The global payment technology company Mastercard has revealed that sustainability is increasingly influencing the luxury fashion market. According to the Mastercard Economics Institute, circular fashion is gaining significant traction in this high-end space. In 2024, upcycled clothing accounted for over a quarter of online luxury spending in the United States. The report titled “Did you know? Circular fashion is sustainably on trend” highlights how secondhand fashion is rapidly reclaiming its market share and anticipates further growth by the end of 2025.
Additionally, seasonal trends such as the spring closet refresh have been observed within the luxury resale sector. Certain cities like Los Angeles, Las Vegas, and Portland are leading the charge in adopting circular fashion practices, with consumer awareness playing a crucial role in driving this change.
Growth of Circular Fashion in Luxury Market
Circular fashion is making significant strides in the luxury market, with upcycled clothing capturing a substantial portion of online luxury spending. Analysts predict continued growth, especially as consumers become more environmentally conscious and value-oriented. This shift reflects broader changes in buyer behavior, where alternatives to traditional retail models gain prominence.
In recent years, the luxury secondhand market has shown remarkable resilience. After experiencing a dip during the pandemic, it regained its pre-pandemic demand levels by the end of last year. By the close of 2025, experts forecast that nearly 29% of U.S. online apparel spending will be directed towards luxury secondhand goods. Rising prices and a slowdown in luxury revenue have prompted many consumers to explore resale platforms, offering both affordability and sustainability benefits. Brands like Mytheresa and Farfetch are capitalizing on this growing interest, attracting environmentally-conscious shoppers who seek quality without compromising ethical standards.
Seasonal Patterns and Regional Influence
Beyond overall market trends, specific seasonal patterns and regional differences contribute significantly to the rise of circular fashion. For instance, March marks a notable increase in luxury resale purchases, aligning with the broader trend of refreshing wardrobes in spring. While mass-market clothing sees a more pronounced spike during this period, luxury items also experience heightened demand.
Moreover, certain metropolitan areas exhibit exceptional enthusiasm for circular fashion. Cities such as Los Angeles and Las Vegas demonstrate strong participation rates, with circular fashion constituting nearly 7% of all clothing expenditures. Notably, Portland, Oregon, stands out as a pioneer in this movement, surpassing general digital sales growth by over 20%. These local dynamics underscore the importance of geographical factors in shaping consumer preferences and adoption rates of sustainable practices within the luxury sector. As awareness grows about the environmental and economic advantages of circular fashion, these trends are expected to persist and expand across different regions and demographics.