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Panorama on second-hand products in France - 2017 Update - Synthesis | PAGE 1

2017 Update

SYNTHESIS

PANORAMA ON SECOND-HAND PRODUCTS IN FRANCE REUSE


ACKNOWLEDGMENTS

We would like to thank the members of the study’s Steering Committee for the inputs they brought as well as

for their careful reading :

COHIN David - APCMA

DURIEUX Marie - leboncoin

GISQUET Karine - MTES / DGPR

GOMY Catherine - Réseau Envie

LEFEUVRE Alexia - PriceMinister

LEONET Emma - Croix Rouge française

LOUARN Aubrée - MTES / DGPR

MABILEAU Stéphanie - Emmaüs

MAYOUX Nathalie - Réseau des Ressourceries

RICHARDOT Anne-Claire - CCI France

TILBIAN Jessica - AMORCE

We also thank all the experts, professionals and industry representatives who contributed to this study,

including :

ALANIESSE Pierre - Cash Express

APPARAILLY Virginie – Les ateliers du bocage

ATTAL Renaud – Co-Recyclage / RCube

AUBERT Thierry - Epalia

AUDUGE Régis – Syndicat Professionnel du Pneu

BENOIT Julie – Bellastock

BLARD Cyrille – SNCF Réseau

BOACHON Joanne – Minéka

BOMY Laure – FNB

BONO Emilie - SYNHORCAT

BOUCHERON Roselyne – ADEME Réunion

BRETON Nathalie – Valdelia

CAMILLERI Jérôme – Nodixia

CHAPILLON Frédéric – SNCAO

CHEYNARD Charlotte - eBay

CLAUDE Laurent- Renault

CLAUDOT Alain – EcoTLC

COUGE Philippe – Game Cash

COULLON Stéphanie – Fédération Française du

Bâtiment

COURJAUD Marion – L’Heureux Cyclage

DAHER Tarek - CNLRQ

DURBIANO Richard – Aliapur

EMRINGER Justine – Plaine Commune

FLANDIN Frédéric – Le Relais

GASSELIN Patrick – La Caverne des Particuliers

GONCALVES Laurent - Renault

GUENIN PHILIPPE- France Cartouche réemploi

HUDRY Marie - Agenda des Brocantes

HUNOT Nicolas – Faral

HUREL Blandine – Tissons la Solidarité

JOURDAIN Justine – FEI

LABROSSE Emmanuel – Conibi

LEFEVRE Virginie - Eco-mobilier

LENORMAND Olivier – Multirex’Auto

LOOS François - Brasseurs de France

MAIO Valeria – FNAC

MARTINEZ Stéphane - SYNHORCAT

MOIROUD Didier – Anovo

MOREL Jean Marie – FEDA

MURET Bruno - Syndicat National du Caoutchouc et

des Polymères

NASS Olivier – Donnons.org

PEDESSAC Joël – Comité Français du Butane et du

Propane

PIVOTEAU Vanessa – Eco-logistique réemploi

POINCELET Patrick – CNPA

RAILLON Coline – Syndicat National des Entreprises

de Démolition

RICHEZ-BRASSART Anne - HTM Lokeo

RIFFAUD Stanislas - FEI

RUTARD Stéphanie – Fédération Nationale des

Travaux Publics

SAINT JEAN Camille – Association Orée

SIRI Bruno – Conseil National de l’Emballage

TATIN Claire –ADEME Nouvelle-Calédonie

TOBIAS Marie – Fédération Nationale des Travaux

Publics

VARIN Benoit – RCube

VIGNERON Bastien – Réseau Consigne


QUOTE FROM THIS REPORT

ADEME, Christophe MARQUET ; Deloitte Développement Durable, Véronique MONIER, Anne-Claire IMPERIALE,

Florent MACCARIO, Rafael BASCIANO, Pierre BEURET, Philippe KUCH ; eco BTP, Emmanuel JAYR. 2017.

Panorama on second-hand products in France – Reuse – 2017 Update. 30 pages.

This report is available on-line www.ademe.fr/mediatheque

Any representation or reproduction of the contents herein, in whole or in part, without the consent of the

author(s) or their assignees or successors, is illicit under the French Intellectual Property Code (article L 122-

4) and constitutes an infringement of copyright subject to penal sanctions. Authorized copying (article 122-5)

is restricted to copies or reproductions for private use by the copier alone, excluding collective or group use,

and limited to short citations and analyses integrated into works of a critical, pedagogical or informational

nature, subject to compliance with the stipulations of articles L 122-10 – L 122-12 incl. of the Intellectual

Property Code pertaining to reproduction by reprographic means.

This document is published by the ADEME

ADEME

20, avenue du Grésillé

BP 90406 | 49004 Angers Cedex 01

Contract number : 16MAR001845

Report made on behalf of ADEME by : Deloitte Développement Durable & eco BTP

Technical coordination - ADEME : MARQUET Christophe

Circular Economy & Waste/Consumption and Prevention Department

http://www.ademe.fr/mediatheque


Table des matières

I. CONTEXT AND SCOPE OF THE PANORAMA ...................................................... 6

I.1. Context and Objectives................................................................................................................. 6

I.2. Scope of the Study ....................................................................................................................... 6

I.3. Limitations ..................................................................................................................................... 8

SUMMARY OF THE STUDY .............................................................................. 10

VALUE CHAINS OF SECOND-HAND PRODUCTS ........................................ 12

III.1. Circuits and key stages in the lifespan of second-hand products .............................................. 12

III.2. Roles of players in the lifespan of second-hand products .......................................................... 13

SECTOR DYNAMICS AND IMPACT OF THE SECTOR ON WASTE GENERATION .......................................................................................................... 22

IV.1. General Dynamics and Impact of the Household Goods Sector ................................................ 22

IV.2. General Dynamics and Impact of the New Types of Products ................................................... 25

OBSTACLES AND PROSPECTS FOR THE DEVELOPMENT OF REUSE ACTIVITIES .............................................................................................................. 28

RECOMMENDATIONS ................................................................................... 29


I. Context and Scope of the Panorama

I.1. Context and Objectives

The present report was drafted as part of the fourth edition of the Panorama on Second-Hand Products in France prepared by the ADEME since 2010.

