{"id":25680,"date":"2026-03-03T22:23:53","date_gmt":"2026-03-03T20:23:53","guid":{"rendered":"https:\/\/pointofnew.at\/glossary\/circular-economy\/"},"modified":"2026-03-06T15:43:40","modified_gmt":"2026-03-06T13:43:40","slug":"circular-economy","status":"publish","type":"page","link":"https:\/\/pointofnew.at\/en\/glossary\/circular-economy\/","title":{"rendered":"Circular Economy"},"content":{"rendered":"<p><!-- TL;DR Box --><\/p>\n<div style=\"background:#f0f1f3;padding:1.2em 1.5em;margin-bottom:2em;border-radius:8px;\">\n<strong>Key takeaways:<\/strong> The circular economy is an economic model that keeps resources in circulation for as long as possible. Instead of &#8220;produce, use, discard,&#8221; it focuses on reuse, repair, recycling, and new business models. For companies, it offers opportunities for innovation, cost reduction, and sustainable competitive advantages.\n<\/div>\n<nav style=\"background:#f9f9f9;padding:1.5rem 2rem;border-radius:8px;margin-bottom:2rem;\">\n<strong style=\"font-size:1.1rem;\">Table of Contents<\/strong><\/p>\n<ol style=\"margin:0.75rem 0 0;padding-left:1.25rem;\">\n<li><a href=\"#definition\" style=\"text-decoration:none;color:#1a5276;\">What is the circular economy?<\/a><\/li>\n<li><a href=\"#prinzipien\" style=\"text-decoration:none;color:#1a5276;\">Principles of the circular economy<\/a><\/li>\n<li><a href=\"#geschaeftsmodelle\" style=\"text-decoration:none;color:#1a5276;\">Circular business models<\/a><\/li>\n<li><a href=\"#chancen\" style=\"text-decoration:none;color:#1a5276;\">Opportunities for companies<\/a><\/li>\n<li><a href=\"#umsetzung\" style=\"text-decoration:none;color:#1a5276;\">Implementing the circular economy<\/a><\/li>\n<li><a href=\"#regulierung\" style=\"text-decoration:none;color:#1a5276;\">Regulation and EU requirements<\/a><\/li>\n<li><a href=\"#faq\" style=\"text-decoration:none;color:#1a5276;\">Frequently asked questions about the circular economy<\/a><\/li>\n<\/ol>\n<\/nav>\n<h2 id=\"definition\">What is the circular economy?<\/h2>\n<p>The <strong>circular economy<\/strong> is a regenerative economic system that replaces the linear &#8220;take-make-waste&#8221; approach with closed loops. Materials, products, and components are maintained at their highest value level for as long as possible. <\/p>\n<p>The concept, shaped significantly by the Ellen MacArthur Foundation, is based on three core principles: eliminate waste and pollution, keep products and materials in use, and regenerate natural systems. The circular economy is therefore far more than recycling\u2014it requires a fundamental rethink in <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">business model design<\/a>. <\/p>\n<h2 id=\"prinzipien\">Principles of the circular economy<\/h2>\n<ul>\n<li><strong>Design for Circularity:<\/strong> Design products from the outset for durability, repairability, and recyclability<\/li>\n<li><strong>Reduce:<\/strong> Minimise material use\u2014produce lighter, more efficiently, and with fewer resources<\/li>\n<li><strong>Reuse:<\/strong> Reuse products and components\u2014second-hand, refurbishment, sharing<\/li>\n<li><strong>Repair:<\/strong> Repairability as a design principle\u2014the right to repair is being strengthened across the EU<\/li>\n<li><strong>Remanufacture:<\/strong> Recondition used products to like-new quality<\/li>\n<li><strong>Recycle:<\/strong> Recover materials at the end of the life cycle\u2014as the last step, not the first<\/li>\n<\/ul>\n<p>The R-strategies follow a hierarchy: avoid before reuse before recycle. The higher up the hierarchy, the greater the environmental and economic benefit. <\/p>\n<h2 id=\"geschaeftsmodelle\">Circular business models<\/h2>\n<p>The circular economy enables entirely new <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">business models<\/a>:<\/p>\n<ul>\n<li><strong>Product-as-a-Service:<\/strong> Instead of selling products, their use is offered as a service\u2014a classic case of <a href=\"https:\/\/pointofnew.at\/en\/glossary\/servitization-as-a-service-models\/\" style=\"color:#1a5276;text-decoration:none;\">servitization<\/a><\/li>\n<li><strong>Sharing platforms:<\/strong> The <a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-economy\/\" style=\"color:#1a5276;text-decoration:none;\">platform economy<\/a> enables shared use instead of individual ownership<\/li>\n<li><strong>Refurbishment &amp; recommerce:<\/strong> Refurbished products as a more affordable alternative\u2014a growing market<\/li>\n<li><strong>Resource recovery:<\/strong> Extract and reuse valuable materials from end-of-life products<\/li>\n<li><strong>Industrial symbiosis:<\/strong> One company\u2019s waste becomes another\u2019s raw material<\/li>\n<\/ul>\n<p>The <a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Canvas<\/a> and the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-navigator\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Navigator<\/a> help to systematically develop circular business models.