The Canadian “Second-Hand Economy” is worth $30 Billion
According the Inaugural Kijiji Second- Hand Economy Index, Canadians spend close to $30 Billion each year on used bikes, cars, equipment, furniture and a plethora of other items.
The study conducted by the University of Toronto and Montreal’s Observatoire de la Consommation Responsable determined that second hand goods also contribute $34 Billion to our nations GDP as the second hand economy diverts dollars away from items that would otherwise be imported. The benefits of Canada’s second-hand economy multiply when you consider the fact that the economy creates jobs, reduces harmful waste and fosters community development.
“Kijiji has been enabling Canadian consumers to save and earn millions of dollars through the second-hand economy for a decade, and as we reached this important milestone we felt it was time to take a closer look at this alternative economic force,” said Scott Neil, Director of Vertical Business, Kijiji Canada. “What the research revealed is that the second-hand economy creates a significant win-win-win situation by helping families, the country and the environment.”
According to the Kijiji Second-Hand Economy Index:
- Annual sales of second-hand durable and semi-durable goods in Canada are now estimated to be $30 billion, or about 15 per cent of the value of new goods purchased.
- More than 80 per cent of the durable and semi-durable goods bought by Canadian consumers are imported rather than made in Canada. Spending in the second-hand goods market contributes approximately $34 billion to Canada’s GDP that would otherwise flow out of the country. This means that extending the useful life of these goods is actually good for the local economy.
- On average, each Canadian grants a second life to 76 products each year, across 22 product categories through buying, selling, trading and donating via peer-to-peer channels such as online classifieds, donations, local thrift shops and more.
- The average family of four in Canada saves approximately $1,150 per year by buying second-hand goods.
- Each $1 billion of second-hand sales contributes about $340 million to government revenue, through the taxation of the income increases related to the diversion of spending away from imported durable and semi-durable goods.
- At the current rate of spending, with the total contribution to GDP, the second-hand market can be said to support approximately 300,000 jobs in the Canadian economy.
The full report can be found at secondhandeconomy.kijiji.ca