The complete list of business models in the circular economy
Last updated: 13 March 2026
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In our circular economy deck, you will find everything you need to understand the market
The circular economy is reshaping how companies design products, manage resources, and capture value across entire supply chains.
This list covers the main business models emerging in the circular economy, from peer-to-peer recommerce platforms to advanced material recovery systems, and we update it regularly as new models gain traction.
Understanding which models are actually scalable, defensible, and margin-rich matters more than ever as capital continues to flow into this space.
And if you want to better understand this new industry, you can download our pitch covering the circular economy.
A quick summary table
| Metric | Value |
|---|---|
| Total circular economy business models mapped | 34 |
| Highest scalability score (circular economy models) | 10 (Peer-to-Peer Recommerce) |
| Share of top-8 scalability models that are software or marketplaces | 75% |
| Most common revenue model among top-scalability models | Subscription and transaction fee |
| Capital intensity of highest-scalability circular models | Low |
| Typical scalability range for industrial materials models | 6 to 8 |
| Defensibility range for qualification-driven materials businesses | 7 to 8 |
| Weakest economic zone in the circular economy landscape | Waste brokerage and brand-funded programs |
| Best scalability-to-capital-intensity ratio | SaaS and marketplace models |
| Dominant sales motion for enterprise circular economy software | Enterprise sales |
| Revenue model associated with highest quality of earnings | Recurring subscription or transaction fee |
| Battery circularity models in top 10 by scalability | 2 (battery-to-cathode and material recovery) |
In our circular economy deck, we provide the data and the context to understand it
All the business models in the circular economy
Here is a table that maps the main business models in the circular economy, highlighting how they differ in scalability, margins, defensibility, capital intensity, and monetization approach.
| # | Business Model | Description | Example Companies | Scalability | Margin Potential | Defensibility | Capital Intensity | Category | Who Pays | Customer Segment | Revenue Model | Pricing Metric | Sales Motion | Key Strengths | Key Risks | Investor Perspective |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Peer-to-Peer Recommerce Marketplaces | Consumers buy and sell secondhand goods directly on networked platforms. | Vinted, Poshmark, Depop, OfferUp | 10 | 8 | 8 | Low | Marketplace | Buyers and sellers | Consumers | Transaction fee | Per transaction | Product-led marketplace growth | Powerful network effects with asset-light scaling | Fraud and multihoming risk | Massive upside if liquidity and repeat usage compound |
| 2 | Battery-to-Cathode Upgraders | Upgrade recycled battery inputs into qualified cathode materials for manufacturers. | Ascend Elements, Redwood Materials, Lohum, Cirba Solutions | 9 | 8 | 8 | High | Materials | Battery manufacturers, OEMs | Enterprises | Product sales | Per ton sold | Enterprise sales and partnerships | Strategic supply-chain position with qualification-driven switching costs | Qualification delays and capex overruns | High-value circular infrastructure if feedstock and offtake lock in |
| 3 | Recycling Robotics and Sorting Automation | Sell AI robotics improving recycling yield, throughput, labor efficiency, and data. | AMP Robotics, Recycleye, Glacier, Greyparrot | 9 | 7 | 7 | Medium | Hardware | Recycling plant operators | Enterprises | Hardware + subscription | Per system + service contract | Enterprise sales | Recurring software layered onto industrial automation | Long sales cycles, hardware reliability | Attractive picks-and-shovels model with improving recurring revenue mix |
| 4 | Waste Intelligence Software | Software analyzes waste streams, optimizes operations, and reports savings outcomes. | Greyparrot, Rubicon, Winnow, AMP Robotics | 9 | 8 | 6 | Low | SaaS | Enterprises, municipalities | Enterprises | Subscription | Per site / year | Inside sales | Software margins with measurable operational ROI | Dashboard commoditization and budget cuts | Best when embedded in workflows and cost reduction |
| 5 | Branded Resale Infrastructure Software | Enables brands to operate branded resale, trade-in, and circular commerce channels. | Trove, Archive, Treet, Recurate, Reflaunt | 9 | 8 | 7 | Low | SaaS | Brands and retailers | Enterprises | Subscription | Per brand / month + take rate | Enterprise sales | Benefits from resale growth without inventory ownership | Enterprise concentration and service creep | Strong software economics if workflow ownership expands |
| 6 | Refurbished Electronics Marketplaces | Marketplace sells vetted refurbished devices with warranty, trust, and financing. | Back Market, Refurbed, Reebelo | 9 | 7 | 7 | Low | Marketplace | Consumers, enterprises | Consumers | Commission | % GMV | Product-led with partnerships | Trusted brand and fragmented supply aggregation | Quality inconsistency and price competition | Strong category if trust and sourcing loops deepen |
| 7 | Battery Material Recovery Platforms | Collect and recover battery metals, then resell refined outputs downstream. | Cirba Solutions, Attero, Li-Cycle, Redwood Materials | 8 | 7 | 7 | High | Materials | Waste generators, material buyers | Enterprises | Product sales | Per ton processed / sold | Enterprise sales and contracts | Two-sided monetization with strategic material relevance | Commodity volatility and plant ramp risk | Valuable node if recovery yields and contracts improve |
| 8 | Distributed Refining Systems | Sell modular refining systems for on-site recovery of valuable materials. | Nth Cycle, Metaspectral, TOMRA, Metso | 8 | 7 | 7 | Medium | Hardware | Recyclers and manufacturers | Enterprises | Licensing | Per system + recurring service | Enterprise sales | Capital-light expansion through customer-owned throughput | Custom-project risk and slow adoption | Compelling if recurring revenue dominates equipment sales |
| 9 | Second-Life Battery Repurposing | Test and redeploy used batteries into lower-performance stationary applications. | Redwood Materials, Lohum, Attero | 8 | 6 | 6 | Medium | Hardware | Energy storage buyers | Enterprises | Product sales | Per system sold | Partnerships and enterprise sales | Extracts additional asset life before final recycling | Liability and falling new battery prices | Attractive only with standardized diagnostics and sourcing |
| 10 | Asset Reuse Exchange Software | Software helps institutions reuse internal assets instead of repurchasing equivalents. | Rheaply, Warp It, Globechain, Requis | 8 | 7 | 7 | Low | SaaS | Institutions and enterprises | Institutions | Subscription | Per institution / year | Enterprise sales | Strong ROI from procurement savings and workflow integration | Low engagement and pilot stagnation | Vertical workflow software with defensible institutional embedding |
| 11 | Carbon-to-Chemicals Platforms | Convert waste carbon into fuels or chemicals using biological pathways. | LanzaTech, Twelve, Newlight Technologies, Air Company | 8 | 6 | 8 | High | Materials | Industrial offtakers | Enterprises | Product sales | Per ton produced | Partnerships and project sales | Huge addressable market with deep process IP | Scale-up failure and policy dependence | Venture-scale upside, but industrial execution is everything |
| 12 | Plastic Purification Specialists | Purify specific resin streams into near-virgin recycled plastics. | PureCycle Technologies, Loop Industries, MBA Polymers | 8 | 7 | 7 | High | Materials | Brands, converters, manufacturers | Enterprises | Product sales | Per ton resin sold | Enterprise sales and offtake contracts | Specialized process control supports premium recycled outputs | Feedstock shortages and green premium compression | Best when specific resin bottlenecks create durable demand |
| 13 | Enzymatic Depolymerization Platforms | Use enzymes to depolymerize plastics or textiles into virgin-equivalent inputs. | Carbios, Samsara Eco, Protein Evolution | 8 | 7 | 8 | High | Materials | Brands and manufacturers | Enterprises | Licensing | Per ton processed / licensed | Partnerships and enterprise sales | Premium-quality outputs enabled by proprietary enzyme engineering | Difficult scale-up and pilot overpromising | High-upside science platform if industrial robustness is proven |
| 14 | Textile-to-Textile Regeneration | Regenerate used textiles into new apparel-grade fibers or feedstocks. | Circ, Ambercycle, Infinited Fiber Company, Worn Again, Reju | 8 | 7 | 8 | High | Materials | Fashion brands, mills | Enterprises | Product sales | Per ton fiber sold | Enterprise sales and partnerships | Large waste stream with strong sourcing integration potential | Contamination and long commercialization cycles | Strategic input supplier if specs and supply coordination hold |
