Stat: Circular fashion is gaining momentum in US luxury e-commerce

US – Americans who purchase luxury apparel online are increasingly turning to circular fashion, according to new data from the Mastercard Economics Institute. In 2020, circular fashion accounted for 22.8% of US online luxury apparel spending, rising to 27.4% in 2024.

The growth marks a rebound from pandemic lows and a shift in consumer values, with Mastercard forecasting circular fashion to reach 28.8% of the luxury online market by the end of 2025. ‘The drivers are likely a combination of growing awareness of circular fashion merchants, a desire to access quality brands at a discount and an eye toward sustainability,’ the report notes.

Seasonal peaks, particularly in March, drive resale activity as people refresh their spring wardrobes and make purchases for special occasions. Cities such as Los Angeles and Las Vegas lead in adoption, while Portland is seeing resale growth outpace overall online clothing sales by 20.5 percentage points. The findings suggest a broader move toward more sustainable and value-driven habits among luxury shoppers in the US.

For more insights on what’s new and next for pre-loved fashion, read our Rebranding Resale report.