A WRAP and OC&C Strategy Consultants report reveals that circular business models are driving faster growth and greater resilience, but many companies are failing to seize the financial and environmental benefits.
A new report has warned that many UK businesses are missing significant opportunities to improve financial performance and resilience by failing to adopt circular economy practices.
The report, Are Businesses Leaving Money on the Table? – Creating Value through Circularity, was published by global environmental action NGO WRAP and OC&C Strategy Consultants. It examines 200 UK businesses and 1,500 consumers, revealing that circular industries have grown 3.1 percentage points faster than traditional linear industries since 2020. Circular-native companies are also growing up to twice as fast as their linear competitors.
Catherine David, CEO of WRAP, 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.”
The report highlights that circular approaches—such as designing for durability, extending product life, repair services and resale—are gaining momentum. Sixty per cent of businesses surveyed now design products for durability or repairability, while investors are increasingly drawn to circular business models. In 2023, there were 184 financial investments in circular economy ventures, an increase of 42% on 2022. Between 2018 and 2022, investment volumes rose by 34% per year.
We show how Circular Business Models can build resilience, unlock growth and help secure customer retention by staying relevant in an ever-changing marketplace
Ewan Parry, Partner at OC&C Strategy Consultants, said: “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 support long-term growth and competitive advantage.”
The report includes case studies of companies leveraging circular strategies for competitive advantage. Appliance manufacturer Miele, for example, designs products with a 20-year life expectancy—compared with the 10–15-year market average—allowing it to command a price premium of 25–50% over competitors.
Retailer Currys completed 1.4 million repairs in 2023/24, generating 15% of its revenue and differentiating it from online competitors. Philips now provides MRI scanners as a service rather than outright sales, with 24% of its revenue coming from circular services—a 10-point rise since 2020.
Other examples include Lidl UK, which has cut food waste by 43% since 2016 by using AI to improve forecasting, avoiding more than 9,000 tonnes of waste. Apple’s certified refurbished programme, which uses authentic parts and offers AppleCare+, refurbished 12.8 million devices in 2023, contributing 3% of its sales volume and retaining 85% of product value compared with third-party refurbishers.
The report also analyses consumer trends, finding that 78% of people engaged in at least one circular activity—such as repair, resale or product rental—over the past year, excluding recycling. While 43% of consumers said they would pay more for products with a lower environmental impact, economic and convenience factors remain decisive in shaping buying decisions.
To accompany the report, WRAP and OC&C Strategy Consultants hosted a business workshop at Decathlon’s London headquarters. The event explored consumer adoption, operational adaptation and circular product design. A panel chaired by WRAP Chair Sebastian Munden featured Clare Wood of Stewart Investors, Chris Allen of Decathlon, Mairi Fairley of OC&C, and Jen Emerton of WRAP.
The report concludes that businesses failing to integrate circular practices risk not only missing financial gains but also facing increasing challenges from supply chain volatility and tightening sustainability regulations.
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