S1: Fragmented circular economy
A slow transition in the face of economic constraints

General opportunities and threats

Summary table

Threats for industry in general

• Fragmentation of public policies: Circular economy policies are adopted unevenly across regions and countries. This complicates the establishment of harmonised industrial strategies, as companies must adapt to regulations that vary according to their location. It also increases administrative and regulatory costs for companies operating in several jurisdictions.
• Shortage of raw materials: The growing scarcity of critical raw materials, notably metals and plastics, poses major difficulties for industries that cannot yet rely on well-established circular chains. This creates price rises and uncertainty for companies dependent on these resources, thereby increasing their vulnerability.
• Difficulty of access to funding for SMEs: While large companies benefit from funding to support their circular transition, SMEs struggle to access this support owing to its complexity or volatility. This widens the gap between large companies, able to invest in innovative technologies, and smaller structures, often left behind.
• Problems of product traceability and transparency: In the absence of clear labels or standards, companies and consumers cannot easily trace the origin and life cycle of the materials used in products. This undermines consumer confidence in recycled products and holds back their adoption on the market.

Opportunities for industry in general

• Growth of local initiatives: The fragmentation of public policies opens up opportunities for local projects specific to each area. Companies can take advantage of local programmes to launch circular projects suited to the resources available, such as repairing or reusing materials, in collaboration with local authorities.
• Innovation in niche sectors (refurbishment, repair): Although the market for second-hand and refurbished products is still limited, it is progressing in specific sectors such as electronics or household appliances. Companies can exploit this opportunity to position themselves in niches where demand, although low, is growing. This makes it possible to capture a new customer base, notably in urban areas.
• Public-private collaboration to support circular projects: Local initiatives to promote the circular economy can benefit from collaboration between companies and local authorities. For example, companies that partner with local authorities to set up waste management infrastructure or regional repair workshops can receive subsidies while strengthening their brand image.
• Opportunities for targeted and differentiated eco-design: Companies that invest in ecologically designed products can differentiate themselves in a market where sustainability is beginning to become an important criterion for a niche of consumers. Although these opportunities are still limited.