Circular Transformation of Industries 2025

For example, in the fashion industry, responsible usage of resources is part of ecological fashion brands’ identity and a key purchasing criterion for conscious customers. Cost: The cost impact of circular feedstock solutions can vary based on material type and operational efficiency. Sourcing recycled materials alters the cost structure throughout the value chain with new cost pertaining to activities such as collection, sorting and transportation. When materials have a high residual value, are in high demand and have efficient recycling processes, as is the case for many metals such as cobalt, nickel and aluminium, recycling is cost competitive with virgin materials.21 However, when complex collection, sorting and cleaning of materials are required, and the recycling process is energy- intensive (as for plastics) or has lower yields, it becomes less cost efficient. Also, the cost of many recycled materials will rise as demand exceeds supply. This is already true for recycled PET (rPET), where prices have been rising since 2021,22 since more industries are increasingly demanding rPET due to regulations and customer preferences. Enabling strategies – Circular feedstock FIGURE 4 Build flexible supply chains and operations for circular business models and assess how feedstock of varying quality might affect the standardization of processesEconomic valueAdopt a segmented strategy tailored to recycling standards, collection infrastructure and customer/consumer expectationsEstablish partnerships and activate the entire value chain to secure long-term and cost- competitive access to recycled materialsA B C Source: Circular Transformation of Industries initiative Circular Transformation of Industries: Unlocking Economic Value 12