Key Insights
Essential data points from our research
The global online clothing rental market was valued at USD 1.26 billion in 2021
The online clothing rental market is projected to grow at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030
North America held over 40% share of the global online clothing rental market in 2021
Approximately 47% of Gen Z consumers say they are interested in clothing rental services
Rent the Runway had over 100,000 active subscribers as of 2022
Clothing rental can reduce CO2 emissions by approximately 33% compared to traditional fast fashion consumption
23% of consumers say they would rent clothing to reduce their environmental impact
The formalwear segment dominated the online clothing rental market with a 43.8% revenue share in 2021
Women's clothing accounted for more than 58% of the global clothing rental market in 2021
The Asia Pacific region is expected to register the fastest CAGR of 10.6% in the clothing rental market from 2022 to 2030
73% of consumers think fashion brands should help reduce pollution from clothing production
Urban areas account for over 60% of clothing rental service users
Marketplaces like Poshmark and clothing rental platforms have seen a 40% increase in interest over the last 3 years
Consumer Demographics and Preferences
- Approximately 47% of Gen Z consumers say they are interested in clothing rental services
- 23% of consumers say they would rent clothing to reduce their environmental impact
- Women's clothing accounted for more than 58% of the global clothing rental market in 2021
- Urban areas account for over 60% of clothing rental service users
- About 40% of clothing in the average wardrobe is rarely or never worn
- Over 80% of Rent the Runway customers cite sustainability as a key factor in choosing to rent
- 33% of Millennials have rented apparel in the past year
- 59% of consumers believe renting clothing helps them access more fashion variety
- Nearly 70% of people who try clothing rental services consider subscribing long-term
- Nearly 50% of users report cost savings as the top benefit of clothing rental
- 55% of rental customers are college-educated
- 60% of rental users are between the ages of 25 and 44
- Men account for about 18% of the global online clothing rental market
- Over 30% of clothing rental users would recommend the service to friends
- 19% of consumers express reluctance to try rental services due to hygiene concerns
- Monthly clothing rental users tend to spend 30–40% less on new clothing purchases
- Customer satisfaction for clothing rental services averages 4.2 out of 5 stars
- Over 65% of customers cite design variety as a key reason for using clothing rental
- Fashion subscription boxes see a customer retention rate of about 45% after 6 months
- Consumer interest in clothing-as-a-service models has grown 92% since 2015
- Consumers save an average of $150 per month using fashion rental instead of buying luxury clothing
- Nearly 12% of UK consumers have used a fashion rental service in the past 12 months
- 90% of customers say convenience is a major factor in choosing rental over ownership
- Digital wardrobe access drives a 40% increase in customer engagement for app-based rental services
- 60% of rental customers report changing their shopping habits after using rental services
- Only 16% of consumers view rental goods as poorer in quality than new purchases
- Nearly 74% of fashion renters report feeling more stylish using rentals
- 42% of Gen Z shoppers say they consider sustainability before purchasing, increasing rental demand
- Brands offering rental services experience a 20–30% increase in customer lifetime value
Interpretation
As closets overflow with unworn clothes and consciences grow greener, the rise of fashion rental—led by stylish, sustainability-savvy urbanites—is proving that owning less can ironically offer consumers more: more variety, savings, and influence, all without sacrificing style or scruples.
Key Players and Business Models
- Rent the Runway had over 100,000 active subscribers as of 2022
- Subscription models make up about 55% of the revenue for clothing rental platforms
- The average clothing rental subscription in the U.S. costs between $69 and $159 per month
- Rental models typically see customer churn rates of 25–30% annually
- Formalwear rental businesses see peak demand during prom and wedding seasons, contributing up to 60% of their annual revenue
- Digital platforms drive over 90% of all clothing rental transactions
- Fashion rental return rates average 85%
- The average return cycle time for rental garments is 3–5 days
- Rent the Runway has partnerships with over 750 designer brands
- Stitch Fix, which offers some fashion rental options, had 3.5 million active clients in 2022
- Rental operations with centralized logistics reduce inventory costs by 18% annually
Interpretation
In the evolving closet of modern fashion, where 90% of wardrobe swaps happen online and $159 a month buys runway dreams, clothing rental platforms are walking a tightrope—balancing high return rates, fickle subscribers, and prom-season profits with savvy logistics and designer deals to keep style circulating.
Market Size and Growth
- The global online clothing rental market was valued at USD 1.26 billion in 2021
- The online clothing rental market is projected to grow at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030
- Marketplaces like Poshmark and clothing rental platforms have seen a 40% increase in interest over the last 3 years
- Consumer spending on clothing rental more than doubled between 2019 and 2023
- Rental usage spiked 35% year over year in 2022
- Wedding attire accounts for nearly 10% of the total clothing rental market
- COVID-19 caused a 30% drop in clothing rental utilization in 2020
- Post-pandemic recovery led to a 25% increase in clothing rental purchases in 2021
- Baby and kidswear make up less than 5% of the clothing rental segment
- Resale and rental combined could make up 23% of the fashion market by 2030
- Clothing rental apps grew user bases by 23% in 2021
- Peer-to-peer clothing rental platforms like HURR and By Rotation are growing at 30% annually
- The global clothing rental market is expected to surpass USD 2.8 billion by 2030
Interpretation
Once a novelty sidelined by pandemic-era closets, clothing rental has re-emerged as fashion’s fast-growing second act—doubling demand, wooing weddings, and proving that borrowing looks is big business, not just a wardrobe whim.
Regional Trends and Market Share
- North America held over 40% share of the global online clothing rental market in 2021
- The formalwear segment dominated the online clothing rental market with a 43.8% revenue share in 2021
- The Asia Pacific region is expected to register the fastest CAGR of 10.6% in the clothing rental market from 2022 to 2030
- Fashion rental services are more popular in cities with high cost-of-living indexes
Interpretation
Where tuxedos are one-night stands and rent is always due, North America leads the fashion fling, formals reign supreme, and Asia Pacific is suiting up fast—because in pricey cities, even your closet is on lease.
Sustainability and Environmental Impact
- Clothing rental can reduce CO2 emissions by approximately 33% compared to traditional fast fashion consumption
- 73% of consumers think fashion brands should help reduce pollution from clothing production
- Clothing rental platforms can improve garment utilization from an average of 7 wears to over 20
- Clothing rentals reduce landfill waste by extending garment life cycles, with a 25% decrease in disposals per rental model
- Each rental garment in circulation replaces approximately 1.5 new purchases
- The average rented garment has a lifecycle extending 30% longer than non-rented equivalents
- Over 75% of fashion brands see rental as an opportunity for extending product lifecycle
- Each clothing rental transaction saves around 15 liters of water in average fashion consumption terms
- Rental models generate approximately 25% fewer carbon emissions per use than outright purchase
- Theft and wear capture losses represent around 4% of rental inventories annually
- 8 out of 10 fashion executives think resale and rental will be key pillars of sustainable fashion
- Clothing rental can drop the total number of wardrobes owned by 20–25%
- The average clothing item is worn only 7 times before being discarded, which rental extends to 20+
Interpretation
Clothing rental is fashion’s smartest swap—trading excess and emissions for efficiency and eco-sense, while turning that sad seven-wear lifespan into a twenty-plus encore worthy of a standing ovation.