The global online clothing rental market was valued at USD 1.22 billion in 2023. The global market size is further expected to grow to USD 1.99 billion by 2029 from USD 1.32 billion in 2024, growing at a CAGR of 8.5% from 2024 to 2029.
Online clothing rentals include services that allow people to rent clothing items for a predefined period. This service is useful for people who seldom participate in occasional events such as weddings, theme parties, corporate parties, photoshoots, and film productions. Fashion-conscious people who do not have the financial resources to buy selected clothes can also use the online clothing rental service. Online clothing rental services are also used for people who suffer temporary changes in their physique, such as pregnant women. Rental facilities have provided a cost-effective option for this demographic data, boosting the demand of the global online clothing rental market.
The desire for sustainable fashion choices and cost-consciousness has increased significantly worldwide. On average, USD 1,500 is being spent by every American household on clothing on a yearly basis. However, the recent COVID-19 pandemic has changed this scenario and made people consider making more budget-conscious shopping practices. This has acted favorably to online clothing rental platforms as these platforms offer accessibility to a diverse range of clothes collections in the wardrobes without the burden of long-term financial commitments.
The convenience and accessibility offered by online shopping have significantly changed usage patterns and consumer habits worldwide regarding clothing. The online transactions have experienced significant growth in the last couple of years. As per the data published by statistia.com, the worth of global e-commerce sales was around USD 5.4 trillion in 2022. The digital transformation has fuelled the adoption and increased awareness of renting clothes online by allowing consumers to easily browse, select, and rent clothing items from the comfort of their homes.
The shift of consumer preferences towards variety and novelty, reduced closet space in urban living environments, convenience and hassle-free outfit rotation for special occasions and growing awareness of the "fast fashion" environmental impact contribute to the growth of the online clothing rental market. Furthermore, factors such as flexible subscription models catering to diverse needs, celebrity endorsements and influencer marketing, technological advancements such as virtual try-on technology and the integration of AI for personalized clothing recommendations, and millennial and Gen Z consumer demographics further support the online clothing rental market growth.
Concerns over hygiene and sanitation considering the COVID-19 pandemic, lack of physical try-on options for customers to assess fit and style, limited availability of specialized or niche fashion items and difficulty in maintaining the quality and condition of rental clothing further hinder the market growth. High costs associated with logistics, cleaning, and storage and competition from fast fashion retailers offering low-cost alternatives inhibit the growth rate of the online clothing rental market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
8.5% |
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Segments Covered |
By End-User, Clothing Style and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key Market Players |
Linen rental, Flyrobe.com, Rent the Runway, Style Lend, Catwalk rental, Liberent, Secoo Holding Limited, Share Wardrobe, Gwynnie Bee, Le Tote, Dress Hire and Swapdom |
The formal clothing style segment occupied approximately 48% of the global market in 2023. Formal dresses such as suits and jackets are expensive and require maintenance. So, young price-sensitive consumers consider a lease as a better option instead buying, which is one of the key factors driving the growth of the formal clothing style segment in the worldwide market.
The ethnic segment is anticipated to account for a substantial share of the worldwide market during the forecast period. Ethnic costumes are worn during the festival and on special and rare occasions. Consumers prefer to rent rather than buy.
The casual segment is expected to hold a considerable share of the global market during the forecast period. Players who cannot buy sportswear can rent them through an online portal.
The women segment accounted for 58% share of the worldwide market in 2023 and is expected to see significant growth during the forecast period. Continually changing fashion trends majorly drive the growth of the women segment in the global market.
The children segment is expected to register a promising CAGR during the forecast period. Children prefer to borrow clothes as they grow quickly and need to change clothes, which is expected to increase the subscriptions of rental companies and favour the growth of the children segment in the worldwide market.
North America had the largest share of the worldwide market in 2023 and the leading position of North America is expected to continue in the global market throughout the forecast period. High disposable income and a strong awareness of sustainability are primarily propelling the growth of the North American market. An estimated 40% of Americans prefer renting clothing as an eco-friendly choice instead of purchasing it. The COVID-19 pandemic has significantly boosted the adoption of online clothing rental in North America as people have become more focused on budget-friendly options during economic uncertainties for all kinds of needs, including clothing.
Europe is a promising regional market for online clothing rental and is expected to hold a substantial share of the worldwide market during the forecast period. The presence of a strong fashion culture, urbanization and rising interest in sustainable fashion majorly drive the online clothing rental market growth in Europe. Germany had the major share of the European market in 2023, followed by the UK.
APAC is expected to be the most lucrative regional market for online clothing rental worldwide during the forecast period. Factors such as growing urbanization, rapidly changing lifestyles and growing middle class population primarily propel the growth of the APAC market. China held the largest share of the APAC market in 2023. India is expected to witness a promising CAGR in the coming years.
Linen rental, Flyrobe.com, Rent the Runway, Style Lend, Catwalk rental, Liberent, Secoo Holding Limited, Share Wardrobe, Gwynnie Bee, Le Tote, Dress Hire and Swapdom are some of the noteworthy companies in the global market.
By Clothing Style
By End-User
By Region
Frequently Asked Questions
The global online clothing rental market size was valued at USD 1.12 billion in 2022.
Factors such as sustainability concerns, changing consumer preferences, and the convenience of online shopping primarily drive the growth of the online clothing rental market.
North America followed by Europe, dominated the market in 2022.
The COVID-19 pandemic caused a dip in rentals, but it later led to an increased interest in sustainable and budget-conscious fashion choices.
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