It aims in particular at updating the data collected during the previous Panorama in 2014, at updating the SINOE® directory, as well as monitoring the various trends and orientations of the reuse sector in France. The analysis of these trends and interviews with stakeholders and players on the market led to the elaboration of recommendations in view of supporting this sector.

For such purposes, the reuse schemes that are specific to the types of products that are covered by the scope of the panorama were analyzed according to three axes, both from a quantitative and qualitative perspective :

Environmental assessment of the second-hand product sector, including, on the one hand, the overall estimate of the tonnage of reused products (i.e. tonnage of avoided waste); and on the other hand, the monitoring of the evolution of good practices adopted by the players of the sector;

Social assessment of the sector, including the quantification of the jobs related to the reuse of products and in particular an in-depth analysis by type of signed contract, thus highlighting the structural functioning of certain sectors;

Economic evaluation of the sector, with a global estimate of the generated turnover, the number of structures involved in the value chain of second-hand products, as well as the trading operations at stake in these activities.

I.2. Scope of the Study

Reuse

The study covers reuse, as defined in Article L541-1-1 of the French environmental Code, as follows :

“Reuse” refers to any operation in which substances, materials, or products that are not

classified as waste are re-used for the same purposes as those for which they were designed. Note that facilities that implement reuse practices are not classified as ICPE facilities in terms of waste.

“'Preparation for reuse” means any control, cleaning, or refurbishment operations with view of

recovering the substances, materials, or products which had become waste and preparing them for reuse without further pre-treatment operation.

Thus, the term “reuse” covers both products that go or do not go through the status of waste at their end-of-life stage before being used again (see Erreur ! Source du renvoi introuvable. below).


Figure 1 : Reuse activities, preparation for reuse and reuse

Product Types

Were included in the scope of the present study all the products that were likely to be placed on the second-hand market and defined as “everyday consumer products” in previous studies.

Accordingly, are excluded from the scope of the study all industrial production tools, real estate property, and entire motor vehicles (used vehicles). Likewise, antiquities and jewels were excluded for the sake of considering only goods that do not have a significant market value and including them in a specific second-hand market.

Table 1 : Product types in 2017, identical to the scope of Panorama 2014

Product types : everyday consumer products Products

Electrical and Electronic Equipment (EEE)

Large appliance and refrigeration appliances, small appliances, screens, audiovisual equipment, IT

Textile products

Clothes, leather goods, linens, shoes

Furniture

Tables, cabinets, chairs

Trinkets / Dishes and china / Decoration

Books, cassettes, CDs, DVDs

Books, magazines, comics, CDs, DVDs, cassettes

Cycles / Bicycles

Adult bikes, children's bicycles

Leisure equipment

Musical instruments, games and toys, sports equipment

Tools

DIY materials, gardening


Four new types of products were added to the scope of this panorama and were thus analyzed to grasp the organization and functioning of the second-hand operations on these products. These new types are presented in the table below.

Table 2 : New product types added to the scope of Panorama 2017

Categories of players on the reuse market

The categories of players involved in the second-hand market of historical products (i.e. everyday consumer products) were kept in 2017 as they were in 2014 except flea markets who were excluded from 2017 Panorama’s quantitative anaysis because of a lack of products’ pertinence sold on markets and the difficulty to track the data to give an accurate estimation. Some of the types of players were however studied with more attention than in previous panoramas, besides historical players. Thus, the present panorama covers the following categories of players :

Players in the Social and Solidarity Economy (SSE) and charities,

Consignment stores, resellers,

Websites, which underwent a more detailed analysis,

Intermediates and reconditionneurs, newly added to the scope of the study.

Players related to the new types of products, with knowledge in most cases of one reuse scheme whose

structure is specific to their activity.

I.3. Limitations

All the data elements presented in the present report correspond to the results of the processing and analysis of data collected in various ways (literature review, interviews, phoning, etc.). Despite the attention paid to the multiplicity of sources of information and the neutrality of findings, the elements presented below are not deemed to be exhaustive.

As for quantified data, the variable level of data reliability is explained by the heterogeneous traceability

of the various sectors and categories of products. These different levels of data reliability are presented

in Tables 3 and 4. Thus, all data should be read with caution, taking into account methodological

limitations.

New types of products added in 2017 Products

Construction products and materials

Tiles, construction wood, structural steel, paving blocks, doors, windows, parquet flooring, excavated material on construction site, rubble, etc.

Reused packaging

Returnable glass bottles, gas cylinders, pallets, IBC

Office print cartridges

Refillable cartridges : inkjet cartridges, toners, etc.

Spare parts for motor vehicles

Tires, body parts, engine components, seats, dashboard, etc.


Table 3 : Reliability index of data regarding players in the second-hand household goods sector

Product type

Category of players Reliability

index Sources

Household goods

SSE and charities

Networked members

High Raw data provided by each player

Independent players

Low Estimate made based on a typical structure

Consignment stores,

resellers

Networked members

Moderate Estimate made based on available data on one single network, and data from previous editions

Independent players

Low Estimate based on data obtained from a sample of players and from previous editions

Websites to establish links

Website for advertising

High Estimate based on available data from a market leader

General market places

Moderate Estimate based on available data from a market leader

Specialized market places

Moderate Estimate based on data from statistical surveys

Intermediates and reconditionneurs

High Interview of players and use of ADEME’s report1

Table 4 : Reliability index of data pertaining to second-hand products in the new product categories

Product type Reliability index Sources

Packaging

Gas cylinders High Interview of professional

federations2

Glass packaging Moderate Ongoing studies and public

reports3

IBC Moderate Estimate based on available data from a market leader

Palettes Moderate

Estimate based on available data from a market leader and

found in a public report 4

Cartridges High

Report on the scheme5 and

interviews with the

federations6

Tires High Report on the scheme7 and

sales monitoring barometer 8

Spare parts for motor vehicles Low Estimates made based on interviews

Construction and civil engineering material

Construction material Moderate Survey performed by SOeS9

Material from public works

Moderate Survey performed by SOeS.

