February 29, 2024
Online Clothing Rental Market

Online Clothing Rental Market is Expected to be Flourished by Increased Demand for Sustainable Fashion

Online clothing rental allows customers to rent various types of apparel items for a fixed time period at an affordable price. Clothing items available in online clothing rental services include dresses, tops, bottoms, formal dresses, suits, accessories and more. This service enables customers to have access to a variety of trendy clothing options without spending extensively on purchasing each item. The growing demand for sustainable fashion has led many consumers to opt for rental services over purchasing clothes.

The global online clothing rental market is estimated to be valued at US$ 8388.65 Mn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increased Demand for Sustainable Fashion: As mentioned in the heading, the demand for sustainable fashion has increased significantly in recent years. More consumers are becoming aware of environmental issues related to fast fashion such as waste generation, water pollution, and carbon emissions. Thus, they are interested in exploring rental and resale options that promote sustainability. Online clothing rental is a convenient sustainable fashion alternative as it allows frequent wearing of different styles while reducing clothing waste.

Focus on Millennials and Gen Z Consumer Base: Millennials and Gen Z belong to the generation that is highly focused on experience over ownership. They enjoy exploring latest trends and do not wish to spend large amounts on purchasing each fashion item. The affordable subscription models and diverse clothing collections of online rental retailers attract these age groups. Moreover, the convenient delivery and return processes suit their fast-paced lifestyle. This driver is expected to fuel the growth of the market during the forecast period.

Segment Analysis
The online clothing rental market is dominated by women’s clothing rental segment. According to the recent surveys, women are more open to rent clothing for various occasions like parties, weddings, formal events or casual weekend hangouts rather than buying new attires every time. This segment accounts for over 65% of the total online clothing rental market share owing to wide variety of dress options available for women compared to men’s clothing.

PEST Analysis
Political: There are no major political risks impacting the online clothing rental market at present. However, any future regulations around renting of used clothing goods may influence the market dynamics.
Economic: Rising disposable incomes and changing consumer preferences towards experience led spending rather than ownership are fueling the market growth. The attractive pricing of rented clothing compared to retail purchases also supports the adoption.
Social: Increase in networking events, office parties, travel, and casual hangouts are enhancing the need for periodic changes in clothing types without huge investments. This aligns well with the on-demand nature of online rental services.
Technological: Advancements in e-commerce platforms, mobile apps, and logistics are enabling seamless rental experiences for users. Technologies like augmented reality for virtual clothing try-ons and Blockchain for verifying item lifecycles may further stimulate the market opportunities.

Key Takeaways

The Global Online Clothing Rental Market Demand is expected to witness high growth in the forecast period driven by the expansion of e-commerce and changing consumer demand patterns. The global online clothing rental market is estimated to be valued at US$ 8388.65 Mn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

North America currently dominates the market owing to high adoption of online rental services coupled with presence of major international brands in the region. The North America online clothing rental market is estimated to account for over 35% market share by 2030. Increased preference towards rental fashion by millennials and Gen Z, high penetration of smartphones and internet along with rapid growth of online shopping are driving the regional market growth.

Key players
Key players operating in the online clothing rental market are Rent the Runway, Le Tote, Dress & Go, GlamCorner, La Reina. Rent the Runway is currently dominating the market with largest consumer base in North America and expanding presence in international markets. Le Tote is also escalating quickly with its affordable subscription plans for multi-item rentals.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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