1 TRADING IN THE ECONOMYCIRCULAR 2022 REPORT in collaboration with
We want to empower Australians to improve their financial wellbeing, through circular economy trading. By encouraging reuse, repair, and upcycling, Gumtree is helping people to minimise environmental impacts.
Australia’s growing appetite for a sustainable marketplace is putting the power back into the hands of the people. This year’s findings demonstrate that Australians are benefiting from circular trading in two clear ways; 1. to reduce their environmental footprint through the buying and selling of unwanted and unused items and 2. to offset the rising cost of living.
Gumtree aims to educate Australians on the circular economy’s benefits to help drive its growth even further.
By empowering Australians to trade together, we can reinforce the fact we can save together.
Gumtree’s role in the circular economy
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To further encourage this, Gumtree remains committed to breaking down the barriers to circular trading, and to enable even more Australians to continue making more environmentally conscious decisions.
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Beyond the simple repair and reuse purposes for buying pre-loved items on sites like Gumtree, Australians are increasingly taking the opportunity to breathe new life into items through upcycling.
Buying and selling unused and unwanted items not only empowers people to achieve financial freedom through the circular economy, but it also reduces our impact on the environment. Trading in the circular economy lowers the demand for the resources needed to produce new items. It also means that unused and unwanted items can avoid being added to the millions of tonnes of waste created by Australian households each year.
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The 2022 Trading in the Circular Economy Report continues our annual indepth exploration into Australia’s circular economy. We’re proud to share our findings and continue working towards elevating Australia’s focus on our planet’s future, by further enhancing the ability of Australians like you, to successfully trade within the circular economy.
Gumtree plays a leading role in promoting buying and selling within the circular economy, and by doing so, Australians continue to reap the money-saving and money-earning benefits of circular economy trades.
However, for most Australians, the motivations of buying and selling through the circular economy have become increasingly environmental, with more and more Australians utilising circular trading to extend the life of items through reuse, repair, and recycling. Not only that, many Australians are now trying their hand at upcycling by taking an item and giving it a second life, perhaps with a fresh lick of paint or some new hardware, the finished product often becomes more practical, valuable and beautiful than what it was before, adding extra value and extending its life even further.
2022 marks Gumtree’s 15th anniversary in Australia. A lot has changed over those 15 years, but one thing remains the same - Gumtree’s ongoing ability to help Australians buy used items, and to sell the items they no longer need or no longer use.
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By facilitating participation in Australia’s circular economy, Gumtree is becoming the marketplace of the future. And to help maximise circular trading efficiency, as well as to help minimise the environmental impact, we need to better understand the attitudes and motivations of Australians. This is why, through our report, Gumtree conducts a yearly exploration into the evolving trends within Australia’s circular economy, and the effects of, and motives behind, the buying and selling of unwanted and unused items.
ManagingfrommessageGumtreeDirector, Mark Kehoe
An overwhelming 88% of respondents believed the circular economy would be important to the future of their business while almost a third identified the concept as extremely important. The top benefits identified by those surveyed were reducing costs and increasing efficiencies, aligning with expectations of corporate sustainability, aligning with public opinion around sustainability and identifying innovation and product opportunities.
For over 15 years, Gumtree has enabled and encouraged Australians to engage with the circular economy by buying and selling pre-loved and unwanted goods. Marketplaces such as Gumtree play a critical role in both enabling sustainable trading in the present and unlocking its potential for the future.
It's fantastic to see these positive trends emerging and through collaboration with organisations such as Gumtree who are making meaningful contributions to this space, we only expect them to strengthen moving forwards.
The linear “take, make, dispose” approach to economic activity simply cannot continue on a planet with finite resources. The circular economy aims to address this through a paradigm shift focusing on designing out waste, keeping resources in circulation and regenerating natural systems; changes that would drastically reduce resource consumption and our impact on the environment. We know the opportunities are there to begin the transition, which is why we established the Australian Circular Economy Hub to help drive an economic transformation for the better in Australia. An important element of that is working closely with businesses that already represent important components of Australia’s circular ecosystem.
Our own research also reveals that the Australian business community is tapping into that positive sentiment. In the second edition of the ACE Hub’s Circularity in Australian Business report, released December 2021, we surveyed business decision makers working in C-suite, senior management and board positions to determine how Australian businesses are tracking in their understanding and implementation of the circular economy.
