Transition to a circular economy in pearl aquaculture: Environmental impacts, consumer preferences, and willingness to pay

The transition to a circular economy in pearl aquaculture is hindered by uncertainties regarding both environmental performance and consumer acceptance of sustainability premiums in this luxury sector, yet these two dimensions have rarely been examined together. This creates a critical gap in understanding whether environmentally beneficial recycling practices can also gain support from consumers. This study integrates Life Cycle Assessment (LCA) with a Discrete Choice Experiment (DCE) to estimate consumers’ willingness to pay (WTP) for pearl products associated with recycling-based reductions in the environmental impacts of discarded pearl aquaculture cages. The LCA results show that the Full Recycling scenario substantially reduces environmental impacts compared with the Partial and No Recycling scenarios, primarily through resource substitution effects. Based on the DCE administered to 600 Japanese consumers, the analysis estimated a median premium of JPY 1,438 per pearl among experienced consumers for upgrading from No Recycling to Full Recycling. Incremental premiums were estimated at JPY 494 for upgrading from No Recycling to Partial Recycling and JPY 944 for upgrading from Partial Recycling to Full Recycling. Latent class analysis further showed that demand for recycling-based sustainability was concentrated among Eco-conscious Balancers, whereas higher-income Aesthetic Seekers placed greater weight on conventional luxury attributes such as luster and size. Together, the results quantify the environmental benefits of recycling-based circular strategies in pearl aquaculture and consumers’ stated WTP for these sustainability improvements, while economic feasibility still depends on additional cost-side evidence and credible sustainability communication.