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2023

Online Clothing Rental Market

Online Clothing Rental Market Size, Share, Competitive Landscape and Trend Analysis Report by Clothing Style, by End User, by Business Model : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Dinesh Thakur | Roshan Deshmukh
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Online Clothing Rental Market Research, 2032

The global online clothing rental market size was valued at $1.1 billion in 2022, and is projected to reach $2.6 billion by 2032, growing at a CAGR of 9.2% from 2023 to 2032.

Online Clothing Rental Market

The online clothing rental market is segmented into Clothing Style, End User and Business Model.

Online clothing rental refers to the service that enables individuals/customers to rent clothes for a specific time. Generally, consumers seek online clothing rental services to rent designer dresses for several occasions such as wedding ceremonies, theme parties, birthday parties, corporate parties, and filmmaking. A significant rise in online retail across the globe has boosted the global online clothing rental market growth. The growth in penetration of the internet, technological advancements, and the significant growth in popularity of online shopping among global consumers have triggered the online clothing rental demand among consumers. The rapid growth in youth population with higher brand consciousness and fashion sense is renting expensive designer clothing without owning it, which is significantly driving the demand for the online clothing rental services. The rise in consumer expenditure to improve their overall aesthetical appearance has stimulated them to spend on designer clothes for social gatherings or functions.

One of the major drivers of the online clothing rental market is the consumer perspective. Clothing rental services offer the customers to experiment with new styles and brands and also allow to change their wardrobe without much spending. These activities are associated with pleasure, fun, and enjoyment along with saving money. According to the European Union, one in three clothes are never worn or worn once in three months. Less than 50% of the used clothes are collected for recycling or reuse when the clothes are no longer needed. According to the EU estimates, between 2% and 10% of the negative environmental impacts of consumption is associated with the fashion industry. Therefore, the fashion rental industry has gained rapid traction among the people in Europe, which has driven the growth of the online clothing rental market.

Moreover, affordability is a major factor associated with the online clothing rental industry, which has significantly boosted the growth of the online clothing rental market across the globe. Consumers have found clothing rental more affordable and cost-effective because clothing rental services enables them to wear clothes of different brands and styles for a while without paying the full price of the clothes using them at affordable price and returning them to the service provider after use. Furthermore, many young consumers want to spend less on clothing and also keep up with the latest fashion trends.

Online clothing rental is expected to be the fashion of the future as sustainable clothing has gained rapid traction among global consumers. It is estimated that the fashion industry contributes around 5% to 10% of the global greenhouse gas emissions while manufacturing apparel. Therefore, clothing rental services are expected to reduce such greenhouse gas emissions from the fashion industry. It is estimated that every year, the U.S. generates 11.3 million tons of textile waste alone, which is around 2,150 pieces of cloth every second. Around 87% of the total fiber input utilized in cloth manufacturing is ultimately disposed of as landfill. Hence, the rise in consumer awareness regarding global warming and sustainable clothing is anticipated to foster the demand for clothing rentals, especially in developed economies such as the UK, the U.S., France, and Germany.

There has been a rise of thrifty fashion lovers pertaining to high-growth and fast-changing retail and online clothing markets in the Asia-Pacific region. Online clothing rental is mainly suitable for people who do not want to purchase an expensive dress for a one-time event and cannot borrow every time from a friend. Designer gowns & accessory rentals that were the exclusive territory of celebrities have become a norm common to all.  One can now easily experiment with fashion or try new designer brands with the usage of online rental platforms. In addition, budget conscious end-users in the millennial age group are a great target market for the online rental industry, but another ideal customer base consists of individuals going through temporary stages of rapid size change, such as pregnant women.

The proliferation of digital technologies and the rise in the penetration of the internet coupled with the increase in adoption of smartphones across the globe are several factors that have supported the growth of the online clothing rental industry. According to the International Telecommunication Union (ITU), around 5.4 billion people or 67% of the global population had access to the internet in 2023 and majority of them use smartphones to access the internet. Therefore, the growth in penetration of internet and smartphones coupled with the rise in popularity of online shopping and clothing rental services are expected to fuel the growth of the online clothing rental market in the forthcoming years.

Clothing rental through online platforms has slowly caught up, meanwhile it faces stiff completion from real brick and mortal stores and boutiques, which have been in the market longer as compared to clothing rental platforms. Moreover, people in general know about the nearby real store more along with added social acceptance and trust. In addition, for many consumers renting online seems risky and cannot replace the trial and best-fit benefit of real stores as compared with online rental of the same.

