A recent survey by risk management experts, DNV, suggests consumer knowledge of circular economy is growing and their attitude towards it is generally positive. However, trust in companies requires ‘strengthening’ while more ‘innovation and legislation’ is needed to drive increased engagement and action, it says.
“Awareness is key but, subsequent consumer behaviour influenced by the knowledge they have is crucial to making the circular economy a reality.
“Ultimately, it is this knowledge is that will inspire consumer action to engage in recycling or take-back efforts or try out innovative circular products or services,” says Luca Crisciotti, CEO of Supply Chain & Product Assurance in DNV.
Awareness is key but, subsequent consumer behaviour influenced by the knowledge they have is crucial to making the circular economy a reality
Only 35.8% had not heard of circular economy, according to the findings. Of those that had, 45% indicated they have extensive knowledge and actively participate. Knowledge and engagement appear to be higher among the younger generations with more than 53% saying they actively participated. Only 32.4% in the oldest grouping said the same.
DNV says the survey reflects that consumers are mostly gaining information from media and social media channels (60.9%), with political discussion (26.8%) and friends (23%) being some way behind.
Only 1 in 5 respondents mentioned information coming from manufacturers and suppliers directly, highlighting businesses may need to do more to get their message out and build trust.
The information gap
“Manufacturers and companies have to drive circular economy transition. However, this is not possible without consumer participation. Thus, more must be done to fill the information gap, ensure that consumer awareness is priority and provided validated, trusted information,” says Luca Crisciotti.
Consumers are beginning to consider the impact of their purchasing behaviours, DNV says. As many as 48.1% said they buy products with recycled properties and 62.9% prefer to buy less or go for second-hand products.
Behavioural patterns, upbringing and purchasing power seem to play a role. Those above 55 years of age do more repairs than their younger counterparts. The younger generations tend to buy more second-hand and rent instead of owning. This could reflect a mix of it new fashion trends and economic power.
Manufacturers and companies have to drive circular economy transition. However, this is not possible without consumer participation.
A number of aspects influence consumers when deciding on whether to buy circular fashion products. Information on ecological footprint is very important (49.1%). It is closely followed by working and labour conditions, quality of the product, and certifications, verified labels and validated sustainability claims.
In the area of fashion, the primary reasons for choosing a circular product are still style and the price. Contributing towards environmental and circular causes ranks third. Price is especially relevant for the younger generations, which could potentially be linked to their purchasing power.
While consumers are not willing to go circular ‘at any cost’, DNV says, it notes that it is ‘interesting’ that when asked about plastic circularity, for example, they perceive most alternatives to single-use plastic as circular and sustainable. This provides an opportunity for the companies to adapt and consider business model innovation, focusing on the efforts that yield the most return, DNV says.