Secondhand Gifts Take Center Stage This Holiday Season

The upcoming holiday season is poised to mark a significant shift in consumer behavior, with secondhand shopping emerging as a dominant trend in gift-giving. According to ThredUp's recently released 2025 Holiday Report, a comprehensive study conducted by GlobalData surveying 2,000 consumers, a substantial 40% of total holiday budgets are expected to be allocated to secondhand gifts. This figure represents a notable increase from the 30% consumers typically spend on resale items in their everyday shopping, underscoring a growing acceptance and preference for pre-loved goods during festive periods.

James Reinhart, CEO and cofounder of ThredUp, highlighted the underlying motivations behind this trend. He noted, "While the macroeconomic picture remains unclear, consumers aren't stopping their holiday traditions—they're just getting more strategic on how they participate. They're seeking the most value, and that path is increasingly through resale." Reinhart further elaborated on consumers' financial acumen, stating, "This holiday season proves consumers are incredibly financially savvy. Close to half of all shoppers are turning old items into cash they can use for holiday gifts. This circular strategy is becoming a major part of how they fund their holiday spending."

The report delves deeper into consumer intentions, revealing that over half of shoppers (52%) prioritize acquiring more items for less money this year. Furthermore, 51% plan to commence their holiday shopping earlier to maximize value and secure better deals. A strong majority of consumers, nearly two-thirds (66%), expressed an openness to giving secondhand gifts, with Millennials leading this charge at an impressive 80%. The primary drivers for choosing resale items include both the desire for cost savings and the appeal of finding unique, one-of-a-kind treasures.

In a parallel trend, many shoppers are actively participating in the circular economy by selling items from their own closets to fund their gifting needs. Approximately 47% of respondents indicated plans or consideration to sell pre-loved apparel, electronics, or luxury goods to help cover holiday gift expenses. This particular strategy is most prevalent among younger generations, with 70% of Millennials and 57% of Gen Z planning to leverage their existing wardrobes and possessions for holiday funds.

Regarding popular categories for secondhand gifting, the report identifies several front-runners. Accessories, including handbags, jewelry, and scarves, topped the list at 40%. Women’s apparel, such as coats and knits, followed closely at 36%. Additionally, vintage pieces across apparel, accessories, and home goods proved popular, capturing 31% of consumer interest for secondhand gifts.

Beyond the financial and practical benefits, there's a strong emotional component to secondhand gifting. Kristen Brophy, senior vice president of marketing at ThredUp, emphasized this aspect: "Secondhand gifting isn't just about saving money; it's emotional. It allows you to find something truly unique or nostalgic that carries a story, which often means more to someone than a brand-new item." She concluded by stating, "Consumers are finding that the best gift doesn't have to be new, it just has to be special." This sentiment encapsulates the evolving perception of value, where uniqueness and sentimentality often outweigh the allure of a brand-new item.