The 2023 Mercari Reuse Report suggests that consumers have multiple reasons to get involved with the repurposed products sector and that will drive major gains.
The report, sponsored by repurposed product retailer Mercari in partnership with GlobalData Market Analysis and Forecasts and based on a consumer survey the market researcher conducted, stated that ongoing gains in the second-hand goods market should push it to $325 billion by 2031. The survey indicated that the market is likely to grow 86.7% between 2022 and 2031, significantly outpacing the 35.9% growth anticipated for the first-run retail sector. Further, the online channel, the fastest growing within the sector, is set to account for 55.6% of the total resale market by 2031.
In an era of economic upheavals, resale and reuse are becoming the norm, as 56% of Americans say shopping secondhand is now a lifestyle choice for them. In 2022, Americans spent $174.1 billion on secondhand goods, up nearly 8.6%, or $13.7 billion, from 2021. Over the past year, 82% of Americans purchased a second-hand item, with 89% of Millennials shopping resale and Gen Z not far behind at 83%.
Among younger consumers, one-in-three Gen Zers plan to buy more secondhand items over the next year, the report suggested. They’re spending more time on online resale platforms, such as the one operated by Mercari, the report asserted, and embracing lower-cost versions of items that go viral on social media such as Stanley tumblers. Besides Stanley, home-related brands that are popular among resale shoppers include Rae Dunn and Le Creuset.
With pre-used items available as an option, consumers want to engage in sustainable shopping, Mercari maintained. Younger consumers focus more on selling products to reduce their environmental impact than older generations. The same sentiment applies to how they spend money, with 31% of Gen Z and Millennial consumers planning to spend more money on sustainable brands in the next 12 months.
In the end, 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 worth a whopping $559.8 billion, Mercari noted. Averaged across households, that’s 161 resellable items per household with a value of $4,267.
