The idea of renting clothes instead of buying is winning over more and more consumers, especially as the fashion industry continues to be largely blamed for high CO2 emissions. In fact, with ten percent annual growth, the clothing rental market appears to be meeting a need for more responsible engagement, particularly to limit the environmental footprint of fast fashion. But is this approach really beneficial for the planet? The answer is more complex than it seems.
A promising solution, but not without limitations
The fashion industry is one of the most environmentally damaging industries in the world. In this context, clothing rental services have emerged that promise a more sustainable alternative. Instead of buying clothes, consumers can rent them for a limited period of time and return them after use to get new ones. Brands like Coucou have popularized this practice, attracting consumers (literally) who want to dress fashionably while reducing their carbon footprint.
However, a joint study by the French business school EDHEC and the Belgian university UCL Louvain sheds light on a surprising phenomenon: renting clothes could, in certain cases, not only increase the ecological footprint, but even worsen it.
The rebound effect: increased consumption
The “rebound effect” is an economic concept that describes a situation in which the expected environmental benefits of a solution, such as renting clothes, are offset by compensatory behavior. This study, based on qualitative and quantitative research, shows that renting clothes can sometimes lead to accelerated consumption rather than reduction. The ability to rent clothing easily, cheaply, and in a wide variety encourages some consumers to multiply their rented items or even impulsively purchase the rented clothing.
Additionally, some people who save money by renting use those savings to purchase other goods such as electronics or household appliances, increasing their environmental footprint.
Different effects depending on the consumer group
The study found that the rebound effect is not homogeneous and varies depending on the consumer group. Among the users of clothing rental services, two groups in particular show more negative rebound effects: The first, the “stimulation and pleasure seekers”, which mainly consists of men, is looking for new things and variety. For them, renting stimulates the desire to constantly renew their wardrobe, which can increase their consumption.
The second group, the “urban apathetic youth,” although not particularly motivated by the pursuit of pleasure, tends to increase their purchases in other categories after renting clothes. This group, which consists mainly of young, urban, often single and educated men, represents around 18 percent of users and is particularly vulnerable to indirect rebound effects.
A growing but ecologically complex market
The clothing rental market has grown impressively and its volume is estimated to reach $1.77 billion by 2024. According to the Mordor Intelligence report, it is expected to reach $2.47 billion by 2029, with a growth rate of almost seven percent during this period. Companies such as Rent the Runway, Gwynnie Bee and Tuileries dominate this sector, but many new companies are entering the market to meet the growing demand. These services offer monthly or annual subscriptions that give consumers access to a wide range of clothing.
However, it is again important to note that this market growth does not guarantee that clothing rental services are actually more environmentally friendly. If used incorrectly, it can become an easy way to consume more without considering the real environmental problems.
How can the ecological benefits be maximized?
The study shows that while clothing rental can have environmental benefits, it can also encourage counterproductive behavior. To maximize environmental potential, companies must rethink their strategies. Instead of just promoting the hedonistic benefits of renting (like variety and novelty), they could focus on the actual environmental benefits and encourage more sustainable consumption practices.
Platforms should also encourage long-term rental of eco-designed products from brands that share eco-values. Limiting the number of clothing items rented per user and reducing the frequency of replacement can also be effective levers.
Towards more responsible fashion
To achieve this goal, it is necessary for companies and consumers to take a more responsible approach. The latter need to rethink their relationship to fashion and consumption, choose high-quality clothing instead of quantity and ask themselves questions before renting: “Do I really need this?”, “How often will I wear this item of clothing?”. By becoming aware of the impact of their decisions, they can contribute to more conscious consumption.
Clothing rental companies also need to do their part to educate consumers about the environmental impact of their choices by providing transparent information about the carbon footprint of the products they rent. By collaborating with other industry players, they can better understand the real impacts and promote more responsible practices.
Clothing rental can be an attractive alternative to traditional purchasing, but should not be viewed as a panacea to solve the fashion industry’s environmental problems. It has its advantages but also its challenges, in particular due to the rebound effect, which can negate the expected ecological benefits. For this solution to be truly sustainable, a thoughtful and responsible approach from both companies and consumers is essential.
This article previously appeared on FashionUnited.nl and was created using digital tools translated.
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