Recycling Most Frequently Linked to Failures, with Reuse Emerging as Second Most Represented Strategy

A comprehensive analysis of 145 global case studies has uncovered why circular economy initiatives often failed. The research highlighted systemic traps, design flaws, and financial constraints that obstructed progress. By exploring breakdowns in recycling, reuse, and supply chain practices, the study revealed overlooked weaknesses and offered insights into building more resilient circular business models.

Long Story, Cut Short
  • Of 145 circular economy initiatives analysed, 66 were confirmed failures and 37 potential failures, with recycling most frequently linked to problems and reuse often highlighted.
  • Failures were classified into 16 categories, exposing recurring design flaws, organisational misalignments, and financial barriers across industries and geographies.
  • The study showed that without systemic integration, bolt-on strategies and packaging-focused recycling schemes repeatedly collapsed under operational and consumer pressures.
Resilient local reuse and sharing schemes highlighted how consumer alignment could overcome structural traps seen in other categories
Local Use Resilient local reuse and sharing schemes highlighted how consumer alignment could overcome structural traps seen in other categories AI-Generated / Gemini

Recycling—the most widely promoted sustainability measure—is also where circular economy efforts most often collapse, argues new research. An analysis of 145 case studies has revealed that bolt-on recycling schemes, especially in packaging, repeatedly failed when disconnected from core business models. The findings raise questions about corporate strategies that rely on superficial fixes rather than embedding systemic change across design, operations, and consumer engagement.

  • Recycling emerged as the most common failure point, especially when adopted as a bolt-on strategy without deeper organisational commitment.
  • Case studies revealed that misaligned company purpose frequently undermined initiatives, particularly in packaging and reuse contexts.
  • Financial and regulatory pressures created significant scalability challenges, disproportionately impacting smaller enterprises with circular economy goals.
  • The study ‘Circular Economy and the Titanic Effect: Analysis of 145 Case Studies’ was published in Sustainable Production and Consumption

THE STUDY: The research examined 145 circular economy cases and found that 66 of them were failures and 37 potential failures. Failures were grouped into 16 categories, showing how weaknesses clustered around organisational, financial, and design issues. By integrating systems thinking with the 9R Framework, the analysis captured both published material and direct insights, revealing how misaligned priorities and structural traps undermined initiatives across multiple sectors.

  • Interviews with 23 practitioners across five continents provided firsthand accounts of failure, complementing a wider set of published case studies from academic, industry, and grey literature.
  • Recycling alone represented the single largest failure type, with packaging projects particularly overrepresented in this category.
  • Authors included Miranda Braga Gomes Nogueira, Jeanette Simpson, Adam Christopher Snow, Fiona Charnley, Begüm Yontar Avcı, Kevin Brown, and Tanvir Ahmed.
  • This research was supported by the UKRI National Circular Economy Hub

THE METHODOLOGY: The research combined a largescale case analysis with practitioner interviews to uncover failure patterns in circular economy initiatives. A total of 145 cases were assessed across diverse sectors and regions, supported by 23 in-depth practitioner interviews on five continents. Using the 9R Framework as an organising tool, the study classified failures into 16 categories, identifying both structural weaknesses and systemic traps that shaped outcomes across business models.

  • Cases spanned multiple industries and geographies, reflecting broad international diversity across business-to-business and business-to-consumer contexts.
  • The 9R Framework structured the classification, spanning strategies from refuse and rethink through to reuse, repair, refurbish, remanufacture, repurpose, and recycle.
  • This systematic coding enabled a robust comparison of weaknesses across different contexts and industries.

CONSEQUENCES OF FAILURE: The collapse of circular initiatives carried severe consequences for businesses, regulators, and consumers. Recycling alone accounted for the majority of breakdowns, particularly in packaging, while reuse was the second most represented strategy in cases where problems were identified. These collapse points translated into reputational damage, regulatory gaps, and wasted investment, exposing the fragility of circular transitions when pursued as supplementary actions rather than embedded strategies.

  • Smaller enterprises were disproportionately affected, with scalability and financing problems leading to collapse despite circularity being central to business models.
  • Organisational misalignment and cost burdens appeared consistently across cases, undermining both commercial and policy-driven goals.

DETAILED FAILURE BREAKDOWN: Of the 145 cases assessed, 66 were identified as failures, 37 as potential failures, 17 as having no failure, and 25 as requiring further research. Recycling dominated the breakdowns, with packaging initiatives frequently collapsing. Reuse was the second most represented 9R strategy in cases where failure was identified, contrasting with earlier research that had emphasised low uptake. Failures clustered at the extremes of the 9R Framework, with recycling and recovery at one end and rethink/refuse initiatives at the other.

  • Failures were distributed across 16 categories, but recycling and recovery were consistently overrepresented compared to repair or remanufacture.
  • Organisational and financial barriers were frequently reported, reinforcing why smaller enterprises struggled more than larger firms to sustain initiatives.