| 15 | Returns Value-Recovery Platforms | Help retailers recover more value from returned goods through optimized routing. | Optoro, Trove, goTRG, ReverseLogix | 8 | 7 | 7 | Medium | Services | Retailers and brands | Enterprises | Outcome-based | % recovered value | Enterprise sales | Clear retailer ROI with data-rich reverse logistics workflows | Account concentration and operational complexity | Strong if software intelligence outweighs handling exposure |
| 16 | Authenticated Collectibles Exchanges | Run trusted resale exchanges for sneakers and collectible categories. | GOAT, StockX, eBay, Whatnot | 8 | 8 | 7 | Low | Marketplace | Buyers and sellers | Consumers | Transaction fee | % GMV | Product-led marketplace growth | High take rates in trust-sensitive categories | Counterfeits and fashion-cycle exposure | Exchange-like economics if category trust remains dominant |
| 17 | Vertically Integrated Device Refurbishers | Source, refurbish, and resell devices directly with warranty support. | Swappie, Cashify, musicMagpie, Gazelle | 8 | 6 | 7 | Medium | Consumer | Consumers | Consumers | Product sales | Per device sold | Performance marketing and partnerships | Captures procurement-to-resale margin with operational control | Inventory risk and working capital needs | Good commerce model when sourcing and refurbishment stay disciplined |
| 18 | Circular Packaging Machinery Suppliers | Sell machinery enabling manufacturers to shift toward lower-impact packaging formats. | PulPac, TIPA, Huhtamaki, Kiefel | 8 | 7 | 7 | Medium | Hardware | Packaging manufacturers | Enterprises | Licensing | Per machine + service contract | Enterprise sales and partnerships | Transition infrastructure with recurring service and licensing potential | Cyclical capex and slow industrial conversion | Attractive if process becomes standard-setting industry infrastructure |
| 19 | Chemical Plastic Feedstock Recyclers | Convert mixed plastic waste into oils or monomers for reuse. | Plastic Energy, Agilyx, Mura Technology, Alterra | 7 | 6 | 6 | High | Materials | Petrochemical companies, brands | Enterprises | Product sales | Per ton processed / sold | Enterprise sales and partnerships | Huge waste stream with strategic circular feedstock relevance | Virgin spread pressure and environmental scrutiny | Large market, but economics must work beyond subsidies |
| 20 | Plastic Upcycling to Specialty Chemicals | Upcycle waste plastics into higher-value specialty chemical products. | Novoloop, Itero Technologies, Aduro Clean Technologies | 7 | 7 | 7 | High | Materials | Chemical manufacturers | Enterprises | Product sales | Per ton chemical sold | Enterprise sales | Better economics by avoiding direct commodity resin competition | Limited market size and qualification cycles | Stronger per-ton economics than commodity recycling if adoption lands |
| 21 | Organic Waste to Biopolymer Conversion | Convert organic waste into compostable biopolymers for packaging applications. | Full Cycle Bioplastics, Genecis, RWDC Industries | 7 | 6 | 7 | High | Materials | Packaging companies and brands | Enterprises | Product sales | Per ton polymer sold | Partnerships and enterprise sales | Potentially pairs low-cost waste feedstock with premium materials | Cost competitiveness and composting mismatch | Promising if performance and cost both beat alternatives |
| 22 | Compostable Packaging Material Producers | Produce compostable packaging materials sold through packaging supply chains. | TIPA, Sulapac, traceless, Lactips, Shellworks | 7 | 6 | 6 | Medium | Materials | Brands, converters, retailers | Enterprises | Product sales | Per ton material sold | Enterprise sales and partnerships | Existing packaging channels enable broad commercial distribution | Green premium fatigue and weak infrastructure | Works best when functionality matches sustainability claims |
| 23 | Seaweed and Biofeedstock Packaging Platforms | Make packaging from seaweed or unconventional biofeedstocks replacing plastic formats. | Notpla, Sway, Kelpi, Loliware, Xampla | 7 | 6 | 6 | Medium | Materials | Brands and packaging buyers | Enterprises | Product sales | Per ton material sold | Partnerships and enterprise sales | Strong sustainability narrative with differentiated feedstocks | Scale constraints and performance limitations | Better suited to premium niches before mainstream adoption |
