The sharing economy has surged in popularity, transforming global industries and redefining how we live, work, and consume. Valued at over USD 150 billion globally in 2023, the sector is projected to skyrocket to USD 794 billion by 2031, driven by increasing consumer demand for affordable, flexible, and practical solutions.

In New Zealand, platforms like ShareHub are leading the way, helping Kiwis save money, earn extra income, and access what they need without the burden of ownership. Whether it’s hiring camping gear, tools, or equipment, the sharing economy provides a smarter and more resourceful way to meet occasional needs.

This innovative model not only reduces unnecessary spending and waste but also empowers individuals to make the most of what they already own. It’s a forward-thinking approach that’s reshaping the future of how we access and share resources.

But what exactly is the sharing economy, and why is it becoming such a fundamental part of our modern lifestyle? Let’s dive into the core reasons behind this movement and explore why it’s gaining so much traction.

What Is the Sharing Economy?

At its core, the sharing economy is about enabling people to share or rent out goods and services through digital platforms. While the concept of sharing resources has been around for centuries, advancements in technology have made it more efficient, secure, and accessible than ever before.

In New Zealand, platforms like Sharehub are at the forefront, making it easy for Kiwis to rent tools, garden equipment, or camping gear. Whether it’s trying out a new adventure by hiring a kayak or surfboard, booking a bach on Airbnb, or catching a ride with Uber, the sharing economy empowers people to monetise underused assets while providing others with affordable and flexible access to what they need.

This movement isn’t limited to travel or transport—it has expanded to cover every facet of modern living, from sports and recreational gear to power tools and beyond. By connecting people with what they need, when they need it, the sharing economy is reshaping how we consume and interact with resources in a way that’s practical, sustainable, and community focused.

Market Overview

The sharing economy, which includes peer-to-peer platforms facilitating the sharing of goods and services, has seen extraordinary growth in recent years. In 2023, the global market was valued at approximately USD 150 billion and is projected to soar to USD 794 billion by 2031, achieving a compound annual growth rate (CAGR) of around 32% (Reports and Insights, 2023).

This expansion is driven by several factors:

• Technological Advancements: The rise of digital platforms and mobile apps has made sharing assets seamless, convenient, and highly accessible.
• Shifting Consumer Preferences: More people are choosing access over ownership, drawn to cost-effective and environmentally friendly alternatives.
• Environmental Impact: The sharing economy emphasises resource optimisation, reducing waste and encouraging sustainable consumption.

In New Zealand, the sharing economy is gaining momentum, with platforms like Sharehub facilitating the sharing of various goods and services. This trend aligns with global patterns, offering Kiwis opportunities to monetise underutilised assets and access resources without the need for ownership.

Sustainability and Waste Reduction

One of the most compelling reasons why the sharing economy is thriving is its positive impact on sustainability and the environment is that “New Zealand Inc” prides itself on our beautiful environment. It’s a major drawcard for visitors from all around the world.  

Tourism is a significant contributor to New Zealand's economy. In the year ending March 2023, total tourism expenditure reached NZ$37.7 billion, marking a 39.6% increase from the previous year. This expenditure comprised NZ$10.8 billion from international tourism. International tourism alone accounted for 11.4% of New Zealand's total exports of goods and services (Tourism Industry Aotearoa).

The tourism sector also plays a vital role in employment. In March 2023, there were 189,432 people directly employed in tourism, representing 6.7% of New Zealand's total workforce (Ministry of Business, Innovation & Employment). So keeping New Zealand green needs to be a top priority, not only for the commonly agreed environmental benefits, but also for NZs financial sustainability.

By encouraging the reuse and sharing of goods, the sharing economy significantly reduces waste. When people rent, hire and share instead of buying items new, they contribute to the circular economy, keeping items in use for longer and reducing the need for new products to be manufactured.

