Description

The future of shopping is becoming more circular, consumers are more willing than ever to consider alternative shopping options. Learn more about how your business can drive growth in this market by purchasing Mintel’s comprehensive US Circular Shopping Market Report. The report is full of consumer-led market research and contains expert analysis of the future of circular shopping, the current trends in the industry, and consumer attitudes and behavior.

In this report, you’ll find information on:

  • The impact of inflation on consumer behavior and the circular economy.
  • Popular items and retailers for circular shopping.
  • Learning sources and drivers for circular shopping.
  • Attitudes toward buying secondhand, rentals and reselling.

US Circular Shopping Market Landscape

When compared to traditional, linear retail models, circular retail is not as popular with consumers. However, adoption of these offerings continues to increase, and secondhand shopping and rentals have benefited from uncertain economic times. Moving forward, there will be more of a focus on sustainability, which will further benefit the circular shopping market.  

Circular Shopping – Current Trends

Consumers are finding circular shopping options more attractive due to the financial and environmental benefits. Everyday clothing, furniture and home décor are the most commonly bought items using circular options.

  • 70% of consumers are open to alternative shopping options.
  • The amount of consumers purchasing items second hand in 2022 increased by 9% compared to 2021.
  • 29% of adults aged 18-34 are willing to spend more on what they buy knowing they can resell it later.
  • Cleanliness is a topic that impacts circularity as a whole. 46% of consumers are concerned about cleanliness when renting clothing.

US Circular Shopping – What’s next?

The circular economy will revolutionize shopping, and has the potential to influence the way goods are made and consumers shop. Mintel’s market experts expect that the adoption of circular shopping options will accelerate even more among consumers and brands alike in the near future. It’s clear that secondhand and rentals will become more popular shopping choices moving forward. There are opportunities for retail brands to explore in order to better serve consumers and secure future growth. To learn more about these opportunities for your business, purchase our full US Circular Shopping Market Report.

Expert Analysis from a Specialist in the Industry

This report, written by Marisa Ortega, a leading retail and ecommerce analyst, delivers in-depth commentary and analysis to highlight current trends in the US retail market and add expert context to the numbers.

Circular shopping options are becoming increasingly attractive due to their financial and environmental benefits. Additionally, perceptions around ownership are shifting – with more and more consumers looking for flexibility and the stigma of buying secondhand decreasing. But it’s not just about practicality – consumers are also drawn to these shopping options for their unique offerings. It’s clear that secondhand and rentals will become more popular shopping choices moving forward – creating opportunities for alternative and traditional brands and retailers.

Marisa Ortega - Retail and eCommerce Analyst

 

Marisa Ortega
Retail & eCommerce Analyst

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top Takeaways
                • Consumer trends
                  • Competitive strategies
                    • J. Crew enters the circular economy; opportunity to appeal to various motivating factors
                      • Figure 1: J.Crew launched a resale program
                    • Rent The Runway leverages strategic partnerships for its inventory; highlights the opportunity to explore various circular shopping models
                      • Figure 2: Rent The Runway partners with Saks Off 5th to sell previously worn items
                    • Uniqlo offers repair services in certain US stores; highlights opportunities to explore new circular models
                      • Figure 3: Uniqlo launches a repair service
                    • Market predictions
                      • Figure 4: Items acquisition, 2019-22
                      • Figure 5: Circular shopping outlook, 2023-28
                    • Opportunities
                      • Circular shopping is a more affordable gifting option
                        • Explore and support circular business models
                          • Bring circular offerings to where the consumer is
                          • Market Landscape

                            • Secondhand continues to win consumers’ wallets
                              • Figure 6: Items acquisition, 2019-22
                            • Tap into circular shopping growing interest
                              • Figure 7: Category interest, by gender and age, and parental status, 2022
                              • Figure 8: Floorfound offers recommerce options for returned furniture
                          • Market Drivers

                            • A vulnerable and uncertain economy is an opportunity for secondhand and rentals
                              • What we’re seeing
                                • What it means
                                  • Figure 9: Consumer Price Index change from previous year, 2020-2022
                                • Attitudes about ownership are evolving
                                  • What we’re seeing
                                    • What it means
                                      • Figure 10: Mend Mother allows consumers to mail-in apparel for mending and repairs
                                    • Digital channels remain key for circular shopping; the return to in-store shopping opens more doors for brands and retailers
                                      • What we’re seeing
                                        • What it means
                                          • Consumers are increasingly focused on the environment and sustainability efforts
                                            • What we’re seeing
                                              • What it means
                                                • Figure 11: ThredUP guides consumers to reduce their footprint
                                              • More comprehensive and consistent green claims regulations could be on the horizon
                                                • What we’re seeing
                                                  • What it means
                                                    • Figure 12: Shein receives backlash for its resale platform launch
                                                • Competitive Strategies and Market Opportunities

                                                  • J. Crew enters the circular economy; opportunity to appeal to various motivating factors
                                                    • Figure 13: J.Crew launches a resale program
                                                  • Rent the Runway leverages strategic partnerships for its inventory; highlights the opportunity to explore various circular shopping models
                                                    • Figure 14: Rent The Runway partners with Saks Off 5th to sell previously worn items
                                                  • Rolex sells secondhand items through authorized dealers; luxury brands have an opportunity to reach new consumer segments
                                                    • Figure 15: Rolex launches a pre-owned program
                                                  • Uniqlo offers repair services in certain US stores; highlights opportunities to explore new circular models
                                                    • Figure 16: Uniqlo launches a repair service
                                                  • Dick’s Sporting Goods drives consumers to the store through trade-in events; opportunity to drive footfall and consumer engagement through circular engagements
                                                    • Figure 17: Dick’s Sporting Goods hosts in-store trade-in events of used gear
                                                • The Circular Consumer – Fast Facts

