Mastercard finds younger consumers driving circular commerce

Mastercard has published research on the rise of conscious consumption and circular commerce, with younger consumers identified as a key force behind the shift.

The report suggests affordability, durability and trust remain the main drivers of purchasing decisions, even as many consumers say they want products that reflect their personal values. Mastercard based the findings on analysis from the Mastercard Economics Institute, its Global Financial Sentiment Study and research from GlobeScan.

According to the research, 63% of consumers rank cost as an important factor when buying, while 52% cite longevity and 45% point to brand trust. Lower on the list are what a product is made of at 31%, environmental impact at 25% and resale or reuse potential at 16%.

Even so, price is not the only consideration. The report found that 54% of consumers choose brands or products that align with their values, even when those options cost more.

Younger shoppers appear more willing to make that trade-off. More than 60% of Gen Z and Millennial consumers said they were willing to pay a premium for products seen as more sustainable, while 61% of consumers under 30 said they would rather spend money on environmentally friendly products than simply buy fewer goods.

Circular shift

A central theme of the report is the spread of resale, rental, repair and reuse models into routine shopping behaviour. These models are gaining wider appeal because they offer lower costs and access to goods without requiring consumers to buy new items outright.

Buying used was identified as the only healthy and sustainable behaviour tracked by GlobeScan that is increasing over time. Nearly 8 in 10 consumers (78%) said price drives their choice.

Spending data from the Mastercard Economics Institute also showed secondhand clothing sales growing faster than the wider retail clothing market. In the top 20 circular shopping economies, secondhand clothing sales rose 28% year on year in 2025, compared with 8% growth at clothing stores.

Rental models are also gaining ground, especially among younger age groups. Gen Z and Millennials were more than four times as likely as Boomers to say they rent products rather than buy them new, at 30% compared with 7%.

In the United States, the generational gap was wider still, with younger consumers 15 times more likely to rent than Boomers. Separate figures from the Mastercard Economics Institute showed US clothing rental spending grew 17.6% year on year in 2025.

Repair also featured strongly in the findings, with 71% of consumers saying they would prefer to repair products they already own rather than replace them with new ones.

Business response

For companies, the research points to a consumer market that is balancing economic pressures with environmental concerns. It suggests demand is building for products and services that combine lower cost, longer life, and clearer environmental claims.

Mastercard argued that wider adoption of circular shopping depends on infrastructure that makes these options easy to use and trust. It pointed to payments, data and digital tools as part of that framework.

Examples cited include reward schemes such as PlanetPoints, tools such as the Mastercard Carbon Calculator, and payment systems linked to transport and deposit-return schemes for recyclable and reusable packaging. The report presents these as ways to make lower-impact choices a more routine part of everyday spending.

The report places these developments within a broader consumer shift rather than a niche sustainability movement. It suggests circular commerce is moving closer to the mainstream because households see practical as well as environmental benefits.

Ellen Jackowski, Chief Sustainability Officer at Mastercard, said the trend has moved beyond early adopters.

"Sustainable living may have taken root among the environmentally conscious, but today it's gaining momentum by delivering tangible value everyone can feel, from saving money to accessing better, more durable goods and supporting personal health and well-being," Jackowski said.

She added that the systems around shopping behaviour are starting to catch up with consumer demand. "Circular purchasing behaviors are becoming more mainstream for everyday consumers because the tools and infrastructure to inspire, inform and enable them are finally emerging," Jackowski said.