| Circular Economy

Circular economy examples: how circularity works across sectors

This blog explores how the circular economy is being implemented across different sectors, from construction and agriculture to fashion, electronics, grocery retail, healthcare, and even our homes. It defines what a circular economy is, why it matters more than ever in today’s resource-stressed world, and how large businesses can adopt circular practices to drive measurable change. With insights from global reports and data drawn from Reconomy’s 2024 Sustainability Report, we demonstrate the commercial and environmental benefits of thinking circular.

Whether you’re looking to understand the basics, explore industry-specific examples, or align your operations with best-in-class sustainability practices, this blog will help large organisations take informed, strategic steps toward circularity.

Circularity isn’t a trend; it’s a critical shift in how value is created, preserved, and restored.

Person peeling a potato over a kitchen compost bin filled with vegetable scraps, illustrating circular economy practices at home like food waste composting.

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.

Excavator moving rubble on a construction site, representing circular economy practices in construction such as recycling building materials and reducing waste.

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.

Read more about the circular economy in construction
Tractor harvesting crops in a field under a clear sky, depicting circular economy practices in agriculture like regenerative farming and resource recovery.

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.

Grocery store employee placing fresh produce on shelves, highlighting circular economy practices in grocery retail like reducing food waste and packaging.

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.

Learn more about Extended Producer Responsibility (EPR)

Close-up of a person using a wheelchair, symbolising circular economy applications in healthcare such as reusing medical equipment and recycling materials.

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.

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Customers browsing clothes in a retail store, representing circular fashion practices such as resale, repair, and clothing take-back schemes.

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.

Learn about the circular economy in fashion
Assorted electronic devices including a laptop, tablet, and smartphone arranged with used batteries, representing circular economy approaches in electronics recycling.

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.

Infographic showing future circular economy trends and how businesses can close the circularity gap.

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 more about the circularity gap

How 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.

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