Online clothing rental market allows users to rent various types of apparel and accessories for a fixed time period through subscription plans offered by various providers. The services provide convenience, affordable luxury, and sustainable fashion option to users. Key products offered include dresses, tops, bottoms, outerwear, swimwear and accessories. The services are popular among young professionals, special occasions and fashion enthusiasts.
The Online Clothing Rental Market is estimated to be valued at US$ 8388.654692 Mn or in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing sustainable fashion trend and rising environmental concerns are major drivers fueling growth of online clothing rental market. Users are increasingly looking for eco-friendly options to reduce textile waste. Renting clothes provides sustainable alternative to fast fashion. Additionally, increasing popularity of subscription models among millennial for affordable luxury is also supporting market growth. Moreover, hectic lifestyle and occasional needs are compelling users to opt for pay-per-use rental models over ownership.
Segment Analysis
The global online clothing rental market is dominated by the women’s wear segment. This segment accounts for over 45% share of the overall market due to the increasing fashion consciousness among women. The women are more interested in exploring latest fashion trends without actually owning the clothing items. The men’s wear segment is the second largest segment owing to the growing acceptance of rented clothing among working professionals who attend multiple events and need different clothing options.
PEST Analysis
Political: The online clothing rental market growth is positively influenced by supportive government policies and regulations promoting sharing economy business models across various countries.
Economic: The rising disposable incomes and growing working population along with increasing preferences towards rental services attributable to cost-effectiveness is fueling the market growth economically.
Social: Changing social trends such as increasing fashion consciousness especially among millennials and changing preferences towards experiences over ownership of goods are driving the adoption of online clothing rentals socially.
Technological: Advancements in e-commerce technologies and mobile applications have enabled ease of access to a variety of clothing rental options for customers technologically.
Key Takeaways
The Global Online Clothing Rental Market Size was valued at US$ 8388.654692 Mn in 2023 and is expected to reach over US$ 15000 Mn by 2030, expanding at a high CAGR of 4.8% during the forecast period. The market is growing due to increasing fashion consciousness among consumers and changing consumer preferences towards experiences over ownership of goods.
Regionally, North America accounted for the largest market share in 2023 owing to rising trend of renting clothing for special occasions in countries like the U.S. and Canada. Asia Pacific is expected to witness the fastest growth during the forecast period. This can be attributed to growing middle-class population, improving lifestyle, and rising trend of renting clothing in countries such as China, India.
Key players operating in the online clothing rental market are Rent the Runway, Poshmark, Elanic Services Private Limited, Dress & Go, GlamCorner Pvt Ltd., Envoged, Etashee, Secoo Holdings Limited, and Secret Wardrobe. These players are focusing on expanding their product portfolio and service offerings to cater to the growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