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As revealed by this report, the Australian public stands to benefit greatly from trading in the circular economy for both financial and environmental reasons. More and more Australians are utilising circular trading to extend the life of items through reuse, repair, recycling and upcycling while reducing their environmental footprint through the buying and selling of unwanted and unused items and offsetting the rising cost of living.
A message from Planet Ark CEO, Paul Klymenko At Planet Ark, we believe in the circular economy’s potential to not only make our lives better, but vitally, to greatly reduce our impact on the environment we all depend on.
Gumtree’s unique contribution to the economy, primarily lies in the reuse phase. Here, we encourage people to challenge the traditional models of consumption, to explore the repair and upcycle phases, and to prioritise buying and selling of unwanted
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Over the past year, 85% of Australians have saved items from ending up in landfill by selling them through the circular economy. Aussies estimate they have saved approximately 15 items each, equating to 130 million items being saved Key findings Australians stand to make approximately $6,964 per household from their unwanted items. The value of trading unwanted and unused items in the Australian circular economy continues to rise, now estimated to be worth a staggering $62 billion, - a spike of 29% in the past 12 months, which is the biggest annual increase we have seen to date.
On average, 86% of Australians have unwanted and unused items they could sell, with around 21 items per household. It’s not unusual to have many more than this, with 23% having 30 or more unwanted and used items per household.
A glance at this year’s report 6
In the past four years, the estimated value of trading unwanted and unused items in the Australian circular economy has grown by 44% - up from $43billion in 2019 to $62 billion in 2022. The opportunity for Australians to earn their share in the circular economy has also grown with many Australians now standing to make $6,964 from selling their unused and unwanted items, a staggering increase of more than 44% over the past four years.
The circular economy model is becoming increasingly recognised, in not only Australia, but throughout the world - and Gumtree is, and always has been, an important part of its growth. Since 2007, Gumtree has empowered Australians to make smarter choices for their wallets, and the environment, by trading unused and unwanted goods. +29%
7 Growth over the last 4 years
The circular economy has gone mainstream $43B $46B $48B $62B $6,964$5,286$5,778$5,378 +44% 2019 2019 2020 2020 2021 2021 2022 2022 trendyear4 Value of trading in the economy:circular 4 year growth
Rise of earnings: Each year, the cost of living continues to be the biggest financial strain Aussies are faced with, increasing by 12% over the past four years. In 2022, the second biggest financial strain facing Australians is the ability to pay off items using ‘buy-now-pay-later’ services (37%). In the past 12 months, we have seen the strongest ever growth in the total value of the circular economy, up 44% year-on-year. We expect to see this number continue to rise over the next few years as more and more Australians continue to embrace the circular economy.
Of those who buy or sell unused and unwanted items within the circular economy: 81% of Australians participate in the circular economy by buying or selling unused and unwanted items. 86% of Australians have bought pre-loved items at some stage, with 61% buying something at least once a year or more frequently. say they use the money they make from trading in the Women are more likely than men to spend the money they make from trading in the circular economy on day to day living expenses (56% compared to 42%). spend the money they make from trading on day-to-day living expenses, while 30% save the money for an emergency, and 27% spend the money on special items/ experiences to treat themselves. used goods (estimated) have changed hands in the past 12 months (up 9 million from last year).
98m circular economy to reduce their debt.
Circular trading in 2022
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In the face of ongoing financial pressures, the rising cost of living, and growing interest rates, the circular economy continues to thrive.
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9 The top 5 benefits identified for trading in the Circular Economy are: Among the many Australians benefiting financially from trading in the circular economy, on average buyers save 41% buying pre-loved rather than new. The items Australians are most likely to consider buying from the pre-loved circular economy are: Reducing & recycling items To declutter / get organised Finding a second life / save them from landfill
they participate.
