The UK faces persistent productivity and resilience challenges. This Strategy& report explores how viable circular economy practices in four key sectors – construction, textiles, packaging and electronics - can contribute to macroeconomic growth through GDP, job creation and productivity.
In many business and policy discussions the term “circularity” is often proposed or interpreted largely as an environmental play. We wanted to dig deeper. Could circularity – done right – offer real economic and business value in the UK? Could it deserve a more central place in discussions about growth and resilience? This paper explores the potential economic value in the UK context.
We look at some realistic, near-term scenarios in the construction, textiles, packaging and electronics sectors. These are deliberately conservative, aimed at answering a simple question: would more of the right kind of circularity support economic growth and resilience?
Our findings say yes. And the UK might be especially well-placed to take advantage of this.
0.85-1%
GDP growth
150k-170k
jobs created or sustained
0.2-0.4%
growth in labour productivity (GVA per job)
Not all forms of circularity are created equal
There are many possible configurations of value chains and business models that could be (and often are) described as circular. Many of them are not feasible, not scalable, do not drive economic value or do not deliver environmental benefit. To make circularity work at the scale and quality required, needs well-considered chains of physical activities, propositions and information flows. That’s what we mean by ‘viable’ circularity.
Strategy&'s role in accelerating the circular transition
At Strategy&, we help clients build tailored strategies for profitable, scalable circular business models. Our cross-sector expertise – spanning sustainability, economics, and industrial value chains – equips us to deliver strategies that are both commercially grounded and future-ready.
We’ve advised governments, corporates and investors on circular economy transitions and are proud to contribute to the Green Alliance’s Circular Economy Task Force, shaping the national dialogue on viable circularity.
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