Ten things you need to know about the circular economy: a guide to the basics

As businesses and consumers increasingly recognise the importance of sustainability, the concept of a circular economy is gaining traction. But what exactly does it mean, and why does it matter? In this guide, we break down the ten essential things you need to know about the circular economy, offering a clear and concise introduction to the basics of this transformative approach to resource management.

One: It's a regenerative production-consumption model

A circular economy is a production-consumption model which is regenerative by design, hence the word ‘circular’. It functions in a way different to that of the linear model (make, use, throw away), which is currently the modus operandi favoured by the majority of businesses.

The circular economy favours sustainability, durability and longevity; it's a revolving cog rather than a static straight line. There's nothing particularly new about it, it's actually been around for a long time in various guises. However, due to multiple factors - the problem of pollution and waste, protection of nature and consumer willingness to pay more for sustainable goods, for example - it is considered to be a viable way forward to tackle and eradicate environmental issues and move towards a greener economic model.

Two: It's all about the 're'

A circular economy is based on reusing, remanufacturing, refurbishing, repairing and recycling. Basically any word with re- in front of it. Here's a few more: regenerating, re-jigging, re-working, re-selling, restructuring. Unnecessary built-in obsolescence must be eradicated.

All these words have got one thing in common: applying them to our way of life will give us the knowledge, ability and power to reduce waste and pollution significantly and consequently, to protect biodiversity and the natural environment, which brings us nicely onto our next point.

Three: A focus on regenerating the natural environment

A circular economy is one which protects the natural environment and actively promotes and nurtures biodiversity following the lead of the natural world where everything is circular and nothing is wasted. Take the water cycle: rain falls, flows down the mountains into streams turning into rivers flowing into the oceans, then once more forming clouds. Take trees: they lose their leaves to the ground where they break down lending their nutrients the rich soil so vital for the growth of younger trees.

A circular economy eschews the plundering, extracting and using up which has gone on throughout the linear economy and instead puts regenerative philosophy and practices at its core.

Four: The importance of strategic restructuring and re-education

Proponents of a circular economy stress that the current approach of focusing on recycling falls short. Recycling is only a small part of the answer; it is a reactive solution to a challenge that needs a proactive approach. Not throwing things away in the first place is much more important.

Fundamentally, on a national and international level, individually and collectively, we must rethink how economies have run since the start of the industrial revolution. Strategic restructuring of systems and system thinking, widespread, collaborative implementation and increased levels of education will be what is required to transition successfully to a circular economy.

Governments and organisations have already begun rewriting legislation and planning assistance and aid for those companies who are making the switch to circularity. They must also bring the circular model to bear on diverse issues ranging from urban development and food production to the fashion industry.

This has ramifications for the packaging industry. In order not to be stymied by rapidly changing legislation, a swift shift in mindset is required. The focus needs to move away from recycling to reuse, alongside which a creative reimagining of consumerism must emerge.

Five: Equitability is not just a buzz word

A circular economy is about equitability. All too often in the linear model, one person’s profit comes at the expense of another’s quality of life and the end justifies the means. But in a circular economy, big business bucks won’t jeopardise grassroots communities. In a circular economy, the planet and its people can function symbiotically. The relationship is mutualistic, not parasitic and leads to profitability for all, in the financial sense of the word but also in the way in which our planet and all its habitats profit, i.e., from its raw, natural resources not being overly used and mined.

Six: Think access over ownership

A circular economy promotes access over ownership and a desire to ‘have’ less and ensure that what we do have is of top quality. In many ways, this isn’t a concept that is unfamiliar to us and it's encouraging to consider that the advanced technology necessary to make such changes already exists. Consider the rise of streaming platforms such as Netflix or Spotify where we can watch to our hearts content, but don't have ownership of a physical DVD or CD. What's also notable is that more and more companies see the sense in promoting access over ownership.

Take Bundlee or Lullaloop, for example, whose founders came up with the idea of running a supply service for baby and toddler clothes. Once outgrown, they are returned to be passed on to someone else. When you think about it, it's totally illogical for everyone to be buying the same things and have them take up so much space only to be used a handful of times. This is the kind of business model that fits right into the circular model. (There’s a reason Lullaloop has a ‘loop’ in it.) 

Seven: It demands a long-term view

The circular economy demands that a long-term view be taken from the outset. Products must be designed and developed with an eye on reuse and eventual end. How durable are they? How easy is it to maintain and clean them? How convenient are they to mend?

Once a product has gone through multiple cycles and has finally reached the end of its life, its materials must be able to be easily separated and its parts recycled or composted. This may well happen many years from its initial manufacture, but should be considered when the sketches for the product are still on the drawing board.

Eight: Honest communication is key

Innovation and creativity will be necessary in the development of products, services and manufacture, but they'll be as equally important when it comes to the dialogue to be had with consumers without whose engagement the circular economy can't possibly work. Good communication, honesty and transparency are vital.

Initially, there are bound to be challenges, systems that break down, for example, as well as ideas that don’t work, and of course, disagreements. So it always is with the introduction of anything transformative and most especially something on the scale of the proposed circular economy with its profound reach and inevitable complexity. However, if businesses are open about the challenges, if they refuse to ‘greenwash’ their customers and aren’t afraid to admit to stumbling blocks, then not only will they be admired for their integrity, but, at the end of the day, they'll foster lasting brand loyalty and genuine respect.

Nine: Reusable packaging is essential

Such is the growth of e-commerce, that a key component for the success of the circular economy, is reusable packaging (this recent study, for example, has shown that reusable packaging is an economically viable alternative).

The packaging industry must now switch its focus to developing prototypes designed with successful reuse in mind: it is no longer enough that packaging is biodegradable or recyclable. Rather than one life (i.e. factory to supplier to consumer to bin), packaging must have a life cycle (factory, supplier, customer, supplier, customer and repeat).

Ten: There are resources out there to help

Every business can benefit from transitioning to circular practices. More importantly, they'll find it in their interests to do so, especially as more and more legislation to encourage circularity is passed.

To find out more about the circular model, including where to start, there are excellent sources of information and advice out there. Go to the Ellen MacArthur Foundation for in-depth explanation and a look at topics like returnable packaging, circular supply chains and collaborations as well as case studies, resources for policy makers and courses.

How RepeatPack can help you

We've run through the ten things you really need to know about the circular economy.

Now, if you want to know more about circular packaging, then visit our website and get in touch. As far as returnable packaging is concerned, there's no better people to talk to than our experts at RepeatPack.

Our reusable packaging is intuitive and easy to use, but crucially, the way it's been designed and developed also means it can quickly and seamlessly become a part of an existing system. Additionally, our packaging options address different business requirements, whether it's high returns packaging, sanitisable packaging or packaging that's extra tough and secure.

Go circular, call RepeatPack.