The online clothing rental market, valued at approximately USD 2,279.9 million in 2023, is set to experience substantial growth, with projections reaching USD 6,244.1 million by 2033. This expansion represents a remarkable compound annual growth rate (CAGR) of 10.6% over the forecast period. As an increasing number of consumers turn to online rental platforms for their clothing needs, several key factors are fueling this rapid market growth.
Sustainability and Consumer Behavior Driving Change
The rise of environmentally-conscious consumer behavior, particularly among Millennials and Generation Z, is a significant catalyst in the online clothing rental market’s expansion. These consumers are prioritizing sustainability, with 44% of consumers identifying as purpose-driven, selecting products and brands that align with their values, according to a 2022 NRF and IBM report. Online clothing rentals offer a more sustainable alternative to fast fashion by extending the lifecycle of garments, reducing water and energy consumption, and cutting down on CO2 emissions.
Research conducted by Rent the Runway (RTR) found that clothing rental can reduce water consumption by 24%, energy consumption by 6%, and CO2 emissions by 3%, underlining the positive environmental impact of this growing trend.
The Shift from Physical Stores to Online Platforms
The traditional model of renting clothes through physical stores has evolved, with the online clothing rental market expanding rapidly due to the rise of e-commerce platforms. Unlike in-store rentals, online services offer an extensive range of clothing options, making it easier for consumers to rent attire for various occasions—such as weddings, corporate parties, theme events, and photoshoots—through digital interfaces.
The advent of recurring subscriptions and peer-to-peer sharing models has further diversified the online rental landscape, providing consumers with even more affordable and flexible options. Subscription services, in particular, allow for continuous wardrobe updates without the commitment of purchasing new items, catering to a growing preference for circular fashion.
Economic Factors and the Cost-Effectiveness of Rentals
Economic factors, such as inflation and rising living costs, have also contributed to the increasing demand for online clothing rentals. The pandemic-induced economic crisis led many consumers to reassess their spending habits, and online rentals provide a budget-friendly solution for accessing high-quality garments without the financial burden of purchasing them outright. Consumers are now able to enjoy fashionable, designer pieces at a fraction of the retail cost, making clothing rental a cost-effective and eco-friendly alternative to fast fashion.
Furthermore, the vintage fashion movement and the growing trend of reusing clothing items have enhanced the appeal of online clothing rental platforms. Clothes that are rarely worn or discarded by their owners can be refurbished and rented out, promoting a circular economy and reducing waste.
Competitive Landscape
To expand their global footprint and secure a larger revenue share, industry leaders are concentrating on launching new products, forming strategic partnerships and collaborations, pursuing mergers and acquisitions, and integrating innovative technologies.
For example
- In 2022, Tommy Hilfiger entered a rental partnership with Rotaro in the United Kingdom. The collaboration might allow renters to wear a variety of unisex pieces from the TommyXRomeo collection, as well as denim from Tommy Jeans and archive Hilfiger pieces.
- In 2022, a new clothing rental company began providing customers with access to the wardrobes of fashion industry creatives and influencers. Rachel Cornick’s new platform combines fashion rental with the power of social media.
Key Companies Profiled
Rent the Runway; Rotaro; GlamCorner Pty Ltd.; Casstle. Inc.; Mine for Nine, LLC; Dress Hire AU; Thread Rentals; Le Tote Inc.; Urban Outfitters; Rent The Front Row LLC; Dress & Go Company; Chic by Choice Company; STYLE Lend Company; RENT It Bae Company; Mr. & Ms. Collection; The Secret Wardrobe; Gap Inc.; MY WARDROBE HQ; By Rotation Ltd.
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Online Clothing Rental Market By Category
By Product Type:
- Men’s
- Knitwear
- Trousers & Jeans
- Jumpsuits
- Coats & Jackets
- Ethnic Wear
- Performance Wear
- Active Wear
- Longue Wear
- Women’s
- knitwear
- Trousers & Jeans
- Jumpsuits
- Coats & Jackets
- Skirt & Shorts
- Ethnic Wear
- Performance Wear
- Active Wear
- Longue Wear
- Kids
- Casual Wear
- Formals
- Semi-Formals
By Business Model:
- Standalone Model
- Subscription Model
By End-User:
- Business to Consumer (B2C)
- Business to Business (B2B)
By Age Group:
- Below 18 years
- 18-25 years
- 26-34 years
- 35-44 years
- 45-54 years
- 55 Above years
By Region:
- North America
- Latin America
- Europe
- South Asia & Pacific
- East Asia
- Middle East & Africa (MEA)
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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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