Consider the current levels of waste generated by packaging alone. A massive amount of packaging waste ends up in landfills, waterways, and our whenua (estimated to be 200,000 tonnes annually). Every day, countless items are packaged in single-use materials that create long-term environmental harm. Thin plastic packaging, such as food wrappers, may take 10 to 20 years to breakdown, but like other plastics, it often breaks into microplastics long before fully decomposing. Microplastics in our environment will need to be the topic of its own blog considering the detrimental effects it has on the human body and on animals. Other plastics such as plastic bags and plastic bottles can take between 400 and 900 years to breakdown.  The sharing economy helps address this issue by reducing the need for packaging altogether—products are shared, not sold in new packaging, and the focus is on using items as needed without the environmental impact of buying new. So even if NZ invests heavily in our inhouse plastic recycling capabilities (we currently export ~60% of waste plastics overseas which has shown significant harm and pollution to other countries too) reducing the use of plastics should be always play a critical part of our environmental protection strategy.

Research, like that from Nature Communications, shows that platforms in the sharing economy are helping to promote more sustainable communities. Instead of each person owning a seldom-used power tool or a rarely used piece of equipment, people can access these items as needed, reducing excess consumption, packaging waste, and the strain on our environment (Nature Communications, 2021).

Lowering Costs and Generating Income

Another attractive feature of the sharing economy is its potential for cost savings and income generation. By renting out underutilised goods, individuals can generate a passive income by creating a side hustle, while consumers can save money by accessing things only when they need them. This model benefits both renters and owners and often leads to a more efficient use of resources.

For example, Sharehub allows people to rent everything from baby equipment to power tools, allowing users to earn from items they no longer use regularly. This creates a win-win situation for both sides, where those in need of temporary access can save money, and owners can recoup some of their investment.

The Shift from Ownership to Access

Perhaps the most significant shift is the change in mindset around ownership. In the traditional economy, ownership has been synonymous with success and security. However, as the sharing economy continues to grow, more people are realising that access to a product or service is often more valuable than ownership itself.

This shift is driven by younger generations who value experiences over possessions and prefer flexibility. They are shaking off the shackles of consumerism and ownership that we were all taught in school as being normal. They no longer see ownership as the ultimate goal but instead opt for access to high-quality services and goods when needed.

Challenges and Criticisms

Despite its clear benefits, the sharing economy is not without its criticisms. Some argue that it leads to labour exploitation or lacks proper regulations to protect consumers. Transparency in pricing, safety measures, and ensuring fair treatment of workers are areas where improvement is needed. However, many platforms are adapting and evolving, integrating better safeguards and more transparent policies to ensure fairness for all parties involved. Sharehub for example has put significant resources into digital security, personal and online safety, and transparency around pricing. And while NZ consumer laws could always be improved, they currently offer a reasonable framework for protecting people making NZ a great incubator for peer to peer rental platforms to evolve.

Another area that requires significant evolution is the insurance sector. As the sharing economy continues to grow in New Zealand, insurance companies will need to adapt their offerings to accommodate this new model. Traditional insurance policies are often designed around ownership, but platforms like Sharehub are built around access and temporary use. To support the sharing economy, insurers will need to provide flexible coverage that accounts for the unique risks of short-term rentals and peer-to-peer transactions. This could include policies tailored to renters, owners, and shared goods, ensuring both parties are protected while encouraging a sustainable and secure sharing ecosystem. By evolving to meet the needs of the sharing economy, insurers can play a crucial role in its success.

As the sharing economy continues to evolve, it presents both opportunities and challenges. Stakeholders must navigate regulatory landscapes, ensure consumer trust, and adapt to technological innovations to fully harness its potential.

The Way Forward

Looking ahead, the sharing economy is poised to continue growing, shaping the way we interact with products, services, and within our communities. As digital platforms become even more sophisticated, and as sustainability becomes an even greater global priority, the sharing economy is likely to expand into new sectors, offering more opportunities for consumers and businesses alike.

In the end, the sharing economy isn’t just about saving money or reducing waste—it’s about fostering a culture of collaboration and resourcefulness. It’s about rethinking ownership and embracing a more sustainable, efficient, and connected future. It’s also about reducing the harmful environmental impacts caused by mass production and packaging waste, making it a key part of the solution to some of today’s most pressing ecological challenges.

As platforms like Sharehub continue to grow, I expect we will see more and more people embracing the idea of renting, sharing, and collaborating as the traditional obstacles get removed. This is just the beginning of a larger movement that has the potential to revolutionise how we live and work in the years to come.