Circular Economy Market Poised for Significant Growth, Projected to Reach USD 1324 Billion by 2030

According to Next Move Strategy Consulting, Circular Economy Market is anticipated to experience remarkable growth, reaching USD 1324 billion by 2030. This expansion reflects a compound annual growth rate (CAGR) of 13% from 2024 to 2030. The circular economy industry is witnessing rapid evolution as businesses and consumers increasingly adopt sustainable and regenerative practices to minimize waste and maximize resource efficiency. The circular economy model emphasizes a shift from traditional linear economic frameworks toward a closed-loop system that prioritizes the reuse, refurbishment, and recycling of materials. Companies across manufacturing, consumer goods, waste management, and renewable energy sectors are actively embracing this approach to reduce environmental impact and promote sustainability.

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Key Market Drivers

The surge in awareness regarding environmental challenges such as climate change and resource depletion is compelling organizations and individuals to integrate circular economy principles into their business strategies and daily consumption patterns. By designing products for longevity, repairability, and recyclability, businesses are making significant strides toward achieving sustainability goals while fostering economic growth.

A prime example of regulatory support for the circular economy comes from the U.S. Environmental Protection Agency (EPA), which in December 2023, collaborated with the U.S. Department of Agriculture (USDA) and the U.S. Food and Drug Administration (FDA) to address food loss and waste. This initiative aims to curb methane pollution—a significant contributor to climate change—while promoting efficient food waste management.

Market Segmentation and Regional Insights

The circular economy market is segmented based on type, enterprise size, industry vertical, and region:

• By Type: Circular products and services.
• By Enterprise Size: Large enterprises and small & medium enterprises.
• By Industry Vertical: Manufacturing, consumer goods, waste management and recycling, construction, automotive, food and agriculture, and others.
• By Geography: North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Europe remains the dominant region in the circular economy market, driven by stringent environmental regulations, waste management policies, and sustainable product design initiatives. Countries such as the U.K. and Germany are leading this transition, with Germany’s government implementing a comprehensive climate-focused foreign policy strategy in December 2023. This initiative integrates climate objectives with international security, trade, fiscal policy, and development cooperation, reinforcing the nation’s commitment to sustainability.

Competitive Landscape

The global circular economy market comprises several major players, including Colgate Palmolive Limited, Procter & Gamble, TOMRA Systems ASA, Veolia Water Technologies, ACCIONA, Pact Group, Siemens AG, Unilever, BASF SE, Koninklijke Philips N.V., H&M Group, LyondellBasell Industries Holdings B.V., Suez Group, Hitachi, Ltd., and Sims Limited.

These companies are adopting various strategies such as partnerships and product innovations to maintain their competitive edge. For example, in November 2023, Winnow introduced an AI-driven smart solution to help reduce food waste in commercial kitchens. This system employs a combination of smart bins and digital scales, enabling kitchen staff to track and measure food waste accurately. Such initiatives demonstrate the increasing adoption of circular economy solutions across different industries.

Industry Outlook and Future Trends

The future of the circular economy market is shaped by several key trends:

• Increased Corporate Responsibility: Businesses are adopting circular business models to align with global sustainability initiatives.
• Technological Advancements: Innovations in AI, IoT, and blockchain are enhancing resource tracking and waste reduction.
• Government Regulations: Stricter environmental laws are compelling businesses to adopt circular economy principles.

Conclusion

The circular economy market is set for substantial growth, driven by increased environmental awareness, regulatory support, and technological advancements. Companies investing in sustainable practices will be at the forefront of this transformative shift, ensuring long-term economic and environmental benefits. With Europe leading the way, other regions are expected to follow suit, fostering a more sustainable and resource-efficient global economy.

About the Report: The report provides an in-depth quantitative analysis of the circular economy market from 2024 to 2030, identifying key investment opportunities and market trends. Additionally, it offers a competitive analysis, SWOT evaluation, Porter’s Five Forces assessment, and a detailed value chain analysis to outline the roles of various stakeholders in the circular economy landscape.

About Next Move Strategy Consulting:

Next Move Strategy Consulting is a premier market research and management consulting firm that has been committed to provide strategically analysed well documented latest research reports to its clients. The research industry is flooded with many firms to choose from, what makes Next Move different from the rest is its top-quality research and the obsession of turning data into knowledge by dissecting every bit of it and providing fact-based research recommendation that is supported by information collected from over 500 million websites, paid databases, industry journals and one on one consultations within dusty experts across a diverse range of industry sectors. The high-quality customized research reports with actionable insights and excellent end-to-end customer service help our clients to take critical business decisions that enables them to move beyond time and have competitive edge in the industry.

We have been servicing over 1000 customers globally that includes 90% of the Fortune 500 companies over a decade. Our analysts are constantly tracking various high growth markets and identifying hidden opportunities in each sector or the industry. We provide one of the industry’s best quality syndicates as well as custom research reports across 10 different industry verticals. We are committed to deliver high quality research solutions in accordance to your business needs. Our industry standard delivery solutions that range from the pre consultation to after-sales services, provide an excellent client experience and ensure right strategic decision making for businesses.

 

Summary: The circular economy market is projected to reach USD 1324 billion by 2030, growing at a CAGR of 13%. The transition to a circular economy is driven by increasing environmental awareness, government regulations, and advancements in technology. Europe leads in market dominance due to stringent sustainability policies, while key industry players are actively developing innovative solutions. The adoption of circular business models will be instrumental in reducing waste, optimizing resource use, and fostering long-term environmental and economic sustainability.