The circular economy is a model focused on keeping product materials in circulation for as long as possible through practices like reselling, repairing, and recycling. Retailers have been investing in these practices to lower their carbon footprint and appeal to eco-conscious shoppers. However, despite these efforts, less than 20% of retailers are on track to reach their sustainability goals, according to BCG and the World Retail Congress.
Meanwhile, the pressure to adopt sustainable business practices is mounting with the rise of new legislation. For example, in the coming years, the EU is expected to require the implementation of digital product passports (DPP) across a number of categories, which will affect retailers in areas like apparel and consumer electronics. DPPs use QR codes and technologies like blockchain to trace individual products throughout the entire supply chain as well as post-purchase. These solutions can help ensure that products are sourced sustainably, and they can also be used to verify product authenticity for resale.
To help retailers strengthen circular practices in order to keep up with evolving regulations and achieve their sustainability goals, tech vendors are developing a wide variety of solutions. These tools enable retailers to exercise sustainable production and transport, identify opportunities for repair, authenticate products and profit from resale, responsibly dispose of goods at the end of their lifespan, and more.
In the market map below, we identify 98 vendors across 12 different categories helping retailers support a circular economy.
Note: Our map includes private startups that have received funding in the last 5 years and have a Mosaic score of at least 400. This market map is not exhaustive of the space.
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