Global Circular Economy Market Insights Forecasts to 2033

• The Global Circular Economy Market Size was Valued at USD 554.50 Billion in 2023
• The Market Size is Growing at a CAGR of 13.10% from 2023 to 2033
• The Worldwide Circular Economy Market Size is Expected to Reach USD 1898.50 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global Circular Economy Market Size is Anticipated to Exceed USD 1898.50 Billion by 2033, Growing at a CAGR of 13.10% from 2023 to 2033.

Market Overview

The circular economy is a production and consumption framework that includes sharing, leasing, reusing, repairing, refurbishing, and recycling existing resources and products for as long as possible. The circular economy addresses climate change and other global issues, such as biodiversity loss, waste, and pollution, by disconnecting economic activity from the consumption of scarce resources. The circular economy is utilized for protecting the environment, reducing raw material dependence, creating jobs, and saving consumer money.

For Instance, In June 2024, The FDA, USDA, and EPA FDA launched the "National Strategy for Reducing Food Loss and Waste and Recycling Organics" as part of President Biden's comprehensive approach to combating climate change, feeding people, addressing environmental justice, and promoting a circular economy.

In July 2024, the Industry Minister of Thailand announced that a visit to Japan would mark the beginning of a collaboration to build a circular economy in Thailand.

In March 2024, The Department of Consumer Affairs of India (DoCA) launched the Right to Repair Portal India to give consumers repair information for their items while also reducing e-waste.

In May 2024, The US Food and Drug Administration (FDA) renewed its Federal Interagency Collaboration to Reduce Food Loss and Waste (FIFLAW) with the USDA and EPA. Furthermore, the United States Agency for International Development (USAID) joined the cooperation as an essential government partner with global reach in decreasing food loss and waste, signaling a significant expansion of the federal relationship.

Report Coverage

This research report categorizes the market for a circular economy based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the circular economy market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the circular economy market.

Driving Factors

The circular economy market is expanding rapidly driven by several factors including growing environmental concerns about resource depletion and waste management are pushing for more sustainable practices. Economic incentives, including cost savings and new business opportunities, further drive the growth of the market. Consumer demand for sustainable products and corporate responsibility also play a significant role. Technological advancements, like improved recycling technologies and digital tools, support the feasibility of circular practices. Additionally, global trends and international agreements with increasing investment and funding, are accelerating the circular economy market growth worldwide.

Restraining Factors

The circular economy market faces several restraining factors that can impede its growth including high initial costs for infrastructure and technology, along with the complexity of managing supply chains and a lack of standardized practices, present significant challenges. Economic factors such as fluctuating material prices and low demand for recycled products, along with technological limitations and cultural resistance, further constrain the market growth.

Market Segmentation

The circular economy market share is classified into type, enterprise size, and industry.

• The circular products segment is estimated to hold the highest market revenue share through the projected period.

Based on the type, the circular economy market is classified into circular products and services. Among these, the circular products segment is estimated to hold the highest market revenue share through the projected period. The circular products segment is driven by the emphasis on designing products for durability, repairability, and recyclability, which aligns with the core principles of the circular economy. Increasing consumer demand for environmentally friendly and sustainable products, coupled with industry shifts towards circular models and supportive regulatory policies, further boosts this segment. Additionally, advancements in materials science and manufacturing technologies enhance the viability and appeal of circular products, solidifying their dominant position in the market.

• The large enterprise segment is anticipated to hold the largest market share through the forecast period.

Based on the enterprise size, the circular economy market is divided into large enterprise, small & medium enterprise. Among these, the large enterprise segment is anticipated to hold the largest market share through the forecast period. The large enterprise segment dominance is driven by the substantial financial resources of large companies, which enable them to invest in advanced recycling technologies, sustainable product designs, and comprehensive waste management systems. Additionally, large enterprises have greater access to innovative technologies and can influence industry standards, further bolstering their role in the circular economy.

