PUBLISHER: The Business Research Company | PRODUCT CODE: 1880705
PUBLISHER: The Business Research Company | PRODUCT CODE: 1880705
The circular economy is an economic model designed to minimize waste and maximize resource efficiency by keeping products, materials, and resources in use for as long as possible. It emphasizes reuse, repair, remanufacturing, recycling, and sustainable design. The primary purpose of the circular economy is to create a sustainable system that reduces environmental impact, conserves natural resources, and fosters economic growth.
The circular economy market consists of sales, by entities (organizations, sole traders, or partnerships), of circular economic services focusing on creating closed-loop systems where waste and resource input are minimized. The circular economy represents a shift towards a more sustainable and regenerative economic model that benefits businesses, consumers and the environment by emphasizing efficiency, longevity and resource recovery.
The global circular economy market reached a value of nearly $463,070.00 million in 2024, having grown at a compound annual growth rate (CAGR) of 7.78% since 2019. The market is expected to grow from $463,070.00 million in 2024 to $793,364.60 million in 2029 at a rate of 11.37%. The market is then expected to grow at a CAGR of 11.15% from 2029 and reach $1,345,906.07 million in 2034.
Stringent Environmental Regulations And Government Policies
During the historic period, the circular economy market was mainly driven by stringent environmental regulations and government policies. Regulations and policies promoting sustainability compel businesses to minimize waste, recycle materials and optimize resource use. These measures encourage the adoption of circular practices, extending product lifecycles and reducing environmental impact. As a result, companies increasingly implement strategies that support a more sustainable, resource-efficient economy. For example, in December 2024, Germany adopted the National Circular Economy Strategy (NCES), providing a unified framework to promote reuse, recycling and sustainable product design across sectors. It sets clear targets to reduce raw material consumption, cut waste and strengthen secondary material markets. The policy aims to enhance industrial competitiveness, support climate neutrality and position Germany as a leader in Europe's circular economy transition. Additionally, in January 2022, France implemented coherent product policies to promote sustainable consumption and production (SCP) and accelerate the circular economy transition. The initiative features strong legal frameworks, clear business responsibilities and inter-ministerial coordination to ensure accountability and sector-wide progress. By embedding sustainability into product policy, France fosters innovation, enhances competitiveness and strengthens its leadership in sustainable economic transformation. Therefore, the stringent environmental regulations and government policies drove the growth of the circular economy market.
New Projects Aim to Advance Textile and Fiber Recycling
Companies in the market are focused on improving the recycling processes of textiles and fibers to promote sustainability. These projects typically target two main goals: first, recycling high-performance fibers such as carbon and glass to make them reusable in industrial applications; and second, converting regular textile waste into high-quality yarns through innovative mechanical, physical, and chemical methods. For instance, in August 2025, The German Institutes of Textile and Fiber Research Denkendorf (DITF) is Europe's largest textile research center, has launched two recycling projects worth over €4.2 million to promote a circular economy in the textile industry. The HiPerReF project focuses on recycling high-performance fibers like carbon and glass for industrial-scale production of composite materials, while CYCLOTEXUM aims to convert textile waste into high-quality yarns using combined mechanical, physical, and chemical processes. These initiatives support sustainable practices and improve material recyclability in the textile sector.
The global circular economy market is highly fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 3.75% of the total market in 2024.
Circular Economy Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global circular economy market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for circular economy? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The circular economy market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider circular economymarket; and compares it with other markets.