The Circular Economy's New Frontier: Unlocking Value in Gen Z-Driven Sustainability and Resale Tech

The global circular economy market is on a meteoric rise, projected to grow at a compound annual rate of 23.4% through 2034, surging from $656 billion in 2024 to $2.66 trillion by 2035. This exponential growth is fueled by a seismic shift in consumer behavior, particularly among Gen Z, who are redefining retail dynamics through their demand for sustainable, secondhand, and ethically sourced goods. For investors, this transition represents a goldmine of under-the-radar opportunities in estate sales, resell tech, and circular business models—sectors poised to capitalize on both generational preferences and regulatory tailwinds.

Gen Z's Green Revolution: Reshaping Retail and Resale

Gen Z, now the largest demographic cohort in many developed economies, is driving a cultural and economic pivot toward circularity. With 53% of Gen Z actively participating in the circular economy and 84% of U.S. Gen Z consumers expressing interest in secondhand options, sustainability is no longer a niche trend but a mainstream expectation. Unlike previous generations, Gen Z prioritizes environmental impact over brand prestige, favoring platforms like Depop, ThredUp, and Poshmark for pre-owned fashion and leveraging AI-driven tools to optimize resale pricing.

This cohort's influence is amplified by social media, where hashtags like #thrifttok and #secondhandfashion have amassed millions of posts, normalizing the idea of “buying less, buying better.” The result? A $1.4 trillion global secondhand market by 2026, with Gen Z accounting for 31% of its growth. For investors, this demographic shift signals a critical inflection point: the circular economy is no longer a moral imperative but a monetizable one.

Key Players in the Estate Sales and Resell Tech Ecosystem

While giants like ThredUp and eBay dominate headlines, the real innovation—and investment potential—lies in under-the-radar startups leveraging AI, blockchain, and automation to streamline estate sales and resell operations.

1. The Real Brokerage (NASDAQ: REAX)
   This cloud-based platform is redefining real estate transactions by cutting out traditional brokers and offering AI-driven tools to agents. With a 61% YoY growth in agent sign-ups and 76% revenue growth in Q1 2025, REAX is positioned to disrupt a $727 trillion real estate market. Its “Leo AI” concierge automates tasks like contract drafting and client communication, while its office-free model slashes costs.

2. Opendoor and Knock
   These iBuyer platforms use machine learning to offer instant home valuations and facilitate fast sales. Opendoor's 93% search growth over five years and Knock's innovative “buy before you sell” model are reshaping how properties are transacted, particularly in a market where 71% of sellers are open to iBuyers.

3. PARES AI
   A Y Combinator-backed startup, PARES AI automates commercial real estate workflows with AI-driven underwriting and marketing tools. Its ability to reduce transaction times from months to days makes it a compelling play for investors seeking exposure to the $870 billion real estate crowdfunding market by 2027.

Under-the-Radar Startups: Tech-Driven Circular Solutions

Beyond real estate, the circular economy's growth is being powered by startups addressing specific pain points in sustainability and resale:

1. The Paze (Germany)
   This “packaging-as-a-service” company uses AI to create reusable, inflatable packaging that reduces shipping costs by 40%. With 24 million Brits earning an average of £146 monthly from resale platforms, The Paze's solution aligns with Gen Z's desire for eco-friendly e-commerce.

2. GoNina (Switzerland)
   By using machine learning to predict and manage food waste, GoNina helps restaurants and supermarkets slash surplus. Its AI-driven app has reduced food waste by 30% for early adopters, tapping into a $13 billion global food waste management market.

3. MacroCycle Technologies (USA)
   This startup converts plastic waste into virgin-grade materials using a low-energy process. With global plastic recycling rates at just 9%, MacroCycle's technology addresses a critical gap in the circular economy, particularly as regulations like the EU's Circular Economy Package phase out single-use plastics.

Regulatory and Consumer Tailwinds: A Perfect Storm

Governments are accelerating the circular transition through policies like the EU's Right to Repair laws, the U.S. Fashion Act, and carbon taxes. These mandates force brands to adopt circular practices, creating a $2.6 trillion market for repair, reuse, and recycling services by 2030. Meanwhile, Gen Z's purchasing power—projected to reach $360 billion by 2027—is ensuring that sustainability is no longer optional.

For investors, the key is to identify companies that align with both regulatory trends and generational preferences. The Real Brokerage's AI-driven real estate platform, The Paze's reusable packaging, and GoNina's AI waste management are prime examples of startups bridging the gap between policy and consumer demand.

Investment Risks and Rewards

While the circular economy offers high-growth potential, it's not without risks. Startups like The Paze and MacroCycle are still in early stages, with limited revenue visibility. The Real Brokerage, despite its 10,000% cumulative revenue growth, operates at a loss and faces competition from Zillow and Redfin. However, these risks are offset by the sector's long-term durability: circular models are projected to generate $4.5 trillion in global economic benefits by 2030, per the World Economic Forum.

Conclusion: Positioning for the Circular Economy

The convergence of Gen Z's sustainability ethos, technological innovation, and regulatory support is creating a once-in-a-generation opportunity in the secondhand and circular economy sectors. For investors willing to bet on under-the-radar players like The Real Brokerage, The Paze, and PARES AI, the rewards could be substantial. As the circular economy transitions from niche to norm, early movers will reap the lion's share of value—provided they act before the market catches up.