• The waste management and recycling segment dominates the market with the largest market share through the forecast period.

Based on the industry, the circular economy market is categorized into the manufacturing industry, consumer goods, waste management and recycling, construction and building materials, automotive and transportation, food and agriculture, and others. Among these, the waste management and recycling segment dominates the market with the largest market share through the forecast period.  This dominance is due to its fundamental role in reprocessing waste materials and reducing landfill use, which is crucial for sustainability. Supporting factors include stringent environmental regulations, advancements in recycling technologies, and economic benefits from reduced waste disposal costs. Increased awareness among consumers and businesses about environmental impacts further drives investment and focus in the waste management and recycling segment.

Regional Segment Analysis of the Circular Economy Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Europe is anticipated to hold the largest share of the circular economy market over the predicted timeframe.

Europe is anticipated to hold the largest share of the circular economy market over the predicted timeframe. Europe region holds the largest share due to its robust regulatory framework, including the EU’s circular economy action Plan, which promotes recycling and resource efficiency. The region benefits from substantial government support and funding for sustainable practices, a high level of corporate commitment to circular business models, and a growing consumer demand for eco-friendly products. Additionally, Europe’s advanced recycling infrastructure and innovative technologies further bolster its position in the circular economy market.

Asia Pacific is expected to grow at the fastest CAGR growth of the circular economy market during the forecast period. The growth of the Asia Pacific region is driven by rapid economic expansion, increasing industrial activity, and urbanization. The region is benefiting from growing regulatory initiatives that promote sustainability with rising investments in recycling infrastructure and green technologies. Enhanced consumer awareness and demand for sustainable products are driving businesses to adopt circular practices.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the circular economy market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• TOMRA
• Veolia Water Technologies
• ACCIONA Service
• Pact Group Holdings Ltd.
• Siemens 
• Unilever
• BASF
• Veolia
• Philips
• Circular Economy Leadership Canada
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In July 2024, The UN Environment Programme Finance Initiative (UNEP FI) released the first reports in a new series of tools enabling banks to adopt and benefit from the interlinkages between the circular economy and major sustainability concerns such as climate change, nature loss, and pollution.
• In July 2024, India Accelerator launched a new vertical called Circular Economy, which aims to support the growth of promising entrepreneurs in the category. The vertical intends to promote firms that are closely related to sustainable business models, waste reduction, energy efficiency, and climate change.
• In June 2024, Siemens Smart Infrastructure and BASF announced the first electrical safety product to use plastic components where fossil raw materials have been replaced by biomethane derived from recycled biowaste.
• In June 2024, Canon Inc. announced that it introduced new plastic sorting equipment with cutting-edge material recognition technology. The device uses Raman spectroscopy technology on moving objects with a tracking system to collectively detect the material types of plastic fragments with great precision, even when black plastic bits are intermingled with different colors, which has been traditionally problematic.
• In April 2024, The EU announced a new EU Circular Economy Resource Centre and the SWITCH to Circular Economy in East and Southern Africa program to expedite the worldwide transition.
• In February 2024, DuPont announced the debut of the Tyvek Sustainable Healthcare Packaging Awards, a new worldwide award program. This yearly awards program is meant to celebrate leaders in the healthcare business who embrace and drive sustainability across the packaging lifecycle.
• In January 2024, Deloitte and Circle Economy Consulting established a new relationship focused on helping organizations realize expanding circular economy prospects and accomplish sustainability goals.  

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the circular economy market based on the below-mentioned segments: 

Global Circular Economy Market, By Type

• Circular Products
• Services

Global Circular Economy Market, By Enterprise Size

• Large Enterprise
• Small & Medium Enterprise

Global Circular Economy Market, By Industry

• Manufacturing Industry
• Consumer Goods
• Waste Management and Recycling
• Construction and Building Materials
• Automotive and Transportation
• Food and Agriculture
• Others

Global Circular Economy Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa