Consumers call for businesses to activate circular economy

The revelation comes from a new CommBank report that found consumers want to support businesses that boost their efforts towards the circular economy and make it easier for them to reduce waste, save money and help improve our environment.

In a circular economy, existing products and materials are reused and recycled as long as possible through efforts such as sharing, leasing, reusing, repairing, refurbishing, and recycling.

Rising cost of living stood out as a key concern for more than three in four people, while 21 per cent regarded waste reduction as a significant medium-term challenge.

The rising cost of living, extreme weather events and supply chain disruption have brought waste and consumption into sharper focus for Australians, with 85 per cent of consumers concerned about the issue, according to CommBank’s latest Consumer Insights Report.

The report revealed around nine in 10 consumers regularly utilise reusable shopping bags. But some go further, with 53 per cent saying they regularly buy higher-quality products that last. Almost one in three said they buy second-hand goods instead of new ones (32 per cent) and choose brands with waste reduction policies (31 per cent).

“Proactive initiatives are a powerful way to create engagement and loyalty with consumers who expect circularity and prefer to shop with businesses that support it,” Jerry Macey, Commonwealth Bank’s executive manager, consumer and diversified industries, said.

“People are concerned about the amount of waste and consumption in society, but as more effort, planning and costs are involved, participation begins to decline. Consumers want businesses to make it easier and more convenient to take part.”

The report also found Australian households are sitting on an enormous number of unused products. In the case of clothing, 38 per cent of Australians said they had more than 10 items unused in the past 12 months, equivalent to at least 146 million unused items.

Initiatives that allow donations were the most in demand (88 per cent), followed by buyback and resale programs (84 per cent) and business-led recycling programs (83 per cent).

About half of consumers also want hospitality venues to donate food to charity, and 36 per cent said they’ll pay more to support the cause. Just over 40 per cent want food outlets to use local produce, and one in three said they’ll pay higher prices.