Online Clothing Rental Market Size, Share, Analysis, Trends, Growth, 2032

Online Clothing Rental Industry Prospective:

The global online clothing rental market size was evaluated at $2 billion in 2023 and is slated to hit $7 billion by the end of 2032, with a CAGR of nearly 10% between 2024 and 2032.

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Online Clothing Rental Market: Overview

Online clothing rental services are gaining traction globally as they can be easily availed of, and end-users can easily have access to high-end clothing fashions & designs.

There are a few popular online clothing rental services that are available across the globe. They include Rent the Runway, Gwynnie Bee, Nuuly, Tulerie, Liberent, and Flyrobe.

Key Insights

• As per the analysis shared by our research analyst, the global online clothing rental market is projected to expand annually at the annual growth rate of around 10% over the forecast timespan (2024-2032)
•  In terms of revenue, the global online clothing rental market size was evaluated at nearly $2 billion in 2023 and is expected to reach $7 billion by 2032.
• The global online clothing rental market is anticipated to grow rapidly over the forecast timeline owing to the flourishing e-commerce sector, online retail activities, and the cost-effectiveness of online clothing rental services.
• In terms of end-user, the women segment is slated to register the highest CAGR over the forecast period.
• Based on clothing type, the formal wear segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Based on business model, the subscription-based segment is likely to lead the global market growth in the ensuing years.
• Region-wise, the Asia-Pacific online clothing rental industry is projected to register the fastest CAGR during the assessment timespan.

Online Clothing Rental Market: Growth Factors

An increase in the online purchase & renting of products has prompted the global market trends

Flourishing e-commerce sector and online retail activities, along with the cost-effectiveness of online clothing rental services, are likely to pave the way for a humungous expansion of the global online clothing market.

Furthermore, the preference of millennials and Gen Z population towards various kinds of clothing with changing fashion trends has propelled the market expansion across the globe.

Moreover, beneficial subscription-based rental business models will proliferate the size of the global market in the next couple of years. The evolution of peer-to-peer rental tools will facilitate the expedition of the market across the globe in the forthcoming years.

Online Clothing Rental Market: Restraints

Health issues caused by wearing rental clothes can impede the global industry surge by 2032

Surging health & hygiene issues can restrict the global online clothing rental industry expansion in the years ahead.

Growing concerns over the hygiene of rented garments, as many people wear them, can obstruct the industry demand across the globe. Timely delivery of a large fabric inventory can prove to be expensive, and this can retard the global industry surge.

Online Clothing Rental Market: Opportunities

Massive use of new technologies and changing fashion trends can multiply the global market expansion by 2032

Promotion of sustainable fashion practices and the launch of new subscription models will open new growth avenues for the global online clothing rental market.

Moreover, technological breakthroughs and the use of AI tools & blockchain technology will fuel the growth of the global market.

Availability of niche products on rent for wearing on special occasions can promote the demand for online clothing rentals in the coming years.

Online Clothing Rental Market: Challenges

Rising costs of products on rent can prove detrimental to global industry surge over forecast period

Rented fabrics cannot be altered or customized, which can pose a huge challenge to the global online clothing rental industry expansion.

In addition, a lack of customer awareness about renting fabrics and the growing costs of rentals can obstruct the global industry expansion.

Online Clothing Rental Market: Segmentation

The global online clothing rental market is divided into end-user, clothing type, business model, and region.                                             

In terms of end-user, the online clothing rental market across the globe is segmented into men, kids, and women segments.

Apparently, the women segment, which gathered nearly 50% of the global market earnings in 2023, is set to record the highest CAGR in the coming eight years due to growing awareness about new fashion styles among the female population.

Additionally, a surge in social media tools has severely impacted the demand for new fashions, which can further add to the segmental surge.   

Based on clothing type, the global online clothing rental industry is divided into ethnic wear, formal wear, casual wear, and party wear segments.

Apparently, the formal wear segment, which led the global industry share in 2023, is predicted to account majorly toward the segmental evolution in the analysis period.

This can be a result of the high purchase costs of formal wear along with the occasional use of the product. 

On the basis of business model, the global online clothing rental market is sectored into peer-to-peer, subscription-based, and rental-based segments.

Moreover, the subscription-based segment, which led the global market share in 2023, is projected to lead the global market expansion in the forecast timeline.

The segmental surge in the coming eight years can be due to the ability of the subscription-based model to assist firms in gathering accurate data to determine the purchasing behavior of consumers and thereby target consumers along with improving consumer loyalty.

Online Clothing Rental Market: Report Scope

Online Clothing Rental Market: Regional Insights

North America is likely to dominate the global market over the forecast timeline

North America, which contributed for about half of the global online clothing rental market size in 2023, is expected to establish a leading position in the global market in the forecast timeline.

Moreover, the regional market expansion in the coming decade can be due to the presence of a strong customer base in countries such as the U.S.

Additionally, a rise in the per capita income and inclination towards sustainable fashion alternatives will prompt the growth of the market in the region.

Furthermore, the presence of key online clothing rental service providers in the U.S. will steer the regional market growth in the ensuing years.

The Asia-Pacific online clothing rental industry is expected to register the fastest compound growth rate yearly in the expected timespan.

The elevation of the industry in the region can be a result of swift urbanization leading to humungous demand for rental fabrics and thriving e-commerce activities in countries such as India and China.

Moreover, cultural shifts and surging social awareness among consumers about emerging fashion trends will steer the industry trends in the region.

Online Clothing Rental Market: Competitive Space

The global online clothing rental market profiles key players such as:

• Dress Hire Australia
• Kuro Clothing India
• GlamCorner
• Le Tote
• FashionPass
• Vivrelle
• Nuuly
• Armoire
• Rent the Runway
• Liberent
• Flyrobe
• Tulerie
• The Stylease
• Gwynnie Bee
• Rent An Attire
• Pickle

The global online clothing rental market is segmented as follows:

By End-User

• Men
• Kids
• Women

By Clothing Type

• Ethnic Wear
• Formal Wear
• Casual Wear
• Party Wear

By Business Model

• Peer-to-Peer
• Subscription-Based
• Rental-Based

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa