The UK’s pre-loved economy is now worth an estimated £6.5bn, an increase of 48% since 2020, according to research carried out by Motorway and the Centre for Economics and Business Research (CEBR). The report predicts that the flourishing pre-loved economy is set to grow further to £12.6bn in 2027; roughly double its value today.
Spending on pre-loved items places £6.5bn additional income directly into the hands of UK households. This supports a further £6bn of consumer spending, leading to a £2.4bn contribution to UK GDP.
Two-thirds of Brits who bought pre-loved goods in the past year (66%) stated that saving money is a key reason behind their purchase of pre-loved goods, suggesting that cost-of-living concerns have prompted a shift in shoppers’ preferences. Four in 10 (42%) shoppers purchase pre-loved items to support a good cause, while a rise in environmentally conscious shoppers (36%) who believe in a more sustainable way to shop, has also contributed to the growing economy.
Moreover, cost pressures are the main factor behind those selling pre-loved and used goods, while greater accessibility through the prevalence of online marketplaces is also a key factor – the percentage of second-hand goods sold via online marketplaces jumped from 57% in 2017 to 74% in 2022.
Interestingly, of those who say they're likely to sell pre-loved goods, 16% attributed their willingness to do so to a 'greater entrepreneurial mindset'. In fact, 68% of those polled who described themselves as entrepreneurial have sold pre-loved goods.
A third of the pre-loved market is made up of used transport products (cars/vans, motorcycles, bicycles and other vehicles), with a value of £2.2bn. This can be attributed to many factors, such as the ongoing shortage of semiconductors and other parts, causing delays for manufacturers bringing new cars to market, ultimately driving demand for used-cars.
The regions of London, the South East, and the South West see the highest absolute expenditure on pre-loved goods, accounting for more than a third (37%) of the total pre-loved market in the UK.
The top pre-loved categories Brits spend their income on:
- Books and stationery – 29%
- Women’s clothing and accessories – 22%
- Men’s clothing and accessories – 15%
- Transport vehicles – 14%
- Footwear – 13%
- Furniture and furnishings – 13%
- Physical games and toys – 10%
- Glassware, tableware and household utensils – 10%
- Tools and equipment for house and garden – 9%
- TV, video and computers – 9%
Motorway has teamed up with Financial Coach, Clare Seal, whose Instagram account @myfrugalyear provides financial advice and top tips, to share helpful advice when it comes to the pre-loved economy:
- Have hard-and-fast rules about unused items in your home and wardrobe
- Strike while the iron is hot - list items during spring cleans or pre-Christmas clearouts
- Find the right place to list your items - some platforms are better than others
- Photograph things well
- Don’t assume that just because you don’t want something, nobody else will
- Get your timing right! Time your auctions tactically where possible
- Be open to offers
- …but make sure you research the true value of your item!
- Don’t be afraid to ask questions or request more photos when buying
- Prioritise buying things that are high-quality and hold their value
Eoghan Barry, Head of Strategy at Motorway said: “With the used-vehicle market making up a third of the value of the pre-loved economy, we want to ensure sellers across the UK are getting a great price for their used cars. At Motorway, we work with a network of more than 5,000 verified dealers, who compete to give sellers their best price. So, while we’re fuelling the used-car market, providing high quality, used-car stock to our dealer partners, we’re also helping sellers get a great price for their cars. Now, more so than ever before, we know how important this will be for many living in the UK.”
Owen Good, Head of Economic Advisory at CEBR said: “Our analysis highlights the considerable contribution of the pre-loved market to the UK economy at £6.5 billion, with the total value of the market expected to double over the next five years, highlighting the traction pre-loved goods have gained amongst consumers. This is especially pertinent given the ongoing cost-of-living crisis and severely dampened spending power of consumers, with our research finding that the value offered by the pre-loved market is a key driver of its growth over the last several years.”
