Circular economy examples: how circularity works across sectors
As the world faces increasing pressure from climate change, material scarcity, and growing regulatory demands, organisations are rethinking how they create, use, and recover resources. The traditional linear economy, take, make, dispose, is rapidly becoming unsustainable. In its place, the circular economy offers a regenerative alternative, one that keeps materials in use, reduces waste, and designs environmental value into every part of the system.
This blog explores how circularity is being applied across multiple sectors, including construction, agriculture, retail, fashion, healthcare, electronics, and even our own homes. By examining real-world examples and drawing on insights from global research and Reconomy’s 2024 Sustainability Report, we highlight how circular practices are reshaping industries and unlocking measurable environmental and commercial benefits.
Across this article, we will:
- Define the circular economy in clear, practical terms, and explain why it matters more than ever in today’s resource-stressed world.
- Show sector-specific examples of circularity, from modular construction and regenerative farming to clothing take-back schemes and closed-loop electronics recovery.
- Explore consumer behaviours that influence circular supply chains and shape business strategies.
- Break down the drivers behind circular adoption, including regulation, cost efficiency, ESG expectations, and shifting customer values.
- Share insights from Reconomy’s own data, showing how circular systems deliver both environmental impact and business value.
- Offer guidance for large organisations, outlining strategic circular models, reverse logistics solutions, and data-led optimisation approaches.
Circularity isn’t a trend, it’s a fundamental shift in how value is created, preserved, and restored. Whether you’re just beginning to explore circularity, looking to benchmark your sector against global best practice, or preparing your organisation for the next wave of sustainability regulation, this blog will help you understand where circular opportunities exist, and how to act on them with confidence.
What are some circular economy examples at home?
Although this blog focuses on business strategies, it is also useful to understand that consumer behaviours influence circular supply chains. As citizens become more aware of their environmental footprint, they increasingly support businesses that demonstrate a commitment to sustainability.
Examples include:
- Composting food waste
- Reusing and refilling containers
- Repairing rather than discarding items
- Purchasing second-hand goods
- Renting or sharing items instead of owning them outright
Consumers adopting circular behaviours contribute to demand for business-led solutions, such as repairable electronics or refillable beauty products. This cultural shift creates strong incentives for brands to invest in sustainable design and logistics.
What are circular economy examples in construction?
According to the 2024/2025 Global Alliance for Buildings and Construction report, buildings and construction account for 32% of global energy and 34% of global CO2 emissions. This shows how vital it’s become for circular practices to be adopted in construction.
Key business practices:
- Modular construction techniques
- Use of reclaimed or recycled building materials
- Designing for disassembly
- Lifecycle environmental assessments
- On-site segregation and material recovery
By integrating circularity into the early planning stages of developments, construction firms can reduce embodied carbon, achieve BREEAM or LEED certification, and improve project timelines by optimising materials.
See more construction examplesWhat are circular economy examples in agriculture?
According to the Food and Agriculture Organization of the United Nations, Agriculture is responsible for up to one-third of global emissions and over 50% of soil degradation. Regenerative and circular strategies have become critical to ensuring long-term food security and biodiversity, as well as reducing these alarming figures.
Examples include:
- Organic waste composting
- Regenerative soil management
- Water reuse systems
- Crop rotation to reduce fertiliser reliance
- Agroforestry to sequester carbon
Businesses in agrifood supply chains can also explore packaging alternatives, cold-chain optimisation, and digital agriculture tools to reduce waste and emissions.
Food retailers can collaborate with farmers to co-design waste-reducing interventions, from farm to shelf. These upstream partnerships are a key component of supply chain circularity.
What are circular economy examples in grocery retail?
Food retailers are now under more pressure than ever to address waste, packaging, and logistics emissions. Circular practices are reshaping grocery operations, especially as legislation like Extended Producer Responsibility (EPR) continues to develop globally.
Best-practice strategies:
- Reusable packaging and return systems
- Partnerships with food redistribution charities
- Plastic-free refill zones
- AI-driven stock control to prevent spoilage
- Closed-loop logistics for backhaul waste management
In the UK alone, supermarkets generate over 190,000 tonnes of food waste annually. Forward-thinking retailers are adopting real-time inventory platforms to reduce spoilage, and working with suppliers to redesign packaging to be more recyclable or reusable.
What are circular economy examples in healthcare?
Healthcare systems generate complex and often incredibly hazardous waste streams. Adopting circularity must align with safety and compliance requirements.
