How secondhand luxury goods are outpacing the primary market

Secondhand luxury might sound like an oxymoron, but there’s no ambiguity around the size of this growing market. At a time where tariffs and price increases are causing headaches for global businesses, this market within a market stands as a bright spot amid increased protectionism or, dare we say it, “slowbalization.”

According to a report from the Boston Consulting Group and pre-owned luxury platform Vestiaire Collective, the secondhand market is growing 10% annually and is expanding three times faster than the primary market for luxury goods. The report estimates the value of the secondhand luxury market will hit $360 billion by 2030.

Primary driver

Elizabeth Layne is CMO of luxury resale provider Rebag. She said price hikes at luxury brands have driven shoppers who seek accessible pricing to the secondhand market.

“We price based on supply and demand, so it’s not like we take a price hike across everything,” she said. “All of our work is very data backed, and it’s based on what’s coming in but also the demand for those items, so we’re able to be a bit more nimble.”

The US consumer is often credited for resilience amid economic uncertainty, but this was put to the test this year as President Trump imposed 15% tariffs on European goods including luxury items. While the luxury market has largely held firm, the door has been opened for competitors in the secondhand space. One reason is, simply, pricing: Between 2019 and 2023, prices for luxury goods increased 33% on average.

The other opportunity was increasing accessibility: Some luxury goods are exclusively sold to a small group of high-income clients. Take Hermès, which has become notorious for offering select clients the chance to buy its popular Birkin and Kelly bags.

For the average consumer, the only way to get their hands on one of these coveted items is through the secondhand market.

“A significant part of it is the opportunity to get exactly what it is that they want,” said Gary Schoenfeld, president of luxury resale platform Reklaim. “Increasingly, consumers are frustrated. To walk into a Rolex store or a Hermès store and be told, ‘No, we won’t sell you what you want today,’ that just doesn’t exist in any other part of our lives as consumers.”

Resale revolution

Resale’s surge in recent years has been building, thanks in part to the habits of Gen Z consumers (are you a conscious shopper?) and nostalgic trends making regular comebacks.

“As the secondary market has expanded and grown over the years, it’s just become a more acceptable shopping channel,” Layne said. “Primary versus secondary is more just like, ‘Where can I access the goods that I want to access?’ Resale offers that instant availability for in-demand pieces.”

As tariffs become a bigger part of the global economic tapestry, the secondhand luxury market is showing signs of staying power.

“The bigger story is just customers increasing confidence that the world of conscious luxury is a great way to be able to purchase what they want, purchase it at a price and a value proposition that makes sense, and now, unlike a few years ago, be able to buy it with 100% confidence in what they’re purchasing,” Schoenfeld said.