The online clothing rental market allows consumers to rent tailored and designer outfits and accessories for particular occasions or periods of time. Clothing rental services provide consumers flexibility to try out latest fashion trends at affordable prices without the long-term commitment of ownership. They offer variety of apparel categories including formal wear, outerwear, festive wear and more. The hassle-free, low-cost rental model has gained popularity among younger generations who are more concerned about environmental impacts of fast fashion. It helps reduce textile waste.

The Global Online Clothing Rental Market is estimated to be valued at US$ 9663.73 Bn in 2024 and is expected to exhibit a CAGR of 12 % over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the online clothing rental market size are Cisco Systems, Juniper Networks, Fortinet, Palo Alto Networks, Barracuda Networks. The growing popularity of online clothing rental services is attributed to affordability and ease-of-access in busy lifestyle. Rental services provide latest fashion trends at lower costs versus outright purchases. Moreover, they help address issues related to fast fashion and sustainable development by reducing textile waste. North America, being an early adopter, dominates the global online clothing rental market currently. However, Asia Pacific market is expected to grow at higher rate owing to rising fashion consciousness in developing economies. China, Japan and India will be major revenue contributors in the coming years.

Market key trends

Sustainability has emerged as a long term mega trend in the online clothing rental market. An increasing number of consumers, especially millennials, are concerned about environmental impacts of fast fashion. This has driven the demand for eco-friendly and sustainable clothing rental brands that offer rentals from organic, recycled or upcycled materials. For instance, Rent the Runway has launched a premium collection made using sustainable fabrics with lesser environmental footprint. Such initiatives aim to address issues related to water usage, chemical usage and textile waste in the broader apparel industry. Sustainable clothing rentals help support circular economy goals by promoting shared access over private ownership of under-utilized assets.

Porter's Analysis

Threat of new entrants: Online Clothing Rental Market Regional Analysis is difficult for new entrants to enter due to the high costs involved in setting up the infrastructure.

Bargaining power of buyers: Buyers have high bargaining power in the online clothing rental market as there are numerous established players providing similar offerings.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute raw material sources and outsourcing options available with manufacturers.

Threat of new substitutes: The threat of substitutes is low as online clothing rental offers unique benefits compared to alternatives like buying clothes.

Competitive rivalry: The competitive rivalry in the market is high considering the large number of prominent established players providing similar services globally.


North America currently holds the largest share in the online clothing rental market in terms of value. This is attributed to the early adoption of subscription based business models and high spending power of consumers in the region. Asia Pacific region is expected to register the fastest growth over the forecast period owing to growing internet and smartphone penetration, rising disposable incomes and changing fashion trends among young population. Countries like China, India and Japan will be major revenue contributors to the regional market.

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About Author:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)