Global Online Clothing Rental Market

Online Clothing Rental Market Size, Share, Growth Analysis, By End-User(Men, Women, and Children), By Dress Code(Formal, Casual, and Traditional), By Region - Industry Forecast 2024-2031


Report ID: SQMIG25K2079 | Region: Global | Published Date: March, 2024
Pages: 223 |Tables: 63 |Figures: 75

Online Clothing Rental Market Insights

Global Online Clothing Rental Market size was valued at USD 1.23 Billion in 2022 and is expected to grow from USD 1.33 Billion in 2023 to reach USD 2.56 Billion by 2031, at a CAGR of 8.5% during the forecast period (2024-2031). 

The online clothes rental sector is predicted to grow as online retail grows. It is the primary driver of this expansion. Furthermore, technical improvements, internet penetration, and the growing popularity of online shopping portals in recent years have been driving factors in the industry. Furthermore, the growing popularity of fashion vlogs, cinema, and television is likely to boost market expansion. Because these companies demand clothes for a short period of time, they prefer to rent them rather than buy them.

The COVID-19 has harmed the online garment rental business. As a consequence of the lockdown, all businesses were closed except for necessary services, disrupting the production and delivery of online apparel and thereby harming garment makers. When the epidemic struck, demand for clothes rentals, which were often aimed towards professionals who worked in urban areas and those preparing for a big night out, dropped dramatically.

Rental platforms, in example, saw a fall in demand as more individuals began working from their homes and events such as weddings & banquets were put off, canceled, or held online. According to a report issued in 2021 by the Royal Geographical Society in collaboration with IBG, at the start of the pandemic, consumer expenditure on clothes dropped by more than 50% in key markets such as the United States, the United Kingdom, and Germany.

Fashion-conscious persons who lack the financial means to purchase their preferred clothing are expected to make full use of the available resources. Renting a product is usually cost-effective, especially in this business where trends change frequently and customers dislike wearing the same clothing over and over. As a result, shoppers prefer to rent garments to stay fashionable.

In the near future, the market is likely to be propelled by rising e-commerce, particularly in Asia Pacific. However, poor rules, low awareness among customers, and less societal acceptance are likely to stifle market expansion to some extent. Furthermore, as a subscription model, the market has embraced a new form of online garment rental. In addition to client choices and preferences, the subscription model generates seasonal income.

The biggest constraint is the disparity in clothing sizes. Clothing that has been rented cannot be adjusted to fit the individual. To address these constraints, corporations are developing novel ways such as online chats with fashion professionals. Some companies may provide the same item in two sizes in order that customers can choose the best fit.

US Online Clothing Rental Market is poised to grow at sustainable CAGR for the next forecast year.

Market snapshot - 2024-2031

Global Market Size

USD 1.23 Billion

Largest Segment

Formal

Fastest Growth

Formal

Growth Rate

8.5% CAGR

Global Online Clothing Rental Market ($ Bn)
Country Share for North America Region (%)
Global Online Clothing Rental Market By Dress Code ($ Bn)
Global Online Clothing Rental Market By Dress Code (%)

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Online Clothing Rental Market Segmental Analysis

The global online clothing rental market is segmented on the basis of end-User, dress code, and region. Based on end-user, the market is segmented into men, women, and children. In terms of dress code the market is segmented into formal, casual, and traditional. Based on region, the global online clothing rental market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Online Clothing Rental Market Analysis by End-User

The market is divided into three segments based on end-user: men, women, and children. Women held the largest market share of more than 59.13% and are predicted to expand significantly in the next few years. Fashion trends that are always changing are expected to drive segment growth.

The youngster’s category, on the other hand, is predicted to grow at a rapid pace over the forecast period. Because children outgrow their clothes quickly, parents choose to rent them. This is expected to boost rental company subscriptions, positively boosting market growth.

Online Clothing Rental Market Analysis by Dress Code

Traditional renting is predicted to grow at a CAGR of more than 8.7% over the forecast period. Traditional clothing is only worn at festivals and on uncommon and exceptional occasions, thus it is rarely seen. As a result, consumers prefer to lease them rather than purchasing them.

