UK consumers are sitting on an estimated £23.47 billion of unrealised value from unused electronic devices, according to new research. The study highlights a significant gap between consumer interest in trade-in programmes and their availability at retail points, representing a major missed opportunity for businesses.

The research was conducted by circular technology specialist Alchemy in partnership with analyst firm CCS Insight. It surveyed more than 1,000 UK consumers about their attitudes and experiences with device trade-in schemes.

Demand Outpaces Availability

The findings reveal a clear mismatch. While the number of manufacturers, retailers, and telecom operators offering trade-in options is growing, only 57% of UK consumers reported being offered a trade-in during their most recent smartphone purchase. Ultimately, just 44% traded in their old device.

Globally, the scale of the issue is vast. Approximately one billion smartphones reach the end of their first useful life each year without being traded in. The research suggests well-structured trade-in schemes can materially influence consumer behaviour and spending patterns.

Impact on Consumer Behaviour

Nearly two-thirds, 64%, of UK consumers stated that a compelling trade-in offer would encourage them to upgrade their device earlier. This would shorten upgrade cycles by an average of seven months. Furthermore, 70% said they would move to a more premium smartphone model if offered a trade-in value above £200.

Trade-in programmes also appear to increase the overall value of a sale. Over half, 54%, of respondents said the affordability enabled by a trade-in would encourage them to add accessories or extended warranties to their purchase.

The loyalty benefits for retailers and brands were pronounced. A significant 86% of consumers said they would be more likely to remain loyal to a retailer or brand if offered a competitive trade-in value, indicating a strong link between these programmes and repeat purchases.

Industry Reactions and Identified Barriers

Stephen Wise, Director of Global Marketing at Alchemy, said the results show brands are leaving significant revenue unrealised. “Over a third of UK shoppers are not even being asked if they want to trade-in at the point of purchase. That is a massive missed opportunity,” Wise stated. He noted that when the process is easy and rewarding, customers upgrade sooner, buy more accessories, and stay loyal.

Ben Wood, Chief Analyst at CCS Insight, commented that trade-in has moved into the mainstream but requires greater consistency. “Clear offers and transparent processes will be essential to convert intent into action and meet the huge consumer appetite identified in this study,” Wood said.

Despite strong consumer interest, the research identified several key obstacles. Fair valuation was the biggest concern, cited by 34% of UK consumers. Data security fears were raised by 26%, while 18% said they were simply unaware that older devices still held trade-in value.

Broader Market Potential and sustainability

These gaps highlight a need for clearer pricing, stronger communication around data wiping procedures, and greater awareness campaigns at the point of sale. Alchemy stated that improved trade-in visibility and trust could unlock billions in additional revenue for businesses while simultaneously supporting environmental sustainability targets by extending product lifecycles.

The research also points to substantial untapped potential outside the mobile phone sector. Only 18% of consumers reported participating in trade-in programmes for kitchen appliances. However, 64% said they would consider trading in household electronics, suggesting a significant opportunity for retailers and manufacturers to expand such programmes.

One appliance manufacturer involved in the study described trade-in programmes as “an acquisition tool, how we bring new customers into our ecosystem.” Others highlighted improved customer retention among those who participate in device trade-ins.

Looking ahead, the pressure for clearer, more consistent, and widely available trade-in options is expected to grow. As consumer awareness increases and sustainability concerns become more pressing, retailers and manufacturers who fail to address the demand gap risk ceding both revenue and customer loyalty to competitors who streamline the process.

Source: Based on research from Alchemy and CCS Insight.