Circular Transformation of Industries The Art of Scaling Circular Supply Chains 2025

of 491 executives across 10 manufacturing industries said circularity will be important or very important to their organizations within three years.95%Introduction: Setting the course Scaling circular models is like navigating a fleet through choppy seas: each value proposition sails at its own pace. Keeping the fleet on course requires coordination and the ability to adapt to changing conditions. Companies are no different. There is no “one-size-fits-all” approach to circularity. Instead, business leaders must chart their own course, drawing on their own experience and lessons from pioneers. For those who succeed, the rewards are substantial. Circularity’s importance is growing rapidly. In a July 2025 survey of 491 executives across 10 manufacturing industries, 95% said circularity will be important or very important to their organizations within three years, with 71% rating it “very important”. Growth expectations are equally strong. Respondents report that revenue from circular activities has kept pace with company averages so far, and 80% expect circular revenue growth to exceed average growth within three years. Optimism is highest in the automotive sector, where 86% of respondents anticipate above- average revenue growth for their circular products. Profitability is expected to follow; 70% of executives anticipate higher margin growth from circular activities than from linear ones. Yet the adoption of circular business models remains uneven, and maturity varies across industries. Realizing its potential requires profound organizational transformation. Bain & Company’s 2023 Transformation and Change Survey of 469 global executives found that 88% of major transformations fell short of their goals, with 13% achieving less than half of their intended impact.2 Like any significant change, deploying circular value propositions brings complexities and hurdles that companies must navigate. This paper defines the key steps and success factors for implementing circular supply chains effectively.Circularity is a challenging yet rewarding undertaking. Organizations that embrace this shift can unlock innovative practices and meaningful rewards. How important is circularity for your organization for the given time frames? FIGURE 2 020406080100Level of importance (in %) 5 (very important) 4 3 2 1 (not important at all)3 years ago23%45%20%10% 3 years from now58%40% Currently35%35%28% 3 years from now71%24% Currently30%49%18% 3 years ago9%27%35%24%3% 3% 5% 2% 4% 3% 2024 survey 2025 survey Source: Global market survey by Bain & Company and the CTI initiative of 491 executives (July 2025). Circular Transformation of Industries 6