closely by decluttering, as American households are currently sitting on an estimated 21.1 billion unused items. This equates to $559.8 billion in monetary value. Per household, this is an average of 161 items, a total value of $4,267.
Gen Z plans to prove their spending power in the coming year. Thirty-one percent of Gen Z consumers expect to increase their shopping budget in the next 12 months, compared to 19% of consumers overall. This extends to secondhand, as they accelerate the resale revolution: 1 in 3 Gen Z consumers expect to buy more secondhand items and spend more time on online resale platforms.
Demand for affordable alternatives is skyrocketing. Thirty-seven percent of Americans have traded down to cheaper products to save money. Gen Z shoppers, in particular, are embracing lower-cost versions of the viral trends that are taking over social media from colorful tumblers to beloved activewear.
Opting for sustainable shopping. Younger demographics are more focused on selling to reduce their environmental impact than older generations. And the same sentiment applies to how they spend money: Nearly one-third (31%) of Gen Z and millennial consumers plan to spend more money on sustainable brands in the next 12 months.
Secondhand items are a top parenting hack. Kidswear was the fastest-growing resale category in 2022, with a 19% increase annually. Over the next 10 years resale of kidswear is projected to grow by 146%, which makes sense given how quickly children grow.
Men are getting thriftier, too. Menswear was the second fastest growing category in 2022, mainly due to increased participation among men. In fact, male participation in this category was slightly higher than female, which can be attributed to growing acceptance of secondhand and the proliferation of resale destinations for things like sneakers and collectibles.
Americans still love printed books. Despite the popularity of e-readers and audio books, physical books come out on top as the most-purchased secondhand category, bought by more than half (58%) of U.S. resale consumers.
The desire to shop online remains strong. Online is the fastest-growing channel for secondhand shopping and is forecast to account for more than half (56%) of spend by 2031. While fewer shoppers may be flocking to shopping malls, they are still looking to score discounts on mall favorites like Victoria's Secret PINK, Coach, Lululemon, Adidas and more.

"This is a pivotal moment for the circular economy as 212 million Americans, or 82% of the adult population, shopped secondhand last year, up from 197 million people in 2021, either motivated by the desire to earn extra income, find things at a lower price or clean out their spaces," said Neil Saunders, Managing Director of GlobalData. "Regardless of what draws them in initially, consumers will continue to engage in resale in the next 12 months, both as shoppers and sellers."

For more trends and insights, download the full 2023 Reuse Report here.

About Mercari's 2023 Reuse Report
The 2023 Reuse Report is a follow-up to Mercari's inaugural Reuse Report in 2021. The report provides a snapshot of the U.S. reuse ecosystem and the multi-category resale market. It was produced in association with GlobalData in February 2023.

Market sizing data is produced by GlobalData. GlobalData's assessment of the secondhand market is determined through consumer surveys, retailer tracking, official public data, data sharing, store observation, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Consumer statistics are based on a February 2023 survey of 2,500 US respondents over 18, specifically assessing secondhand buying and selling behavior. Sample is nationally representative in terms of gender, age bracket, income level and region.

Forward-Looking Statements
This release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words "will", "estimate", "forecast", "anticipate", "expect", "predict", "plan", "project" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Except as required by law, Mercari has no obligation to update any of these forward-looking statements to conform these statements to actual results or revised expectations.

About Mercari
Mercari connects millions of people across the U.S. to shop and sell items no longer being used. Mercari is constantly innovating to make exchanges easier, from at-home authentication to improvements in online payments and shipping. Mercari has more than 50 million downloads in the U.S. and 350,000 new listings every day, empowering the next generation to transform the way they shop.

Mercari can be downloaded on app stores or accessed online through www.mercari.com.

Media Contact
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SOURCE Mercari