The circular economy and consumer behaviour: Literature review and research directions

Abstract

The circular economy (CE) has emerged as a sustainable alternative to the linear model of production and consumption of products and services. Consumers are key actors in the circular economy loop, yet consumer behaviour and decision-making remain at the periphery of research in this area. To close this gap and to promote related academic research we perform a systematic literature review, analysing the main areas of research in the CE relating to consumer behaviour and decision-making. The results show that there are six main areas that link consumer and CE: consumer behaviour, purchase intention and sustainable consumption; lifetime and reparability; recycled plastics, upcycling, e-waste and innovation. These areas seem incomplete and focused on a relatively small number of sectors. Further, while attitude and knowledge are the most influential elements in the consumer’s buying decision-making process, our analysis shows significant gaps in current research in this regard. A key element of consumer behaviour, the post-purchase phase relating to “use”, “recycle” and “upcycle” was found to still be obscure. We provide recommendations on how this gap can be filled.