According to the online clothing rental market analysis, the market is segmented based on clothing style, end user, business model, and region. On the basis of clothing style, the market is segmented into ethnic, western, and others. On the basis of end user, the market is categorized into women, men, and kids. On the basis of business model, it is segregated into subscription based, standalone, and peer to peer. On the basis of region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, Saudi Arabia, and the rest of LAMEA).

Online Clothing Rental Market by Clothing Style

 On the basis of clothing style, the ethnic segment accounted for 54.9% of the online clothing rental market share in 2022 and is expected to sustain its dominance during the forecast period as per the online clothing rental market forecast. Ethnic wear is associated with cultural heritage and tradition of any region or community that has different meaning in different regions. Particularly in Asian countries, the demand is higher for ethnic dresses as people wear costly ethnic wears in wedding ceremonies and traditional festivals. Moreover, in North America and Europe, ethnic dresses are commonly worn in marriages and traditional occasions.  The demand for ethnic clothing rental is expected to increase during the forecast period with the growth in popularity of sustainable clothing in the developed and developing economies. On the other hand, the western is expected to be the fastest growing segment during the forecast period. This is attributable to the growth in influence of western culture in the developing nations of LAME and Asia-Pacific region.

Online Clothing Rental Market by End User

According to the online clothing rental market trends, on the basis of end user, the men segment is expected to witness the highest CAGR during the forecast period. The increase in young population in developing nations of Asia and Africa, growth in penetration of internet, rise in popularity of clothing rental services, and increase in consumer expenditure on improving the aesthetic appearances, the demand for the online clothing rental services is expected to grow among the male population. Moreover, in the past few years, it has been noticed that men have spent more on clothing as compared to women, which is expected to boost the growth of the men segment in the market.

Online Clothing Rental Market by Business Model

On the basis of business model, the standalone was the largest segment in 2022 and is expected to sustain its dominance during the forecast period. The standalone business model refers to a company that exclusively operates through online platforms and offers clothing and accessories for rent. These businesses focus on offering rental services for a wider range of garments or clothing. The major factor that has led to the exponential growth of this segment includes change in consumer attitudes toward ownership, growth in sustainability and environmental concerns, cost-effectiveness and affordability, and increase in adoption of online technologies among the consumers. However, the subscription based is anticipated to be the fastest-growing segment during the forecast period. The subscription based online clothing rental services offers cost-effective solution to those customers who seek higher variety in their wardrobe at low expense. Moreover, this business model offers flexibility on the number of clothes as the consumer can rent multiple clothes during the subscription period. Personalization is a special characteristic associated with the subscription-based model in which the customers can curate their preferences.

Online Clothing Rental Market by Region

On the basis of region, North America led the market with the highest revenue share in 2022. Online clothing rental services offer a variety of convenience and cost-effectiveness to consumers, the change in attitude towards ownership, growth in penetration of social media and influencer culture, and rise in awareness regarding sustainable clothing are some of the major factors that have boosted the growth of the North American online clothing rental market. Furthermore, the presence of several leading brands in the region and their growth in penetration in the market are influencing global market growth.

Asia-Pacific is expected to be the fastest-growing region during the forecast period. The presence of a higher youth population and their desire to use luxury and designer clothing without spending huge chunks of their income is a major factor driving the growth of the market. Moreover, the growth in awareness among the consumers regarding the negative environmental impacts of fast fashion has motivated the youth population to opt for clothing rental services. Furthermore, the growth in emphasis on the circular economy has promoted the reuse, rent, and resale of a wider variety of products including clothing apparels. The rise in disposable income of the consumers in nations such as India and China and increase in penetration of western culture in these developing economies are expected to foster the growth of the online clothing rental market in Asia-Pacific region in the upcoming years.

Glam Corner Pty Ltd., Le Tote, Inc. , Gwynnie Bee, Dress & Go, Rent the Runway, Inc., Front Row, Nuuly, FLYROBE, By Rotation Limited, and MyWardrobeHQ Ltd. are the major companies profiled in the online clothing rental market report. These players are constantly engaged in various developmental strategies such as partnerships, mergers, acquisitions, and new product launches to gain a competitive edge and exploit the prevailing online clothing rental market opportunities.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the online clothing rental market analysis from 2022 to 2032 to identify the prevailing online clothing rental market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the online clothing rental market segmentation assists to determine the prevailing online clothing rental market demand and opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global online clothing rental market trends, key players, market segments, application areas, and market growth strategies.