1 Study on the reuse of household EEE, ADEME, 2016 2 French Agency of Compressed Gas (AFGC) and French Butane and Propane Committee (CFBP) 3 Packaging and returnable products : Panorama of reuse systems, National Council of Packaging, 2016

Collection systems of household beverage packaging for reuse purposes, ADEME, ongoing study 4 Structural study : Pallets, pallet boxes, industrial packaging, light packaging, Institut d’Informations et de Conjonctures

Professionnelles, 2015 data 5 Reports on the cartridge scheme in 2015, 2014, and 2013 6 Interviews with French Cartridges for Reuse (France Cartouche Réemploi) and with the company Conibi 7 Annual report of the Observatory of Used Tires : 2015 data, ADEME, 2015 8 French barometers of sales of retreaded tires, data from the French National Trade Association for Rubber and Polymers

(SNCP), 2016 9 SOeS : Observation and statistics department


Summary of the study The 2017 update of the Panorama of the market of second-hand products in France shows an overall positive evolution of the practices and the active players since the 2010 edition, and pushes the analysis one step further by integrating quantitative indicators since the 2012 or 2014 editions depending on data availability.

The tonnages of reused household products have increased by approximately 30%10 since 2014,

fostered by a slight increase (3%) in the reuse rate. Reusing a second-hand product instead of throwing it is a practice that is increasingly being adopted by consumers, which is also reflected in the increase in the number of players on the reuse market, and in the supply accordingly. Compared to 2014, this

2017 edition has referenced about 20%11 additional entities whose main activity is the reuse of products.

The SSE sector is evolving progressively and becoming more structured :

A turnover of € 370 million of the reuse market in 2017, which means a constant growth of

+21% in the market of second-hand products at each Panorama since 2010;

209,000 tonnes of goods sold or donated for reuse purposes in 2017, i.e. an increase of 14%

compared to 2014;

More than 21,000 FTEs are estimated to be working in the reuse market in 2017, that is to say

the total workforce has stagnated between 2014 and 2017.

Generally speaking, structures in the SSE and charities continue to play an important role in operations related to second-hand products, and are crucial for the development of the sector of everyday consumer products. Indeed, the entities involved in the SSE reuse sector contribute to job creation, to professional integration, and to the development of a new activity, while offering a second lifespan to products by collecting and reselling them at low cost. Charitable associations have an enhanced role, namely donating to very precarious populations, while also offering low-cost products for all public categories.

Players in the conventional economy (websites, consignment stores, resellers, intermediates and

reconditionneurs) continue to represent the largest share of the sector of second-hand products

:

€ 1,170 million in revenue from reuse activities in 2017, i.e. an increase of 49% compared to

201412;

802,000 tonnes of goods sold for reuse purposes in 2017, i.e. an increase of 38% compared to

201413;

12,600 FTEs in 2017, i.e. an increase of 97% compared to 2014.

Nonetheless, it was noted that websites and online platforms have gained a larger share of the reuse market, with a spectacular growth in the quantity of reused everyday consumer products (partly based on estimates). More than 400,000 tonnes of products were reused via websites (an increase of over 50% compared to 2014), making the Internet the largest intermediate for the exchange of second-hand goods. Consignment stores and resellers were the second largest exchange channel (around 380,000 tonnes and a 19% increase), followed by SSE entities and charities (over 200,000 tonnes and a 14% increase) which had been the historical players in the market of reused everyday consumer products.

The inclusion, for the first time, of new types of products in the scope of the study has shown that not all schemes present the same maturity in terms of monitoring and supervision practices. Recommendations made under this study focus on construction products and materials and spare parts of motor vehicle parts and aim at obtaining more accurate quantification of reused products in the next edition of the panorama.

10, 11, 12 This trend (rising percentage) has been constant - except for the new types of products that were assessed for the first time

in Panorama 2017

13, 14 This trend (rising percentage) has been constant - except for intermediated and reconditionneurs which were excluded from

the Panorama 2017


Not all recycled packaging operations are monitored; it is therefore not always possible to measure the reuse activity of this sector. Lastly, the reuse activity in the office print cartridge sector is monitored and has been on the increase.

The growing dynamics of reuse activities, which has started several years ago, may be further reinforced by applying a number of recommendations. Sixteen courses of action were elaborated in order to encourage the reuse of products, three of which are deemed priorities :

Simplify the relationship between the supplier and the demander; and simplify the locations and modes for transmitting such products as well as the methods of searching for second-hand goods. To do so, just like in 2014, it is advisable to provide support and guidance to the physical entities involved in the reuse sector in order to further market their offer via the Internet;

Prioritize reuse instead of recycling. Set reuse targets for collective schemes, separate from recycling targets, combined with communication campaigns targeting consumers, which would help develop the second-hand market in France;

Promote refurbishment to increase reuse rates and extend the product’s lifespan, namely to promote the eco-design of products by manufacturers.


Value Chains of Second-Hand Products

III.1. Circuits and key stages in the lifespan of second-hand products

The circuits of second-hand products may differ according to two main types of players :

Purchase/sale and donation players : products are put back on the market by economic players (SSE, charitable associations, resellers, consignment stores, intermediaries and reconditionneurs). Products intended for second-hand reuse may go through several stages of selection (refurbishment, repair, etc.) before being sold or donated;

Figure 2 : Value chain of selling a second hand product – Example of a computer

Connecting players : goods are directly transferred from one owner to another. Economic players facilitate the creation of relationships and connections through websites designed for this purpose such as websites specialized in ads or marketplaces or antique or garage sales.


Figure 3 : The value chain of linking for the second life of a product - Example of a computer

III.2. Roles of players in the lifespan of second-hand products

The roles of players involved in the lifespan of second-hand products are studied separately according to product type, by presenting the respective players involved in the value chain of second-hand products.

Second-hand everyday consumer products

This product category covers a very wide range of products (see Chapter I.2.2), each with very different characteristics, lifespan, unit value, dimension and, most of all, various levels² of likelihood of reuse. These specificities result in a very fragmented reuse market : the multiplicity of products included in the category of household goods leads to a plurality of players and to complex interactions.

In addition to being segmented according to product categories, the market is also divided into the different stages of reuse lifespan : players are active at different levels of the value chain (players at the collection and sorting stage, players at the repair/refurbishment stage).

