The second-hand economy in China has been growing rapidly, driving a significant transformation within the industry.

Industry insiders agree that the second-hand economy is not only promoting a green, low-carbon lifestyle but also creating new consumption trends. However, the market still has considerable room for improvement in terms of professionalism and standardization.

According to the China Resale Goods Trading Association, the sector's transaction volume reached approximately 1.69 trillion yuan (about $239 billion) in 2024, up 28 percent year on year, with an average compound annual growth rate of 12 percent over the past six years.

At a 2025 meeting on the high-quality development of the second-hand economy, Wu Fengwu, deputy director of the department of circulation industry development at the Ministry of Commerce, noted that the circulation of second-hand goods has evolved from a form of consumption driven mainly by practicality and affordability to a new consumer model that integrates sustainability, individuality and smart technology.

In April, the Ministry of Commerce, along with three other government departments, issued a notice listing pilot cities and enterprises for the circulation of second-hand goods. The initiative aims to accelerate the development of diverse channels for trading used goods, encourage innovation in business models and regulate the market.

Huang Wei, founder and CEO of Zhuanzhuan, an online trading platform for used goods in China, noted that the biggest shift in the second-hand economy over the past decade has been the creation of a more regulated and secure market environment, which has encouraged more consumers to get involved.

Despite recent progress, the market still has plenty of room to grow, and numerous challenges will need to be addressed as the industry continues to develop. According to industry insiders, recycling channels remain fragmented. Recycling platforms often operate in data silos, and standards for appraisal and valuation remain inconsistent.

Meanwhile, among Generation Z, trends such as mindful spending, price comparisons, group buying, and low-carbon living are gaining traction. These shifts are helping to build a healthier, more orderly second-hand economy.

Wu noted that applying new technologies such as artificial intelligence and big data can help overcome existing trust and efficiency bottlenecks, pushing the market toward greater standardization and smarter development.