ROOT CAUSES: The figures showed that recycling was not just the most common failure but also the most misused strategy, accounting for a disproportionate share of identified breakdowns. Many projects were introduced as surface-level branding efforts rather than systemic redesigns. The breadth of these failure categories suggested that superficial engagement, more than technical limitations, was the primary driver of collapse.

  • Packaging-related recycling projects contributed disproportionately to failure statistics, exposing the risks of pursuing visible but shallow interventions.
  • The dominance of recycling in failure rates highlighted how organisations favoured symbolic action over embedded structural change.
  • Reuse projects also contributed significantly, reflecting weak consumer participation rather than technical barriers.
  • Cases showed that organisational purpose and culture were better predictors of outcomes than one-off technical solutions.

SYSTEMIC BARRIERS: The study placed circular economy breakdowns in a broader systemic context. Failures clustered at the ends of the 9R Framework, where recycling and recovery on one side and rethink or refuse on the other accounted for a disproportionate share. These results showed that without structural shifts, businesses and policymakers risk reinforcing linear models despite apparent circular investments.

  • The overall failure pattern highlighted the depth of systemic barriers undermining circularity across industries.
  • Failures displayed consistent repetition of financial, design, and organisational traps across geographies.
  • This exposed how highly visible strategies could divert attention from the deeper systemic reform needed.
  • Consumer behaviour emerged as a critical weak link, with uptake often lagging even when infrastructure existed.

REAL-WORLD EXAMPLES: The dataset's failures included refill and repurposing models that collapsed when practical barriers emerged. These cases illustrated how individual initiatives often fail to account for systemic challenges, such as consumer behaviour, supply chain complexities, or end-of-life burdens, despite good intentions. These examples reflect the wider statistical patterns observed across industries.

  • These failures were often linked to challenges in consumer adoption and product viability.
  • Recurring design flaws, particularly in complex materials, repeatedly undermined outcomes.
  • Mixed-plastic projects contributed to recycling’s dominance in failures, despite their aim to showcase circular innovation.
  • Examples highlighted how individual collapses mirrored wider structural weaknesses across industries.

CROSS-SECTOR IMPACT: The collapse of these initiatives rarely stayed contained within individual firms. Failures in waste-related projects strained downstream processors and waste systems. Failures in reuse initiatives left small firms financially exposed when consumers disengaged. Breakdowns multiplied costs, eroded trust, and reinforced the dominance of linear supply chains over circular alternatives.

  • Recycling failures created surpluses of poorly sorted or non-recyclable material, overwhelming processors and raising costs across industries.
  • Reuse breakdowns pushed financial losses onto smaller companies, magnifying their vulnerability within fragile markets.
  • Policy inconsistencies amplified ripple effects, leaving failure trends largely unaddressed at systemic level.

WORTH NOTING: Not all initiatives collapsed. Of the 145 examined, 42 succeeded, often in smaller, locally embedded enterprises. These cases showed that circularity could thrive at community level even if largescale replication was elusive. The study cautioned against equating lack of scalability with failure, noting that context and purpose alignment mattered as much as design. Such successes provided a crucial counterbalance to the documented failures, offering evidence of resilience and viability.

  • Forty-two initiatives avoided failure, demonstrating that circularity was viable when embedded in local or community-based business models.
  • Smaller enterprises succeeded when circularity was central to their purpose, contrasting with add-on initiatives more typical in larger firms.
  • Resilient local reuse and sharing schemes highlighted how consumer alignment could overcome structural traps seen in other categories.
  • The weight of documented failures overshadowed but did not erase examples of meaningful, if modest, circular success.
Failure Hotspots
  • Recycling projects consistently collapsed when pursued as bolt-on strategies disconnected from core business operations.
  • Reuse initiatives frequently failed because of weak consumer participation, rather than insurmountable technical or logistical barriers.
  • Packaging-focused schemes accounted for a disproportionate share of breakdowns, exposing shallow interventions disguised as sustainability measures.
  • Smaller enterprises bore heavier burdens, with financial and scalability issues forcing collapse despite strong sustainability commitments.
  • Failures often stemmed from organisational misalignment, undermining circular goals even where infrastructure and technical capability existed.
Resilient Exceptions
  • Forty-two initiatives succeeded, showing circularity could thrive through community-based and locally embedded business models.
  • Success was strongest when circularity formed the organisation’s core purpose, not an additional branding initiative.
  • Local reuse and sharing schemes demonstrated that strong consumer alignment could overcome systemic financial or design traps.
  • Evidence showed that smaller, focused enterprises sometimes outperformed large firms in sustaining meaningful circular practices.
  • These successes proved that viable circular models exist, even if large-scale replication remains challenging and elusive.
 
 
  • Dated posted: 9 September 2025
  • Last modified: 9 September 2025