The players in the second-hand everyday consumer product sector are :

Structures in the Social and Solidarity Economy such as "recycling plants" - operating within a network or independently, specialized in certain flows or all types of waste, or charities. These players are historically involved in the reuse activities and aim at offering products at attractive prices while promoting solidarity-based economic development;

Structures in the conventional economy whose economic model is based on profit derived from the (re)sale or goods or in connecting consumers :

o historical players such as consignment stores, resellers and garage sales involved in all types of goods;

o digital players such as websites and marketplaces connecting consumers, also involved in all types of goods;

o rental companies promoting the use of products with the longest possible lifespan.


o more recent players such as brokers14 and asset managers15 who are gaining an

increasing share in the EEE market thanks to the economic value of certain goods (mainly telephony and IT products);

o manufacturers and distributors who position themselves on the reuse market by launching online platforms for the purchase/sale of second-hand products or by introducing reuse solutions for repairable products.

Figure 4 : Main flows of consumer goods between players in the lifespan of second-hand products

Notes on Figure 5 :

1) Some players may be classified in several of the categories represented in the diagram (for example : ENVIE is a player in the SSE but also serves as a reconditionneur).

2) Flows between companies and individuals (donations or sales of furniture, or computer equipment for company staff) were not represented on the diagram since they represent a small share of reuse products in France and are therefore hard to estimate.

14 Brokers buy and resell equipment. Their input on the material is limited to its storage and resale by lots of purchased products

or waste. Some do not handle the products; others do not even see them. A broker is the equivalent of a trader. (Source : Study on the reuse of household EEE, ADEME, 2016) 15 Asset managers buy, repackage (if applicable) and resell equipment. Unlike brokers, asset managers do provide additional

services related to the management of companies' equipment. (Source : Study on the reuse of household EEE, ADEME, 2016)


Second-hand spare parts of motor vehicles

The sector of second-hand spare parts of motor vehicles is divided into two types of activities with different value chains but using similar channels :

Standard exchange : the used part is exchanged against an identical renewed part (refurbishment). The used part is sent via the distribution logistics channel to the renovator, who also buys parts from centres specialized in End-of-Life Vehicles (ELV) since an average of 1.3 used parts are required to produce a refurbished part.

Second-hand products : the part originating from an ELV is assessed by a professional as capable of being used a second time and is thus put back on the market as a replacement part of a faulty part.

Figure 5 : Main flows of second-hand spare parts of motor vehicles between players in the lifespan of second-hand products

Notes on Figure 5 :

1) Flows of spare parts of motor vehicles originating from online sales and web-based platforms were not represented because they were considered to be marginal and part of a self-repair process;

2) However, the flows of second-hand spare parts of motor vehicles originating from ELV centres and destined to motor vehicle users are also not significant. They were indeed considered as minor during our interviews with the main players of the sector.


The following players have a key role in the value chain :

ELV centres which serve as the supplier of spare parts, supplying both the second-hand market and contributing to the renovation of parts in standard exchange operations;

Wholesaler intermediates plays the role of flow managers : they massify the flows originating from car deconstructions in ELV centres and redirect them according to their specificities into the most appropriate sector (foreign second-hand market, national second-hand market, standard exchange market for renovation);

Reconditionneurs place their orders with the distributors (who own the stock) or directly with the ELV centres (only for used parts).

Second-hand tires

The sector of second-hand tires is divided into two types of activities with different value chains but using similar channels :

Retreading : operation consisting of refurbishing the tires by gluing new tire treads using various techniques. This activity carried out by retreaders mainly tackle truck tires, in such cases where such an operation is economically beneficial;

Second-hand tires : used tires are deemed by the certified collectors/sorters as capable of being used again. Such tires are therefore reintegrated into the sales channels as "second-hand tires".

Second-hand products mainly concern light-vehicle tires16.

Figure 6 : Main tire flows between players in the lifespan of second-hand products

16 Observatory of Used Tires, ADEME, 2015


The tire industry is subject to an Extended Producer Responsibility (EPR) sector and thus to specific regulations defined by the French Decree No. 2002-1563 of 24 December 2002, codified in Articles R543-137 et seq. of the French Environmental Code. This legislative text requires distributors and holders of used tires to hand them over to collectors approved by the prefecture : all used tire flows transit through an approved collector who decides, after sorting, either to put the tire back on the market (as a second-hand product or sent for retreading) or to dispose of the tire (for material or energy recovery).

Second-hand construction products and materials

The market of second-hand products reused in the construction sector is divided into two types of activities, with different value chains : construction products and materials, and materials from public works.

Figure 7 : Main flows of products and building materials between players in the lifespan of second-hand products

The players involved in second-hand construction products and materials for the construction sector are :

Project owners who re-use materials internally or transfer them (sales, donations) to other project owners ;

Players in the Social and Solidarity Economy, members of networks or independent, or charities. Among them, some also provide support to the project owners for the reuse of these products (especially in the case of requalification of substandard housing) ;


Players in the conventional economy :

o resellers. Sometimes a demolition company can back up this activity ; o digital players such as websites involved in all types of goods or products specific to the

construction sector ; o brokers trading construction waste ; o construction or demolition contractors ; o manufacturers and distributors of construction materials and products that transfer

(through sales or donations) unsold or returned orders.

Figure 8 : Main flows of products and materials of public works between players in the lifespan of second-hand products

The players in the public works sector are :

Project owners who re-use materials/products internally or transfer them (sales, donations) to other project owners ;

Works contractors who connect different project owners for whom they work ;

Digital players including websites specialized in the construction and civil engineering industry.

Other players are neither sellers nor connecting players but play a role in the lifespan of second-hand products :

Trade federations, institutions and local authorities, associations : they play a role in raising awareness on the reuse market and promote existing offers of reused products ;

Trade unions and players in the waste management sector : they facilitate the development of the second-hand product market by managing and generating flows - for example, creation of reuse zones in waste disposal centres.


Second-hand packaging

The packaging category covers a wide variety of products, each with its own value chain, and generally involves players specialized in one flow of products. Packaging types can be divided into two major categories : household packaging and industrial packaging.

