Building an evidence base on unsold goods for Scottish policy

The Circular Economy (Scotland) Act 2024 includes provisions enabling Scottish Ministers to introduce regulations restricting the disposal of unsold goods and requiring reporting on unsold products. However, there is very little data on how much unsold stock exists, where it arises in supply chains, or what ultimately happens to it.

The destruction of unsold goods is often commercially sensitive for retailers and is typically kept confidential, making data collection challenging. At the same time, there is limited understanding of which products are most at risk of disposal and the barriers that prevent their redistribution or reuse. A clearer picture of this landscape was needed to inform policy understanding and support the identification of potential interventions. The findings from this research will be used by Zero Waste Scotland and the Scottish Government to better understand the issue, engage with industry stakeholders, and support future decision-making.

Deriving insights from limited data

We developed a phased, mixed-methods approach designed to generate insights despite limited data availability. The first phase focused on scoping the issue and building a practical methodology for data collection. This meant identifying priority sectors where unsold goods are likely to be most significant and where opportunities for redistribution are strongest, including textiles, electronics, furniture and cosmetics.

The second phase combined qualitative and quantitative research to build a more complete picture of the system. We worked in partnership with GC Insight to carry out 46 stakeholder interviews across 13 groups, with additional sector-specific focus groups led by Resource Futures. These discussions provided detailed insights into how unsold goods arise, how decisions are being made across supply chains, and what factors are influencing outcomes for these goods.

Our experts developed indicative estimates of the volumes and flows of unsold goods. In the absence of comprehensive primary data, proxy datasets, including ADEME evidence, were used, with findings validated and caveated through stakeholder feedback. This approach ensured that the analysis remained grounded in real-world experience while making the best use of available evidence.

A need for targeted action on unsold goods

Our findings highlight both the scale of the challenge and the need for targeted, practical interventions. Limited access to primary data remains a significant barrier, meaning that mandatory reporting could play a key role in improving visibility of the issue. Our research suggested that many businesses already collect information broadly aligned with emerging reporting requirements elsewhere, including in the EU.

The research also identified key drivers behind unsold goods. Products with lower quality or resale value are more likely to be destroyed because the costs of redistribution or repair can outweigh potential returns. Wider supply chain dynamics, including overproduction, also contribute to the root cause of the issue.

What comes next

This work has provided a practical foundation and initial evidence base for potential policy development and wider system change. The findings are supporting Zero Waste Scotland and the Scottish Government as they consider how to define unsold goods and identify potential policy levers to reduce negative economic and environmental outcomes, and support positive social redistribution.

Importantly, many other established circular economy interventions can impact unsold goods. For example, circular business models, stronger collaboration across supply chains, and introducing targeted incentives for redistribution. Greater attention could also be placed on practices that limit reuse (such as purposeful damage) and on identifying how consumer behaviour shifts can help to spur on positive outcomes. Management of unsold goods should be considered as part of these practices.

Perhaps most importantly, beyond the policy considerations this work has helped to initiate wider industry conversations around unsold goods. It has created a platform for further engagement and evidence development – including voluntary follow-on activity by industry bodies seeking to better understand the issue within their sectors.

Read more about this research and access the reports on the Zero Waste Scotland site.