As secondhand luxury soars, authentication becomes a new gold standard

The secondhand luxury market is experiencing rapid expansion, projected to reach $360 billion by 2030 and growing three times faster than the primary market, driven by affordability and younger consumer demographics. However, the rise of sophisticated counterfeits necessitates robust authentication, prompting platforms like Carousell and Bunjang to invest heavily in advanced verification technologies, including AI-driven systems and physical inspection centers. This focus on authenticity is proving critical for building consumer trust, driving substantial revenue growth—as evidenced by Bunjang's over $1.1 billion annual luxury gross merchandise value—and capturing market share in this burgeoning sector.

Analysis

The secondhand luxury market is experiencing robust growth, expanding at an annual rate of 10%, three times faster than the primary luxury market, and is projected to reach $360 billion by 2030 from $210 billion today, according to a Boston Consulting Group report. This significant expansion is driven by consumer demand for affordability (cited by 80% of respondents) and access to rare items, particularly among younger demographics like Millennials and Gen Z.

Authentication has emerged as the defining factor for credibility within this burgeoning market, especially given the rise of sophisticated "superfakes" that even luxury brands struggle to detect. Resale platforms are heavily investing in verification technologies to counter this, recognizing that trust is paramount for high-value transactions.

Platforms like Carousell and Bunjang are implementing advanced authentication systems; Carousell utilizes physical stores and proprietary databases, while Bunjang employs AI-driven verification, claiming a 99.9% accuracy rate. This focus on authenticity directly translates to business success, with Bunjang reporting luxury goods now constitute over 25% of its $1.1 billion annual GMV and saw a 30% YoY increase in luxury transactions in H1 2025. Carousell also notes "great growth" in its luxury segment, demonstrating that consumer confidence, even at a slight price premium, fuels sales.

Key Decisions for Investors

• Investors should consider the significant growth potential in the secondhand luxury market, particularly platforms that effectively address authentication challenges.
• Focus on companies demonstrating strong investment in proprietary authentication technologies, including AI, as this is a critical differentiator and trust-builder for consumers.
• Monitor platforms showing clear revenue growth and increased gross merchandise value (GMV) directly attributable to their verification efforts, indicating successful market penetration and consumer confidence.