The industrial packages that were covered in this study are IBC (Industrial Bulk Containers) and pallets. Household and similar packaging comprises glass bottles and gas cylinders.

Household and similar packaging is returnable, that is to say that buyers pay a certain amount of money for the packaging, which they gets back upon returning the packaging. This amount does not necessarily correspond to the market value of the packaging : the returned sum only consists of attributing a monetary value to the packaging in order to motivate consumers to return it.

Figure 9 : Main household second-hand packaging flows between players in the lifespan of second-hand products

Industrial packaging is very rarely returned because of its different value chains. The player to whom the reconditionneur sells the packaging is not the same as the one who provides recovered empty packaging : the packaging passes from one player to another depending on the potential transformations of the given product, from the first user who buys the package till the last user who no longer need it and sells it to a reconditionneur. Thus, the system developed to encourage the return of packaging for reconditioning purposes generally consists of purchase at a counter, whereas the reconditionneur sells the packaging to the first user. Industrial packaging reconditionneurs also offer to their clients the rental and management of packaging; they may also integrate in their activities the manufacturing of new packaging.


Figure 10 : Main industrial second-hand packaging flows between players in the lifespan of second-hand products

Second-hand office print cartridges

The sector of office print cartridges is governed by a sector agreement signed between the various players in the print cartridge industry and the Environmental Ministry, following the Grenelle Environment Forum.

Apart from this sector agreement, the sector is structured around two industrial groups :

France Cartouche Réemploi, a federation of players on the collection, sorting, and remanufacturing market, which aims to promote activities related to the second-hand cartridges in France;

Conibi, a federation producers of new cartridges (downstream activity of the sector), funded by its members and in charge of the monitoring of product collection, sorting and recycling. It should be noted that this player does not directly manage the collection and sorting stages but subcontracts these activities to other operators.


Figure 11 : Main stream of office print cartridges between players in the lifespan of second-hand products

Figure 11 shows that the flows of print cartridges among the players on the reuse market are relatively simple and linear. All flows of used empty cartridge are centralized at the level of the collector, after being collected directly from professional users or transmitted by the local authorities, or collected at the different collection points.

It should be noted that the print cartridges will integrate the EPR sector of electrical and electronic equipment starting January 1st, 2018. Doing this is expected to contribute to the enhancement of the sector, on the one hand for flow monitoring and on the other hand, for the key role that the collective scheme plays in the provision of flows of products that are likely to be reused. However, if cartridges are classified in the same sub-category as printers, as it is the case nowadays, collective schemes are less likely and willing to increase the quantities of collected cartridges because their collection targets are set in tonnes of products.


Sector Dynamics and Impact of the Sector on Waste Generation

For the sake of simplification and understanding, the years indicated in the analysis and the diagrams correspond to the years in which the panorama was drafted; the collected data may correspond to the years 2015 or 2016 depending on the players and sectors.

IV.1. General Dynamics and Impact of the Household Goods Sector

In 2016, around 6,700 entities generated a turnover of 1.5 billion euros in activities related to the reuse of household goods in France. Around 34,000 FTEs are employed in these entities, whereas the number of volunteers is estimated at about 16,000 FTEs.

Figure 12 : Evolution of the number of jobs and turnover of the sector of second-hand household goods

The global developments in the market of second-hand household goods in terms of turnover, FTEs, collected goods and sold goods are presented in Figure 12 and Figure 13. On a like-for-like basis, all indicators are on the rise and the sector has benefited from strong momentum. It should be noted that the global reuse rate is slightly increasing, reaching 38% for a total of about 1 million tonnes of reused goods in France in 2017, compared to around 780,000 tonnes in 2014.

200

5 200

10 200

15 200

20 200

25 200

30 200

35 200

40 200

M€

200 M€

400 M€

600 M€

800 M€

1 000 M€

1 200 M€

1 400 M€

1 600 M€

1 800 M€

2012 2014 2017

CA (M€) (éch. gauche) Nombre d'emplois (ETP) (éch. droite)


Figure 13 : Evolution of the second-hand household goods flows

Table 5 shows that all players have taken advantage of the dynamics of the sector. Data from the 2010 panorama are not presented due to significant limitations in terms of data exhaustiveness, such that they cannot be compared with the following years.

Table 5 : Monitoring of indicators on players in the sector of second-hand household goods

UD* : Undefined

Nevertheless, this significant development of the sector at all levels should be tempered by the evolution of the methodology of data collection and processing, as well as their perimeter of studies : from one edition to another, the panorama has been widened, both in terms of new types of products but also of new players integrated into the study.

The Social and Solidarity Economy, a historical player that is adapting its evolution while responding to its social vocation

The increase in turnover between 2014 and 2017 has been constant at a rate of +21%, just like it was between 2010 and 2012, and between 2012 and 2014. Growth in the SSE is therefore quite constant.

34,5%

35,0%

35,5%

36,0%

36,5%

37,0%

37,5%

38,0%

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

2012 2014 2017

Quantités collectées en tonnes (éch. gauche)

Quantités réemployées réutilisées en tonnes (éch. gauche)

Taux de réemploi réutilisation (éch. droite)

Type of players

Turnover generated in activities related to

second-hand products

(€M)

Human Resources (FTEs) salaried/volunteers

Volume of reused goods (thousands of tonnes)

2012 2014 2017 2012 2014 2017 2012 2014 2017

SSE and charities 246 289 371 11,065 /

4864

15,655 /

6,891

21,324 /

15,775 154 183 209

Websites 59 82 264 74 167 3,116 220 273 420

Intermediates and reconditionneurs

UD* UD* 87 UD* UD* 600 UD* UD* 4

Consignment store, resellers

354 643 819 2,225 5,947 8,938 193 318 378


Nevertheless, the total numbers are stagnating : some players face difficulties in very specific sectors, compared to other types of players whose business model is expanding.

Like recycling plants, these structures are growingly present and developing

Recycling plants are particularly supported by local policies, namely within networks related to local authorities such as the CNLRQ17 or Amorce. Taking advantage of the territorial actions carried out for waste prevention and recovery (prevention programs, Zero Waste policies, etc.), their development has been amplified thanks to the environmental significance of the activities of these structures : for example, the size of the French “Ressourceries” network has more than doubled and the number of FTEs has tripled between 2011 and 2015.

