Real-world examples of circular economy in supply chains

Why examples of circular economy in supply chains matter right now

Circular economy used to sit in the CSR report. Now it shows up in board meetings and investor calls. The most convincing examples of circular economy in supply chains have three things in common:

• They cut material and energy costs
• They reduce exposure to resource price volatility
• They align with climate and waste regulations tightening across the U.S., EU, and beyond

The Ellen MacArthur Foundation estimates that applying circular economy principles in just five key sectors could cut global CO₂ emissions by billions of tons by 2050. Meanwhile, the U.S. Environmental Protection Agency (EPA) points to reuse, recycling, and smarter materials management as major levers for reducing greenhouse gas emissions from the waste and materials system (EPA).

So let’s skip the theory and get straight into concrete, real examples.

Electronics: one of the best examples of circular economy in supply chains

Electronics are a perfect stress test for circularity: complex components, hazardous materials, and rapid obsolescence. Yet some of the best examples of circular economy in supply chains come from this sector.

HP and closed-loop printer cartridge recovery

HP has spent years building a closed-loop supply chain for printer cartridges. Customers return used cartridges through mail-back programs and drop-off points. HP then:

• Sorts and disassembles cartridges
• Recycles plastics and metals
• Feeds recovered materials back into new cartridges and hardware

The company reports that many of its ink and toner cartridges are now made with over 50% recycled plastic. This is a textbook example of circular economy in supply chains: design for recyclability, reverse logistics to bring materials back, and remanufacturing at scale.

Dell and modular, repairable equipment

Dell’s approach shows how design choices ripple through the supply chain. By making laptops and desktops more modular and easier to repair, Dell can:

• Extend product lifetimes
• Recover components for remanufacturing
• Reduce demand for virgin materials like aluminum and rare earths

These design decisions enable service models (like take-back, trade-in, and certified refurbished equipment) that keep products in circulation. It’s a clear example of how circular design unlocks circular logistics and sourcing.

Fashion and textiles: real examples of circular economy in supply chains

Fast fashion is a waste machine. But it’s also where some of the most visible examples of circular economy in supply chains are emerging.

Patagonia: repair, resale, and recycled inputs

Patagonia’s supply chain strategy leans heavily on circularity:

• Durable design and lifetime repair programs
• The Worn Wear platform for resale and trade‑in
• Increasing use of recycled polyester and other reclaimed fibers

This creates a loop: customers return used garments, Patagonia repairs or refurbishes them, and resells them, while feeding end-of-life materials back into recycled fiber streams where possible. It’s one of the best-known real examples linking customer engagement, supply chain design, and circular flows of materials.

H&M and textile recycling pilots

H&M has piloted in-store garment collection programs, feeding old textiles into mechanical and chemical recycling streams. While the system is far from perfect, it’s a live example of how brands are testing collection, sorting, and recycling infrastructure to close the loop on textiles.

These fashion case studies matter because they show how consumer-facing brands can normalize circular behavior: repair, resale, and take-back as standard parts of the supply chain.

Food and agriculture: examples include upcycled ingredients and closed-loop organics

Food systems generate massive waste, from farm to fork. Here, examples of circular economy in supply chains focus on keeping nutrients in circulation rather than sending them to landfills.

Upcycled food ingredients

A growing set of food companies are turning byproducts into new products—think spent grain from breweries becoming flour, or fruit pulp from juice manufacturing becoming snack ingredients. The Upcycled Food Association tracks brands doing this at scale and reports increasing consumer recognition of upcycled labels.

This is a powerful example of circular thinking applied to supply chains: instead of paying to dispose of byproducts, companies build new revenue streams and reduce overall waste.

Kroger and organic waste diversion

Kroger, one of the largest U.S. grocers, has worked on programs to divert food waste from landfills through donations, animal feed, composting, and anaerobic digestion. By building partnerships with local recyclers and digesters, the company keeps organic material in productive use.

In supply chain terms, this means:

• Better forecasting and inventory management to reduce overstock
• Reverse logistics for unsold food
• Contracts with recyclers and digesters to turn waste into energy or soil amendments

These real examples show how circularity in food is as much about data and logistics as it is about compost bins.

Packaging: everyday examples of circular economy in supply chains

If you want visible, easy‑to‑explain examples of circular economy in supply chains, packaging is low-hanging fruit.

Reusable transport packaging in logistics

Retailers and manufacturers are replacing one-way cardboard boxes with reusable plastic totes, pallets, and crates. These circulate between distribution centers, suppliers, and stores through managed pooling systems.

The benefits:

• Lower packaging waste and disposal costs
• More consistent quality and protection for goods
• Better tracking with barcodes or RFID

This is an often-overlooked example of circular economy thinking: the packaging itself becomes an asset that cycles through the supply chain rather than a disposable cost.

Loop and refillable consumer packaging

The Loop platform (piloted with brands like Procter & Gamble and retailers like Kroger and Walgreens) experimented with refillable, durable packaging for everyday products—shampoos, detergents, snacks. Customers returned empty containers through reverse logistics channels; containers were cleaned, refilled, and recirculated.

