The clothing rental market is reshaping how consumers think about style and curated wardrobes. In New York City, shoppers are looking for guilt-free ways to update their closets, and rental services have become a budget-friendly alternative.
According to Grand View Research, “the global online clothing rental market was worth about $1.12 billion in 2021 and is expected to grow to $2.33 billion by 2030.” The fashion rental industry is still expanding and has become especially popular among Gen Z and millennials.
The modern rental fashion industry began in 2009 with Rent the Runway, arguably the most popular clothing rental brand today. CEO and co-founder Jennifer Hyman told Elle that she had “this big idea… how we could actually rent aspirational brands and therefore have the freedom to wear all the clothes that we always dreamed about wearing.”
Initially envisioning a “Willy Wonka land of fashion,” Hyman explained that she wanted to give women access to an unlimited closet on a smaller budget. That’s where it all began: an online platform where customers could browse designer dresses, heels, and handbags to feel like a million bucks whenever they wanted.
From 2009 to 2024, nine major players in the clothing rental industry have emerged, including Nuuly, Armoire, Rent the Runway, Vivrelle, Vince Unfold, Tulerie, Nova Octo, Switch, and Elysewalker Borrow. These brands offer more than just gowns and evening wear. They also rent out jewelry, designer handbags, and casual staples like denim and button-down tops.
Most companies offer monthly subscription plans that range from about $40 to a few hundred dollars, depending on how many items and which brands you can rent. Customers can also choose to pay per item if they prefer.
A Forbes article highlighted the growing popularity of Rent the Runway, Vivrelle, and Nuuly. It reported that “Nuuly saw more than 50% annual sales growth for the first quarter ended April 30, following full-year increases of 172% in 2023 and 96% in 2022.”
Rent the Runway is also experiencing rapid growth, with Hyman telling Forbes that “customer loyalty rates were up 10% year over year.”
Even Vivrelle, which has only been around for six years, is making waves in the fashion rental market. The company, which focuses on handbags and accessories, “expects its membership to grow by over 100% this year, with new sign-ups in the first quarter up 30% year over year,” according to Forbes.
There’s no need to wait for a wedding, family event, or work party to dress up anymore. The rental fashion industry has created a system that lets shoppers refresh their wardrobes, mix and match pieces, and satisfy their fashion cravings without spending a fortune, and New York City is leading the way.