Consumer knowledge of the circular economy is growing and their attitude towards it is generally positive, but trust in companies requires strengthening and more innovation and legislation is needed to drive increased engagement and action, shows a survey by business assurance and risk management company DNV.

While only 35.8% of consumers are not familiar with the circular economy concept, of the 64.2% that do know about it, only 45% indicated they have extensive knowledge and actively participate.

Only one in five respondents mentioned information coming from manufacturers and suppliers directly, highlighting businesses may need to do more to get their message out and build trust, DNV emphasises.

“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 prioritised and [that they are] provided validated, trusted information,” says DNV supply chain and product assurance CEO Luca Crisciotti.

“Knowledge and engagement appear to be higher among the younger generations, with more than 53% saying they actively participate, while only 32.4% in the oldest grouping said the same.

“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 that will inspire consumer action to engage in recycling, take-back efforts or try out innovative circular products and services,” he says.

The survey shows that 60.9% of consumers are mostly gaining information from media and social media channels, with 26.8% gaining information from political discussion and 23% from friends.

Further, the survey shows that consumers are beginning to consider the impact of their buying behaviours.

Behavioural patterns, upbringing and buying 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 new fashion trends and economic power, and the survey shows that 48.1% of respondents buy products with recycled properties and 62.9% prefer to buy less or buy second-hand products, DNV says.

“A number of aspects influence consumers when deciding on whether to buy circular fashion products. Information on ecological footprint is very important for consumers, with 49.1% survey participants reflecting this. It is closely followed by working and labour conditions, quality of the product and certifications, verified labels and validated sustainability claims.”

Further, in the area of fashion, the primary reasons for choosing a circular product are still style and the price, while 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, 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 companies to adapt and consider business model innovation, focusing on the efforts that yield the most return,” DNV says.