Circular Economy Market by Type (Circular Products and Services), by Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)) and By Industry Vertical (Manufacturing Industry, Consumer Goods, Waste Management and Recycling, Construction and Building Materials, Automotive and Transportation, Food and Agriculture, and Other Industry Verticals) – Global Opportunity Analysis and Industry Forecast-2024-2030

Market Definition

The Circular Economy Market size was valued at USD 556.0 billion in 2023 and is predicted to reach USD 1323.5 billion by 2030 with a CAGR of 13.2% from 2024-2030. The circular economy industry includes a dynamic and evolving market that revolves around sustainable and regenerative practices in the production, consumption, and disposal of goods and services. It involves a systematic shift from the traditional linear economic model to a closed-loop system, emphasizing resource efficiency, waste reduction, and the continual reuse, refurbishment, and recycling of materials. Companies operating in the circular economy industry are dedicated to creating and adopting environmentally friendly and socially responsible practices across various sectors, including manufacturing, consumer goods, waste management, and renewable energy. Moreover, it reduces the generation of waste by reusing industrial products and materials and contribute to a more sustainable waste management system.

Market Dynamics and Trends

The growing awareness regarding environmental challenges, such as climate change and resource depletion, are compelling businesses and consumers to embrace circular economy practices. This aims to minimize waste and resource consumption by designing products for longevity, reuse, repair, and recycling.

By addressing environmental concerns, such as reducing carbon emissions, conserving natural resources, and protecting ecosystems, the circular economy offers a pathway to achieve sustainable development goals and reduce the adverse impacts of economic activities on the planet.

In December 2023, the U.S. Environmental Protection Agency (EPA) collaborated with the U.S. Department of Agriculture (USDA) and the U.S. Food and Drug Administration (FDA) to reduce food loss and waste highlighting the environmental impacts such as methane pollution, a potent contributor to climate change. This strategy aims to prevent food loss and waste, increase recycling of organics, reduce climate pollution, save money for families and businesses, and support a circular economy.

Moreover, the integration of IoT technology into the circular economy introduces smart solutions for waste management and product lifecycle tracking. It enhances the efficiency of waste collection processes and enables businesses to make informed decisions about maintenance and refurbishment, contributing to the overall sustainability and circularity of products and materials.

For instance, in March 2023, Siemens launched the Connect Box, a smart IoT solution designed to manage small to medium-sized buildings efficiently. It aims to address the challenges of urbanization and climate change while contributing to more sustainable practices in waste management through efficient building operations.

However, high-initial cost for rerouting supply chains to incorporate recycled materials in circular economy restraining the growth of the market. On the contrary, advent of technological advancements such as AI and ML plays a crucial role in the circular economy by enabling predictive maintenance and optimizing recycling processes.

In recycling, AI enhances sorting operations, accurately identifying and categorizing materials, thereby improving the quality of recycled materials and streamlining the recycling supply chain. For instance, in December 2023, Yalo, a conversational AI platform, partnered with the Food and Beverage Recycling Alliance (FBRA) to launch an AI-driven environmental sustainability initiative in Nigeria. This collaboration aims to redefine waste management, recycling, and environmental sustainability by leveraging advanced AI technology to promote responsible business practices and ecological sustainability.

Market Segmentations and Scope of the Study

The circular economy market share is segmented on the basis of type, enterprise size, industry vertical, and geography. On the basis of type, the market is divided into circular products and services. On the basis of enterprise size, the market is categorised into large enterprises and small & medium enterprises. On the basis of industry vertical, the market is divided into manufacturing industry, consumer goods, waste management and recycling, construction and building materials, automotive and transportation, food and agriculture, and other industry verticals. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Europe holds the dominant share in circular economy market and is expected to continue its dominance during the forecast period. This is attributed to the factor such as the implementation of stringent regulations and policies concerning waste management, recycling targets, and sustainable product design. Such measures foster an environment conducive for companies to adopt principles of the circular economy, particularly evident in countries including the U.K. and Germany.

According to the Third Generation Environmentalism Ltd (E3G) as of December 2023, the German government's published climate Foreign Policy Strategy marked a significant shift, integrating climate objectives with key international policy areas such as security, energy, foreign trade, fiscal policy, and development cooperation. This strategic move underscores a commitment to addressing the pressing challenges of the climate crisis with a comprehensive and cross-governmental approach.

Also, the growing awareness and consumer demand for eco-friendly products in Germany and other European region is driving the demand for circular economy. This is attributed to the implementation of stringent regulations and policies concerning waste management, recycling targets, and sustainable product design.

According to a study by the German Consumer Centre, more than 70% of German consumers give consideration to sustainability when purchasing cosmetics and personal care products. This strong cultural emphasis on environmental responsibility, coupled with supportive regulations, positions Europe as a leader in the circular economy Market. The region's proactive approach not only fosters innovation and efficiency within its industries but also sets an example for global counterparts in the pursuit of more sustainable economic models.

On the other hand, Asia-Pacific shows a steady rise in circular economy market due to the incorporation of business project and strategies to promote resource efficiency, waste reduction, and sustainable practices in countries such as China, India, and Japan. An illustrative example is the launch of The Megloo project by The Alliance to End Plastic Waste in Japan in November 2022, which underscores a concerted effort to bolster plastic circularity.

This initiative aligns with circular economy goals by addressing environmental sustainability and fostering circular economy practices in plastic usage. Additionally, it signifies a global effort to reduce plastic pollution and enhance resource efficiency.

Moreover, the presence of regional companies that are engaged in various business strategies including partnership to boost the growth of the circular economy market. Recently, Dow, a global materials science company partnered with Mengniu, a leading dairy company in China, to introduce an innovative all-polyethylene (PE) yogurt pouch designed for recyclability. This collaboration marks a significant milestone in the effort to pioneer sustainable dairy packaging solution and promote circular economy in China.

Competitive Landscape

The circular economy market comprising of various market key player such as Winnow Solutions Ltd, DyeCoo, Close the Loop, Enerkem, Schneider Electric, Lehigh Technologies, Assurant, Inc., TriCiclos, Miniwiz Co., Ltd., Anheuser-Busch InBev and others. These market players are adopting various strategies such as product launch and partnership to maintain their dominance in the global circular economy market.

For instance, in November 2023, Winnow developed a smart solution to help reduce food waste in commercial kitchens. Their system consists of a smart bin and a digital scale, which allows kitchen staff to easily track and measure the amount of food waste being generated. This innovative solution provides sustainable and circular economy by developing groundbreaking solutions to tackle different aspects of waste.

Moreover, in August 2023, Enerkem and Technip Energies collaborated to advance waste-to-biofuels and circular chemicals technology deployment. This partnership aims to accelerate the deployment of Enerkem's technology in Europe, North America, and the Middle East, focusing on converting waste into sustainable low-carbon fuels and circular chemicals.

Key Benefits

• The report provides quantitative analysis and estimations of the circular economy market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the circular economy market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the circular economy market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type

• Circular Products

• Services 

By Enterprise Size

• Large Enterprise

• Small & Medium Enterprise

By Industry Vertical

• Manufacturing Industry

• Consumer Goods

• Waste Management and Recycling

• Construction and Building Materials

• Automotive and Transportation

• Food and Agriculture

• Other Industry Verticals

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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