Five companies show circular business models succeed

Global material recycling has fallen to 7.2%, yet five consumer goods firms prove circular practices boost profits and reduce environmental harm. From furniture to fashion, these companies use take-back programs, recycling, and sustainable designs to extend product life cycles. Their results highlight scalable solutions amid declining worldwide circularity.

The Circularity Gap Report 2024 reveals that only 7.2% of global materials are recycled or reused, down from 9.1% in 2018, with recovered materials dropping 21% over five years. Despite this, research in Business Strategy and the Environment confirms circular strategies deliver financial gains and lower impacts, supported by $400 billion in recent investments from the Ellen MacArthur Foundation.

Ingka Group, IKEA's largest franchisee operating 574 stores across 31 countries, repurchased over 495,000 used furniture items in 2024 via its Buyback and Resell program. These items are resold in As-Is sections or the tested IKEA Preowned marketplace in Oslo and Madrid. The company distributed 25.8 million free assembly parts to 2.2 million customers that year, reducing its climate footprint by 24.3% from 2016 to 2024 while growing revenue 30.9%. Ingka plans €7.5 billion for sustainability by 2030, including €1 billion for circular startups.

Nike's circular efforts began in 1992 with the Nike Grind program, recycling over 148 million pounds of scrap and shoes, processing 1.5 million pairs annually through Reuse-A-Shoe. It diverts 98% of waste from distribution centers and achieves 100% diversion at main footwear sites for four years. In 2024, the Textile-to-Textile initiative recycled over 135 tons of high-PET scraps, while Nike Refurbished resells cleaned used shoes.

HP Inc., named 2024 North America Company of the Year for circularity, incorporated over 4 billion pounds of reused, recycled, or renewable materials since 2019, reaching a 43% circularity rate with a 75% goal by 2030. Its Planet Partners program in 76 countries refurbishes 85% of collected devices. HP used over 1 million pounds of ocean-bound plastics from Haiti in products like the EliteBook 1040 G11, cutting value-chain emissions 27% and product-use emissions 46% since 2019. The HP HOPE program has supplied refurbished devices to over 40,000 young people.

Interface, the top commercial carpet tile maker, launched Mission Zero in 1994 and hit zero negative impact in 2019, ahead of schedule, targeting carbon negativity by 2040. Its cradle-to-gate carbon footprint fell 76% since 1996, with 50% of materials recycled or bio-based. Waste to landfills dropped 92%, water use per unit 89%, and emissions 96%, saving over $450 million. The ReEntry program recycles flooring, and Coast 4C collects fishing nets from Philippines and Cameroon communities.

MUD Jeans, a Dutch denim brand, introduced Lease A Jeans in 2013, offering monthly fees, free repairs, and returns for recycling. Each pair emits 7.14 kg CO2e versus the industry's 23.45 kg, uses 581 liters of water against 7,000, and has 51% lower biodiversity impact. Fabrics contain up to 55% post-consumer recycled cotton; in 2022, it produced the first 100% recycled cotton jeans with Saxion University. B Lab ranks it in the top 5% of B Corporations for environmental performance.

A 2024 Production Planning & Control review shows circular principles foster value through new products, services, and supply-chain collaboration. These firms' commitments to take-backs and recyclable designs demonstrate viability across sectors, urging broader adoption as global circularity stalls.

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The circular economy expanded by 7.5% last year, employing over 2.2 million people worldwide, as outlined in the StartUs Insights’ 2025 Circular Economy Report. Investors poured more than $670 million into startups advancing material recycling across sectors like fashion and energy. Several companies stood out for their innovations and partnerships, positioning them for growth in 2026.

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The Circularity Gap Report 2024 reveals that the global economy's circularity has declined to 7.2 percent, down from 9.1 percent in 2018. This means less than 8 percent of consumed materials like steel, plastic, and food come from recycled or reused sources. The report, published by Circle Economy with Deloitte, highlights the persistence of the linear take-make-dispose model amid rising sustainability discussions.

Keurig Dr Pepper faced a $1.5 million penalty in September 2024 from the U.S. Securities and Exchange Commission for misleading claims about the recyclability of its K-Cup pods. The company has since launched new programs to address waste from the estimated 576,000 metric tons of coffee capsules produced annually. These initiatives include mail-back recycling and upcoming plastic-free alternatives.

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The global market for refurbished electronics has expanded to $62 billion in 2025, driven by consumer demand for affordable and sustainable options. This growth highlights a shift toward viewing technology as durable goods rather than disposable items, with projections estimating the industry will double to $122 billion by 2032. Environmental concerns, including rising e-waste, further fuel this trend among younger buyers.

 

 

 

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