On the other hand, new models are being created and established sustainably in the landscape of SSE players : this is the case of “Heureux Cyclage”, a network of bicycle repair shops who have a social vocation. Its development can be explained namely by the entry of the player in a sector of activity where competition is weak, such as the currently strong market of transport means that are alternative to automobiles.

The EEE and CLF chains are facing difficulties

Some players’ networks in the SSE are facing difficulties in obtaining high-quality and sufficient quantities in the EEE and CLF (Clothing, Linen and Footwear) sectors.

In the sector of EEE, the historical players are now facing increased competition, mainly on IT and telecommunications products that have high added values.

The CLF sector is facing difficulties mainly in terms of supply flows : the introduction of an EPR sector for CLF has led to an increase in collection rate, marked with a decrease in the quality of the collected products. Players are therefore forced to eliminate, at these expenses, these poor-quality stocks in recovery plants. The situation appears to be critical for some players.

The social and solidarity economy endorses its social mission

By definition, the structures in the SSE are players whose primary purpose is solidarity and social utility. This is reflected in the number of jobs created by the SSE, that is to say over 21,000 FTEs.

Thus, the SSE represents only 24% of the sector in terms of turnover, while it represents 63% of the jobs related to activities of second-hand household goods : the SSE fully endorses its social mission and succeeds in pursuing its model in an ever evolving market.

Intermediates and reconditionneurs, players with high economic added value

Most of the players in the conventional economy (some SSE players also undertake reconditioning/refurbishment activities), intermediates and reconditionneurs are characterized by the creation of a high economic value and have a particularly high reuse rate (93%).

The high added value of these players can be explained by their supply and the type of goods they handle :

They expand their supplies by buying lots of goods. Their expertise lies in their ability to identify and handle goods with high resale potential (with or without repair and reconditioning), depending on their nature and origin.

Intermediaries and reconditionneurs focus on high-value EEE (computers, mobiles). This can be seen in terms of the sales flow in euros per tonne, presenting a particularly high value (€ 20,000 per reused tonne compared to € 2,000 € 5,000 per tonne for the other types of players working on other types of second-hand products).

17 French National Neighbourhood Association Liaison Committee [Comité National de Liaison des Régies de Quartier]


Consignment store, resellers, towards a rapidly growing unique model

In order to discard unreliable data related to the activity of self-employed players, data analysis is limited to networked resellers and consignments stores for this player category. In 2016, nearly € 420 million euros of turnover were generated by networked players from reuse operations, corresponding to 2,800 FTEs and 260,000 tonnes of re-used products.

The activity of networked resellers, which is rising sharply, is focusing on high-tech : they take advantage of the success of the sector and develop their activities by offering their clients a more complete service offer.

On the contrary, networked consignment stores suffered from a sharp decrease in their activities, due to the decline in their core market, i.e. second-hand furniture and decoration (due to the predominance of new products at low-cost and the rapid evolution of consumption modes neglecting old products). Consignment stores are therefore required to rethink their model, introducing a greater share of new products to their offer, but also by considering cash purchase in their business model (which resembles the resellers’ activity).

Websites, players that restructure the market as they continue to increase their market share

All website indicators are rising significantly, generating the highest sales flows on the reuse market with 420,000 tonnes of reused goods sold, by only about twenty referenced structures.

The participation in the reuse market of websites specialized in ads, mainly represented by the website “leboncoin” is paramount, with over 100 million ads offering online sales and about 250,000 tonnes of goods sold via their platform in 2017 (compared to 165,000 tonnes in 2014).

Specialized marketplaces, which are booming, rely on their specialization and expertise : they target particularly the CLF and book/CD/DVD sectors, in which they represent 67% and 88% of total online sales flows, respectively. Their success may be explained by the quality of the goods offered for sale thanks to a strict selection of products during the supply stage.

The indicators of general marketplaces, such as eBay and PriceMinister, also are on the rise. Nevertheless, the Internet audiences of the main general marketplaces are slightly decreasing : this is due to the rise of their own applications for smartphones (not taken into account in the audience assessment) as well as the increased competition from specialized marketplaces.

Each player tries to capture part of the value of the electrical and electronic equipment sector, a competitive and tensioned sector

The EEE are products of high unit value targeted by all players in the sector as the demand for second-hand products in this sector is the highest, explained by the economic advantage of such goods : the difference in price compared to new products, especially for high-tech goods, is much bigger than in other sectors.

In this segment, supply is limited namely due to the size of the EEE deposit that is potentially reusable. As a result, the market is highly competitive given the multiplicity of players involved. There is thus a "real boom" in the mobile phone activity.

IV.2. General Dynamics and Impact of the New Types of Products

Les nouvelles typologies de produit ne bénéficient pas du même recul que la filière des biens ménagers. The new types of products cannot by definition be assessed with hindsight and distance like the sector of household goods. However, the trends that were identified with sector stakeholders are deemed to provide an overview of the context of the recorded figures.


Thus, on the whole, the new types of products represent a volume of around 55 million tonnes of reused goods, a figure which was dominated by the construction and civil engineering sector. If we exclude construction products and materials from the construction and civil engineering sector, nearly 3.3 million tonnes of goods have become second-hand products, i.e. much more than household goods.

The sector of second-hand products under the new product categories also represents a turnover of €1.4 billion and 8,615 FTEs; these figures are probably underestimated due to lack of data for these sectors.

Table 6 : Monitoring indicators for new product types

Type of goods

Turnover generated in activities related

to second-hand products

(€M)

Number of employees

(FTE) Reused goods (t)

2016 Data

Packaging

Pallets 415 2,767 1,750,000

IBC 40.2 288 24,180

Gas cylinders UD* UD* 708,840

Glass packaging UD* UD* 227,000

Print cartridges 57 700 2,385

Tires Second-hand UD* 357 51,321

Retreading 269 1800 38,435

Spare parts Second-hand 280 UD* 313,908

Standard exchange 343 2,703 192,029

Construction products and

materials

From construction activities

UD* UD* 4,600,600

From public works UD* UD* 47,257,500

UD* : Undefined

Industrial and household packaging, a matter of cooperation and design

The main condition for the operation of a second-hand packaging sector lies essentially in the design of the package : it must be robust enough to resist repetitive uses. The reuse sector then depends on the goodwill of all players active in the sector and on the investments made.

