Circular economy is still often mistakenly seen as an expensive cost. The reality is different: companies that close cycles discover billion-dollar markets, save substantially on raw materials and strengthen their competitive position. And despite all geopolitical bumps, the circular economy continues to grow steadily. Therefore, the question is no longer whether you can afford it, but whether you can afford not to get in.
Economic potential in figures
The circular economy represents a direct economic opportunity of $4.5 trillion by 2030. For businesses, this translates into hard benefits. Aluminum recycling, for example, provides 95% energy savings over production from bauxite. The resale market is also growing: from $46 billion in 2019 to a projected $476 billion by 2030.
These figures are not future projections but realized results of frontrunners. Ducky Dons grew to become the Dutch market leader in comforters and pillows thanks to their circular business model. Signify no longer sells lamps but provides light as a service. Patagonia built a global brand around repairing and reselling used clothing. The success of these companies proves that circular economy is not a compromise between profit and planet, but a strategy that strengthens both.
The three pillars of circular profitability
1. Cost savings through smart use of materials
Circular strategies directly reduce expenses. More efficient use of raw materials reduces both material costs and energy consumption. Hydro’s recycled aluminum, for example, has a carbon footprint eight times lower than the industry average. According to the World Economic Forum, recycling and reuse can save up to $1 trillion in wasted resources worldwide each year.
2. New revenue models that multiply value
In addition to cost reduction, circular solutions open up entirely new revenue streams. A Bain survey of 420 manufacturing leaders shows that 70% expect circular solutions to increase their revenue before 2027.
Schiphol, for example, pays Signify for light, not lamps. Signify retains ownership and provides maintenance, which encourages them to be as efficient as possible.
Bundles makes quality appliances accessible through subscriptions, with no pre-investment. And The Paze offers zero-waste packaging that can be reused 100 times. On an industrial scale, Kalundborg Eco-Industrial Park shows how companies use each other’s waste streams as raw materials. This generates €24 million in annual savings and has led to an 80% reduction in carbon emissions since 2015.
3. Mitigate risk as a competitive advantage
Global materials demand will triple by 2050, while markets such as batteries in the U.S. will grow from $78 billion to $193 billion by 2030. Companies that commit to circular strategies also protect themselves from scarcity, price fluctuations and stricter regulations.
A British study of industrial symbiosis showed it saved €1.3 billion in costs and prevented 42 million tons of CO₂ emissions. IKEA is also anticipating this with buy-back programs and second-hand furniture sales.
The bottom line: companies that leverage all three pillars – cost reduction, new revenue models and risk mitigation – structurally create more value than organizations that deploy only one or two pillars.
From ambition to action: a practical roadmap
The exploration phase
Every transformation begins with insight. In four weeks, an organization can identify its greatest opportunities by answering three questions: what are we throwing away and at what cost? What purchased materials are expensive, scarce or risky? And what do customers really want: possession, use or access?
An electronics manufacturer thus discovered that discarded circuit boards contained millions in precious metals. A furniture manufacturer realized that customers primarily sought flexibility rather than ownership. Such insights form the basis for circular initiatives with short payback periods.
Developing a business case
Then comes the business case: net circular value = cost savings + new revenue + risk reduction – investment and transition costs. Also important are the indirect benefits that almost always accompany ESG: you have fewer problems due to rising carbon prices, you receive more favorable financing terms, and you benefit from customers’ willingness to pay extra for circular products.
Pilot and validation
The best way to learn is through pilots. Start small – with one product line or location – measure the baseline and implement circular interventions. A successful pilot delivers at least 20% cost reduction or revenue growth and proves that scaling up is feasible.
Scaling up to organization-wide transformation
From pilot to practice requires systematic approach:
- Document lessons learned so that others do not make the same mistakes.
- Develop standard procedures that integrate circular principles into daily operations.
- Train teams not only in the “how” but especially in the “why” of circularity.
- Build partnerships throughout the chain, as circular economy is by definition a team sport.
To measure is to know
New KPIs are needed to drive circular performance. Examples include:
- Material Productivity Rate: revenue per kilogram of material input.
- Circular Revenue Share: percentage of revenue from circular models.
- Total Cost of Ownership: life-cycle cost rather than just purchase price.
- Circular Material Use Rate: proportion of materials reused.
- Product Lifetime Extension: actual useful life.
- Zero Waste to Landfill: no waste to landfills.
- Supply Chain Resilience Score: resilience to disruptions.
- Green Finance Access: access to more favorable financing.
- Brand Value Premium: added value that customers attribute to circular propositions.
The momentum is now
The circular economy is gaining ground worldwide because it offers both economic opportunities and environmental benefits. Technology is accelerating the transition: digital product passports make chains more transparent, AI optimizes material flows and blockchain guarantees origin and quality.
The question is no longer whether circular economy is profitable, but how quickly organizations make the switch. Companies that close cycles create value; those that do not destroy value. The gap between leaders and laggards grows every day. Which side of history does your organization want to be on?