The hard truth about the circular economy – real change will take more than refillable bottles

We extract more than 100 billion tonnes^[1] of raw materials from Earth each year, then throw most of them away. The “circular economy”^[2] offers a different approach: instead of the linear “take-make-waste” model, we could reuse, repair and recycle materials. But despite growing enthsiasm for a circular lifestyle, we’re actaully moving backwards – and using more virgin resources than ever.

Over the past decade, the idea of a circular economy gained significant traction^[3], inspiring some to aim for a zero-waste lifestyle. It has become a cornerstone of the broader transition to net zero, as the production of oil-based plastics^[4] continues to generate waste and carbon emissions.

The reality paints a far less optimistic picture. According to the latest Circularity Gap report^[5], the use of “secondary” materials like recycled plastic or reclaimed wood is declining, while reliance on virgin resources continues to rise.

This raises the question why – with all the enthusiasm for a circular economy – are we still struggling to make meaningful progress towards it?

In our recent research^[6], my colleagues and I argue that progress is being held back by two distinct narratives. One paints a utopian vision – arguing that, with enough innovation, we can eliminate waste and regenerate ecosystems, all while continuing to grow the economy.

The opposite narrative is less hopeful and fixates on the obstacles – high costs, consumer resistance and the lack of government support. It concludes that meaningful change is simply unrealistic.

Trapped between these extremes of utopia and paralysis, people may often find themselves unable to move forward. Our research explores the roots of this impasse and identifies three reasons people struggle to adopt more circular lifestyles – too much talk, too little support and the hard limits of physics.

It’s easier to talk about circularity than to practise it. While consumers may embrace the idea of circularity in principle, they often stop short of making the fundamental changes to their consumption habits that it requires.

Part of the appeal lies in its simplicity as a concept. But achieving it is anything but simple.

For example, to jumpstart recycling in the UK plastics sector, the idea of One Bin to Rule Them All^[7] was introduced as a trial project in 2021. The framework outlined a single collection system for all plastic waste. While the vision was bold and appealing in its simplicity, research showed^[8] that many industry representatives viewed it as idealistic and disconnected from people’s daily realities.

The initiative struggled to gain traction due to concerns about its feasibility in practice. It would require changing the entire waste collection system and investing in digital tracking for plastic waste. Industry support remained limited, as companies were reluctant to invest beyond trials without clearer guidance from the government on legal requirements.

Building a circular economy requires collective effort. To offer another example, some fashion brands have begun to offer to collect clothes for recycling. It’s a promising initiative, but the support systems are not always in place. Even when items are returned, much of what is collected cannot be recycled because the materials are difficult to identify.

To make recycling effective, product labels^[9] would need to be standardised to state clearly the composition of each item. Yet many brands have been slow to embrace full transparency.

And some of the problem comes down to our changing shopping habits, which are also affecting efforts to reduce waste. When the UK introduced a 5p charge for single-use plastic bags in 2015 (later increased to a 10p minimum), their usage steadily declined^[10].

But in England, this progress has recently reversed^[11], with the shift blamed on more people shopping for groceries online or ordering food from delivery apps. In the push for convenience, people seem to have less support for initiatives to reduce plastic waste.