2026
9
US Circular Economy Consumer Report 2026
2026-03-30T00:03:00+00:00
REP3A56E2A3_E45F_4E91_96E2_A3E45F9E91CB
3695
192240
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Report
en_GB
Consumers' openness toward and adoption of circular acquisition methods continues to grow; this underscores price sensitivity and shifting consumer values. Secondhand represents the largest segment of the circular economy. Although…
US
Retail
simple

US Circular Economy Consumer Report 2026

"From vintage finds to rental fashion, the circular economy is thriving. While secondhand shopping is now mainstream, other circularity pillars, like rentals and repairs, are starting to make their mark and collectively will reshape retail moving forward."

Marisa Ortega, Analyst - Retail & eCommerce

Marisa Ortega, Analyst - Retail & eCommerce

Consumers’ openness toward and adoption of circular acquisition methods continues to grow; this underscores price sensitivity and shifting consumer values. Secondhand represents the largest segment of the circular economy. Although rental is smaller, its adoption has more than doubled in the past five years. This growth indicates a significant shift in consumer behavior, with more individuals embracing the value and convenience of flexible, non-permanent ownership.

Due to economic instability and increasing pressure to operate sustainably, many brands are incorporating resale, rental and repair services into their business models. The primary opportunity is to leverage circular models, like these, as drivers for customer retention. During periods where affordability is the main concern for consumers, earning and maintaining brand loyalty becomes significantly more challenging. Thus, highlighting the monetary value these models provide can be a way to attract and retain shoppers.

While the greatest threat is regulatory whiplash, US circular policy is emerging, but not yet comprehensive. The strongest developments are at a state level, while action remains limited at a federal level. Federal environmental rollbacks may stall investment, unless companies self govern and innovate.

This Report Looks at the Following Areas:

  • Impact of tariffs and inflation on consumers’ mindset and circular purchases
  • Political policy and circularity momentum
  • Adoption of secondhand and rental shopping options
  • Circular acquistion segmentation and loyalty drivers in the circular economy
  • Barriers to circular shopping and how to overcome them
  • Strategies on how to engage consumers with circular shopping
Collapse All
  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for the Circular Economy
    • Opportunities
    • Shift the rental mindset from occasional to an everyday option
    • Win with the circular faithful
    • Uncover value with the repair-to-resale cycle
  2. THE MARKET

    • Market drivers
    • US Policy is becoming more supportive of the circular economy
    • High cost of living boosts the circular economy
    • From skepticism to solutions: circular offerings can help fight climate change
    • Graph 1: agreement – “I don’t believe that human activity is having a significant impact on global warming/climate change,” 2024
  3. THE CONSUMER

    • Who is participating in the circular economy, and what are they buying?
    • Secondhand shopping keeps its momentum, while rentals boom
    • Graph 2: acquisition methods, 2021-25
    • Across categories, opportunities exist to increase circular acquisition
    • Graph 3: circular acquisitions, by method, 2025
    • The spectrum of circular shoppers highlights the opportunity for further adoption
    • Graph 4: repertoire of circular acquisitions, 2025
    • Nuuly turns everyday moments into style opportunities
    • Secondhand retailers and rental services used
    • Circular economy enthusiasts tend to use niche sites
    • Graph 5: secondhand retailers/rental services used, by repertoire of circular acquisitions, 2025
    • FARM Rio expands its long-standing sustainability mission
    • Trust and ease keep shoppers coming back
    • ThredUp launches AI-powered search and styling tools
    • Circular shoppers are interested in more than just a better price
    • Graph 6: factors influencing circular retailer/platform choice, by repertoire of circular acquisitions, 2025
    • Depop taps into the heart of resale with new multichannel campaign
    • Turn treasure seeking into loyalty
    • TheRealReal and Goodwill let creators share what makes secondhand shopping exciting
    • Motivations and barriers to participate in the circular economy
    • Affordability, access and temporary needs drive the circular economy
    • Graph 7: motivations to buy secondhand, 2025
    • Graph 8: motivations to use rental services, 2025
    • Rent the Runway gets a price check
    • Overcoming barriers to circular participation
    • Graph 9: barriers to buying preowned items, 2025
    • Graph 10: barriers to using rental services, 2025
    • Putting the spotlight on customer reviews
    • Attitudes toward circular shopping options
    • Shopping alternatively feels so good, but there’s still work to do
    • Circularity as a medium to captivate younger consumers
    • In-person thrifting trumps online for younger adults
    • The RealReal explores physical retail with pop-up locations
    • Resale value shapes consumers choices
    • There is more than one way to tap into the circular economy
    • Graph 11: attitudes toward circular shopping options – areas of interest, any agree, 2025
    • Circular efforts beyond secondhand and rentals
  4. INNOVATION AND MARKETING

    • Coach and Bloomingdale’s launch Coachtopia, a sustainable pop-up experience
    • Nuuly  allows in-store returns for subscribers
    • Levi’s teaches Gen Z the lost art of repair
    • Circularity is becoming a creative baseline
  5. APPENDIX

    • Report scope
    • The consumer
    • Consumer research questions
    • Consumer research methodology – US
    • Repertoire analysis methodology
    • Engagement with circularity varies across demographics
    • US generation groups
    • Abbreviations and terms

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