Marketing the Circular Economy

Cutting Through the Buzzwords – What We Mean by the Circular Economy

At its simplest, the circular economy is about designing out waste and keeping materials in use for as long as possible. Instead of the traditional take-make-dispose model, circular approaches prioritise reuse, repair, remanufacturing, and recycling.

But it is not just an environmental idea. The circular economy has become a business and investment strategy.

For companies, it reduces supply chain risks and creates efficiency gains.
For investors, it promises long-term resilience and resource security.
For policymakers, it supports climate goals and regulatory compliance.
For consumers, it offers products and services that generate less waste and provide greater transparency.

That mix of economic, environmental, and social value is exactly why circular business models are gaining attention, and also why marketing them is unusually complex.

The Global Picture

The circular economy is no longer a niche concept. The global market was valued at approximately $463 billion in 2024. Growth projections hover around 12% annually.

Europe leads this transition, driven by regulation and policy ambition under the European Green Deal. For UK businesses, that creates both opportunity and pressure. Those who communicate circular credentials effectively will be better positioned to attract international investment.

The UK Context

In the UK, circular economy initiatives are already reshaping industries. Veolia estimates that scaling circular economy models could add GBP 29 billion to GDP and create around 175,000 jobs. The government has set a 65%recycling target by 2035, with new Extended Producer Responsibility rules requiring packaging producers to cover the full cost of recycling.

The regulatory landscape continues to tighten. Extended Producer Responsibility for packaging came fully into force in 2025. Producers must now pay waste management fees and report detailed packaging data. Government figures suggest the scheme will support 25,000 jobs and stimulate more than GBP 10 billion in recycling infrastructure.

Investment is following. According to BDO, UK circular economy businesses attracted GBP 2.2 billion in disclosed funding during 2024, a 64% increase on 2023. Venture capital and private equity accounted for 78% of transactions. The market is maturing. Investors increasingly see circular models as commercially viable, not just environmentally worthy.

Yet despite progress, the UK still sends around 14 million tonnes of waste to landfill every year, with another 10 million tonnes exported. For circular businesses, this tension between opportunity and underperformance is where marketing has to do heavy lifting. It must communicate both the scale of the problem and the credibility of the solution.

The Real Marketing Challenge

Many circular economy organisations assume their biggest marketing challenge is explaining what they do. That is why websites and brochures often overflow with closed-loop diagrams, jargon-heavy process explanations, and earnest sustainability messaging.

But after reviewing dozens of ventures, one pattern is clear. Stakeholders care far more about outcomes than about processes. They want to know what difference circularity makes to profitability, risk reduction, consumer choice, and climate targets.

This is why even brilliant innovations struggle to engage stakeholders. It is not a failure of technology, but of communication strategy.

B2B is Different

Circular economy marketing in B2B contexts faces distinct challenges!

Consumer purchases are driven partly by emotion. B2B decisions are not. They involve multiple stakeholders with competing priorities. Sales cycles are longer. Procurement teams demand evidence of return on investment.

This means circular businesses must show commercial advantage, not just environmental benefit. Cost savings. Reduced supply chain risk. Regulatory compliance. Enhanced brand value for the buyer’s own customers.

Case studies carry weight. Testimonials matter. Procurement teams want proof that circular solutions deliver measurable results.

Stakeholder Complexity Creates Marketing Multipliers

Circular businesses rarely have a single audience. A UK textiles venture focused on fibre-to-fibre recycling, for example, must simultaneously convince:

Impact investors who demand quantified environmental metrics and long-term scalability
Fashion brands that need evidence of integration feasibility and cost competitiveness
Consumers who want simplicity and transparency, not complex chemical processes
Regulators who require compliance data and traceability
Partners who need technical specifications for collaboration

Each group interprets success differently, operates on different timescales, and responds to different types of proof. This is not just a messaging problem; it is a communication architecture challenge.

Matching Evidence to Priorities

Effective circular marketing requires tailoring evidence to each stakeholder.

Investors respond to financial modelling. Corporate partners need scenario analysis showing reduced supply chain risk. Consumers want simple impact calculators. Regulators expect compliance documentation. Technical partners require specifications.

Without this tailoring, communication becomes inconsistent. Each audience hears an inspiring vision but cannot see how it connects to their priorities.

Why Buzzwords Backfire

The temptation is to reach for familiar sustainability buzzwords such as zero waste, net positive, or closed loop. But used without context, they erode trust rather than build it. UK consumers are among the most sceptical in Europe. Recent research found that over 40% distrust brands’ environmental claims, citing greenwashing fatigue as the main reason.

The scepticism is deepening. Capgemini research in 2025 found that 62% of consumers believe companies are greenwashing. That is up from 33 % in 2023.

A 2024 survey by Dentsu and the Conscious Advertising Network found that just 9% of UK consumers trust brands to accurately portray their climate commitments. Demos research puts the figure for consumers who believe companies actively hide environmental information at 57%.

The credibility gap is compounded when businesses fail to provide tangible evidence. It is not enough to say you are circular. Stakeholders want proof in the form of quantified impacts, third-party validation, and independent verification. Without this, your marketing risks sounding more like aspiration than delivery.

Regulators Are Responding

The Competition and Markets Authority now provides formal guidance on environmental claims through its Green Claims Code.

Under the Digital Markets, Competition and Consumer Bill, companies face civil penalties of up to 10% of global turnover for misleading claims. The EU has introduced the Empowering Consumers for the Green Transition Directive, banning unsubstantiated environmental claims.

For circular businesses, this is an opportunity. Those who can substantiate claims with robust evidence will stand out as competitors face scrutiny.

Lessons From UK Pioneers

Some organisations are beginning to solve this challenge by anchoring their communication in evidence and outcomes.

Circular Computing positions itself not just as a sustainability brand but as a credible IT procurement option. Its remanufactured laptops are verified to save over 300kg of CO2 per device compared with new ones. This figure resonates with corporate sustainability teams who must report on emissions.

Celsa Steel UK reframes recycling at scale by showing how it diverts 1.2 million tonnes of scrap metal annually into new steel production. Rather than focusing on furnaces and processes, its communication stresses reliability, resilience, and the ability to supply major construction clients sustainably.

The Royal Mint highlights value recovery by reclaiming precious metals from electronic waste. Its story resonates because it shows how a heritage institution is adapting to future supply challenges while creating high-value products.

Each case demonstrates that effective marketing in the circular economy is not about being the most innovative. It is about building systematic credibility and making the outcomes tangible for different stakeholders.

The Financial Case

Circular business models deliver measurable financial benefits. These strengthen marketing messages.

The Ellen MacArthur Foundation estimates that circular business models in fashion alone could represent a $700 billion opportunity by 2030.

Renault’s remanufacturing operations use 80% less energy and 90% less water than new parts production. Interface, a commercial flooring company, saved over $450 million in avoided waste costs between 1995 and 2018.

Leading with financial outcomes often proves more effective than leading with environmental messaging. Sceptics respond to cost savings, efficiency, and reduced risk.

Moving From Hype to Impact

Circular economy ventures sit at the intersection of urgent environmental need and compelling business opportunity. But the marketing challenge is not to explain ever more complex processes. It is to communicate measurable outcomes in ways that resonate with different stakeholders without slipping into greenwash or jargon.

In this series of circular economy articles, we look at how to build the evidence and communication systems that move circular businesses beyond buzzwords and into real stakeholder engagement. Part two will focus on the credibility challenge and how to convert sceptics with proof rather than promises.