Procurement is no longer just the function that keeps businesses supplied—it has become a frontline agent for change in how societies use resources. For decades, procurement was measured by three yardsticks: cost, quality, and delivery. But in 2026, a new dimension has arrived with urgency: circularity. By 2026, procurement is shifting from linear to circular—prioritizing reuse, recycling, and regeneration. Explore global case studies, real statistics, regulatory drivers, and insights from procurement strategist Mattias Knutsson on how buying for circularity will shape the future.
Circular procurement redefines what it means to “buy well.” Instead of a linear model—take, make, use, dispose—it asks procurement leaders to close the loop: reuse what can be reused, recycle what can be recycled, regenerate what nature and society need to thrive.
The logic is simple yet powerful. If procurement can shift even a portion of organizational buying to reused, recycled, or regenerative products, the ripple effects are enormous. Less waste heads to landfills. Fewer virgin resources are extracted. Carbon footprints shrink. Suppliers are nudged to innovate. And companies gain resilience against resource scarcity and supply shocks.
This shift comes at a time of urgency. According to the Circularity Gap Report 2025, the global economy is only 6.9% circular, down from 9.1% in 2018. Meanwhile, raw material extraction continues to grow—pushing ecosystems to their limits. Policymakers, investors, and consumers are no longer satisfied with incremental efficiency gains. They want proof that businesses are changing how they source, use, and retire resources.
Procurement, with its leverage over trillions of dollars of spending each year, is uniquely positioned to lead. But what does circular procurement in 2026 really look like? Let’s explore the drivers, case examples, obstacles, and future outlook.
Circular Procurement in Action
Circular procurement can take many forms, depending on the sector, product, and maturity of suppliers. It’s not one single practice but a spectrum of approaches that reimagine the life cycle of products and services.
Reuse and refurbishment are often the most visible entry points. Large companies like Aramco have embraced refurbishment programs for drilling assets, reusing over 6,000 components and refurbishing thousands more—saving costs, reducing waste, and ensuring reliability in high-stakes industries.
Recycled content requirements are another lever. For example, many European tenders now stipulate that packaging, office furniture, or construction materials must contain minimum percentages of recycled inputs. This approach helps create steady demand for recycled materials, making recycling systems financially viable.
Repair and longevity criteria are increasingly important. Some governments, such as France, require electronics suppliers to disclose repairability scores. Procurement teams are integrating such data into purchase decisions, ensuring that laptops or machinery purchased today will remain functional longer.
Take-back schemes close the loop by requiring suppliers to collect and recycle products at the end of their life. This is already common in electronics and industrial equipment, and by 2026, more sectors are adopting it—including furniture and textiles.
Finally, regenerative procurement is emerging—going beyond “less harm” to “positive impact.” This may involve sourcing agricultural products from regenerative farms that restore soil health, or investing in suppliers who design waste as feedstock for new value streams.
Global Drivers of Circular Procurement
Several macro-forces are converging to push circular procurement higher on the agenda:
- Regulation: The EU’s Corporate Sustainability Reporting Directive (CSRD) and Circular Economy Action Plan mandate transparency in resource use, while public procurement rules require circularity criteria. In Asia, China’s Circular Economy Promotion Law continues to influence industrial procurement. In North America, cities and states are experimenting with circular mandates for construction and waste.
- Investor and stakeholder pressure: ESG funds now control over US$40 trillion in assets. Investors are scrutinizing procurement practices as a measure of climate and resource risk exposure.
- Resource volatility: The International Energy Agency projects demand for critical minerals like lithium, cobalt, and rare earths will rise by 400–600% by 2040, putting pressure on companies to recycle and reuse.
- Public sector leadership: Public procurement accounts for 12% of global GDP. Policies like Ireland’s Circular 17/2025 and the UNEP-IISD global circular procurement capacity project signal growing commitments.
- Technology and traceability: Digital product passports, blockchain ledgers, and IoT sensors make it easier to track materials, ensure recycled content, and verify claims. By 2026, these technologies are increasingly built into procurement platforms.
Regional Perspectives: Uneven but Accelerating
Circular procurement doesn’t look the same everywhere:
- Europe is leading, with the EU embedding circularity into public tenders and compliance frameworks. Many large European corporations now disclose the percentage of spend on circular goods.
