Market Size of Online Clothing Rental Industry
| Study Period | 2018-2029 |
| Market Size (2024) | USD 1.77 Billion |
| Market Size (2029) | USD 2.47 Billion |
| CAGR (2024 - 2029) | 6.79 % |
| Fastest Growing Market | North America |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Online Clothing Rental Market Analysis
The Online Clothing Rental Market size is estimated at USD 1.77 billion in 2024, and is expected to reach USD 2.47 billion by 2029, growing at a CAGR of 6.79% during the forecast period (2024-2029).
- Consumers are increasingly spending on clothing activities due to their increasing disposable incomes, which is a significant factor fueling the growth of the online clothing rental market. The growing demand for costly designer dresses, in confluence with evolving fashion trends, is expected to fuel the growth of the market in the coming years. Additionally, many clothing rental companies have started using subscription-based services online. These services help reach a broader customer base, thus stabilizing their market.
- The global online clothing market is characterized by the women segment owning a prominent share in factors such as frequent presence across social and corporate events, follow-ups with international designer labels, and active engagement on social media platforms. The market is likely to witness significant growth in the formal dress code segment rental as consumers are more prone to purchase casual wear in volume while keeping a pair or two of formals in the wardrobe. Additionally, consumers across the market are willing to rent their wedding dress products instead of buying expensive wedding outfits. Due to increasing demand, players are introducing expensive wedding collections in their rental portfolios. In April 2023, Wedding Wingman company offered men's wedding outfits in the United States. The products are disclosed on the Men's Wearhouse company websites.
- Moreover, more celebrities in the limelight promote rental clothing across the market, encouraging consumers to rent apparel products. Additionally, online rental services play a crucial role in attracting consumers as they prefer to use online websites over physical outlets to access an exclusive and wide range of options on different platforms and compare the rental price from platform to platform instantly. Companies operating in the market focus on offering competitive pricing to attract consumers. The market concentration is low, and players are expected to provide products that encompass local designer labels who develop products that are unique in each way.
Online Clothing Rental Industry Segmentation
Online clothing rental is a service that enables customers to rent clothes for a specific period. This service benefits consumers looking for a designer dress for theme parties, wedding parties, corporate parties, and filmmaking occasions.
The online clothing rental market is segmented by end users, dress code, and geography. Based on end-users, the market is segmented into men, women, and children. On the basis of dress code, the market is segmented into formal, casual, partywear, and traditional. The report also offers a detailed analysis of the major economies across North America, Europe, Asia-Pacific, South America, and Middle-East & Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| End -User | |
| Men | |
| Women | |
| Children |
| Dress Code | |
| Formal | |
| Casual | |
| Partywear | |
| Traditional |
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Online Clothing Rental Market Size Summary
The online clothing rental market is experiencing a notable expansion, driven by increasing consumer disposable incomes and a growing appetite for designer fashion. This sector is characterized by a shift towards subscription-based services, allowing consumers to rent a variety of clothing items for extended periods. The women's segment holds a significant share, propelled by the demand for formal wear and the influence of social media and celebrity endorsements. The market is also witnessing a trend where consumers prefer renting wedding attire over purchasing, prompting rental companies to expand their offerings in this category. The convenience of online platforms, coupled with competitive pricing and the availability of local designer labels, is further enhancing the market's appeal.
In North America, particularly among millennials and Gen Z, there is a growing preference for renting over owning clothing, aligning with sustainable consumption habits. The market is fragmented, with both established retailers and startups vying for market share by offering diverse product mixes and sustainable practices. Key players like Rent the Runway and Gwynnie Bee are leading the charge, with new entrants continuously emerging to meet rising demand. Companies are also focusing on educating consumers about the benefits of rental services, including hygiene and sustainability, to build trust and expand their customer base. The market's growth is supported by strategic collaborations and the introduction of innovative offerings, such as pre-owned designer sections and ready-to-rent collections.
Online Clothing Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Sustainable Fashion Trend
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1.1.2 Strategic Expansion With Respect To E-commerce Subscription
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1.2 Market Restraints
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1.2.1 High Cost of Rented Apparel Maintenance
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 End -User
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2.1.1 Men
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2.1.2 Women
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2.1.3 Children
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2.2 Dress Code
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2.2.1 Formal
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2.2.2 Casual
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2.2.3 Partywear
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2.2.4 Traditional
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Spain
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2.3.2.6 Italy
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 Saudi Arabia
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle-East and Africa
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Online Clothing Rental Market Size FAQs
How big is the Online Clothing Rental Market?
The Online Clothing Rental Market size is expected to reach USD 1.77 billion in 2024 and grow at a CAGR of 6.79% to reach USD 2.47 billion by 2029.
What is the current Online Clothing Rental Market size?
In 2024, the Online Clothing Rental Market size is expected to reach USD 1.77 billion.
