Marketplaces are an ideal platform for bringing profitable circularity into mainstream commerce

Modern circular digital platforms are using technology to efficiently facilitate exchanges of used, recycled, and upcycled materials and goods. Everything from secondhand apparel to scrap metal to remanufactured electronics is being circulated on growing platforms like ThredUp, Troveo, and Back Market. By making transactions frictionless, circular marketplaces unlock latent value in wasted products and bring circular principles to life. 

The proliferation of circular marketplaces signals promising momentum. In 2023 alone, circular marketplace startups attracted nearly $500 million in venture capital. Current forecasts estimate these platforms will grow to account for 60% of the $1.5 trillion projected circular economy by 2030, compared to just 25% of today's $410 billion market. Whereas linear models emphasize new production and disposal, circular platforms close loops through extending product lifetimes. Their ability to reduce friction, enable visibility, and drive network effects can massively scale circular flows. 

This report explores the rising prominence of circular marketplaces worldwide, assess their emerging role in closing resource loops, and examine key factors driving adoption. The growth of this platform model provides tangible evidence of circular economy principles permeating business and commerce. Circular marketplaces merit attention from brands, investors and policy makers as the world transitions from a linear to a more circular economy. 

Topics covered in this report:

• Defining what is a circular marketplace and the drivers pushing their development
• The importance of increasing the circularity of retail business models
• The growth of circular marketplaces around the world
• Real-world examples of the success and impact of circular marketplaces
• Circular marketplace funding by region and industry with who is investing
• "Green Nudging" and its impact on retail
• Future growth potential and outlook for circular platforms

Complete the brief form to download this report. If you have any questions, please reach out to us at info@mcfadyen.com.