| 24 | Biomaterial Platform Companies | Develop biofabricated materials commercialized across multiple product categories. | Ecovative, Modern Meadow, Spiber, Bolt Threads, Modern Synthesis | 7 | 7 | 7 | High | Materials | Brands and manufacturers | Enterprises | Licensing | Per material program / year | Partnerships and enterprise sales | Cross-vertical platform upside with premium pricing potential | High burn and slow commercialization | Platform optionality is compelling, but manufacturing proof matters |
| 25 | Excess Inventory Recirculation Networks | Move unsold inventory into controlled secondary channels without brand damage. | Ghost, B-Stock, Liquidity Services, Trove | 7 | 6 | 6 | Low | Marketplace | Brands and retailers | Enterprises | Commission | % GMV | Inside sales and partnerships | Unlocks trapped cash while protecting primary-channel brand equity | Cyclical supply and channel conflict | Attractive if unique buyer networks improve repeatability |
| 26 | Managed Luxury Consignment Marketplaces | Authenticate and sell luxury secondhand goods on behalf of consignors. | The RealReal, Vestiaire Collective, Rebag, Fashionphile | 7 | 7 | 8 | Medium | Marketplace | Sellers and buyers | Consumers | Commission | % GMV | Brand-led marketplace growth | High trust and premium AOV support strong take rates | Fraud and high handling costs | Strong if contribution margins survive full-service operations |
| 27 | Electronics Subscription and Leasing | Customers subscribe for device access while the platform manages lifecycle economics. | Grover, Raylo, Everphone, Alif | 7 | 6 | 7 | High | Fintech | Consumers and SMBs | Consumers | Subscription | Per device / month | Partnerships and digital acquisition | Recurring revenue across multiple asset life cycles | Depreciation, defaults, and funding costs | Attractive with disciplined underwriting and remarketing performance |
| 28 | Product-as-a-Service Durable Goods | Retain ownership of durable goods and monetize recurring access and maintenance. | Swapfiets, Dance, Bundles, Rheaply | 7 | 6 | 6 | High | Services | Consumers | Consumers | Subscription | Per asset / month | Local partnerships and subscriptions | Recurring revenue plus multiple asset life monetization | Theft, servicing, and localized economics | Works where fleet density and utilization are exceptional |
| 29 | Waste Brokerage Platforms | Coordinate waste and recycling vendors across fragmented service networks. | Rubicon, Waste Management, RTS, Recycle Track Systems | 6 | 5 | 5 | Low | Services | Commercial waste generators | Enterprises | Transaction fee | Per site / month | Inside sales | Low-capex coordination with cross-sellable reporting data | Thin margins and disintermediation | Better as workflow software than pure brokerage spread |
| 30 | Brand-Funded Hard-to-Recycle Programs | Brands fund collection and recycling for waste that municipal systems ignore. | TerraCycle, Loop, Recyclebank, Preserve | 6 | 5 | 7 | Medium | Services | Brands and producers | Enterprises | Service fees | Per sponsored program | Partnerships and enterprise sales | Monetizes problem owners rather than commodity outputs | Bespoke operations and marketing budget dependence | Good platform only if compliance demand replaces campaigns |
| 31 | Premium Biomaterial Replacement Brands | Sell premium biomaterial substitutes for leather and luxury surfaces. | MycoWorks, VitroLabs, Natural Fiber Welding | 6 | 8 | 8 | High | Materials | Luxury brands, OEMs | Enterprises | Product sales | Per square meter | Enterprise sales and partnerships | Premium positioning supports high margins and exclusivity | Narrow markets and fashion dependence | High-margin niche with selective but meaningful strategic value |
| 32 | Engineered Fibers from Waste Streams | Produce performance fibers from waste inputs for textile applications. | Evrnu, Circular Systems, Natural Fiber Welding, Spinnova | 6 | 7 | 7 | Medium | Materials | Mills and apparel brands | Enterprises | Product sales | Per ton fiber sold | Enterprise sales and partnerships | Differentiated fiber performance can support repeat purchasing | Commercial inertia and manufacturing variability | Good economics possible if performance, not story, drives demand |
In our circular economy deck, we will give you useful market maps and grids
Key insights about business models in the circular economy
Insights
- Only one circular economy model scores a perfect 10 on scalability, and it is peer-to-peer recommerce, which shows that circular businesses scale fastest when they orchestrate liquidity rather than own inventory or physical throughput.
