Pre-owned Luxury Goods Market: Global Share, Size, Growth, Trends & Outlook ( 2023 – 2032 )
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- Status : Published
- Published on: Feb 2023
- Report ID: KDMI-300
- Available Format: PDF/Excel/DOC
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Pre-owned Luxury Goods Market Size and Overview
The pre-owned luxury goods market is expected to grow at a CAGR of 12% during the forecast period 2023-2032. The pre-owned luxury goods market has experienced significant growth and transformation in recent years, driven by changing consumer preferences, increasing sustainability awareness, and the rise of online platforms. This market encompasses a wide range of luxury products, including high-end fashion items, accessories, watches, jewelry, handbags, and more. In this overview, we will explore the key factors shaping the pre-owned luxury goods market, its growth drivers, challenges, and future prospects.
The pre-owned luxury goods market has witnessed a surge in popularity due to several factors. One of the primary drivers is the desire for luxury items at a more affordable price point. Luxury goods often come with hefty price tags, making them inaccessible for many consumers.
Rising Brand Awareness and Growing Number of Start-ups are Likely to Drive the Global Pre-owned Luxury Goods Market
Rising Disposable Income
Further, with this rising disposable income across the globe, the population is shifting towards pre-owned luxury goods. Also, the consumers across the globe are adopting second-hand luxury goods in order to improvise and maintain their lifestyle. Moreover, consumers are adopting second-hand goods in order to cut their expenses on the purchase of luxury items and expensive goods. This factor is expected to positively impact the growth of pre-owned luxury goods market in the upcoming years. The rise in income of consumers in emerging regions has also encouraged the demand for pre-owned luxury goods in emerging regions. According to the GCC statistical center, Saudi Arabia captured around 57.7% of the disposable income in the GCC and is followed by the United Arab Emirates with a percentage of 28.5.
Affordable High-End Fashion
Pre-owned luxury goods are the ideal choice for high-end fashion as they offer luxury goods at a lesser price. Further, the high costs of rents and education are adding uncertainty to the job market, these are the major reasons, which makes consumers to save money and reduce their frequency of purchases.
Increasing Sales of Clothing & Footwear Segment
The pre-owned luxury fashion is likely to continue with its exponential growth in the upcoming years. The pre-owned luxury trend is being accepted into almost every region such as the Americas, Asia Pacific, Middle East, and another region. Further, there is a rise in sales of luxury clothing & footwear segment which is providing immense growth opportunity for the pre-owned luxury goods market over the forecasted period. Apart from this, the availability of pre-owned luxury goods is favoring the consumers to try and save money instead of spending tons of money on luxury stuff.
Growing Numbers of Start-ups
The increasing number of start-ups in the field of pre-owned luxury goods is opening a gateway opportunity for the market to grow in the upcoming years. In addition to this, the United Arab Emirates, Dubai, and other countries are the most attractive countries in the field of pre-owned luxury goods which is indulging many start-up companies to enter the market. Further, this factor is likely to impact the growth of pre-owned luxury goods market over the forecasted period.
Barriers in Market
Authenticity is especially crucial in the context of second-hand luxury goods market as the risk a consumer perceives in terms of authenticity is increasing. Further, the fear of inauthenticity is increasing in the customer to customer markets, which is believed to hamper the growth of the market. The second-hand luxury goods market is still in its infancy in China. Most of the consumers in China don’t prefer second-hand luxury goods. This factor is hampering the growth of the second-hand luxury goods market. In addition to this, most domestic consumers still prefer to purchase new luxury goods and look down on the value of second-hand goods. The major threats to the progression of the fashion and luxury industry are the prevalence of counterfeit luxury goods. The absence of transparency and authenticity within the second-hand luxury goods market makes it challenging for the industry to propel forward. The consumers are not willing to trust sellers, through their formal or informal channels due to the fear of being duped. Further, these factors have the potential to negatively impact the demand for pre-owned luxury goods market over the upcoming years.
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The global pre-owned luxury goods market was estimated at USD 29,131.2 Million in 2021 and is estimated to grow at a CAGR of 12% during the forecasted period i.e. 2023-2032. The market of pre-owned luxury goods is basically driven by a bundle of factors including rising brand awareness, strong affordability, and growing affluent population. Over the years, consumers have generally grown to be more accepting of pre-owned luxury goods owing to factors such as environmental concerns, cost benefits, and others. Online stores being pre-owned luxury item’s core distribution channels, the demand for pre-owned luxury goods is likely to spur in upcoming years as the online marketplace is gaining traction across the globe. Further, changing consumer behavior, and strong adoption rate among millennials are projected to drag the global pre-owned luxury goods market to a valuation of USD 56,535.6 Million by the end of 2032.
The world pre-owned luxury goods are segmented by product into five: clothing, footwear, bags, jewelry & watches, and accessories. According to KDMI, in the product type segment, bags segment is expected to be the most attractive market in the global pre-owned luxury goods market over the forecast period. Further, this segment is projected to open new avenues for the market players and to be the most lucrative market over the forecast period. Footwear and clothing achieved steep sales growth in previous years across most of the regions. Consumers are willing to spend more on branded sneakers in the future.
With respect to demography, the market is segmented into men and women, out of which, women segment grabbed major shares in the global market in 2021. According to BPS analysis, women segment is likely to witness an increase of +130 BPS during the forecast period. Further, the market is anticipated to grow at a CAGR of 11.9% during the forecast period i.e. 2023-2032.
The pre-owned luxury goods market is also categorized by distribution channels into online and offline stores. There has been an increase in the number of online stores across the globe that are offering pre-owned luxury goods. The online stores have witnessed a huge mass of buyers in recent years. According to BPS analysis, online stores segment is likely to witness an increase of +850 BPS during the forecast period. Further, the market is anticipated to grow at a CAGR of 14.4% during the forecast period i.e. 2023-2032.
In terms of geography, the pre-owned luxury goods market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Europe pre-owned luxury goods market is expected to reach USD 16,938.6 Million by the end of 2027. Further, the market of Europe pre-owned luxury goods will be receiving an opportunity of USD 6,836.8 Million between 2022 & 2027. In addition to this, Europe pre-owned luxury goods market value is projected to witness a Y-O-Y growth of 13.7% in 2027 as compared to previous years.
The key players profiled in the report include RealReal Inc., The Luxury Closet, Vestiaire Collective, and other major key players. These market players have adopted different business strategies, such as acquisition, product launch, merger, and partnership to stay competitive in the global market. Increasing sales platforms are boosting the value of second-hand luxury items. It’s a lucrative market where luxury brands such as Channel, Rolex watches and other such products can be found at amazing prices. As a result, it is not surprising to see shopping habits for pre-owned luxury goods moving away from traditional channels to online channels and especially in the emerging countries where there is fluid infrastructure development and sharp consumer price sensitivity. In addition to this, the purchase of a second-hand luxury item from online sales channel offers value for money and makes fashion & accessories that are trending, accessible and affordable.
By Product Type
- Jewelry & Watches
By Distribution Channel
- Online Stores
- Offline Stores
• North America (U.S. &Canada)
• Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
• Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
• Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
• Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle East & Africa)
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