The secondhand luxury market is expanding at nearly double the pace of the primary luxury goods industry, fueled by economic volatility, generational sustainability priorities, and the integration of technology and brand-backed resale programs.
The luxury resale market, long an undercurrent to new-season collections, is now pacing ahead of the primary luxury goods industry. In the past year alone, global sales of secondhand luxury climbed to an estimated $56 billion, according to the 2025 Bain-Altagamma Luxury Goods Worldwide Market Study, marking a seven percent increase over the previous year. Analysts note this segment’s role as a gateway for aspirational shoppers who cannot — or choose not to — purchase at full retail.
More telling than its size is its trajectory. New analysis from ResearchAndMarkets.com projects the market, valued at $44.67 billion in 2023, will more than double to $98.29 billion by 2031, growing at a compound annual rate of 9.48 percent between 2021 and 2024. Such momentum is rarely sustained in the luxury sector without a significant cultural and economic recalibration. In this case, it is both.
Economic volatility and the recalibration of desire
Hermès’ continued dominance in the resale category offers a sharp lens on the trend. Richard Ramirez, vice president of merchandise at resale platform Reklaim, says demand for Hermès, Chanel, and Goyard has grown between eight and 15 percent over the past 12 months, depending on the model. “These customers are looking for something timeless that will retain or gain value over time,” Ramirez told WWD. “Buying from any of these three brands historically has had strong returns year-over-year and customers are looking to diversify their assets in safe and creative ways.”
Reklaim’s internal sales portal moves more than 1.2 million bags annually, with Hermès, Chanel, Louis Vuitton, Saint Laurent, Gucci, and Goyard consistently topping the charts. The motivation, Ramirez notes, is not purely aesthetic. Inflation, rising tariffs, and consecutive price hikes by heritage houses have recalibrated purchasing decisions. “These customers are looking for a bag they love at a discounted price,” he said, adding that the pre-owned market gives shoppers more control over final spend than boutiques tied to MSRP.
The numbers track. Louis Vuitton’s monogrammed Neverfull can typically be found at a minimum of 15 percent below retail in the resale market; other designer styles see markdowns approaching 50 percent. Hermès remains the exception: Birkins and Kellys routinely sell above retail, their market price determined by factors like leather type, year, and color. As Ramirez frames it, “As prices increase due to designers raising their prices or tariffs [going into effect], customers shopping pre-owned are more empowered to find products within their budget without compromising style or quality.”
Generational shifts and the sustainability calculus
If economic drivers are the immediate catalyst, sustainability is the enduring pull — especially among millennial and Gen Z shoppers. ResearchAndMarkets.com identifies these cohorts as leading the charge toward sustainable consumption, with secondhand luxury a direct extension of their values. Awareness of fast fashion’s environmental toll, and the broader scrutiny of fashion’s production cycles, has created fertile ground for resale platforms to flourish.
Circular fashion marketplace Depop, which skews young in its user base, recently partnered with U.K. nonprofit WRAP to quantify this shift. The study found that globally, over three in five purchases on Depop displaced the purchase of new fashion items elsewhere. The displacement rate was highest in Australia at 72 percent, followed by 68 percent in the U.K. and 64 percent in the U.S.
Crucially, those rates held steady for secondhand fast fashion specifically — 69 percent in the U.K., 63 percent in the U.S., and 74 percent in Australia, suggesting that the platform is steering even trend-driven shoppers toward resale. Depop’s Head of Sustainability, Cathy Moscardini, said, “The findings show that most users are choosing second-hand over brand new, with fast fashion purchases on Depop displacing new fast fashion at similar rates to other categories.” She emphasized that measuring the environmental benefits of resale requires standardized frameworks, which was the impetus for collaborating with WRAP.
The research also revealed that 71 percent of Depop users would continue searching secondhand — or opt out of purchasing entirely — if they could not find an item on the platform. Only six percent would default to buying new fast fashion. For Moscardini, this highlights the deliberate nature of secondhand purchases: “By keeping clothing — fast fashion included — in circulation, Depop helps extend garment lifespans, reduces demand for new production, and ultimately limits fashion’s environmental footprint.”
Technology’s role in trust and scale
Resale’s rapid growth is underpinned by digital infrastructure. Platforms such as The RealReal, Vestiaire Collective, and Poshmark have streamlined authentication, deployed AI-driven personalization, and integrated user-friendly listing tools. For luxury buyers wary of counterfeits, these measures are non-negotiable.
Advances in authentication not only build trust but also open the category to first-time buyers who may have avoided secondhand out of concern for legitimacy. These assurances have allowed resale platforms to compete more directly with primary-market e-commerce — not only on price but also on user experience.
Meanwhile, luxury brands themselves are entering the space, often through tightly controlled partnerships. Gucci’s collaboration with The RealReal, Burberry’s buy-back initiatives, and Stella McCartney’s early embrace of resale reflect a shift in strategy. By owning part of the resale transaction, brands can reinforce authenticity, maintain product lifecycle oversight, and participate in a growing revenue stream without diluting brand equity.
Physical spaces and the tactile factor
While the digital marketplace dominates resale volume, physical consignment stores and high-end pop-ups continue to play a complementary role. The in-person experience — handling a bag’s leather, inspecting stitching, testing a clasp — remains persuasive, particularly for high-ticket purchases. Luxury resale boutiques in cities like New York, Paris, and Tokyo cater to this preference, offering curated inventories and expert staff who bridge the gap between e-commerce efficiency and boutique intimacy.
Influencer culture and the normalization of pre-owned luxury
The market’s visibility has been amplified by fashion influencers who seamlessly integrate pre-owned luxury into their content. On Instagram and TikTok, Birkins sourced from consignment sit alongside current-season Chanel or archival Prada finds, reframing resale not as a compromise but as a deliberate choice. This visibility has helped erode lingering stigmas around secondhand, positioning it as a marker of discernment rather than necessity.
The influence extends beyond trendsetting to community-building. Resale platforms benefit from this organic promotion, as peer validation fuels both traffic and trust. The result is a cultural normalization of mixed-season, mixed-source wardrobes that blur the once-rigid lines between “new” and “used.”
The investment narrative
Ramirez underscores that for many buyers, luxury resale is less about bargain hunting than asset acquisition. “Buying from any of these three brands historically has had strong returns year-over-year,” he said of Hermès, Chanel, and Goyard. The sentiment echoes findings from Bain-Altagamma, which note that for certain brands and models, resale values have outpaced inflation.
Investment logic is also reflected in purchasing patterns. Hermès’ Birkins and Kellys, with their controlled distribution and high barriers to entry at retail, function as both status symbols and tradable assets. Chanel’s seasonal price adjustments and Louis Vuitton’s limited editions create similar scarcity effects, incentivizing buyers to treat purchases as portfolio additions rather than wardrobe fillers.
What’s next: holiday shifts and brand rotation
Looking ahead, Ramirez predicts a shift in demand as holiday shopping ramps up. While Hermès, Chanel, and Goyard drove the first half of the year, he expects Louis Vuitton, Gucci, Prada, and Saint Laurent to see greater traction in the fourth quarter. “This shopping habit will be fueled by budget-conscious gift-givers,” he said. Recognizable, timeless styles — like the Louis Vuitton Speedy 20 in Epi leather — are likely to dominate.
If these predictions hold, the coming retail season will underscore the secondhand market’s adaptability. With primary-market sales at LVMH and Kering showing signs of slowing, the resale sector’s resilience offers both a challenge and a template for luxury brands navigating economic uncertainty.
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