Upcycling – The opportunity-perception paradox

Upcycled products can win over customers—if brands rethink design, perception, and purpose from the start

By Sukriti Sekhri Gupta

Published: Jun 4, 2025 10:44:39 AM IST

Updated: Jun 4, 2025 03:59:54 PM IST

The global market for recycling waste, estimated at $63 billion in 2023, is expected to grow to $88 billion by 2030. Illustration: Shutterstock

The theme for World Environment Day 2025 is ‘Ending Plastic Pollution’, along with ‘Encouraging Collective Action for a Sustainable Future’. Sustainability is gaining importance—not only among consumers but also within companies.

Recent surveys suggest that customers are willing to pay, on average, 9.7 percent more for products or goods that are sustainably produced or sourced. The global market for recycling waste, estimated at $63 billion in 2023, is expected to grow to $88 billion by 2030. This rise in conscious consumption has captured the attention of several global companies. For instance, Patagonia, an international clothing retailer known for its sustainable practices uses fabric from old jeans to design overnight bags. Southwest Airlines, an American airline repurposes leather from aircraft seats to create wallets and bags.

This process of transforming discarded or waste materials into a finished product with new utility is known as upcycling. However, within this opportunity lies a challenge: Many consumers perceive such ‘reincarnated’ goods as lower in quality. So, how can managers and product designers create a stronger appeal for upcycled products?

The right strategy

To resolve the paradox, recent research has identified a novel technique: Reduce the similarity of domains between the features of the upcycled material and the final product. For example, using aircraft leather to make wallets and bags fits this insight well.

Why does this work? When companies repurpose materials from a completely different domain, consumers experience an ‘aha’ moment—enhancing the product's attractiveness. This behavioural insight is explained through the buyer’s decision-making flow (Figure 1).

Figure 1: Buyer’s decision-making flow

How companies can enhance this effect

Businesses should consider two key factors:

Product category matters The strategy works better for categories such as personal accessories, clothing, footwear, and home décor, where novelty and creativity are valued. For instance, a US-based beauty brand successfully uses coffee grounds—food waste—to produce skincare scrubs. However, this strategy may not work in categories like personal care and hygiene, where customers prefer products made from all-new components due to safety and regulatory standards.
Authenticity is key Companies must evaluate their commitment to sustainable and ethical practices. Customers are increasingly aware of greenwashing. For example, a cosmetics brand may switch to bioplastics in packaging—but if those materials behave like conventional plastics, customers may view the move as superficial. Investing in genuine, innovative solutions builds consumer trust.

Also read: How upcycling is taking root in India

Implement the strategy

Once companies identify the right fit, they must deploy the upcycling strategy effectively:

Invest in R&D: Discover suitable product components from ‘distant’ domains that evoke the ‘aha’ effect, without compromising on quality. Design thinking, with its focus on problem reframing, can also support innovation in upcycling.
Address scale challenges: Businesses that rely solely on upcycled products may struggle with consistent material availability. A smart solution is to partner with organisations that produce relevant waste—ensuring a steady supply of raw materials.
Optimise logistics: Efficient supply chain management is critical. Collaborating with players in the recycling industry and setting up systems for the collection of discarded materials will help secure reliable materials.
Focus on marketing: Awareness plays a vital role. In 2014, a well-known footwear brand discontinued its biodegradable line due to poor demand. In hindsight, targeted campaigns and positive word of mouth could have made a difference.

An important cultural consideration is how upcycled products are perceived even though upcycling is not a new concept. In India, sustainable practices have existed for centuries. For example, artisans have long created ‘Chindi dari’—rugs woven from fabric scraps passed down through generations. It demonstrates how upcycling can be both beautiful and functional.

From niche to mainstream

In today’s sustainability-conscious world, upcycling presents an opportunity to refocus on waste reduction—a movement many Indian brands are embracing. For example, some now craft sunglass cases from old tyres.

By using components from unrelated product domains, companies can build upcycled products that delight customers and deliver on both purpose and profit.

This article is an adaptation of “Aha! That’s Creative!”: How to Design Upcycled Products with Greater Appeal by Sukriti Sekhri Gupta, Assistant Professor of Marketing, published in the Management Practice Insights (MPI) journal of the S.P. Jain Institute of Management & Research (SPJIMR).

Views are personal.

[This article has been reproduced with permission from SP Jain Institute of Management & Research, Mumbai. Views expressed by authors are personal.]