What: Rising living costs and environmental consciousness are reshaping retail behaviors, with 41% of consumers choosing repairs and significant regional variations in secondhand adoption rates.

Why it is important: The convergence of economic pressures and sustainability concerns is creating a fundamental shift in consumption patterns, forcing retailers to adapt their business models while presenting new growth opportunities in emerging markets.

The global retail landscape is experiencing a significant transformation as consumers increasingly embrace secondhand shopping and repair services. According to Euromonitor International's 2023 survey, 24% of global consumers are now actively purchasing secondhand items, while 41% opt to repair broken products to save money and reduce waste. This trend is particularly pronounced among younger generations, with over 40% of Gen Z and Millennials regularly engaging in secondhand shopping. The movement shows distinct regional variations, with Latin America leading in zero-waste adoption at 40%, while Europe and Asia-Pacific follow at 36%. Emerging markets are showing remarkable potential, with India leading at nearly 50% consumer participation in buying and selling used items. The trend is driven by a combination of economic pragmatism and environmental consciousness, particularly among consumers aged 45 and above, where participation has increased from 28% in 2021 to 40% in 2023.

IADS Notes: The surge in secondhand retail throughout 2024 reflects a complex interplay of economic pressures and evolving consumer values. As reported in March 2024, ThredUp's analysis projected the global secondhand market to reach $350 billion by 2028, demonstrating unprecedented growth potential . This projection is supported by significant market developments, with traditional retailers rapidly adapting their business models. In February 2024, H&M's innovative SoHo store launch featuring a dedicated secondhand section marked a turning point in mainstream retail adoption of circular fashion. The trend gained further momentum when Harvey Nichols and John Lewis expanded their resale offerings , while Le Bon Marché's luxury buyback program launch demonstrated how high-end retail is embracing circularity. By September 2024, emerging markets showed remarkable growth, with India leading at 42% consumer participation in secondhand commerce , suggesting a global shift toward sustainable retail practices that transcends economic boundaries.

Rising cost of living pushes secondhand shopping, repairs