Consumer Products Rental NAICS 5322

Nov 26, 2025 - Apparel Rental Gains in Popularity

• Amid rising apparel costs and shifting consumer habits, clothing rental platforms are gaining traction as budget-friendly alternatives, according to NPR. More than half a million women rent clothes, finding it cheaper and more flexible than buying. The apparel rental industry is valued at $2.6 billion and is projected to more than double by 2035, according to Future Market Insights. The industry has benefited from inflation and tariffs, which have driven up clothing prices. Companies like Nuuly and Rent the Runway are expanding inventory to meet holiday demand, though tariffs and supply chain delays pose challenges. Rental services appeal to consumers seeking fresh wardrobes without long-term commitments, offering convenience and cost savings while reshaping how fashion is consumed.
• Persistent inflation and rising costs are squeezing America’s middle class, prompting households to cut discretionary spending and seek more affordable alternatives, according to The Wall Street Journal. With goods and services up 25% since 2020 and essentials like food and car repairs rising, families are seeking bargains and may turn to rentals to stretch their budgets. Corporate earnings show cautious spending, with Target reporting declines and Walmart benefiting from value-seeking shoppers. As vacations, furniture, and apparel become increasingly unaffordable, rental platforms for housing, clothing, and consumer goods are poised to capture demand from cost-conscious consumers. Rental services may become more attractive as middle-income earners deplete savings and struggle with debt.

• Most Americans, 55%, are optimistic about their household finances even amid concerns about tariffs, inflation, and a softening jobs market, according to TransUnion’s Q4 2025 Consumer Pulse Study. However, less than half of consumers surveyed (48%) expect their income to increase over the next year, down from 53% in Q4 2024. Even as fewer consumers are confident about wage growth, their holiday spending plans remain intact; 46% of consumers plan to spend as much as they did last year, and 11% plan to spend more. In Q4, 64% of consumers said their finances were in better shape than they expected, but there were significant disparities based on income. Nearly 80% of higher-income households reported better or as-planned finances compared to 51% of lower-income households.
• Consumer rental firms that rent and lease appliances may source more inventory from the US to remain competitive on price while maintaining margins. GE Appliances, a division of China-based firm Haier Smart Home, will invest about $3 billion over five years to modernize and expand its facilities in Alabama, Georgia, South Carolina, and Tennessee, according to The Wall Street Journal. The move aims to reduce the financial impact of US tariff policy by reshoring work currently done in GE Appliance plants in China and Mexico. The total investment includes a previously announced $490 million to expand a washing machine factory in Louisville, Kentucky, GE Appliances’ US base. The chief executive of GE Appliances said that building products closer to end markets has long been part of the firm’s strategy. Still, trade conditions informed the decision to revamp existing US operations.