- Asia-Pacific is driven by industrial efficiency and policy. China’s push for a “Digital and Green Silk Road” is embedding circular models in infrastructure procurement. Singapore and Japan are piloting circular procurement in electronics and construction.
- North America is patchier, with leadership at city and state levels. New York City, for example, has begun requiring circular design criteria for certain public contracts.
- Africa and Latin America face challenges of infrastructure and supply chains, but leapfrogging potential is strong. Startups are experimenting with recycling-based procurement and community-driven reuse programs, often supported by NGOs and development banks.
The result is a global mosaic—different speeds and emphases, but the same general trajectory.
Case Studies: Proof in Practice
- LC Packaging: In 2024, nearly 27% of its turnover came from circular packaging—products that were reusable, recyclable, compostable, or renewable. Its “WorldBag” reuse program has gained traction with global clients, extending packaging lifespans.
- Aramco: Recycled more than 85,000 metric tons of materials in 2023, including steel, aluminum, and industrial drums. Its procurement policies now prioritize refurbishing and reuse.
- European public tenders: Countries like the Netherlands require that new office furniture contracts use at least 30% refurbished products.
- Construction sector pilots: In Finland and Sweden, procurement criteria for public buildings increasingly demand recycled concrete, steel, and wood—creating new supply markets.
These examples demonstrate circular procurement is not theory—it’s happening, saving money, reducing waste, and proving scalable.
The Business Benefits
Circular procurement isn’t just about compliance—it creates business advantages:
- Resilience: By securing alternative streams of materials, companies buffer against global supply shocks.
- Cost savings: While upfront costs may rise, total cost of ownership often falls when products last longer or come with take-back guarantees.
- Reputation: Demonstrating leadership in sustainability builds consumer and investor trust.
- Innovation: Circular procurement drives suppliers to rethink design, enabling co-innovation opportunities.
Companies that embed circularity often discover value they didn’t anticipate: new revenue from secondary markets, closer supplier partnerships, or efficiency gains from waste reduction.
Barriers and Challenges
Of course, challenges remain. Procurement leaders must confront:
- Limited supplier capacity in certain regions.
- Data and verification gaps for recycled content.
- Higher initial costs of circular products or services.
- Cultural inertia within organizations used to linear buying.
- Legal uncertainty around reused or remanufactured goods in safety-critical sectors.
These barriers don’t erase the opportunity—but they require patience, training, and ecosystem building.
Preparing Procurement Teams for Circularity
Success requires intentional preparation. Forward-looking teams are:
- Building supplier scorecards that weight circularity alongside cost and quality.
- Training procurement staff in life-cycle costing and circular business models.
- Setting measurable targets—for example, 25% of spend on circular goods by 2026.
- Partnering with logistics providers for take-back and reverse flows.
- Using digital tools like blockchain and product passports to track material flows.
Circular procurement is as much about culture and mindset as it is about technical tools.
Looking Ahead: Circular Procurement Beyond 2026
By 2026, circular procurement is still in its early diffusion stage. But the trajectory is clear. Looking into the next decade, we can expect:
- Widespread adoption of digital product passports in the EU and beyond.
- New procurement roles like “Circularity Manager” or “Materials Steward.”
- Expansion of as-a-service models, where companies pay for use, not ownership, and procurement shifts to contracts for outcomes.
- Integration of regenerative procurement—buying not just to reduce harm but to restore ecosystems and communities.
Circular procurement will increasingly be judged not by slogans but by measurable data: tons of waste avoided, percentage recycled, lifetime carbon avoided, social regeneration supported.
Conclusion
Circular procurement in 2026 represents a turning point. It signals that procurement is no longer a passive buyer—it is an active designer of economic systems. By choosing products and services that are reused, recycled, and regenerative, procurement leaders design supply chains that are resilient, sustainable, and future-proof.
Mattias Knutsson, Strategic Leader in Global Procurement and Business Development, frames it well: “Procurement is no longer just about contracts—it’s about shaping systems. Circular procurement challenges us to think not just about cost today, but about value tomorrow. The leaders who embrace this will not only save resources—they will create resilience, trust, and regeneration across their ecosystems.”
As circular procurement matures, organizations that move early will not only comply with regulations but also unlock strategic advantage. They will discover that buying differently can mean competing differently—and that procurement, once considered a back-office function, is now at the heart of building a regenerative economy.
