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

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.