There are also strong financial motivations, with 2-in-3 (65%) citing the opportunity to make additional save the reason
trading in the Circular Economy is environmental, with 3-in-4 Australians (76%) participating to reduce their impact and benefit the environment. 37%50%54%57%62% Having extra money for expenses Conscious consumerism (social, environmental, etc) furnitureOffice tablesDining décorHome &Collectablesantiques 40% 38% 38% 35%
Saving items from landfill Circular trading is a great environmentallyconscious and financially-beneficial way for unused and unwanted items to avoid being added to the millions of tonnes of waste created by Australian households each year. Thanks to circular trading and donating items, 85% of Australians have saved items from ending up in landfill over the last year, estimating that they have saved approximately 15 items each, which equates to over 130 million items that have likely been spared from landfill in the last 12 months. 57% of Millennials say they are becoming increasingly environmentally concerned compared to 48% Gen Z, 48% Gen X and 42% Baby Boomers who are not far behind. Baby Boomers Gen X +5%57%48%48%42% 32%47%50%48%57%42%53%59%65%66%Gen MillennialsZ Reduce and recycle Closing generationalthe gap GiveDeclutteritems a second life to avoid them going into landfill Have extra money to pay living expenses Engage in consumerismconscious WomenMen
Amongst those who trade in the circular economy, women (87%) are more likely, than men (76%), to sell unwanted items because they want to make a positive impact on the environment. They are also more likely to say the benefits of buying and selling items in the circular economy are to:
The rise of the considered consumer
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Eco and financial - motivations are driving the circular economy.
The decline of the bargain hunter. For the evolved consumer, trading pre-loved in the circular economy is not just second-hand, it’s second nature. Aussies are now looking for well-known brands, specific items, and are more sustainably minded and with that, we are seeing a steady decline of the bargain hunter.
Compared to what they were doing ten years ago, over 80% of Australians say they are changing the way they consume goods, to be more environmentally friendly and more environmentally conscious.
From consuming to considering have changessignificantmadeto prefer to reuse preloved items to give items second, third or longer life. say that they consider environmentalthe prefer to sell or donate unwanted items to reduce their impact on landfill. actively buy and sell items to benefit themselves financially / invest in what they really want
87%82% 88%88%89%
UPCYCLE UPTRADE UPGRADE are putting their money where their mouth is, actively choose to buy productssustainable-with67% 81% stating they are willing to pay more at the checkout for sustainable brands and products almost half stating they choose sustainably 'most of the time' or 'wherever possible' impact of their purchase decisions while shopping their personal consumption habits for the well being of the planet
From consideration to action
Closing the generational gap When buying new or throwing out unwanted items, every generation is now considering the environmental implications of their actions, with Millennials and Gen Z leading the way. GenBoomerNETX88% +2%+6%+5%92%90%85%82% Gen MillennialsZ Environmental Consciousness
Two thirds of Australians (68%) benefit financially from trading, buying, or selling unused and unwanted items, and more than one in four (27%) use the money they make from circular trading to reduce their debt.
Pre-loved goods changed hands in the last 12 months (That's year-on-year growth of over 9 million items) 31% 1.3m 98m ability to pay household expenses such as food, groceries, and utility bills
Making change for your pocket atfinancialsomeareAustraliansexperiencingsortofstressthemoment. are financialhighexperiencinglevelsofstress.
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Feeling the squeeze
With interest and inflation rates on the rise and the cost of living taking its toll, almost a third of Australians (31%) are experiencing some sort of financial stress at the moment. Of those, the equivalent of 1.3 million are experiencing high levels of financial stress. a result, 64% of Australians are concerned about their ability to pay household expenses such as food, groceries, and utility bills an 11% increase since 2021of Australians are concerned about2021sinceincreasetheir Shoes & Accessories Music, DVD/CDs & Books Electronics & Computers Games & Toys Furniture & Home Decor
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86% of Australians have identified that they have unwanted or unused items lying around their home. On average, Australians have around 21 unwanted or unused items lying around their home. However, one in four (23%) have 30 or more items that they don’t use or want.
Pre-loved items powering the circular economy
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Sitting on a potential gold mine With the value of unwanted items now estimated to be worth $6,964 per household (a staggering increase of $1,678 compared to 2021), many people are missing out on the opportunity to make thousands of dollars from the sale of items they no longer want or need.
