Global Online Clothing Rental Market Outlook, 2029

The online clothing rental market represents a dynamic intersection of convenience, sustainability, and evolving consumer preferences. Historically, this market has evolved from traditional brick-and-mortar rental services to innovative online platforms that offer a vast array of apparel and accessories for rent. This shift is fuelled by changing consumer attitudes towards ownership, with a growing emphasis on sustainability and reducing fashion waste. Online clothing rental services cater to a diverse clientele seeking access to designer fashion, special occasion attire, and every day wear without the commitment of ownership. Key features include personalized styling services, flexible rental durations, and the convenience of doorstep delivery and returns. Competitively, the market is characterized by a mix of established players such as Rent the Runway and Le Tote, which dominate with expansive inventory and seamless user experiences, alongside niche platforms focusing on specific market segments or sustainability initiatives. These companies continually innovate with technology-driven solutions and customer-centric approaches, shaping the future of fashion consumption through accessible, eco-friendly rental options.

According to the research report, “Global Online clothing Rental Market outlook, 2029” published by Bonafide Research, the market is anticipated to grow with 12% CAGR by 2024-29.The demand for online garment rentals is being driven by a sharp shift in design trends and a growing desire to purchase luxury apparel. Clothes worn on the body are referred to as clothing. It is also known as attire, apparel, and clothes. Clothes are constructed mainly of fibres or textiles, though over time, thin sheets of materials, including animal skin, have occasionally been sewn together. Clothes are inherently unique to human societies. A person's physical type, social background, geography, and gender all affect how much and what kind of clothing they wear. The online clothing rental business also offers services that enable customers to hire clothes for a set amount of time. Those who wish to buy new costumes for special occasions including weddings, theme parties, business gatherings, picture shoots, and movie shoots can find these services helpful. Rental services offer a cost-effective substitute for individuals with restricted finances who cannot purchase apparel from their preferred brands. Additionally, as companies are increasingly incorporating sustainability into their marketing methods, renting goods would be viewed as a more ecologically friendly way to consume apparel in the modern world. Wearing rental clothing would benefit the environment and natural resources because it would reduce harmful emissions and other pollutants. Clothes producers should improve their social manufacturing standards by integrating garment rental into their sustainability and business aims.

Market Drivers

The main driver of this expansion is an increase in online retail. In addition, the industry is being driven by factors such as internet penetration, technical improvements, and the rise in popularity of online shopping portals over the past several years. In addition, market expansion is anticipated due to the growing prominence of fashion vlogs, in the film and television industries. These sectors choose to rent clothing rather than buy it since they only need it for a short time. Therefore, in the upcoming years, this expansion is anticipated to have an impact on the demand for online garment rentals. Growing consumer awareness of eco-friendly clothing and the advantages of sharing and recycling apparel is another factor driving the market's growth. Reusing used clothing, cutting back on plastic packaging, and optimizing the use of recyclable, renewable resources for manufacturing—such as water and electricity—are just a few examples of sustainability practices that are gaining popularity and supporting the growth of the sector.

Market Challenges

Providing clients with precise sizing and fit is a significant difficulty in the online clothes rental industry. If a customer cannot try on the clothes before renting them, there is a probability that they will not be satisfied if the rented items do not suit their tastes. Companies need to put effort into creating accurate size algorithms, offering thorough product descriptions, and putting in place flexible return policies in order to address this issue.

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Manmayi Raval

Research Consultant

Market Trends

Online clothing rentals are expected to grow due to the rising demand for high-end designer outfits and ongoing changes in customer tastes in fashion. A significant factor propelling the industry is also customers' growing expenditure on stylish activities as their disposable income rises, which is combined with the fast expansion of fashion firms. The reasons expected to propel the market expansion are the changing fashion statements of young people and the rising number of cost-conscious people renting formal clothing items like suits and high-end coats. Additionally, the market is anticipated to grow due to consumer demand for sports gear brought on by a rise in the number of athletic events and participants in sports.
In the upcoming years, manufacturers' increased focus on children's divisions should present lucrative market potential. Because of their parents' shifting lives, kids are now more brand- and style-conscious, which will probably help the online clothes rental market expand. However because there are several unorganized manufacturers offering inexpensive, non-branded products, the business is highly fragmented, which can limit market expansion.

Based on the report, the Clothing style segment segmented into Ethnic, Western & Other. Ethnic segment is leading in the online clothing rental market due to appeal for special occasions, cultural celebrations, and the increasing diversity in fashion preferences among global consumers.