These conditions were properly met for gas cylinders, whose reuse rate reached 99.8%.

As for glass beverage bottles, the prevailing model is that of returnable products following out-of-home

consumption in CHRs18. The idea of returning packaging after in-home consumption in exchange of a

sum of money is struggling to sustain (prevalence of recycling, generalization of plastic material). It should be noted that a study is being conducted by the ADEME on the monitoring and evaluation of experimental collection systems for household beverage packaging destined for reuse purposes.

For industrial packaging, the standardization of packaging and its initial robustness are preconditions for the existence of a reuse market. It should be noted that this market is much localized due to a limited catchment area (due to logistics costs included in the economic model).

18 Cafes, hotels and restaurants


Print cartridges, a structured scheme on the right track

The print cartridge industry has been consistently monitored, namely since most players signed a Framework Agreement in 2011. All generated waste is reported : the quantities of refurbished cartridges have been monitored since 2013.

Upon analysing these data a simultaneous increase is observed in the quantities of cartridges collected and reconditioned, which reflects the desire of players to improve the collection and recovery of their waste. It should be noted that collection is more efficient among professionals than individuals, which demonstrates that an effort to raise users' awareness is still necessary.

Tires : the retreading sector in difficulty

Tires are also well monitored, as part of the obligations of the extended producer responsibility scheme. This sector is particularly well structured, with the ambitious collection targets of around 95% rate generally achieved.

The sector of second-hand products is doing well; however a large proportion of tires destined for export are difficult to quantify. It should be noted that the sector suffers from illegal activities that divert the tires that are generally of good quality to export them overseas, thus limiting the development of the reuse sector.

The retreading sector has been in decline for several years, with decreased volumes of retreaded tires. This trend is mainly due to competition from low-end tires sold at very low prices originating from the Asian market. However, industry players hope for market revival, in light of favourable sales result in the first quarter of 2017.

Motor vehicle spare parts, a mature scheme

The spare parts of motor vehicles have for a long time been a second-hand scheme. However, the monitoring obligations related to the extended producer responsibility of ELV centres only contributes to a lesser extent to the monitoring of the flows of reused spare parts.

The historical market of standard exchange is doing well thanks to the reactivity and anticipation of the players : renovators have expanded their market (opening of new brands, launch of international activity) in order to maintain their activity.

The used parts market is weaker in France but is expected to boost following the entry into force on January 1st, 2017 of a decree under the French Energy Transition Law, which requires professionals in charge of refurbishment to offer and promote the use of certain spare parts from the circular economy. The sector has not yet felt the impact of this decree on the market.

Construction and civil engineering material

The reuse of construction products and materials is common practice in the construction and civil engineering sector and especially in public works sites since the materials are better suited but also thanks to the existing documentation on the matter (standards, guides, etc.) which provide a technical framework for reuse practices.

In the construction sector, individuals have also adopted reuse practices, the corresponding flow of materials mainly go through online websites such as “leboncoin”.

Although some data is available regarding off-site reuse, no statistics is available for on-site reuse practices, although they represent very significant volumes : this sector lacks efficient monitoring of the flows of reused products and materials on site or transferred by the same works contractor from one construction site to another. Monitoring is nonexistent although reuse practices are an integral part of the activity of works contractors when it comes to certain types of materials and products. Nevertheless, nowadays more and more players are starting to develop reuse activities in the construction sector.

The applicable legislation is also favourable as it requires the conduct of a waste diagnosis on construction sites prior to demolition operations for all buildings with a floor area exceeding 1,000m². While this is considered to be a source of identification of the reuse potential of products and materials, past experience unfortunately concludes that few diagnoses are actually made.


Obstacles and Prospects for the Development of Reuse Activities

As concluded from the information exchanges with the players on the market as part of the interviews conducted and based on the analysis made by the project team throughout the study, the main obstacles and prospects for the development of second-hand activities are summarized below, as well as the prospects for the development specific to certain players and types of products.

EPR schemes could further boost the market of second-hand products

Low prioritization of reuse compared to material recovery ;

Only few players on the reuse market benefit from flows from EPR sectors (main networks are the usually beneficiaries) ;

Good reuse practices exist (EEE, furniture) or can be developed namely through tripartite commitments between players and distributors.

A potential withdrawal from the waste status of reused products that are favourable to the development of second-hand activities

The waste status of a product implies regulatory or logistical constraints for certain operations on the

second-hand market; hence the review of this status for certain products could favour their reuse.

An economic system that is still perfectible to enhance the reuse of products

Increased competition from new, low-end products that harms the reuse market ;

Supply of services at a too low level compared to the market of new products, which limits consumer confidence in the quality of used products.

The SSE, a social economic model slowed down due to structural and recurrent factors

The price and availability of premises of sufficient size are the main obstacles to the development of the activities of SSE structures and to their strategic positioning vis-à-vis market demand (generally located rather in city centres) ;

Some organizations find it difficult to find trained skilled technicians to recondition and refurbish everyday consumer products ;

Moreover, the dependence on a supported job model is an obstacle to the development of certain structures (quota of temporary or permanent employment contracts per department).

An unprecedented potential for developing the market of second-hand products for new product types

An increase in the reuse rate of office cartridges threatened by the integration in 2018 of print cartridges in the EPR sector of WEEE ;

An underway study is assessing the development potential of household packaging reuse, through the promotion of returning glass containers against a sum of money ;

The Energy Transition Law for Green Growth, which promotes the use of spare parts originating from the circular economy, is expected to result in the development of reuse good practices of spare parts of motor vehicles ;

Many obstacles to reuse practices of construction products and materials in the construction sector due to insurability and sanitary issues, the lack of tools to connect the players who wish to provide materials and products, and the general lack of sector supervision practices.


Recommendations

The main recommendations proposed are based on discussions with the players following the interviews conducted and the analysis performed by project team throughout the study.