While the model is still evolving, it stands as one of the more ambitious real examples of circular economy in supply chains, testing whether consumers and retailers can support truly reusable packaging at scale.

Heavy industry: high-impact examples of circular economy in supply chains

Circularity in heavy industry doesn’t get the same Instagram love as refillable shampoo bottles, but the climate impact is enormous.

Steel and aluminum recycling

Steel and aluminum are inherently recyclable, and the metals industry has long operated on circular principles:

• Scrap is collected from manufacturing offcuts and end-of-life products
• It’s processed and fed back into furnaces
• Recycled metal often has significantly lower carbon intensity than virgin material

The U.S. Department of Energy notes that recycled aluminum uses up to 95% less energy than primary production (DOE). That energy difference translates into major emissions savings across supply chains that depend on these metals.

This is a foundational example of circular economy in supply chains: a mature, large-scale loop where material recovery is fully integrated into sourcing and production planning.

Caterpillar and industrial remanufacturing

Caterpillar’s remanufacturing operations recover used engines and components from customers, then:

• Disassemble and clean parts
• Replace or repair worn elements
• Reassemble to like-new specifications with warranties

The remanufactured units re-enter the market at lower cost and lower environmental impact than brand-new equipment. This is a strong example of product-as-a-service and reverse logistics working together to extend asset life and cut material demand.

Digital tools: data-driven examples of circular economy in supply chains

Digitalization is the quiet backbone behind many examples of circular economy in supply chains.

IoT and predictive maintenance

Sensors and Internet of Things (IoT) platforms allow companies to monitor equipment health in real time. Predictive maintenance keeps machines running efficiently and extends their useful life, which:

• Delays replacement and reduces material demand
• Creates better data for remanufacturing and refurbishment planning
• Supports new business models like equipment-as-a-service

Think of this as a less visible example of circularity: using data to avoid premature scrapping and to plan end-of-life recovery more intelligently.

Digital product passports and traceability

The EU is leading on digital product passports for electronics, batteries, and textiles, but the implications are global. These systems track materials and components across the lifecycle, making it easier to:

• Verify recycled content
• Sort and recycle products at end of life
• Comply with extended producer responsibility (EPR) rules

For supply chain teams, this is becoming a real example of how regulation and technology push circular practices from “nice-to-have” to standard operating procedure.

How to spot strong examples of circular economy in your own supply chain

You don’t need to be Patagonia or HP to act. Some of the most practical examples of circular economy in supply chains come from mid-sized manufacturers and distributors that quietly redesign everyday processes.

Patterns to look for:

• Products that come back to you: rentals, service contracts, trade‑ins, or returns are natural candidates for refurbishment or parts harvesting.
• High scrap or waste costs: if disposal is eating into margins, there may be an opportunity to turn waste into feedstock for you or a partner.
• Volatile material prices: if your business depends on metals, plastics, or critical minerals, circular sourcing can hedge against price spikes.

The U.S. EPA’s Sustainable Materials Management framework offers guidance on prioritizing reduction, reuse, and recycling strategies across sectors (EPA SMM). Use it as a reference point while mapping your own flows.

When you study the best examples of circular economy in supply chains, you’ll notice they rarely start with a giant, flashy project. They start with a single product line, a single waste stream, or a single customer segment—and then scale.

FAQ: examples of circular economy in supply chains

What are some simple examples of circular economy in supply chains for smaller companies?

A straightforward example of circular economy for a smaller manufacturer is switching from single-use shipping boxes to reusable totes in closed loops between your plant and key customers. Another is setting up a repair or refurbishment program for returned products instead of automatically scrapping them. These examples include low-tech changes that still reduce waste and material costs.

Can you give an example of circular economy in a service-based supply chain?

Yes. Office equipment leasing is a classic example of circular economy in a service-oriented supply chain. The provider retains ownership of printers or copiers, performs maintenance, upgrades components, and eventually remanufactures or recycles units at end of contract. Because the company controls the full lifecycle, it can design products and logistics for reuse and recovery.

Are there real examples of circular economy in supply chains that also cut carbon emissions?

Many. Metals recycling, industrial remanufacturing, and refillable packaging all reduce the need for energy-intensive virgin material production and processing. The Department of Energy highlights how recycled aluminum dramatically lowers energy use compared with primary production, which in turn cuts emissions. These are real examples where circularity and climate goals line up.

How do regulations influence examples of circular economy in supply chains?

Regulations like extended producer responsibility laws, landfill bans, and recycled content mandates are pushing companies to adopt circular practices. As these policies expand, they create more examples of circular economy in supply chains because companies must design products, logistics, and procurement around reuse, repair, and recycling.

What is one example of circular economy in supply chains that customers actually notice?

Refill and return programs are highly visible. When customers buy products in durable containers that they return for cleaning and refilling, they directly experience circularity. This kind of model—tested by platforms like Loop and by refill stations in grocery stores—is an example of circular economy that connects front-end customer behavior with back-end supply chain redesign.