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In the online clothing rental market, the ethnic clothing style segment emerges as a leading force, celebrated for its cultural richness, timeless elegance, and growing global appeal. Ethnic wear, encompassing traditional attire from various cultures such as sarees, salwar kameez, kimono, hanbook, and dashiki, embodies a deep-rooted heritage and craftsmanship that captivates fashion enthusiasts seeking unique and authentic experiences. This segment resonates particularly strongly with consumers celebrating cultural diversity and looking to showcase their heritage or explore new styles for special occasions like weddings, festivals, and cultural ceremonies. The allure of ethnic wear lies in its vibrant colours, intricate patterns, and exquisite fabrics, which reflect centuries-old traditions and regional aesthetics. Online rental platforms specializing in ethnic clothing offer a curated selection that blends tradition with modern trends, catering to a global audience keen on incorporating cultural elements into their wardrobes without the commitment of purchase. This accessibility allows customers to experiment with diverse styles and express their individuality while supporting sustainable fashion practices through rental and reuse. Competitively, the ethnic clothing rental segment is buoyed by a blend of established providers and emerging start-ups that curate collections to cater to specific cultural preferences and occasions. Companies like Flyrobe in India and Borrow It Bindaas in the United States lead the charge with expansive offerings and personalized services that cater to diverse cultural celebrations and style preferences. Their success underscores the market's potential to bridge cultural divides, promote inclusivity, and redefine fashion rental as a conduit for cultural expression and sustainability in the global marketplace.

Based on the report, the Business segment segmented into Subscription- based standalone & peer to peer. Standalone segment is growing in the Online Clothing Rental Market due to specialized focus, brand differentiation, and targeted customer experience strategies.

In the Online Clothing Rental Market, the standalone sub-segment emerges as a leader, captivating consumers with its specialized focus and tailored experiences. Standalone rental platforms operate independently, offering a dedicated and curated selection of clothing and accessories for rent. This focused approach allows them to build strong brand identities and cultivate niche markets, catering to specific styles, occasions, or customer preferences with precision. By maintaining full control over inventory management, customer service, and logistics, standalone platforms ensure a seamless and personalized rental experience from browsing to return. Moreover, standalone rental services often excel in customer engagement and satisfaction by providing detailed styling advice, fitting consultations, and occasional discounts or promotions tailored to their loyal clientele. This personalized touch fosters customer loyalty and encourages repeat rentals, establishing a robust customer base willing to explore new trends and experiment with high-end fashion without the financial commitment of ownership. Additionally, standalone platforms are agile in adapting to market trends and consumer demands, swiftly incorporating feedback and updating their offerings to stay ahead of competitors. Competitively, standalone rental platforms such as Rent the Runway and Le Tote leverage their expertise and infrastructure to dominate the market, offering expansive collections and innovative features that set them apart. Their commitment to quality, convenience, and sustainability resonates with environmentally-conscious consumers seeking alternatives to fast fashion. As the standalone sub-segment continues to refine its offerings and expand its reach, it reaffirms its position as a pioneer in transforming the fashion industry towards more sustainable and accessible rental solutions.

North America is leading the Online clothing rental market due high disposable income and a culture of fashion-forward consumption, while APAC is the fastest-growing region driven by rising digital adoption and changing consumer attitudes towards sustainable fashion.

North America leads the Online Clothing Rental market due to a combination of robust consumer adoption, advanced digital infrastructure, and a strong culture of fashion-forward trends. In the United States and Canada particularly, consumers embrace online clothing rental services as a convenient and cost-effective way to access designer labels and seasonal fashion without the commitment of ownership. The region's affluent consumer base and tech-savvy population further drive demand, with platforms like Rent the Runway and Le Tote pioneering personalized rental experiences that resonate deeply with customers. Conversely, the Asia-Pacific (APAC) region emerges as the fastest-growing market for online clothing rentals, propelled by rapid urbanization, rising disposable incomes, and increasing digital connectivity. Countries like China, India, and Southeast Asian nations are witnessing a cultural shift towards sustainability and experiential consumption, prompting a surge in demand for rental fashion among millennial and Gen Z consumers. Furthermore, the expanding middle class in APAC values affordability and access to global fashion trends, driving the adoption of online rental platforms that offer a wide variety of styles and occasions. Moreover, the entrepreneurial spirit in APAC fuels the growth of local rental start-ups, each catering to unique market segments and regional preferences. These start-ups leverage innovative technology and logistics solutions to overcome infrastructural challenges and meet the growing demand for rental fashion in densely populated urban centres. As a result, APAC's online clothing rental market is poised for rapid expansion, shaping the future of fashion consumption with sustainable and accessible alternatives to traditional retail.

•In July 2022, Rent the Runway and Saks Off 5th partnered to create a special ""pre-owned"" area on Rent the Runway's website, giving customers access to pre-owned designer goods.
•April 2022: David Jones introduced Reloop, extending their partnership with the fashion rental site GlamCorner. With the help of this creative project from GlamCorner, consumers can participate in the circular economy and make thoughtful purchases.
•May 2022: Nuuly, expanding on its past partnerships with designers like Anna Sui, debuted its most recent ready-to-rent collection. In addition, Nuuly keeps growing its product line since launching its resale platform the previous year.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Online Clothing Rental Market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Clothing Style
• Ethnic
• Western
• Other

By End User
• Women
• Men
• Kids

By Business
• Subscription-based
• Standalone
• peer to peer

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Online Clothing Rental industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.