Leading market research service, Future Market Insights, has estimated that the North American online clothing rental market will grow at a CAGR of 7.4 percent.
The United States currently holds a share of 90.3% of the North American online clothing rental market.
The projected growth is a consequence of rising consumer inclinations to purchase rental clothing for special occasions, a boom in new start-ups and the increasing presence of established brands providing rental clothing.
Future Market Insights found that U.S consumers have great spending power and like to make frequent apparel purchases, resulting in a growing demand for clothing on online clothing rental websites.
However, many consumers are environmentally conscious and increasingly opting to purchase rentals to avoid buying new clothing. Sustainable fashion and eco-fashion have seen immense growth as the impact of the fashion industry on the planet have been further illuminated.
Affordability is another key factor in driving the popularity of online clothing rentals. During the pandemic, consumers have reduced their consumption of nonessential items and are choosing to purchase lower-priced but higher-quality clothing, such as vintage and second-hand garments. Online clothing rental platforms allow consumers to put their clothing up for rental, allowing others to try on clothing at an economical cost, while drastically reducing the amount of wastage the fashion industry produces.
Key names in the fashion industry have also opted to include online rental in its services. In 2022, Tommy Hilfiger established a rental partnership with Rotaro in the UK, allowing renters to wear a range of unisex pieces from the Tommy x Romeo collection, and other pieces from Tommy Jeans.
In 2022, the global online clothing rental market was valued at 2,007 million USD. By 2032, it is projected to reach a value of 2,828 million USD, with overall demand rising at a strong CAGR of 9.2 percent.