Circular innovations include:
- Reusable surgical instruments
- Textile recycling for scrubs and gowns
- Reprocessing single-use devices
- Electronic record-keeping
- Secure take-back schemes for expired medicine
According to the NHS, emissions from healthcare supply chains make up over 60% of the sector’s total carbon footprint. Circular procurement and waste strategies are critical in achieving net-zero healthcare targets.
Reconomy works with regulated sectors to maintain compliance while embedding sustainable practices.
Discover what we doWhat are circular economy examples in retail and fashion?
The fashion industry contributes 10% of global emissions and uses vast amounts of water and chemicals. As environmental concerns and consumer expectations rise, adopting circular economy strategies within the fashion sector is becoming increasingly important.
Circular fashion initiatives include:
- Take-back schemes and in-store drop-off programs
- Textile recycling and upcycling initiatives
- Clothing rental and subscription models
- Digital IDs and blockchain to track the lifecycle of garments
- Monomaterial design to simplify recycling processes
Circular fashion not only reduces environmental impact but also extends product life, supports reuse, and promotes responsible consumption. Brands embracing services like repair, resale, and wardrobe digitisation are better positioned to align with evolving sustainability standards and conscious consumer demand.
See more fashion examplesWhat are circular economy in technology and electronics?
The world generated 59.4 million tonnes of e-waste in 2022, with less than 18% officially recycled. Circular models in tech are vital to stem this flow.
Business-led solutions include:
- Subscription-based IT provisioning
- Remanufactured hardware for enterprise use
- Recyclable components
- Refurbishment and resale
- Closed-loop recovery of rare earth metals
Reconomy’s Comply Loop helps large manufacturers and importers meet their extended producer responsibility (EPR) obligations. Businesses can enhance ESG performance, minimise compliance risk, and support secondary materials markets through technology circularity.
Why the circular economy matters more than ever
As climate change accelerates and natural resource scarcity intensifies, rethinking traditional economic models is essential. The linear economy, based on a take, make, dispose system, is no longer viable. According to the Circularity Gap Report 2024, the global economy is now just 6.9% circular, down from 9.1% in 2018. That means over 93% of materials extracted globally are wasted, lost, or locked in long-term use.
For large businesses, this presents both a risk and an opportunity. Regulatory landscapes are shifting, investor expectations around ESG are rising, and customers are actively seeking brands that deliver environmental value. Companies that embed circularity into their operations can create significant cost savings, enhance brand equity, and meet growing compliance requirements.
Learn about the Circularity GapHow businesses can lead with circularity
Large enterprises play a decisive role in scaling circular solutions. As regulatory frameworks evolve and resource constraints grow, companies that embrace circularity will lead their industries.
Enterprise-level strategies:
- Product-as-a-service business models
- Design for longevity and modularity
- Industry-wide reverse logistics networks
- Real-time resource data and performance tracking
- Circular procurement standards
According to Accenture, circular business models could unlock $4.5 trillion in economic value by 2030. Reconomy partners with thousands of businesses to deliver this value through our circular economy services.
The circularity gap, why it matters
In 2024, the world’s circularity rate fell to 6.9%, down from 9.1% in 2018. If current trends continue, global material use could reach 184 billion tonnes annually by 2050.
Circularity is not only a sustainability metric, but a critical indicator of resource efficiency, economic resilience, and climate alignment. Learn how your business can close the circularity gap with practical support.
How to close the circularity gap
Closing the circularity gap requires more than intention, it demands strategic, measurable action from businesses at every stage of the value chain. Reconomy’s expertise in waste management, compliance, and resource optimisation makes us a trusted partner for large businesses seeking to build closed-loop systems that create both environmental and commercial value.
Our Close the Gap campaign outlines practical tools, data-led strategies, and sector-specific solutions to reduce resource consumption and emissions across operations. From enabling better material reuse to driving product stewardship and engaging stakeholders, we help you deliver measurable circular impact.
Explore the toolkit and resources available to help your organisation accelerate progress and close the gap between ambition and action.
Discover our #CloseTheGap campaign
Final thoughts, from concept to action
Our current rate of consumption is 1.7 times what Earth can regenerate annually. The circular economy is no longer optional, it’s essential.
Large businesses that act now can drive systemic change, unlock value, and lead the transition to a regenerative economy. Reconomy is here to help you measure, manage, and scale that impact.
Frequently asked questions (FAQ): Circular Economy examples
A model that designs waste out of systems by keeping resources in use.
No, it includes reuse, repair, remanufacture, and rethinking product design.
Circularity reduces costs, increases resilience, and supports compliance and ESG goals.
Visit our circular economy solutions to learn how your business can begin.
It marks the date when resource consumption exceeds the planet’s yearly capacity. Reconomy helped move Earth Overshoot Day 2025 by 12 minutes through its circular impact.