The Role of Consumers in Transitioning to a Circular Economy

The traditional linear model of consumption, which relies on resource extraction, production, consumption, and disposal, is increasingly recognized as unsustainable due to its environmental and economic impacts. In response, the circular economy (CE) emerges as a transformative alternative, focusing on resource efficiency and closed-loop systems to minimize waste and environmental impact. Despite growing literature on CE, there remains a significant gap in understanding the complex psychological and contextual mechanisms driving consumer behaviour within circular systems. This study presents a systematic literature review based on the PRISMA methodology, analysing 157 articles published up to the end of 2024 and retrieved from the Web of Science and Scopus databases. Through the analysis, the review identifies and prioritizes consumer roles within the CE according to their environmental impact, emphasizing the pre-purchase decision phase as a crucial but frequently overlooked opportunity for intervention. Additionally, it synthesizes key factors influencing consumer behaviour in the context of sustainability and the circular economy, categorizing them into attitudinal, situational, personal capability-related, and habitual factors. Furthermore, the study maps effective strategies—including awareness campaigns, behavioural nudges, and financial incentives—that have shown potential to foster sustainable consumption. By addressing gaps in understanding consumer behaviour in the CE, the review provides actionable insights for policymakers, businesses, and researchers to design more effective interventions and promote sustainable consumption practices.