In 2023, the Online market for clothing rental is expected to reach a value of US$2,279.9 million, with forecasts promising significant growth opportunities. By 2033, an increase to 6,244.1 million US dollarswhat a remarkable Average annual growth rate (CAGR) of 10.6% throughout the forecast period. This growth represents a golden opportunity for fashion industry decision makers. Here’s why online clothing rental is the future of fashion and how you can pave your way to clothing success:
More than special occasions:
- Rent removals online: Gone are the days of limited selection in physical rental stores. The online clothing rental market offers a large and diverse fashion selection ranging from everyday wear to special occasions and everything in between. By catering to a wider range of needs, you can expand your customer base.
Subscription revolution:
- Convenience is king (and queen): Modern consumers are looking for a convenient shopping experience. Offer subscription models that provide access to a curated wardrobe, eliminating the need for constant clothing purchases.
Sustainability sells:
- Environmentally conscious consumers: Millennials and Generation Z value sustainability. Emphasize the environmental benefits of clothing rental, such as reduced water and energy consumption and fewer carbon emissions. Highlight how your service aligns with their values and their desire for a more sustainable fashion industry.
Sustainability showcase:
- Data drives decisions: Follow the example of companies like Rent the Runway and conduct research to quantify the environmental benefits of clothing rentals. Share this data with your customers to build trust and transparency.
Smooth fashion:
- Omnichannel experience: Today’s consumers expect a seamless shopping experience. Invest in a user-friendly platform that enables easy browsing, live stock tracking, quick booking, and convenient delivery and returns options.
Important findings from the Online market for clothing rental
- In 2022, formal wear had a market share of around 31.5%. Formal wear such as suits and blazers is expensive and requires maintenance; therefore, price-conscious and young consumers prefer renting.
- In terms of business models, the market is divided into two categories: standalone and subscription. Since these clothes are rarely worn on special occasions that do not occur on a regular basis, the standalone segment is expected to account for 76% of the market share during the forecast period.
- Women are expected to continue to dominate the market with a share of 58% during the forecast period. Women’s clothing is in high demand on fashion rental platforms. During the forecast period, the continued demand for western designer dresses among women globally is expected to boost the growth of the online dress rental market.
- The online clothing rental market in Germany was valued at $0.090 billion in 2022 and is expected to reach $0.17 billion by 2030, growing at a CAGR of 8.7% between 2023 and 2030. The desire for more sustainable and affordable ways to acquire designer clothing has increased the popularity of online clothing rental apps in Germany. In addition, there is high consumer demand for coats and jackets due to the cold weather.
- The online clothing rental market in India was valued at $0.076 billion in 2022 and is expected to reach $0.14 billion by 2030, growing at a compound annual growth rate of 8.8% between 2023 and 2030. The online clothing rental market in India is growing due to increasing internet usage, increased awareness about sustainability, and increased demand for quality brands at reasonable prices.
- The United States accounts for around 95.0% of the North America online dress rental market and is expected to grow at a CAGR of 7.4% during the forecast period. The rise in the various new startups and the presence of some of the leading brands in the US dress rental market is driving the growth of the online dress rental market in the region.
Complete Market Overview: A Complete Report Analysis
Competitive environment
The competitive landscape in the online clothing rental market is moderately fragmented and consists of a mix of established retailers and startups. While some retailers are looking for a better way to manage their inventory through rentals, startups are trying to expand their business by offering product mixes from multiple brands. Some of the major players in the market include Le Tote, Gwynnie Bee, Glam Corner, Rent the Runway, and Nuuly.
- In 2022, Tommy Hilfiger entered into a leasing partnership with Rotaro in the UK. The collaboration could allow tenants to wear a variety of unisex pieces from the TommyXRomeo collection, as well as denim from Tommy Jeans and Hilfiger archive pieces.
- In 2022, a new clothing rental company began giving its customers access to the closets of fashion creatives and influencers. Rachel Cornick’s new platform combines fashion rental with the power of social media.
Online clothing rental market by category
Product type
- Knitwear
- Pants & Jeans
- Overalls
- Suits & Blazers
- Coats & Jackets
- Skirt & Shorts
- Ethnic clothing
Business model
- Standalone model
- Subscription model
End user
- Business to business (B2B)
- Business to consumer (B2C)
- Consumer-to-Consumer (C2C)
Consumer orientation
region
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Middle East and Africa (MEA)
- Oceania
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, Stevie Award recipient and member of the Greater New York Chamber of Commerce) provides in-depth insights into the driving factors that are driving demand in the market. FMI is the world’s leading provider of market intelligence, advisory services, consulting and events for the packaging, food and beverage, consumer technology, healthcare, industrial and chemical markets. With a huge team of around 400 analysts worldwide, FMI offers global, regional and local expertise on various domains and industry trends in more than 110 countries.
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