Table 7 : Proposed recommendations

Objectives Recommendations Leader / Support player

Prioritize reuse instead of recycling

Continue the creation of zone dedicated to second-hand products within waste disposal centres (preservative collection).

Local authorities

Set reuse goals for collective schemes, distinct from recycling objectives, as requested by a large

number of players. These goals consolidate current practices and encourage the development of partnerships among structures on the reuse market.

- The State - Representatives of the local authorities (Amorce, CNR, etc.) - Associations

Develop partnerships with players on the reuse market to send them collected flows.

- The French Ministry of Environmental and Solidary Transition (MEST) - Collective schemes, - Local authorities - SEE players for second-hand products

Raise awareness on reuse rather than recycling through communication campaigns. Today's challenge consists of integrating the upstream phases of the lifespan of a product in the EPR, including reuse, that is to say to change the EPR and transform it from a simple waste management tool to a real transition tool towards circular economy.

- MTES - Local authorities - Every player in the reuse market - Representatives of local authorities - Associations

Integrate the players in the second-hand sector into EPR schemes

Ensure that all players are involved in the value chain, including reuse players, at the very first brainstorming phases upon defining reuse targets within the EPR schemes.

- The State (MEST) - Collective schemes, - Sector federations

Handle competition from new low-end products

Two measures, a financial measure and a tax measure, could encourage reuse practices namely, respectively : 1°/ change in the ecotax for collective schemes, for all reused goods 2°/ VAT relief on the sale of certain used goods (more detailed work to be conducted in collaboration

with the targeted entities in order to assess the rational and implementation of such measure).

- The State - Collective schemes,

Support the digitalization of physical structures on the reuse market to ensure the sustainability of their activities and the quality of flows, in a context of strong digital development.

- Consular chambers (chamber of commerce and industry, Chamber of Trade and Crafts) - Start-up following tender process


Ensure the quality of used products

Reassure the general public by offering services that are equivalent to those of new products, to encourage customers to opt for reused products (warranty, extended warranty, after-sales services, etc.).

- Resellers of second-hand products - Manufacturers and builders for notices and spare parts

Develop product sheets or traceability procedures to ensure the quality of used products, especially in the construction industry and spare parts of motor vehicles.

- MEST - Federations and technical bodies (CSTB : French national organisation “Scientific and Technical Centre for Building”, CNPA : French National Council of the Professions of the Automobile, etc.) - Manufacturers and builders - Representatives of project owner and engineer - Representatives of insurers

Raise the public’s awareness on the advantages of reuse (focus on reuse of high-quality products rather than purchasing new low-end products).

- The State - Local authorities

Promote reuse through various selection criteria in public tenders. - The State - Local authorities

Improve upstream the product’s refurbishment potential and facilitate refurbishment

Promote and encourage manufacturers to consider eco-design to extend the products’ lifespan (reuse and refurbishment thus rendered easier at a later stage) and to supervise refurbishment activities (transmission of technical manuals and spare parts, display of refurbishment conditions) pursuant to a French Law named “Loi Hamon” Consumer Law (Law No. 2014-344 on Consumption amending Section L. 111-3 of the French Consumer Code in view of enhancing the obligation to provide the consumer with information on the availability of spare parts over time and thus directing their purchases towards sustainable products).

- The State - Sector federations - Collective schemes, - Distributors

Facilitate the development and attractiveness of physical structures

Facilitate the provision of premises for SSE physical structures. Local authorities

Sustain economic models

Lead independent SSE structures to a proven funding model. Example of a successful business model was given in the Réemploi Workshop [Workshop on Reused Products] at a Conference on Circular Economy on June 28, 2017 by a participant, who is also the director of a recycling plant :

Sale of recovered products = 60%

Compensated by local authorities to avoid waste generation = 20%

Support from the state for market insertion = 15% (regardless of the player, depending on the amount of state aid and, in particular, on the number of beneficiary contracts)

Volunteering = 5%

- The State - Local authorities - Collective schemes, Manufacturers and Distributors for flow generation

Training on the refurbishment of certain goods

Develop training tailored to the needs of the structures in view to develop sustainable jobs. Qualifying courses of a duration of less than 6 months, with 2 objectives : training of new employees willing to learn a new trade in the conventional economy; and integration of workers through work experience, in a sustainable manner (acquisition of new skills that might become guarantees of finding a job under permanent or temporary employment contracts). As for funding, it is recommended to allocate part of the eco-participations to training.

- Players on the market of second-hand products - Consular chambers - Pôle Emploi [French national job centre] - Collective schemes


ABOUT ADEME

The French Environment and Energy Management Agency

(ADEME) is active in the implementation of public policy in the

areas of the environment, energy and sustainable

development. The Agency provides expertise and advisory

services to businesses, local authorities and communities,

government bodies and the public at large, to enable them to

establish and consolidate their environmental action. As part

of this work ADEME helps finance projects, from research to

implementation, in the areas of waste management, soil

conservation, energy efficiency and renewable energy, raw

materials savings, air quality, noise abatement, circular

energy transition and food wastage abatement.

ADEME is a public agency under the joint authority of the

Ministry for an Ecological and Solidary Transition and the

Ministry for Higher Education, Research and Innovation.


www.ademe.fr

PANORAMA ON SECOND-

HAND PRODUCTS IN

FRANCE

The 2017 update of the panorama on second-hand

products in France shows the global evolution of the

practices and the actors engaged since the 2010 edition

and takes the analysis a step further via the observation

of quantitative indicators since the editions 2012 or

2014 according to the availability of the data.

Historically conducted between individuals through flea

markets or garage sales and developed by the networks

of structures of the social and solidarity economy,

especially to offer low-cost products for people in

precarious situations, the second life activities of the

products are undergoing important transformations.

The offer has grown significantly online since 2010, and

networks of local structures, like resellers, continue to

improve their services.

Reuse activities have been developing since the first

panorama of 2010 with an increasing impact on the

quantities of products reused or reused (around 750

000 tonnes in 2014 vs. 1 million tonnes in 2017 for

everyday consumer goods)*.

*These numbers do not include flea markets as they were excluded

from 2017 Panorama’s quantitative analysis.

panorama on second- hand products in france · panorama on second-hand products in france - page...

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