<\/p>\n<h2 id=\"chancen\">Opportunities for companies<\/h2>\n<ul>\n<li><strong>Cost reduction:<\/strong> Lower material consumption and more efficient resource use reduce production costs<\/li>\n<li><strong>New revenue streams:<\/strong> Refurbishment, take-back programmes, and service models create additional income<\/li>\n<li><strong>Customer retention:<\/strong> Service-based models create long-term customer relationships instead of one-off transactions<\/li>\n<li><strong><a href=\"https:\/\/pointofnew.at\/en\/glossary\/brand-positioning\/\" style=\"color:#1a5276;text-decoration:none;\">Brand positioning<\/a>:<\/strong> Sustainability becomes a differentiator\u2014especially for younger <a href=\"https:\/\/pointofnew.at\/en\/glossary\/target-audience-analysis\/\" style=\"color:#1a5276;text-decoration:none;\">target groups<\/a><\/li>\n<li><strong>Regulatory advantages:<\/strong> Be prepared early for upcoming requirements instead of having to react<\/li>\n<li><strong>Supply chain resilience:<\/strong> Less dependence on raw material imports through material loops<\/li>\n<\/ul>\n<h2 id=\"umsetzung\">Implementing the circular economy<\/h2>\n<p>The transition to the circular economy requires a systematic approach:<\/p>\n<ol>\n<li><strong>Analyse the status quo:<\/strong> Examine the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/\" style=\"color:#1a5276;text-decoration:none;\">value chain<\/a> for material flows, waste, and inefficiencies<\/li>\n<li><strong>Identify potential:<\/strong> Where are the biggest levers? Product design, take-back, recycling, new services? <\/li>\n<li><strong>Adapt the business model:<\/strong> Integrate circular elements into the existing model or develop new models<\/li>\n<li><strong>Involve partners:<\/strong> The circular economy requires collaboration\u2014with suppliers, customers, and recycling partners<\/li>\n<li><strong>Measure and communicate:<\/strong> Define circular KPIs and report progress transparently<\/li>\n<\/ol>\n<p>For <a href=\"https:\/\/pointofnew.at\/en\/glossary\/mittelstand-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">SMEs<\/a>, a step-by-step approach is recommended: start with a pilot project, learn, and then <a href=\"https:\/\/pointofnew.at\/en\/glossary\/scaling\/\" style=\"color:#1a5276;text-decoration:none;\">scale<\/a>.<\/p>\n<h2 id=\"regulierung\">Regulation and EU requirements<\/h2>\n<p>The EU is driving the circular economy forward through regulation:<\/p>\n<ul>\n<li><strong>EU Circular Economy Action Plan:<\/strong> Comprehensive strategy for sustainable products and business models<\/li>\n<li><strong>Ecodesign for Sustainable Products Regulation:<\/strong> Requirements for durability, repairability, and recyclability<\/li>\n<li><strong>Digital Product Passport:<\/strong> Transparency on materials, origin, and recycling options<\/li>\n<li><strong>Extended producer responsibility:<\/strong> Companies are made responsible for the entire life cycle of their products<\/li>\n<\/ul>\n<p>Companies that adopt the circular economy early turn regulatory pressure into competitive advantages.<\/p>\n<p><!-- CTA Box --><\/p>\n<div style=\"background:linear-gradient(135deg,#1e3a5f,#2563eb);color:#fff;padding:2rem;border-radius:12px;margin:2rem 0;text-align:center;\">\n<h3 style=\"color:#fff;margin-top:0;\">Would you like to further develop your business model in a circular way?<\/h3>\n<p style=\"font-size:1.1rem;\">We analyse your value creation for circular-economy potential and develop sustainable business models with you.<\/p>\n<p><a href=\"https:\/\/pointofnew.at\/en\/business-model-innovation-services\/\" style=\"display:inline-block;background:#fff;color:#1e3a5f;padding:0.75rem 2rem;border-radius:8px;text-decoration:none;font-weight:600;margin-top:0.5rem;\">\u2192 Schedule a consultation now<\/a>\n<\/div>\n<p><!-- FAQ --><\/p>\n<div class=\"faq-section\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div>\n<h2 id=\"faq\">Frequently Asked Questions (FAQ)<\/h2>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">What is the difference between the circular economy and recycling?