Circular Economy: what is it and how does it work? 

The concept of Circular Economy It is seen by many as a solution to reduce the damage caused to the environment by industrial production processes.

We know that waste generated by industrial processes has significant impacts on the planet, especially when it is not biodegradable.

With that in mind, in today’s content we will understand how this model works, and how it is applied in practice. To find out, continue reading!

What is Circular Economy?

Concern for the planet is one of the most frequent topics in the media, especially with the occurrence of significant natural disasters.

Whatever the circumstances, one thing that always comes to mind is that the impacts caused by human activities on the planet are reducing humanity's chances of survival in the long term every day. In this regard, industrial production processes bear a significant part of the responsibility.

The concept of Circular Economy promises to help reduce impacts, since it promotes the maximum use of resources through recovery and reuse. Let's look at the concept:

Circular Economy is a model that proposes the use of resources and materials, using them in new industrial processes.

In general, this is observed in the use of industrial waste, which was previously discarded and became garbage, and is now seen as input for new products.

The idea is to reduce the unbridled disposal of inputs that could be used productively, helping both the planet and the global economy.

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Circular Economy and Recycling: are they the same thing?

When we talk about Circular Economy, many believe that the concept refers to traditional recycling. But is it the same thing?

In theory, recycling is the habit of reusing resources by giving them new functions, or even recovering them, so that they appear new. 

We can consider that this concept is similar to that of the Circular Economy, after all, this second model also proposes the use of resources to reduce impacts and financial preservation.

However, recycling is restricted to non-biodegradable products, so it is done with the aim of taking advantage of materials that are difficult to decompose in nature, and which, therefore, generate impacts.

The Circular Economy is more comprehensive, since it also focuses on economic preservation, so it is possible to apply it to biodegradable products as well, aiming to reduce waste and consequently financial preservation.

Therefore, we can consider that recycling is an important habit within this economic model, since it helps in the construction of the main purpose, but it should not be seen as a synonym.

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Examples of products generated by Circular Economy in different industry sectors

When we present the concept of Circular Economy, many believe it to be a utopian idea, after all, how could the industry function based on reuse?

It is common to think that this would reduce the quality of products, or even limit production. However, this does not happen in practice.

In fact, there are already many examples of Circular Economy in industry, and sometimes we don't even realize that the product is the result of reuse. See some examples below:

Food 

In countless industrial food production processes, waste is generated, resulting from the use of parts that are of interest for a given product.

For example: to produce cheese we need milk, right? But the whey is not used in the final product, so it becomes industrial waste.

The good news is that this whey can become a new product, like the famous Whey Protein, or even dairy mixes, substitutes for condensed milk and cream.

Understand that 10 years ago these products were not popular, but today they are very important for brands.

This doesn't just happen in industries: a confectioner uses the powdered milk left over after decorating his sweets to make cake filling.

Fashion 

There are specific fashion products that brands manufacture precisely with the aim of taking advantage of resources from other productions, such as wallets, for example.

Wallets, belts, and even card holders come from the leftover leather from the production of bags and shoes.

Furthermore, many bags and jackets use residual fabrics from the production of items in their linings, such as the silk left over from luxury dresses.

Technology 

You’ve probably wondered why brands run those “bring your device and get a discount on a new one” campaigns. What does the brand gain from this?

This is a classic example of Circular Economy, as old devices will likely serve as raw material in industry.

This does not mean that the brand will take the board from the old device and put it in a new one, for example.

But, there are certainly components that the brand can reuse and thus reduce impacts and costs in production.

Furthermore, discontinued products are also constantly used in the production of new releases.

These are just a few examples, as it is possible to easily observe the Circular Economy in any type of production, whether industrial or not.

Is this an efficient business model?

By now, you probably already understand what the Circular Economy is and how it works in practice. But is it an efficient business model?

In the examples we can see that the use of “waste” does not harm the quality of the final product, it is just a way of using it and thus avoiding unnecessary disposal.

So, the Circular Economy is certainly an efficient business model, as it generates savings for the company, brings new products to the market and reduces waste and impacts on the environment.

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