Key Insights
Essential data points from our research
The global online clothing rental market was valued at USD 1.26 billion in 2022
The clothing rental market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2030
North America held the largest market share of over 40% in the global online clothing rental market in 2022
Formal wear accounted for more than 40% of the product segment revenue in 2022
Women's clothing rental captured over 55% of the global market revenue share in 2022
Asia Pacific is anticipated to grow at the fastest CAGR of over 11% from 2023 to 2030
The online platform distribution channel contributed more than 60% of the market revenue in 2022
The men’s clothing rental segment is projected to grow at a CAGR of 9.0% through 2030
Rent the Runway had 141,205 active subscribers as of Q3 2023
Rent the Runway reported a revenue of $77.4 million in Q3 2023, up 6% year-over-year
64% of consumers say they would consider renting clothing to reduce fashion waste
The resale and rental fashion markets are expected to grow 1.5 times faster than fast fashion by 2030
40% of Gen Z consumers have used or are interested in using clothing rental services
Brand and Regional Performance
- North America held the largest market share of over 40% in the global online clothing rental market in 2022
- Rent the Runway had 141,205 active subscribers as of Q3 2023
Interpretation
North America may be leading the fashion rental revolution with over 40% of the market, but with just 141,205 active subscribers, Rent the Runway proves that even in borrowed clothes, growth doesn’t come off the rack.
Business Models and Distribution Channels
- The online platform distribution channel contributed more than 60% of the market revenue in 2022
- 50% of fashion brands plan to adopt rental or resale models by 2030
- Nearly 25% of clothing rentals come from peer-to-peer platforms
- Over 60% of clothing rental companies offer free delivery and pickup options
- The average clothing rental subscription costs between $70 and $100 per month
Interpretation
As fashion increasingly trades hangers for hyperlinks, with over 60% of rental revenue driven online, half of brands eyeing circular models by 2030, and rentals averaging the price of a dinner date, it's clear that looking good no longer requires owning—just smart subscribing.
Consumer Demographics and Behavior
- 64% of consumers say they would consider renting clothing to reduce fashion waste
- 40% of Gen Z consumers have used or are interested in using clothing rental services
- 1 in 4 consumers aged 18-35 have rented clothing online at least once
- 85% of rental fashion consumers are women
- Environmental impact is the top motivator for 33% of users choosing fashion rental models
- 83% of consumers who rent fashion also participate in resale platforms
- 30% of clothing rental users prefer subscription rental services over on-demand services
- Users save on average 70-80% off retail price through clothing rental platforms
- The average clothing rental customer rents 4-8 items per month
- Clothing rental platforms see the most traction during wedding and prom seasons
- In 2021, 17% of UK consumers had tried clothing rental services
- The average age of a clothing rental subscriber in the US is 34 years old
- Millennials make up nearly 50% of clothing rental users
- 42% of women say they rent clothing to wear outfits they wouldn’t buy
- 29% of users cite convenience as the main reason for using rental platforms
- 76% of shoppers are more likely to try clothing rental now versus five years ago
- 45% of clothing rental users prefer renting for events and special occasions
- 71% of clothing rental users also shop secondhand as part of sustainable fashion choices
- 60% of Gen Z consumers say they value access over ownership in fashion
- 34% of fashion rental users increased their rental usage during the COVID-19 pandemic rebound phase
- 89% of rental platform users report wardrobe satisfaction due to greater variety
- Rental clothing return rates are over 70%, making logistics a key service component
- 52% of users would not repurchase an item after renting due to one-time wear needs
- Fashion rental services save users an average of $1,500 annually versus retail shopping
- 93% of clothing rental customers recommend the experience to others
Interpretation
Fashion rental is no longer a niche indulgence but a savvy, sustainable style revolution led by cost-conscious, eco-minded, mostly millennial women who are turning closets into revolving doors of runway-ready outfits without the retail guilt—or the commitment.
Market Size and Growth Trends
- The global online clothing rental market was valued at USD 1.26 billion in 2022
- The clothing rental market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2030
- Formal wear accounted for more than 40% of the product segment revenue in 2022
- Women's clothing rental captured over 55% of the global market revenue share in 2022
- Asia Pacific is anticipated to grow at the fastest CAGR of over 11% from 2023 to 2030
- The men’s clothing rental segment is projected to grow at a CAGR of 9.0% through 2030
- Rent the Runway reported a revenue of $77.4 million in Q3 2023, up 6% year-over-year
- The resale and rental fashion markets are expected to grow 1.5 times faster than fast fashion by 2030
- The US clothing rental market size was approximately $1.2 billion in 2022
- Online fashion rental revenues in Europe are expected to exceed $1 billion by 2027
- Demand for sustainable fashion services like rental is growing 20% year-over-year
- By 2030, fashion rental services could represent 10% of total fashion industry revenue
- The luxury fashion rental market specifically is growing at 10.6% CAGR through 2030
- Peer-to-peer clothing rentals grew by over 30% in 2023 globally
- In China, clothing rental revenue surpassed USD 300 million in 2022
Interpretation
As fashion gets smarter and closets get smaller, the $1.26 billion clothing rental industry is buttoning up for a sustainable style revolution—led by women, powered by tech, and growing faster than fast fashion can stitch a seam.
Sustainability and Environmental Impact
- Consumers can reduce their carbon footprint by 24% by renting instead of buying clothing
- The average lifespan of a rented garment in a clothing rental service is 15-20 uses
- Only 1% of textile waste is currently recycled into new clothing, emphasizing the role of rental in sustainability
- Clothing rental can reduce water usage by up to 24% compared to traditional apparel consumption
- The fashion industry is responsible for 10% of global carbon emissions, making rental services an eco-alternative
- Rental fashion items are typically used 3x more than purchased ones before they're retired
- Rental reduces textile landfill waste by extending clothing life by up to 6 months
Interpretation
In a world where fast fashion is choking the planet one closet at a time, clothing rental proves that sharing really is caring—cutting emissions, saving water, and giving garments a longer runway before the landfill.