Systemic Transition from a Linear to a Circular Model in the Context of Business Environment Transformation

Abstract

The study analyses structural changes in global resource use and identifies the key factors shaping the shift toward circularity under current environmental and economic pressures. Drawing on international analytical assessments and global material flow databases, the study analyses long-term trends in resource extraction, domestic material consumption and circularity indicators. The findings reveal a persistent dominance of primary material use and a decline in the global circularity rate, indicating that the expansion of primary extraction continues to outpace the development of secondary material flows. Significant regional disparities in material consumption patterns further demonstrate that the feasibility and pace of the circular transition vary substantially across world regions. The study identifies three systemic barriers constraining the shift to circularity: the underestimated potential of the bioeconomy, continued dependence on fossil fuels and the rapid accumulation of long-lived material stocks. These factors generate structural inertia that reinforces linear pathways and delays future circularity. The article shows that current business models insufficiently integrate repair, reuse, high-quality recycling and service-based value creation, which limits the formation of secondary resource markets and slows reductions in material intensity. The research also develops a structured model of government–business interaction, demonstrating that a successful circular transition requires coherent policy frameworks, international coordination, digital monitoring systems and strong corporate engagement. Key priorities include slowing the growth of material stocks, extending asset lifetimes, expanding regenerative biomass use, strengthening secondary material markets and establishing a global system for resource governance. The findings confirm that only a coordinated transformation of institutional mechanisms, economic incentives and business strategies can ensure a meaningful transition toward a circular economy and support long-term socio-ecological resilience.