Value of a generation The estimated value of items by Gen X has almost doubled year-on-year, with Gen X standing to make more than Millennials and Gen Z for the first time in the last 3 years. GenMillennialsGenBoomersXZ$6,372$7,842$7,989$3,539 Average amount made per person from the scale of unwanted / pre-loved item (Increasing 31% year-on year) Hustle$6,964orhassle In what would seem to be a majorly missed opportunity for those looking to make some extra cash, 91% of Australians indicate they have thrown out an item or given it away, to save themselves the hassle of selling it online. More alarming is that 36% (the equivalent of 5.7 million people) do it “all the time”.
Turning clutter
According to Australians who sold items in the circular economy over the past year, the most commonly sold unused and unwanted items are:
Clothing, Shoes & Accessories Games and toys Home décor and furniture Electronic goods Books
Sellers On average, sellers have made a total of $8,107 over the last year, which is an increase of $2,821 from 2021. into cash
Buyers On average, buyers estimate that they saved almost half the cost (41%) by purchasing pre-loved over brand new items.
Whether people are going the extra mile for the environment, or they’re motivated by finances, more than 80% of Australians buy or sell pre-loved items within the circular economy. Of those, more than 6-in-10 Australians, the equivalent of 10 million people, are looking to embrace the circular economy as a means to
24%24%25%28%42%
When buying items new, 8-in-10 Australians (81%) prefer choosing sustainable products at least some of the time. In fact, of those who do choose sustainable products, two in three Australians (67%) say they are willing to pay more for a sustainable brand or product.
Research reveals that there is a lot of money to be made quickly by selling clothing, shoes and accessories (17%), games and toys (10%), and electronic goods (10%), and home décor and furniture (9%), because not only are these the items which sellers report as having sold the fastest, but they are also reported to have made sellers the largest amount of money.
Australia’s upcycling involvement Despite this, more than 8-in-10 Australians (88%) say that there is something stopping them from upcycling an item, with the most common barriers being: Only 19% of Australians say they are very confident with their upcycling skills, while half (50%) say they are somewhat confident, and almost a third (31%) say they are not confident at all.
Men are more likely, than women, to buy an upcycled item on a second-hand marketplace (25% compared to 14% are “very likely”)
not havingdon't have the knowledge or expertise to do it don't have the money to invest 43%60%
Nearly ofquartera(24%)Australians believe that basic increasetechniquesupcyclingcan their item’s value by more 30%
Millennials are more likely than Gen Z and Baby Boomers to say they are “very confident” in their upcycling ability. (23% compared to 9% and 15%)
Understanding upcycling
Millennials are more likely to buy an upcycled item on a second-hand marketplace, than Gen Z and Baby Boomers (23% compared to 15% and 13% are “very likely”).
Where recycling breaks down an item to reuse its material components, upcycling is where an “old” item gets a second life and its value and/ or function increased after being repaired or restyled, or by being modified and turned into something “new”.
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Men are more than three times more likely than women to say that they are “very confident” in their upcycling skills (30% compared to 8%).
What's stopping people?
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Who is buying upcycled items?
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Tables in need of sanding and repainting are a good example. Usually, you only need some sandpaper, elbow grease, a paintbrush, and paint.
Dean Ipaviz is a qualified builder, project manager and carpenter who’s passionate about the environment, and committed to sustainability and creating awareness around sustainable building practices. His mission is to educate clients, fellow tradesmen and viewers alike to make green building principles and practices more accessible and the go-to choice for the average renovation or new build. Fuelled by his love of upcycling, in 2022, Dean takes on the role of host of Foxtel’s ‘The Repair Shop Australia’. A huge hit with TV audiences all over the world, The Repair Shop features craftspeople rescuing treasured possessions and returning them to their forming glory.
4. Create your own DIY tool box. To avoid adding to the disposable nature often associated with the occasional upcycle, invest in good quality tools, paint brushes, etc., and make sure you look after them. Where possible, avoid buying equipment that you'll throw out later.
A lot of modern furniture is made from materials that weren't made to stand the test of time (such as chipboard with cheap veneers). Look for items made of solid timber, as they offer far better upcycle and DIY results, and if an item's online listing doesn't have a clear description, but you can see some potential damage, ask questions before you purchase it.
1. Start small and look for items that don’t require much technical expertise.
Upcycling advice from builder and carpenter, Dean Ipaviz
3. Reupholstering is a great way to breathe new life into vintage furniture. Upholstery services are available in most locations and often, upcycling is as simple as changing a damaged cushion cover. Sometimes, the timber’s authenticity (the wear and tear), or patina, is what makes the item so desirable.
