How Has The Online Clothing Rental Market Size Evolved In Recent Years?
The online clothing rental market has seen considerable growth due to a variety of factors.
• In recent times, the online clothing rental market has seen a dramatic increase in size. It is projected to expand from $1.73 billion in 2024 to $1.92 billion in 2025, showing a compound annual growth rate (CAGR) of 11.0%.
The substantial growth during the historical period can be credited to a shift in consumer ideas about ownership, heightened environmental consciousness, the emergence of the sharing economy, a yearning for a variety of fashion without the need for long-term commitment, and the development of e-commerce and digital platforms.
What Are The Estimated Market Size And Expected Annual Growth Rates For Global Online Clothing Rental Market?
The online clothing rental market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, a swift expansion is anticipated in the online clothing rental market, with the market size expected to reach $2.9 billion by 2029, growing at a compound annual rate (CAGR) of 10.9%.
The progress expected over this projection period could be credited to the increasing awareness about sustainability, the uptake of circular fashion methodologies, a heightened interest in event-based and on-demand fashion, a rising demand for designer clothing, and a growing inclination towards evolving fashion statements. Prominent trends to observe during this forecast period include improvements in the technology surrounding virtual fitting and sizing, the arrival of unique rental platforms dedicated to specific pieces of clothing, alliances between fashion brands and rental platforms, the incorporation of artificial intelligence in personalized fashion suggestions, and the widening of rental services to encompass high-end and designer fashion.
Which Key Drivers Are Propelling The Online Clothing Rental Market's Growth?
The expansion of the online clothing rental market is anticipated to be propelled by the rising penetration of mobile and internet. Factors such as economic progress, IT advancements, conducive governmental and business protocols, as well as urbanization, contribute positively to mobile and internet proliferation. An individual can rent attire online and also make payments virtually, in an online clothing rental setup. For example, Finder, a US-based financial comparison website, reported that the UK had an 89 percent smartphone ownership in 2022, a hike from 87 percent the previous year, as of September 2023. Adding to this, the International Telecommunication Union (ITU), a Switzerland-based organization for information and communication technologies, noted in February 2024 that roughly 5.4 billion people, constituting 67 percent of the global populace, were internet users in 2023, showing a significant surge of 45 percent since 2021. Hence, the rising mobile and internet usage is propelling the online clothing rental market's growth.
What Are The Key Segments Within The Global Online Clothing Rental Market?
The online clothing rental market covered in this report is segmented –
1) By Clothing Styles: Western Wear, Ethnic Wear, Other Clothing Styles
2) By Dress Code: Formal, Casual, Traditional
3) By Price Range: Low, Mid, Premium
4) By End User: Women, Men, Kids
Subsegments:
1) By Western Wear: Casual Wear, Formal Wear, Activewear, Outerwear, Dresses
2) By Ethnic Wear: Traditional Dresses, Kurtas And Kurtis, Sherwanis, Fusion Wear
3) By Other Clothing Styles: Sportswear, Beachwear, Loungewear, Costumes And Party Wear
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How Are New Trends Impacting The Size Of The Online Clothing Rental Market?
Technological innovations are revolutionizing the online clothing rental industry. These advancements have enabled online apparel businesses to streamline their operations and business practices. To illustrate, in November 2022, the UK-based online sales company, MatchesFashion, launched Luxury Rental Service. This service allows customers to rent high-end designer clothing, providing a flexible and environmentally friendly alternative to purchasing luxury fashion. It caters to individuals who desire access to premium clothing without the long-lasting ownership obligation. The MatchesFashion rental aligns with the growing trend of fashion rental platforms aiming to minimize waste and promote sustainability. The service seamlessly combines luxury with convenience while maintaining the brand's high-end image by offering designer outfits for temporary use or special occasions.
Who Are the Key Players in the Online Clothing Rental Market?
Major companies operating in the online clothing rental market include:
• Rent the Runway
• Le Tote
• HURR Collective
• GlamCorner
• MyWardrobeHQ
• Bag Borrow or Steal
• The RealReal
• Snag Tights
• Style Lend
• Vinted
• Portray
• Wardrobe Society
• Kidizen
• Your Closet
• ShopLooks
• Rented
• Dress & Go
• ShareWardrobe
• Cladwell
• Borrowed & Blue
• Armarium
• FashionPass
• Rent-a-Center
• La Tote
• Trendy Butler
• ReDress
• Chic By Choice
• Modsy
• Rent My Wardrobe.
What are the Regional Insights into the Online Clothing Rental Market?
North America was the largest region in the online clothing retail market in 2024. The regions covered in the online clothing rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
