Why the Circular Economy Is Also Good Business

The way we create value is changing and circular thinking is leading the charge. Not just because it should be, but because it’s the only model that actually adds up both economically, environmentally, and socially.

Photo by Joey Kyber on Unsplash

For the past few years, we’ve been working with organisations across industries, exploring possible futures, testing new strategies, and helping them navigate change with more clarity. And in that work, one message has come through louder and louder: the futures are circular. Not just because they should be, but because it’s a model that actually adds up both economically, environmentally, and socially.

This realisation became especially clear to me during a recent advisory project with a global beverage brand. We weren’t just talking about packaging design or deposit systems. We were looking at the broader challenge: how to shift from a throwaway culture to a system built on loops, reuse, and shared responsibility. And once you start seeing the logic of circularity, it’s hard to unsee it.

A Shift in Mindset (and Materials)

Let’s start with the basics. Our current economic models are built like a one-way street: extract, make, sell, dispose. It’s fast, it’s efficient—and it’s breaking the planet.

Circularity invites a different logic, especially when we mix it with futures thinking. We end up with questions like:

• What if waste didn’t exist?

• What if value didn’t stop at the point of sale?

• What if the system was designed, start to finish, to regenerate, not deplete?

That might sound idealistic, but the good news is: it’s already happening. From Fairphone’s modular electronics and Too Good To Go’s fight against food waste, to IKEA’s buy-back furniture hubs and universal returnable bottles in Latin America, the ideas are not missing. What we need now is courage to scale, find coherence and collaborate

Circularity is about designing smarter systems that make better outcomes easier, more natural, and more rewarding, for businesses, consumers, and the planet.

Why Circularity Makes Business Sense

Here’s the thing: circularity is about doing things better, not just about doing less harm or about perfection in the first place. For business, the (radical) transformation needed, might seem bold but it could also help realize a first-mover advantage.

Growth. Circular models unlock new revenue streams—like subscription, new services, sharing, or resale. But more importantly, they strengthen brand loyalty. People want to support businesses that align with their values. Arguably, the whole notion of circularity fit poorly with the growth-driven world we live in, which is why post-growth systems might the natural next mountain to climb.

Profitability. Designing out waste reduces costs. Reuse and standardisation bring efficiency. And as raw materials become more volatile in pricing and accessibility, businesses that reuse what they already have will gain a serious edge.

Environmental Impact. Yes, circular systems lower emissions and reduce extraction. But they also build resilience, against policy shifts, climate disruption, and changing consumer expectations.

When you zoom out, circularity could be much more than the perceived burden than many businesses seem to think it is. For the long run, it’s a smarter way to run a business.

Brands as System Shapers

Brands don’t just reflect culture, but very much actively shape it.

They define what’s desirable, what’s aspirational, and what’s normal. That means they have both responsibility and opportunity to lead the shift to circularity, not just through messaging, but through the way things are made, used, returned, and reimagined.

Take packaging. Returnable systems often fail not because the technology doesn’t work, but because the experience isn’t right. If returning a bottle feels like an inconvenience, people won’t do it. But if it’s frictionless, familiar, even rewarding, it can become second nature.

That’s why in Denmark, “pant” (our deposit return system) enjoys a 92% return rate. Because it’s everywhere. Because it’s intuitive. Because it works. And the 8% leftover fee, then gets used to keep the system running.

The lesson? Design for behaviour. Make it easy. Make it feel good. Make it meaningful. Try to help the consumer towards a helping themselves (and the world in turn) with a philosophy of ‘better world, better me’. That’s how you build systems people want to be part of.

Circularity Needs Radical Thinking

Incremental change won’t get us there. We need bold ideas.

Circular innovation means asking better questions. What if packaging didn’t exist at all? What if products were built to be disassembled and reassembled like LEGO? What if we didn’t sell things, but access, experience, and outcomes?

This isn’t science fiction. It’s happening. From GANNI’s material experiments with Fabrics of the Future to TerraCycle’s Loop platform that unites competitors around reusable packaging, radical doesn’t mean unrealistic. It means rethinking the fundamentals.

And this kind of innovation is often more cultural than technical. It’s about how people feel. How we relate to ownership, waste, and repair. That’s why we need circularity to be visible, intuitive, and emotionally engaging.

It Takes an Ecosystem

No company can go circular alone.

Circular systems depend on shared infrastructure, aligned incentives, and deep collaboration across sectors. Whether it’s a functional deposit return system or city-wide reuse loops, the model only works when everyone—from manufacturers to policymakers to end-users—pulls in the same direction.

Look at Denmark’s DRS. Or Japan’s approach to recycling construction materials. Or pre-competitive initiatives like the Ellen MacArthur Foundation’s Jeans Redesign. The formula is clear: start by aligning on standards, then innovate on top.

The most exciting circular projects we’ve seen are the ones that think big and act together. That of course take the courage to give without expecting immediate returns but can turn out to benefit the whole industry landscape at large.

How We Work with Circular Futures

At ANTICIPATE, we help organisations look ahead and act with intention.

Through our ACT Foresight Framework, we guide companies and institutions to anticipate long-term shifts, create bold strategies, and transform their operations for resilience and relevance.

We’ve supported circular transitions in supply chains, regenerative urban planning, and systems-level innovation, often alongside our partners at Earthshine Group,

Our work is grounded in real-world strategy but deeply futures-focused. We make sense of change and then help organisations shape it. By connecting megatrends with market realities, and by making the circular economy feel both visionary and viable.

The brands that lead this shift will be the ones that move beyond compliance, beyond slogans, and start redesigning their business from the inside out.

Circularity shouldn’t be seen as an inferior alternative, it can be an upgrade. Instead of asking why, start asking how.