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Recycling is only one element of the circular economy\u2014and in the hierarchy, the last step before disposal. The circular economy starts much earlier: with design, extending use, sharing, and repair. The goal is to make recycling necessary as rarely as possible.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">Is the circular economy only relevant for manufacturing companies?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>No. Service companies can also apply circular principles: through resource efficiency in the office, sustainable procurement, digital instead of physical services, and by offering circular-economy consulting as a business field. <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">How do I get started with the circular economy as an SME?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Start with a material flow analysis: Where does waste occur? Where are resources being wasted? Begin with a pilot project\u2014such as a take-back programme or switching to more durable materials. Use funding programmes and industry networks for support.   <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">Is the circular economy financially worthwhile?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Yes\u2014studies show that circular business models are more profitable in the long term: through lower material costs, new revenue streams (refurbishment, services), and stronger customer retention. The initial investment in design and processes typically pays for itself within 2\u20134 years. <\/p>\n<\/div>\n<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">What are examples of circular economy business models?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">Common models include product-as-a-service (leasing instead of selling), take-back and refurbishment programs, sharing platforms, and modular design for easy repair. For instance, Philips offers &#39;light as a service&#39; where customers pay per lux instead of buying bulbs. In manufacturing, companies like Caterpillar remanufacture engines, saving 85% of material costs while maintaining quality.<\/div>\n<\/details>\n<\/div>\n<\/div>\n<p><!-- Verwandte Begriffe --><\/p>\n<div style=\"margin-top:2.5em;padding-top:1.5em;border-top:1px solid #e2e8f0;\">\n<strong>Related terms:<\/strong><\/p>\n<div style=\"display:flex;flex-wrap:wrap;gap:0.5rem;margin-top:0.5rem;\">\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/sustainable-business-model\/\" style=\"color:#1a5276;text-decoration:none;\">Sustainable Business Model<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/servitization-as-a-service-models\/\" style=\"color:#1a5276;text-decoration:none;\">Servitization<\/a><br \/>\n<a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Innovation<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-economy\/\" style=\"color:#1a5276;text-decoration:none;\">Platform Economy<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/\" style=\"color:#1a5276;text-decoration:none;\">Value chain<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Canvas<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/scaling\/\" style=\"color:#1a5276;text-decoration:none;\">Scaling<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/mittelstand-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Mittelstand Innovation<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/brand-positioning\/\" style=\"color:#1a5276;text-decoration:none;\">Brand Positioning<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/industry-4-0\/\" style=\"color:#1a5276;text-decoration:none;\">Industry 4.0<\/a>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways: The circular economy is an economic model that keeps resources in circulation for as long as possible. Instead of &#8220;produce, use, discard,&#8221; it focuses on reuse, repair, recycling,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24529,"parent":25140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-25680","page","type-page","status-publish","has-post-thumbnail","hentry"],"featured_image_src":"https:\/\/pointofnew.at\/wp-content\/uploads\/2025\/07\/Point-of-New-Business-Model-Innovation-Benedikt-Hasibeder-scaled.png","_links":{"self":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/comments?post=25680"}],"version-history":[{"count":12,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25680\/revisions"}],"predecessor-version":[{"id":28314,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25680\/revisions\/28314"}],"up":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media\/24529"}],"wp:attachment":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media?parent=25680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}