China's Mobile Phone Recycling Industry - Analysis Report

Study Overview

The "2025-2031 China Mobile Phone Recycling Industry Market Panorama and Strategic Analysis Report" (hereinafter referred to as "the Report"), meticulously prepared by the expert team of Chinacuity and its partner in China, has been officially released. This report is a product of the combined efforts of the mobile phone recycling industry research team at Chinacuity, after multiple rounds of revision and refinement by a professional report-writing team.

Through a systematic analysis of a large amount of information and data on the mobile phone recycling industry, this report provides an in-depth and objective analysis of the current development and trends of China's mobile phone recycling industry. It also combines insights from the innovation and development of the mobile phone recycling industry with years of practical experience, carefully analyzing and forecasting the driving factors, potential markets, constraints, and development strategies of China's mobile phone recycling industry. This is intended to offer key clients a reliable guide to understanding the latest developments in the mobile phone recycling industry, seizing market opportunities, and identifying innovative directions.

Definition and Classification of Mobile Phone Recycling

Mobile phone recycling refers to the process of recovering and reusing mobile phones that have functional issues or aged appearances but are not completely damaged. The main pathways for recycled phones include resale and environmental degradation.

Mobile phones are classified by condition into categories such as 99% new, 95% new, 90% new, 80% new, 70% new, and others. Most second-hand phones that are traded again are those classified as 90% new or better.

Industry Development Process

With the rapid development of information technology and the accelerating pace of smartphone upgrades, more and more old mobile phones are being discarded. The number of discarded and idle mobile phones in China has also been increasing annually. Ensuring the safe and effective recycling of these mobile phones has become a major focus. To date, China's second-hand mobile phone recycling market has gone through three major development stages:

Stage 1.0: Disorderly Competition (1993-2009)
From 2005 onwards, manufacturers like Nokia launched recycling projects, but overall, the majority of the recycling market was still controlled by small vendors and street shops. The industry landscape was chaotic, in a state of disorderly competition.

Stage 2.0: Internet Integration (2010-2017)
Starting in 2010, driven by the rapid development of the internet, major mobile phone recycling e-commerce platforms emerged, pushing the industry towards greater regulation and transparency.

Stage 3.0: Smart Technology (2018-present)
In 2018, companies like Lvying Technology and Aihuishou launched intelligent recycling robots and self-service recycling machines, which enabled quick assessments, valuations, and recycling processes, marking the beginning of the smart phase in mobile phone recycling.

The Growth of the Circular Economy

The circular economy refers to the buying, selling, exchanging, auctioning, recycling, or donating of idle goods that are no longer in use through secondary markets. Given that the average lifespan of consumer goods is much shorter than their designed lifespan, the essence of the circular economy lies in the shared use of goods across different stages of their life cycle.

In recent years, the circular economy has gained traction in China, with the concepts of rational consumption and social sharing taking root. In the context of this stock economy, the demand for more diverse consumer products has grown, leading to the rapid development of the second-hand economy. The increase in idle goods and the aging of commonly used products have created a vast blue ocean of untapped potential. According to estimates, by 2023, the market size for second-hand idle goods in China exceeded ¥1.5 trillion CNY (approx. $205 billion USD).

Key Trends in the Mobile Phone Recycling Industry

Mobile phone recycling is an essential part of China's circular economy. After being recycled, phones are generally destined for one of two paths: direct resale or refurbishment for resale, or dismantling to extract valuable metals. Given the significant profits associated with reselling refurbished phones and the stringent requirements for extracting precious metals, China's mobile phone recycling market primarily focuses on refurbishing and reselling phones. Phones that are beyond use are bundled and sold to large-scale recycling operators.

In 2023, 2.8 billion mobile phones were recycled in China, with over 2.5 billion of these phones sold through direct sales or refurbishing, accounting for about 90% of the total. This figure is nearly ten times the 0.26 billion phones that were sent for dismantling and extraction.

Market Players in China’s Mobile Phone Recycling Industry

Participants in China's mobile phone recycling industry include both offline stores and online platforms. Offline channels consist of traditional mobile phone recycling stores and small shops set up by internet platforms. These typically operate on a small scale and have clear regional limitations. Online channels are made up of comprehensive second-hand trading platforms and vertical trading platforms, such as Xianyu (闲鱼), Zhuanzhuan (转转), Aihuishou (爱回收), Huishoubao (回收宝), and Shanhuikeji (闪回科技).

As more internet players enter the second-hand mobile phone market, the recycling market is increasingly integrating around key platforms. Major players such as Xianyu, Zhuanzhuan, and Aihuishou have established a "three pillars" structure in the market. However, the overall level of industry consolidation remains low.

Market Potential and Future Trends

With the rapid pace of smartphone upgrades, consumers are changing their mobile phones more frequently. It is estimated that during China's 14th Five-Year Plan, the total number of idle mobile phones in China will reach 60 billion units, with the potential value of second-hand mobile phones exceeding ¥6 trillion CNY (approx. $821 billion USD). This enormous base creates substantial supply and growth opportunities for the second-hand mobile phone recycling market. In the future, the market is expected to expand continuously, with the leading platforms further solidifying their advantages. Transparency, transaction standardization, and regulatory clarity are key to the future development of the mobile phone recycling industry.

The "2025-2031 China Mobile Phone Recycling Industry Market Panorama and Strategic Analysis Report" is rich in content, backed by solid data, and filled with valuable insights. It represents a significant achievement of Chinacuity and its partner in China. This report is an indispensable tool for professionals in the mobile phone recycling sector to assess industry trends and identify opportunities for growth.