Circular Economy Market In 2029

Circular Economy Global Market Report 2025

circular economy market share

circular economy market outlook

The Business Research Company's Circular Economy Market In 2029

It will grow to $798.3 billion in 2029 at a compound annual growth rate (CAGR) of 11.4%.”

— The Business Research Company

LONDON, GREATER LONDON, UNITED KINGDOM, December 4, 2025 /EINPresswire.com/ -- "Circular economy market to Surpass $793 billion in 2029. Within the broader Services industry, which is expected to be $23,934 billion by 2029, the circular economy market is estimated to account for nearly 3% of the total market value.

Which Will Be the Biggest Region in the Circular Economy Market in 2029?
Western Europe will be the largest region in the circular economy market in 2029, valued at $262,284 million. The market is expected to grow from $153,250 million in 2024 at a compound annual growth rate (CAGR) of 11% The strong growth is supported by the increasing digital resale platforms and stringent environmental regulations and government policies.

Which Will Be The Largest Country In The Global Circular Economy Market In 2029?
The USA will be the largest country in the circular economy market in 2029, valued at $172,834 million. The market is expected to grow from $107,134 million in 2024 at a compound annual growth rate (CAGR) of 10%. The strong growth can be attributed to the increasing digital resale platforms and increasing government initiatives.

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What will be Largest Segment in the Circular Economy Market in 2029?
The circular economy market is segmented by type into clothing and textile waste, electronic waste, food waste, glass waste, plastic waste and wood waste. The plastic waste market will be the largest segment of the circular economy market segmented by type, accounting for 28% or $224,050 million of the total in 2029. The plastic waste market will be supported by stricter bans on single-use plastics, expansion of deposit-return and recycling programs, corporate commitments to recycled content packaging, rising public pressure for sustainable alternatives, increasing adoption of circular plastic alliances and government incentives for recycled plastic usage. Another high-growth sector, driven by global public and regulatory pressure to combat plastic pollution. The prominence of Biodegradable Plastics and Recycled Plastic Products aligns perfectly with current corporate and policy trends (e.g., plastic bans, recycled content mandates).

The circular economy market is segmented by enterprise size into large enterprises and small and medium enterprises (SMEs). The large enterprises market will be the largest segment of the circular economy market segmented by enterprise, accounting for 63% or $500,648 million of the total in 2029. The large enterprises market will be supported by stronger financial capacity for adopting sustainable practices, compliance with international ESG reporting standards, growing corporate sustainability commitments, pressure from investors and stakeholders for green transitions, adoption of closed-loop production systems and participation in global circular economy initiatives.cvii Large companies often face higher regulatory scrutiny and greater stakeholder pressure to reduce their environmental footprint, pushing them to integrate sustainable practices such as closed-loop supply chains, product-as-a-service models and large-scale recycling initiatives. Their global reach allows them to influence suppliers, partners and consumers, creating widespread adoption of circular practices across industries.

The circular economy market is segmented by industry vertical into manufacturing industry, consumer goods, waste management and recycling, construction and building materials, automotive and transportation, food and agriculture and other industry verticals. The manufacturing industry market will be the largest segment of the circular economy market segmented by industry vertical, accounting for 24% or $190,509 million of the total in 2029. The manufacturing industry market will be supported by adoption of resource-efficient production methods, rising raw material costs driving demand for recycling, stricter industrial waste regulations, circular supply chain collaborations, increasing focus on remanufacturing and refurbishment and corporate net-zero commitments.

What is the expected CAGR for the Circular Economy Market leading up to 2029?
The expected CAGR for the circular economy market leading up to 2029 is 11%.

What Will Be The Growth Driving Factors In The Global Circular Economy Market In The Forecast Period?
The rapid growth of the global circular economy market leading up to 2029 will be driven by the following key factors that are expected to reshape sustainability, resource management, and industrial practices worldwide.
Investment In Recycling Infrastructure - The investment in recycling infrastructure will become a key driver of growth in the circular economy market by 2029. Investment in recycling infrastructure enhances the ability to efficiently collect, sort and process waste materials, turning them into reusable resources. This reduces dependence on virgin raw materials, lowers production costs and minimizes environmental pollution. Advanced recycling facilities also enable innovation in material recovery and product redesign, supporting sustainable manufacturing practices. As businesses gain access to more reliable and cost-effective recycled inputs, circular business models become more viable. Overall, such investments strengthen the transition toward a resource-efficient economy and promote long-term sustainability. As a result, the investment in recycling infrastructure is anticipated to contributing to a 1.2% annual growth in the market.

AI-Powered Circular Intelligence And Design - The AI-powered circular intelligence and design will emerge as a major factor driving the expansion of the circular economy market by 2029. By enabling advanced material tracking, lifecycle analysis, and predictive modeling, AI helps companies design products for durability, reuse, and recyclability from the outset. It enhances supply chain transparency by identifying inefficiencies and opportunities for material recovery, reducing waste and costs. AI-driven insights also support circular business models such as product-as-a-service and reverse logistics optimization. Moreover, it empowers firms to meet regulatory requirements and sustainability goals more effectively. As organizations prioritize resource efficiency and low-carbon strategies, AI becomes a critical enabler of scalable and data-driven circular economy practices. Consequently, the AI-powered circular intelligence and design is projected to contributing to a 1.0% annual growth in the market.

Expansion Of Remanufacturing And Refurbishment Markets – The expansion of remanufacturing and refurbishment markets will serve as a key growth catalyst for the circular economy market by 2029, The growth of remanufacturing and refurbishment drives the circular economy by enabling products and components to be reused, repaired, or upgraded instead of being discarded. This approach reduces raw material consumption, lowers production costs and minimizes environmental impact. Companies benefit from new revenue streams through selling refurbished products, while consumers gain access to affordable, high-quality alternatives. Additionally, it encourages innovation in product design for durability and ease of repair, fostering a more sustainable and resource-efficient economy overall. Therefore, this expansion of remanufacturing and refurbishment markets is projected to supporting to a 0.8% annual growth in the market.

Growing Consumer Demand For Sustainability - The growing consumer demand for sustainability will become a significant driver contributing to the growth of the circular economy market by 2029 Rising consumer demand for sustainability is encouraging companies to adopt eco-friendly practices, such as recycling, reusing and designing products for longer lifecycles. Environmentally conscious buyers increasingly prefer brands that minimize waste, reduce carbon footprints and use sustainable materials, creating a strong incentive for businesses to shift from linear to circular economic models. This demand drives innovation in product design, packaging and supply chain management, while also promoting transparency and ethical practices. As a result, organizations are motivated to implement strategies that align with consumer values, fostering a more sustainable and resource-efficient economy. Consequently, the growing consumer demand for sustainability is projected to contributing to a 0.5% annual growth in the market.

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What Are The Key Growth Opportunities In The Circular Economy Market in 2029?
The most significant growth opportunities are anticipated in the circular economy for electronic waste market, large enterprises circular economy market, and circular waste management and recycling economy market. Collectively, these segments are projected to contribute over $779 billion in market value by 2029, driven by increasing demand for sustainable resource management, regulatory pressure to reduce e-waste, advances in recycling and reuse technologies, and the rising adoption of circular economy principles across manufacturing and consumer electronics sectors. This surge reflects the accelerating integration of circular strategies that promote resource efficiency, waste reduction, and sustainable production practices, fueling transformative growth within the broader circular economy and e-waste management industry.

The large enterprises circular economy market is projected to grow by $500,648 million, the circular waste management and recycling economy market by $190,509 million and the circular economy for electronic waste market by $107,628 million over the next five years from 2024 to 2029.

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