                                                  • Openness to Alternative Shopping Options

                                                    • The increasing availability of alternative shopping options facilitates adoption
                                                      • Figure 18: Openness to alternative shopping options, by gender and age, 2022
                                                    • Multicultural consumers turn to alternative shopping options as an affordable way to have access to goods
                                                      • Figure 19: Openness to alternative shopping options, by race and Hispanic origin 2022
                                                      • Figure 20: Depop puts its sellers under the spotlight to resonate with various audiences
                                                  • Circular Acquisitions and Future Consideration

                                                    • Current behaviors and future consideration highlight opportunities across categories
                                                      • Figure 21: Kaiyo focuses on convenience for sellers and buyers
                                                      • Figure 22: Circular acquisitions, 2022
                                                      • Figure 23: Category interest, 2022
                                                    • Younger generations turn to the circular economy to get dressed
                                                      • Figure 24: Circular acquisitions, by age, 2022
                                                      • Figure 25: Rent the runway partnered with The Black Tux for wedding season
                                                      • Figure 26: Rowely helps brides buy and sell quality outfits and accessories
                                                      • Figure 27: Category interest, by gender and age, 2022
                                                      • Figure 28: Amazon teams up with the reseller What Goes Around Comes Around to sell pre-owned luxury items
                                                    • Circular shopping makes parenting easier and more affordable
                                                      • Figure 29: Circular acquisitions, by parental status, 2022
                                                      • Figure 30: Category interest, by parental status, 2022
                                                      • Figure 31: Loop rentals offers convenient, sustainable and affordable access to baby gear
                                                  • Retailers Shopped

                                                    • Consumers are turning to online marketplaces but physical shopping is still preferred
                                                      • Figure 32: Retailers shopped, by age, 2022
                                                      • Figure 33: Goodwill launches an online shopping site
                                                    • Online circular sites offer various benefits for parents
                                                      • Figure 34: Retailers shopped, by parental status 2022
                                                      • Figure 35: Hand Me Up offers a convenient shopping experience and social shopping events
                                                  • Information Sources

                                                    • Consumers are talking about circular shopping
                                                      • Figure 36: Rent The Runway leverages influencer marketing to drive rentals awareness
                                                      • Figure 37: Beni browser extension aims to make secondhand shopping easy
                                                      • Figure 38: Information sources, by gender 2022
                                                      • Figure 39: TURF Analysis – Information sources, 2022
                                                    • Reach consumers of all ages by leveraging digital and traditional channels to promote circular shopping options
                                                      • Figure 40: Information sources, by age 2022
                                                  • Shopping Drivers

                                                    • Quality, price and uniqueness attract shoppers
                                                      • Figure 41: Shopping drivers, by gender and age, 2022
                                                      • Figure 42: The RealReal works hand in hand with an archival expert for authenticated vintage
                                                    • Appeal to Hispanic consumers’ sense of style and tendency to treat themselves
                                                      • Figure 43: Current Boutique provides styling tips
                                                      • Figure 44: Shopping drivers, by race and Hispanic origin, 2022
                                                      • Figure 45: ThredUp educates consumers on the impact shopping choices have on the planet
                                                  • Attitudes toward Renting

                                                    • Perceptions about ownership are evolving and becoming more flexible
                                                      • Figure 46: Zipcar communicates its cost-savings benefits in a tangible way
                                                      • Figure 47: Attitudes toward renting, by age; race and Hispanic origin, 2022
                                                      • Figure 48: Loop clearly communicates its safety and cleaning protocol
                                                  • Attitudes toward Buying Secondhand

                                                    • Break down the barriers to secondhand shopping through increased transparency
                                                      • Figure 49: Attitudes toward buying secondhand, by gender and age, 2022
                                                      • Figure 50: ThredUp encourages consumers to feel proud about wearing secondhand
                                                    • Tips to make secondhand more attractive to multicultural consumers
                                                      • Figure 51: Poshmark showcases resellers on social media
                                                      • Figure 52: Attitudes toward buying secondhand, by race and Hispanic origin, 2022
                                                  • Attitudes toward Reselling

                                                    • Attract sellers by harnessing the benefits of resale
                                                      • Figure 53: Poshmark provides sellers a convenient way to ship their items
                                                      • Figure 54: Pact encourages consumers to donate gently used clothes
                                                      • Figure 55: Attitudes toward reselling, by gender, 2022
                                                    • Unlock the secrets to attracting younger sellers
                                                      • Figure 56: Attitudes toward reselling, by age, 2022
                                                      • Figure 57: Poshmark supports sellers with listing tips
                                                      • Figure 58: Levi’s focuses on the longevity of its designs
                                                  • Appendix – Data Sources and Abbreviations

                                                    • Data sources
                                                      • Consumer survey data
                                                        • Abbreviations and terms
                                                          • Abbreviations
                                                          • Appendix – The Market

                                                              • Figure 59: Disposable Personal Income change from previous period, 2010-2023
                                                              • Figure 60: Consumer Sentiment Index, 2007-2023
                                                              • Figure 61: Unemployment and underemployment, 2010-2023
                                                          • Appendix – The Consumer

                                                              • Figure 62: Median household income, by race and Hispanic origin of householder, 2020
                                                              • Figure 63: Repertoire of items acquisition, by parental status and children in the household, 2022

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