Formal clothing had a market share of roughly 46.17%. Formal attire, such as suits and blazers, is costly and time-consuming to maintain; hence, price-sensitive & young customers choose to rent. During the projection period, the casual wear sector is expected to hold a large market share. It includes sportswear, for example, players who are unable to obtain sports clothing might rent it through internet portals.

Global Online Clothing Rental Market By Dress Code , 2023 (%)

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Online Clothing Rental Market Regional Insights

North America leads with a market share of over 39.13% in 2022 and is expected to experience a considerable CAGR in the near future. Mexico accounts for the majority of the share in North America and is predicted to grow at a CAGR of more than 8.1% over the forecast duration.

Asia Pacific is the fastest-growing segment because of strong demand from emerging economies such as India and China. Growing consumer awareness & access to the internet are two of the region's primary growth drivers. Because India and China have more than 34.0% of the world's population, greater consumer awareness in these countries is projected to have an impact on worldwide growth. Consumers in these developing nations are discovering a better way to get their desired outfits without having to buy them, therefore clothing rental is a realistic choice for them.

Global Online Clothing Rental Market By Geography, 2024-2031
  • Largest
  • Fastest

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Online Clothing Rental Market Dynamics

Online Clothing Rental Market Drivers

Growing Popularity of Sharing Economy

  • The rise of the sharing economy has influenced the online clothing rental market as a key growth driver. Consumers are increasingly embracing the concept of sharing resources and reducing ownership, opting for rental services as a more sustainable and cost-effective alternative to traditional clothing purchases.

Online Clothing Rental Market Restraints

Sizing and Fit Concerns

  • One of the challenges in the online clothing rental market is ensuring proper sizing and fit for customers. Without the opportunity to try on clothes before renting, there is a risk of dissatisfaction if the rented garments do not fit well. Companies need to invest in accurate sizing algorithms, detailed product descriptions, and flexible return policies to address this concern.

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Online Clothing Rental Market Competitive Landscape

Due to this industry being new, the market has a moderate to low entrance barrier. As a result, numerous new companies are entering the market to further expand the business. Product innovation & the introduction of enhanced features to improve the consumer experience drive the total market.

Online Clothing Rental Market Top Player’s Company Profiles

  • GlamCorner
  • Armoire
  • Nuuly
  • HURR Collective
  • StyleLend
  • Dress Hire AU
  • My Wardrobe HQ
  • Chic by Choice
  • Designer Wardrobe
  • Flyrobe
  • Rent It Bae
  • Rentez-Vous
  • Front Row
  • The Volte
  • Onloan
  • Mr. & Mrs. Stitch
  • The Black Tux

Online Clothing Rental Market Recent Developments

  • The British online fashion brand ASOS debuted its inaugural rental collection in May 2023, with over 180 pieces geared on women's occasion wear outfitting. The rental edit features selections in curve, petite, and tall sizes for bridesmaid dresses, bridal ensembles, and guest attire. 
  • In July 2022, Rent the Runway joined forces with Saks Off 5th, integrating a dedicated "pre-owned" section on its website, enabling customers to access pre-owned designer items. 
  • In April 2022, David Jones extended its collaboration with the fashion rental platform GlamCorner through the introduction of Reloop. This innovative venture by GlamCorner empowers customers to engage in the circular economy while making conscious shopping choices. 
  • In May 2022, Nuuly unveiled its newest ready-to-rent collection, building on its previous collaborations with designers such as Anna Sui. Additionally, following the launch of its resale platform the year before, Nuuly continues to expand its offerings. 
  • In April 2022, Fly Robe partnered with Franchise Mart to grow the RENT IT BAE franchise. The one-of-a-kind online premium rental business provides the latest trend to your home. 