- Six of the eight highest-scalability circular economy models are software, marketplaces, or automation platforms, reinforcing that the most scalable businesses in this space monetize information, trust, or workflow rather than commodity conversion.
- Battery circularity appears twice in the top ten by scalability, but the battery-to-cathode model materially outperforms basic recovery on both defensibility and margin, because qualification and integration create deeper switching costs than simple metal collection.
- Waste intelligence software and branded resale infrastructure match many marketplace models on scalability while requiring less capital, making them structurally compelling if embedded data and workflow ownership translate into retention and expansion revenue.
- Specialized recycling consistently beats generalized recycling across the circular economy dataset: plastic purification specialists outscore broad chemical recyclers on margins and defensibility because tighter resin focus improves process control and buyer qualification.
- The weakest economic zone in circular economy investing combines moderate scalability with low margin potential, and waste brokerage platforms and bespoke brand-funded programs both fall into this category, making them less attractive than either pure software or differentiated industrial infrastructure.
- Authentication-driven circular economy categories such as luxury resale and collectibles achieve defensibility scores of 7 to 8 despite low capital intensity, proving that trust infrastructure can function like proprietary technology in consumer recommerce.
- Circular economy models monetizing immediate P&L improvement, such as returns value recovery, compare more favorably to sustainability-led products because they monetize operational savings directly rather than relying on green premiums or marketing budgets.
In our circular economy deck, we identify repeatable patterns you can use if you’re building in this market
A few words about our methodology
This table maps the main business models used by startups in the circular economy.
To build it, we first analyzed the leading circular economy startups and examined how they actually generate revenue.
We then grouped similar approaches into clear business model categories. The goal was to capture meaningful differences without creating an overwhelming number of models.
Each business model is evaluated across four structural dimensions: scalability, margin potential, defensibility, and capital intensity.
Scalability measures how easily the model can grow without proportional increases in cost. Margin potential reflects the long-term gross margin typically achievable once the model reaches maturity.
Defensibility captures how sustainable the competitive advantage can be over time, considering factors like switching costs, network effects, or proprietary data.
Capital intensity indicates how much upfront investment is usually required to build and scale the model.
For scalability, margin potential, and defensibility, scores range from 0 to 10. Lower scores indicate structural limitations, while scores above 7 generally signal strong economic potential.
These scores are not precise forecasts. They reflect the typical economics we observe across circular economy companies using that model.
This framework is part of the broader research behind our report covering the circular economy, where we analyze the ecosystem in much more detail.
If you want to better understand the circular economy ecosystem, you can also check our ranking of circular economy startups with the most fundraising and the list of circular economy startups with the biggest valuations.
If you want more detail about our business model analysis or about a specific company in the circular economy, feel free to contact us. We will gladly explain.
In our circular economy deck, we identify repeatable patterns you can use if you’re building in this market
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