• But the full potential of this demand is unfulfilled as over a third of electronics consumers were not offered a trade-in option at the point of their last purchase.
• This represents significant unrealised trade-in value, even in categories like mobile, traditionally seen as a well-establish trade-in market, given that 64% of smartphones were neither traded-in nor recycled, leaving value on the table for manufacturers, retailers and telcos.
Alchemy, the world’s leading and fastest-growing circular tech company, today releases the first instalment of a major new research campaign which explores the consumer electronics trade-in landscape across the UK. Conducted in partnership with CCS Insights, the opening findings reveal a clear disconnect between consumer demand for trade-in programmes and their availability at the point of purchase.
Consumers in the UK are holding approximately £23.47 billion in unrealised trade-in value from unused devices, value that brands, retailers and telcos could unlock through more accessible, stronger programmes.
Every year, around one billion smartphones globally reach the end of their first useful life without being traded in. The reason is two-fold: firstly, although the number of OEMs, retailers and telcos offering smartphone trade-in programmes is constantly expanding, only 57% of UK consumers surveyed were offered trade-in in their most recent smartphone purchase. Secondly, only 44% of consumers actually traded-in their phone.
Alchemy’s research, a survey of more than 1,000 UK consumers, uncovered multiple compelling reasons why OEMs, retailers and telcos should invest in developing programmes and unlock the revenue growth potential presented by trade-in:
• Early upgrade: 64% of UK consumers say a compelling trade-in offer would prompt them to replace their smartphone earlier, shortening upgrade cycles by seven months on average.
• Premium upgrade: 70% would upgrade to a more premium smartphone model if offered a trade-in value greater than £200+, encouraging upgrades to higher end models.
• Increased basket: Trade-in also acts as an upsell trigger – 54% say affordability through trade-in would prompt them to add more accessories or extended warranties to their basket.
• Increased loyalty: 86% of respondents are more likely to remain loyal and purchase their next smartphone from the same retailer or brand given a competitive trade-in value, showing a strong correlation between trade-in programmes and customer loyalty.
The research also delved into the main consumer barriers that prevent trade-in from reaching its full potential. Despite strong interest in trade-in programmes, fair valuation is cited as the primary obstacle by UK consumers, with 34% expressing this as a concern, while 26% worry about data security when trading in devices. Finally, awareness gaps persist – 18% of consumers are unaware that older models still have trade-in value for example – leaving significant value on the table for brands, retailers and end users.
Non-mobile sectors also remain behind the curve, equating to billions in potential revenue and a missed opportunity to make premium technology more affordable and accessible across the wider consumer electronics industry. Household appliance industries achieved the lowest trade-in uptake, with just 18% of consumers participating in trade-in programmes for kitchen appliances and 8% for floorcare products. Despite this, 64% of consumers in these segments express an intention to trade-in in the future, showing the significant opportunity presented by trade-in even in categories not traditionally associated with strong trade-in programmes.
Stephen Wise, Director Global Marketing at Alchemy, told That's Business: "We've known for a while that consumers want trade-in options, but this research shows just how much money brands are leaving on the table by not offering them. When over a third of UK shoppers aren't even being asked if they want to trade-in at the point of purchase, that's a massive missed opportunity not just for revenue and loyalty, which keeps customers coming back, but for the planet too as millions of usable devices end up scrapped instead of recirculated."
"The numbers are clear: people will stick with brands that make trade-in easy and rewarding. And when they do trade-in, they're more likely to upgrade to better devices, add accessories, and replace their tech more regularly. It's a win for everyone, brands get loyal customers and greater customer lifetime value, consumers get access to better tech at more affordable prices, and devices stay in use longer instead of sitting in drawers or ending up in landfill."
Ben Wood, Chief Analyst at CCS Insight, added: “This research reinforces the momentum we’re seeing across global consumer tech buying behaviour. Trade in has moved from niche to mainstream, but the next step is consistency. For manufacturers and retailers, clear offers and transparent processes will be essential to convert intent into action and meet the huge consumer appetite identified in this study.”
From OEM, retailer and telco perspectives, brand leaders see trade‑in as far more than an ESG initiative, it’s becoming a proven growth and loyalty engine. As one household appliance manufacturer explained, “trade‑in is an acquisition tool for us, it’s how we bring new customers into our ecosystem.”
Others emphasised retention benefits, noting that “those who trade-in with us remain more loyal and are likely to come back and buy again in future.”
The opening findings of Alchemy’s research indicate a market ready for scale: consumers motivated by value and simplicity, and brands recognising that trade-in delivers measurable commercial and environmental returns.
For the full insight report, please visit https://www.wearealchemy.com/research-and-insights or contact Alchemy to learn more: https://www.wearealchemy.com/contact
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