Older consumers outpace millennials in circular economy adoption

A comprehensive study by the British Standards Institution (BSI) has revealed that whilst 86 per cent of consumers support circular economy principles, significant quality concerns are preventing widespread adoption of reused, refurbished and recycled products.

The Tipping Point: Building Trust in the Circular Economy study, conducted in partnership with Cambridge Institute for Sustainability Leadership (CISL), surveyed 8,214 consumers globally to identify barriers affecting adoption of circular economy practices.

This found that concerns about product quality top consumer hesitations, with 56 per cent citing lack of trust as a primary barrier to purchasing circular products.

Safety and reliability concerns follow closely, with 51 per cent and 49 per cent respectively expressing doubts about circular products' performance compared to new items. These findings highlight a critical gap between consumer environmental intentions and purchasing behaviour, despite strong support for reducing, reusing and recycling principles.

"The circular economy presents an immense opportunity for both people and the planet, enabling us to protect natural resources and reap economic benefits. Yet trust remains a crucial barrier to adoption," said Susan Taylor Martin, Chief Executive of BSI. "For circularity to thrive, businesses must move beyond sustainability messaging and bolster it by demonstrating genuine value, durability, and trustworthiness – convincing consumers that circular options are as reliable as traditional products."

The study reveals a stark gap in ‘perception versus reality’. While more than half the people surveyed (53 per cent) identify as early adopters or early majority for circular behaviours, only 33 per cent would consider buying second-hand technology and just 31 per cent would opt for food in recycled packaging over regular packaging.

Environmental claims meet consumer scepticism

Beyond quality concerns, the research exposed widespread scepticism about environmental claims, with 32 per cent of consumers citing lack of trust in sustainability statements as a purchasing deterrent. However, 59 per cent indicated that recognised certification labels would build their confidence in circular products' credentials.

This trust deficit presents both a challenge and opportunity for businesses operating in the circular economy space. Despite 67 per cent of people globally citing environmental benefits as a top three driver for adopting circular behaviours, this environmental motivation does not always translate into purchasing action.

Consumer caution remains evident across product categories. Only 29 per cent would purchase second-hand or refurbished furniture, whilst just 25 per cent are willing to buy wonky food produce. And one in three (35 per cent) are comfortable purchasing second-hand clothing, but only 22 per cent would buy a second-hand bike or scooter.

"The transition to a mainstream circular economy hinges on trust and credibility," said Lindsay Hooper, CEO of Cambridge Institute for Sustainability Leadership. "We need circular products and services with quality, safety and reliability fully embedded, and organisations that act decisively to introduce these solutions will facilitate an economic transformation whilst unlocking a wealth of opportunities."

The research identifies five key pillars for building consumer trust in circularity: assured performance and quality, transparency and traceability, verification and certification, standardisation harmonisation, and secure data management.

Trust barriers require systemic solutions

The findings suggest that sustainability communications may need recalibrating to address quality concerns directly rather than focusing solely on environmental benefits. The study reveals that whilst 68 per cent of consumers say environmental benefits motivate them to reuse, repair and recycle, this ambition faces a "fear factor" that prevents actual purchasing decisions.

The research also uncovered interesting demographic patterns. Older generations lead in sustainable practices, with 43 per cent of those aged 65+ identifying as early adopters of repairing products, compared to just 30 per cent of 18-24 year olds. Women outpace men across nearly all circular behaviours, with exceptions only in purchasing remanufactured products and using sharing platforms.

Significant regional variations emerged, with India leading in recycling adoption at 37 per cent compared to just 16 per cent in Japan, whilst the USA leads in purchasing second-hand products with 35 per cent early adopters.

The study found that circular behaviours cluster together, with 63 per cent of recycling early adopters also being early adopters of reducing food waste – nearly double the baseline rate of 38 per cent. This suggests that once consumers adopt one circular behaviour, they are significantly more likely to embrace others, creating a potential "virtuous cycle" of sustainability.

BSI's findings provide a strategic roadmap for organisations seeking to build trust and accelerate circular economy transition by prioritising quality assurance and transparent verification to overcome adoption barriers.