5.Share your circular economy stories on social media. When you share what was challenging, what was easy, and what you learned, hopefully you’ll inspire others to begin their own upcycling journey.
2. Don't presume you can upcycle modern furniture.
2. Interact with your buyers. If you want to increase your chances of selling an item, make sure you respond promptly to messages from potential buyers and try to offer some personality. To avoid missing any messages, make sure you turn your notifications on through the Gumtree app.
5. List items that are in demand. Consider whether your item is currently in demand, or whether it might be better to list it during a particular season or time of the year. Furthermore, the latest data shows that there is a lot of money to be made quickly, by selling clothing, home décor, electronics, books and games. So, if you have these items lying around the house, you should get listing.
How to sell on Gumtree (and moneymakegrow)
With circular trading set to rise even further over the coming years, there’s never been a better time for Australians to take advantage of the financial and environmental benefits that buying and selling unused and unwanted items has to offer.
3. Trade safely. When selling an item, keep all interactions with your buyer on the platform. When it comes time for collection, you may not want strangers coming to your home, so select a neutral meeting place to make the exchange and bring a friend or family member with you. If you’d prefer not to meet up, you can add the ‘Contactless Trade’ badge on your listing and leave items in an accessible area to exchange. Not only that, you can now tag your item as available for shipping and reach people in other areas!
Describe the product you’re selling, including its features, a brief history, and your reasons for selling the item. Make sure to include clear pictures of your item too! The more information you provide, the more likely you are to make a sale at the price you’d like. Feel free to be as creative as you like.
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Here are some simple tips to help you start trading and saving with the 6 million Gummies on site each month.
1. Be descriptive.
A guide to the circular economy
Gummie’s
4. Think ahead. When you buy a new item, take the time to consider its second life, there and then. By protecting the item, preserving the original packaging, and keeping the receipt, it can add huge value when it comes time to resell it.
4. Practise safe trading.
2. Save your searches.
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Schedule a video inspection of an item or if meeting in person; wash your hands before and after; cleaning items before using (and asking the seller to do the same before you purchase); and also considering contactless delivery.
1. Do your research. Creating your dream home takes time and inspiration. To see how much money you can save, research the style you love, and compare products and prices online before searching Gumtree.
3. Ask questions. When first contacting the seller, don’t be afraid to ask a lot of questions about the condition of the item, why it’s for sale, and whether there are receipts or warranties available. It’s easy to contact a seller via Gumtree’s ‘My Messages’ feature.
If you’re looking for a particular item or brand, make sure to click on ‘Save search’ so we can provide you with an email update whenever a similar item is listed. That way, you won’t miss out on any great buys.
5. Set it up safely. Once you’ve purchased your items, make sure to follow instructions provided by the supplier or original manufacturer, to set up your furniture or equipment correctly. How to buy on Gumtree (and help save the planet)
The Trading in the Circular Economy Report is an independent national research study commissioned by Gumtree Australia. The report looks into what motivates, connects and drives consumers to thrive in the circular economy.
theAboutreport
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The findings in this report are the result of a survey commissioned by Gumtree and conducted by YouGov Galaxy from 15 – 21 July 2022. The national survey consisted of 1,052 Australians aged 18-64. Age, gender and region quotas were applied to the sample, and all final data was also weighted by age gender and regions to reflect the latest ABS population estimates. Population estimates are based on the number of households (ABS data - 1, 0355, 002) x percentage of households that have unwanted goods (86%) x value of unwanted goodsAustralians($6,964).
surveyedCompleted Respondents aged 1,052Jul15-2122 18-64
Gumtree House of
Some of the best ways to minimise the environmental impact of your home is to reduce the amount of 'brand new' items you buy and to extend the life of the items you already own, or look to purchase pre-loved. To show just how easy it can be, we've created the Gumtree House of Circularityan inviting home environment, sustainably furnished with decor, accessories, and furniture, all sourced exclusively from Gumtree. Step through the front door and experience a virtual walkthrough of the Gumtree House of Circularity and see how vividly the circular economy can come to life. Visit here. Circularity
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ECONOCIRCULARTRADINGwithMYINTHEREPORT