Circular businesses grow two times faster than linear competitors

The new report produced by environmental action NGO WRAP and OC&C Strategy Consultants, looked at how circular living strategies are becoming more commonplace in UK boardrooms.

It also found that circular industries have been growing 3.1% faster than linear industries.

Catherine David, WRAP CEO said” “Circular Living strategies are now firmly established in many businesses – large and small – but many more are missing out on the benefits they offer.

“Here we show how Circular Business Models can build resilience, unlock growth and help secure customer retention by staying relevant in an ever-changing marketplace.

“Our report highlights the key strategies and rewards they’re delivering and is essential reading for any business wishing to future-proof itself.”

Examining the data of 200 UK businesses and 1,500 customers starting in 2020, the report identified that early adopters of the principles benefit from revenue growth, competitive advantages and cost saving.

“Are Businesses Leaving Money on the Table? – Creating Value through Circularity” showed that awareness of circularity is relatively high in businesses and details how it’s helped improve financial performance, mitigate against supply chain risks, opened new business opportunities and enabled businesses to become more policy compliant.

The report also found that there is growing investment into circularity, with 184 financial investments made in circular economy ventures in 2023 – an increase of 42% on 2022.

Investment volume growth had been slower prior to this, with a 34% per annum rise between 2018 and 2022.

Ewan Parry, Parter at OC&C Strategy Consultants, added: “Our research uncovered that businesses pursuing circularity are benefiting much more than just improving their “green credentials”.

“Adopting Circularity can unlock real commercial value across a wide range of businesses, from driving new revenue streams, to boosting customer retention and loyalty, whilst also providing supply chain efficiencies.

“While circular initiatives are not one-size-fits-all, we’ve seen that when circular strategies are carefully designed and targeted, they can deliver tangible commercial benefits to businesses.

“For many companies, the next step is moving from awareness to action: embedding circularity in ways that supports long-term growth and competitive advantage.”

Read the full report here.