In recent years, the concept of the circular economy has gained significant traction, particularly in the context of sustainability and reducing waste. Unlike the traditional linear economy, where products are made, used, and discarded, the circular economy focuses on reusing, refurbishing, and recycling resources to extend their lifecycle. This shift represents a fundamental change in how we think about consumption and production, and it has implications for industries ranging from fashion to electronics.
But which continent is leading the charge in this transformation, especially when it comes to secondhand and refurbished goods?
The Circular Economy explained
At its core, the circular economy promotes the idea that waste is not an inevitable byproduct of consumption. Instead, products should be designed with their entire lifecycle in mind, including their potential for reuse, repair, or remanufacturing. This reduces resource consumption, minimizes waste, and helps mitigate the environmental impact of production.
While the idea of a circular economy is global, some regions are embracing secondhand and refurbished goods more enthusiastically than others.
Europe: Paving the way with policy and innovation
Among the continents, Europe is widely seen as the frontrunner in the race to promote the circular economy, particularly when it comes to secondhand and refurbished goods. Several factors contribute to Europe’s leadership in this field:
1. Policy and Regulation
The European Union (EU) has been a pioneer in establishing policies that promote sustainability and circularity. In 2020, the European Commission introduced the Circular Economy Action Plan, part of the European Green Deal. The plan includes measures aimed at encouraging the reuse of products, such as revising regulations on waste, making it easier to repair and refurbish products, and setting higher targets for recycling.
Additionally, all European countries the UK and many others round the world have implemented extended producer responsibility (EPR) schemes, requiring manufacturers to take responsibility for the lifecycle of their products and packaging. This has led to a growing market for secondhand and refurbished products, as businesses seek to reduce waste and recover valuable materials.
2. Consumer Mindset
Europeans are increasingly valuing sustainability, and this is reflected in their purchasing habits. The popularity of secondhand platforms like Vinted, ThredUp, and eBay has surged, especially in markets like Germany, the UK, and France. The rise of online resale platforms has made it easier than ever for consumers to buy and sell pre-owned goods, from clothing to electronics.
Moreover, Europe has a long-standing tradition of refurbished goods, particularly in the electronics sector, supported by the Right to Repair activist movement. Companies like Refurbed in Austria and Back Market in France are capitalizing on the growing demand for affordable, environmentally friendly alternatives to new products.
3. Circular Innovation
Europe is also home to many circular startups and innovative companies that are rethinking the way products are made, used, and disposed of. For example, in the fashion industry, Patagonia and H&M are leading the way in offering repair services, recycling programs, and secondhand sales. In electronics, companies like Apple and Dell have committed to refurbishing and reselling devices to extend their lifecycles.
North America: Growing awareness but still catching up
While Europe leads in policy and established infrastructure, North America—especially the United States—is making strides in adopting circular economy practices, particularly in the secondhand and refurbished markets. A survey conducted by ThredUp found that 67% of consumers say they are more likely to purchase secondhand if they know it’s better for the environment, and 56% of people are willing to buy secondhand clothes instead of new ones to reduce waste.
1. E-commerce Boom
Online platforms for secondhand goods have exploded in the U.S. with services like Poshmark, Depop, and becoming household names. These platforms cater to a wide range of products, from fashion to electronics, and they are capitalising on growing consumer awareness about sustainability. High end fashion is really taking off with companies like Vestiare Collective becoming profitable which is no mean feat in this sector.
2. Refurbished Electronics
In the electronics space, the U.S. has a robust market for refurbished products, with major players like Apple, Best Buy, and Amazon offering certified refurbished options. There is also a burgeoning market for refurbished smartphones, laptops, and gaming consoles, driven by both environmental concerns and the rising cost of new technology.
3. Challenges
While the market for secondhand goods is growing, North America still faces challenges in scaling the circular economy, especially when compared to Europe. Regulatory frameworks are less developed, and consumers are not as ingrained in the idea of reuse and refurbishment as their European counterparts. Additionally, the sheer size of the U.S. market can sometimes work against sustainability efforts, as logistics and transportation play a larger role in the carbon footprint of secondhand goods.
Asia: A Mixed Bag with Potential for Growth
Asia’s approach to the circular economy is diverse, largely due to the vast differences between countries in terms of development, culture, and market maturity. However, certain countries are starting to see growth in the secondhand and refurbished goods sectors.
1. China
In China, the market for refurbished electronics is growing rapidly, driven by the country’s large consumer base and tech-savvy population. Platforms like Taobao and JD.com offer secondhand goods, and there is increasing demand for refurbished smartphones and other electronics. The government is also beginning to recognize the importance of sustainability, with policies encouraging recycling and waste reduction.
The Ellen MacArthur Foundation said “China is a leading global power and pioneering in its implementation of a circular economy” when it cohosted with China Association of Circular Economy (CACE), a dedicated China-focused parallel session at the 2024 World Circular Economy Forum in Brussels.
2. Japan
Japan has a long-standing culture of respect for objects and repair and it was one of the first countries to adopt circular economy policies. Clear definition of responsibilities among consumers, the private sector, and the government, supported by extensive legislation and consumer-friendly collection systems means it has a high recycling rate,
The Japanese are avid consumers of secondhand goods, particularly in the fashion and electronics sectors. Hard Off, a chain of secondhand stores in Japan, is one example of a popular platform catering to the demand for pre-owned products.
3. India
India is emerging as a promising market for secondhand and refurbished goods. The growing middle class, combined with increasing environmental awareness, is driving demand for affordable and sustainable products. Online platforms like OLX and Quikr are gaining traction in the secondhand goods market, and the refurbished smartphone market is experiencing rapid growth.
But one of the critical challenges here has been a lack of awareness and understanding of the circular economy among policymakers in the country. The circular economy requires a shift in the traditional linear economic model, which can be challenging to achieve without the right policies and regulations in place.
Africa: An Untapped Market with Opportunity
In Africa, the circular economy is still in its early stages, but there is significant potential for growth, particularly in the secondhand and refurbished markets. Countries like Nigeria and Kenya have thriving secondhand markets, particularly for clothing and electronics, where used goods are often imported from Europe and North America.
There is also a growing interest in local repair and refurbishment industries and a good example of this is Wastezon, a Rwanda-based company which repairs and remanufactures electronics, and resells quality-assured products back into the market. However, the continent faces unique challenges, such as limited infrastructure and amateur, unconnected regulatory frameworks, which could hinder the widespread adoption of circular economy practices.
Conclusion: Europe Takes the Lead, just, but the world is catching up
As of now, Europe remains the leader in the race to embrace the circular economy, especially when it comes to secondhand and refurbished goods. With its robust regulatory frameworks, innovative companies, and a consumer base that increasingly values sustainability, Europe is setting the standard for what a circular economy can look like.
However, other continents, such as North America and parts of Asia, are quickly catching up. As awareness of the environmental and economic benefits of a circular economy continues to grow, we can expect the global shift toward secondhand and refurbished goods to accelerate, with each continent contributing to a more sustainable future.
Further Reading – Why sustainable reporting matters even if it is not legally required
Sources;
India’s tryst with a circular economy
The Circular Movement
PACE
The Ellen MacArthur Foundation