Nordic Pre-Owned Fashion Market Thrives Amid Economic Uncertainty

The Nordic region's challenging economic conditions—characterised by rising inflation, higher interest rates, weakening currencies, and stagnating employment—have lowered consumer confidence and deepened anxieties around financial security. In response, fashion retailers have leaned heavily on frequent discounting and expanding outlet offerings to stimulate sales throughout 2023 and 2024, catering to a consumer base that increasingly prioritises high-quality, branded goods at more accessible price points. This transition of consumer values, with a clear focus on both quality and affordability, has also driven a marked surge in the second-hand fashion market, which has gained significant traction in recent years.

Rising financial concerns among Nordic consumers, driven by Gen X

38% and 26% of Swedes and Danes, respectively, expressed concern about their financial situation in 2024

^{Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2024}

Additionally, 20% of respondents indicated higher debt and lower savings levels in 2024 compared to the previous year, signalling higher financial strain.Further demographic insights reveal that Generation X consumers, alongside millennials—two of the most frequent apparel and footwear buyers—are the most concerned about their financial situation in Sweden and Denmark in 2024, largely due to increased debt levels relative to savings. In contrast, baby boomers emerge as the least concerned generation, owing to their established financial security, which is bolstered by a combination of savings, investments, pensions, and homeownership.

This has resulted in a significant shift in consumer behaviour, with a higher proportion of people saving on non-essential purchases and increasingly opting for sale items, as the response rate for visits to discount stores has risen significantly in the region – visits to discount stores in Sweden increased by 38% in 2024. Such insight resonates highly with the growing impact of low-priced apparel and footwear – the second most influential feature when purchasing fashion goods, after value for money, in the Nordics. As survey results show, the response rate to selecting “Low price” as an influential product feature has increased noticeably in both Sweden and Denmark since 2022.

Slower growth in Nordic apparel and footwear sales compared to Western Europe

Consumer insights into spending and saving trends are strongly reflected in the dynamics of the Nordic fashion retail market of the past few years. Although volume fluctuations on the negative side are typical in the region, particularly in Sweden, the economic climate of recent years resulted in more pronounced declines than usual.

Compared to 2021—a year before the global surge in unit prices in 2022—the retail value of the apparel and footwear market in the Nordics grew by 4% in 2024, while Western Europe recorded an increase of 17% in euro terms

^{Source: Euromonitor International}

The same pattern emerges in volume sales: while Western Europe saw a modest increase of a few percentage points, the Nordics experienced a slight decrease in sales volume. Sweden, which has seen the sharpest rise in fashion unit prices, witnessed the most significant decline in apparel and footwear volume, with sales dropping by 2%, making it the country most impacted by the price increases.

Rising popularity of pre-owned fashion in the Nordics fuels investments

Frequent second-hand buyers in the Nordics that purchase used items every few months increased by four percentage points to 27% in 2024 compared to 2019

^{Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2024}

In contrast, consumers that never purchased pre-owned goods decreased by 4 percentage points to 15%, indicating that a larger share of the population in the region tend to choose second-hand over new.

The survey data are strongly reinforced by the shifting dynamics of the pre-owned fashion landscape in the Nordics, where both online and physical marketplaces have experienced notable growth. Tradera, the largest online marketplace for pre-owned fashion in the Nordics, saw a 26% revenue increase from 2021 to 2023, highlighting the sector's expansion. In 2024, Vinted—a leading second-hand fashion platform in Europe, which reported over EUR0.5 billion in revenue in 2023—further solidified its presence in the region by acquiring Trendsales, Denmark’s largest second-hand fashion and lifestyle marketplace. Traditional fashion brands and retailers are also increasingly investing in the second-hand segment as part of their business strategies. H&M – the largest fashion retailer in the region – opened a concept store in Sweden in 2024, offering a specially curated "H&M Pre-Loved" collection, underscoring the rapid evolution of second-hand fashion in the Nordics. The store features high-quality second-hand pieces from a range of brands, establishing itself as a key destination for shoppers seeking pre-owned fashion treasures.

Looking ahead, the economic climate and evolving sustainability regulation will further drive the shift towards more mindful spending and fuel the appeal of second-hand clothing across the Nordics. Market players that adapt to these shifting values by expanding services that make their business model more circular will be better positioned and more resilient in future.

To learn more about the shifts in consumer behaviours in our report and their impact on fashion, please read Where Consumers Shop for Apparel and Footwear or World Market for Apparel and Footwear.