Online Clothing Rental Key Market Trends

  • Increasing adoption of subscription-based models: Many online clothing rental platforms are adopting subscription-based models, allowing customers to pay a monthly fee in exchange for a certain number of clothing items per month. This model provides convenience and encourages customers to continuously engage with the rental service, driving recurring revenue for the companies.
  • Integration of technology and data analytics: Online clothing rental companies are leveraging technology and data analytics to enhance the customer experience. This includes implementing virtual fitting tools, AI-driven recommendations, and personalized styling services based on customer preferences and past rental history. Such technology-driven enhancements help improve customer satisfaction and drive customer loyalty.
  • Expansion into new markets and demographics: Online clothing rental platforms are expanding their target markets beyond traditional urban areas and targeting new demographics. They are reaching out to customers in suburban areas, smaller cities, and even rural locations. Additionally, companies are diversifying their offerings to include clothing for different age groups, body types, and occasions, catering to a wider customer base.
  • Sustainable and ethical fashion focus: With growing consumer awareness of environmental issues and ethical fashion practices, online clothing rental platforms are emphasizing sustainability as a key selling point. These companies often highlight the reduced environmental impact of renting clothes compared to fast fashion consumption and emphasize their commitment to circular fashion and reducing textile waste.
  • Focus on customization and personalization: Customization and personalization are becoming important trends in the online clothing rental industry. Companies are offering options to personalize rental orders, such as selecting specific styles, sizes, or colors. Some platforms also provide additional services like alterations or styling consultations to enhance the overall rental experience.
  • Expansion into menswear and accessories: While the initial focus of online clothing rental platforms was predominantly on women's fashion, there is a growing trend of expanding into menswear and accessories. Companies are recognizing the potential in the men's fashion rental market and are offering a range of clothing options and accessories to cater to male customers.

Online Clothing Rental Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, we found that the Online Clothing Rental Market, the online clothes rental sector is predicted to grow as online retail grows. It is the primary driver of this expansion. Furthermore, technical improvements, internet penetration, and the growing popularity of online shopping portals in recent years have been driving factors in the industry. Furthermore, the growing popularity of fashion vlogs, cinema, and television is likely to boost market expansion. Because these companies demand clothes for a short period of time, they prefer to rent them rather than buy them.

Report Metric Details
Market size value in 2023 USD 1.23 Billion
Market size value in 2031 USD 2.56 Billion
Growth Rate 8.5%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • End-User
    • Men, Women, and Children
  • Dress Code
    • Formal, Casual, and Traditional
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • GlamCorner
  • Armoire
  • Nuuly
  • HURR Collective
  • StyleLend
  • Dress Hire AU
  • My Wardrobe HQ
  • Chic by Choice
  • Designer Wardrobe
  • Flyrobe
  • Rent It Bae
  • Rentez-Vous
  • Front Row
  • The Volte
  • Onloan
  • Mr. & Mrs. Stitch
  • The Black Tux
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Online Clothing Rental Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Online Clothing Rental Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Online Clothing Rental Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Online Clothing Rental Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Online Clothing Rental Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Online Clothing Rental Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Online Clothing Rental Market size was valued at USD 1.23 Billion in 2022 and is expected to grow from USD 1.33 Billion in 2023 to reach USD 2.56 Billion by 2031, at a CAGR of 8.5% during the forecast period (2024-2031). 

Due to this industry being new, the market has a moderate to low entrance barrier. As a result, numerous new companies are entering the market to further expand the business. Product innovation & the introduction of enhanced features to improve the consumer experience drive the total market. 'Rent the Runway', 'Le Tote', 'Gwynnie Bee', 'GlamCorner', 'Armoire', 'Nuuly', 'HURR Collective', 'StyleLend', 'Dress Hire AU', 'My Wardrobe HQ', 'Chic by Choice', 'Designer Wardrobe', 'Flyrobe', 'Rent It Bae', 'Rentez-Vous', 'Front Row', 'The Volte', 'Onloan', 'Mr. & Mrs. Stitch', 'The Black Tux'

The rise of the sharing economy has influenced the online clothing rental market as a key growth driver. Consumers are increasingly embracing the concept of sharing resources and reducing ownership, opting for rental services as a more sustainable and cost-effective alternative to traditional clothing purchases.

Increasing adoption of subscription-based models: Many online clothing rental platforms are adopting subscription-based models, allowing customers to pay a monthly fee in exchange for a certain number of clothing items per month. This model provides convenience and encourages customers to continuously engage with the rental service, driving recurring revenue for the companies.

North America leads with a market share of over 39.13% in 2022 and is expected to experience a considerable CAGR in the near future. Mexico accounts for the majority of the share in North America and is predicted to grow at a CAGR of more than 8.1% over the forecast duration.

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Global Online Clothing Rental Market

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