Online Clothing Rental Market Report Highlights

Aspects Details
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Market Size By 2032

USD 2.6 billion

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Growth Rate

CAGR of 9.2%

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Forecast period

2022 - 2032

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Report Pages

400

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By Clothing Style
  • Ethnic
  • Western
  • Others
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By End User
  • Women
  • Men
  • Kids
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By Business Model
  • Subscription based
  • Standalone
  • Peer to Peer
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, UK, Italy, Spain, Rest Of Eu)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, South Africa, Saudi Arabia, Rest of LAMEA)
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Key Market Players

Glam Corner Pty Ltd, Le Tote, Inc., Rent the Runway, Inc., Front Row, By Rotation Limited, Nuuly, FLYROBE, Dress & Go, Gwynnie Bee, MyWardrobeHQ Ltd

Key Market Players
Other players in the value chain include:

Girls Meet Dress (UK), Dress Hire (UK), Swapdom (U.S.), Style Lend (U.S.), Rentez-Vous (UK)

Analyst Review

The global online clothing rental market is anticipated to witness robust growth in the emerging market of Asia-Pacific along with continued growth in established market of North America. The growth is attributed to the growth of online retail, the fast-changing fashion industry, and an overall increase in rental services. The U.S. is expected to witness a surge in the online clothing rental market which is closely contested by Europe mainly because of the string of startups opening in online clothing rental mainly in the UK and Western Europe.

The Asia-Pacific segment is the fastest growth in market mainly because of the larger population size, higher millennial population, lower and middle-income groups as compared to developed nations. The end user men segment, which was earlier neglected as woman shoppers dominated the apparel market, has now surged ahead and is expected to increase both in volumes and revenue. Apart from these two big segments, the kids wear segment has also gained traction in the online clothing rental market. India is expected to witness a strong growth in the western wear segment owing to the rise of female workers. Moreover, ethnic wear is expected to maintain its dominance throughout the forecast period, as India is considered as a land of different cultures. In addition, the adoption of rental services in the Indian economy is expected to create a substantial opportunity for the growth of the online clothing rental market. Online clothing rental providers are also anticipated to show further improvement in markets across rest of Asia and LAMEA, which are presently in budding stages of clothing rental. Western wear is the major focus point for these markets due to the increase in globalization and corporate culture. Western wear is more common in developed economies of North America and Europe and shows a better response in terms of online clothing rental in Asia-Pacific, where ethnic wear accounts for substantial market share.  Online clothing rental has become very feasible and accessible with the internet as its foundation and increasing online platform for shared services. The ease in accessibility is expected to create huge opportunity for fashion conscious individuals, which directly results in the generation of more than one feedback from consumers about the particular brand or designer. Therefore, the usage of advanced analytics is projected to provide more effective information, which is anticipated to result in better consumer services.

Author Name(s) : Dinesh Thakur | Roshan Deshmukh
Frequently Asked Questions?

The global online clothing rental market size was valued at $1,102.3 million in 2022 and is estimated to reach $ 2,639.7 million by 2032, growing at a CAGR of 9.2% from 2023 to 2032. A significant rise in online retail across the globe has boosted the global online clothing rental market growth. The growth in penetration of the internet, technological advancements, and the significant growth in popularity of online shopping among global consumers have triggered the online clothing rental demand among consumers.

The online clothing rental market report is available on request on the website of Allied Market Research.

The forecast period considered in the global online clothing rental market report is from 2023 to 2032. The report analyzes the market sizes from 2022 to 2032 along with the upcoming market trends and opportunities. The report also covers the key strategies adopted by the key players operating in the market.

Glam Corner Pty Ltd., Le Tote, Inc. , Gwynnie Bee, Dress & Go, Rent the Runway, Inc., Front Row, Nuuly, FLYROBE, By Rotation Limited, and MyWardrobeHQ Ltd. are the major companies profiled in the online clothing rental market report. These players are constantly engaged in various developmental strategies such as partnerships, mergers, acquisitions, and new product launches to gain a competitive edge and exploit the prevailing online clothing rental market opportunities.

According to the online clothing rental market analysis, the market is segmented based on clothing style, end user, business model, and region. On the basis of clothing style, the market is segmented into ethnic, western, and others. On the basis of end user, the market is categorized into women, men, and kids. On the basis of business model, it is segregated into subscription based, standalone, and peer to peer. On the basis of region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, Saudi Arabia, and the rest of LAMEA).

Asia-Pacific is expected to be the fastest-growing region during the forecast period. The presence of a higher youth population and their desire to use luxury and designer clothing without spending huge chunks of their income is a major factor driving the growth of the market.

North America led the market with the highest revenue share in 2022. Online clothing rental services offer a variety of convenience and cost-effectiveness to consumers, the change in attitude towards ownership, growth in penetration of social media and influencer culture, and rise in awareness regarding sustainable clothing are some of the major factors that have boosted the growth of the North American online clothing rental market.

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Online Clothing Rental Market

Global Opportunity Analysis and Industry Forecast, 2023-2032