New data from the Circular Economy Investment Tracker (CEIT) reveals that private investment in circular economy businesses reached nearly $198 billion between 2018 and 2024. The investments span sectors such as electronics, packaging, and textiles, where companies are adopting business models focused on reducing waste, extending product lifecycles, and recovering valuable materials for reuse.
Examples of circular economy practices can be found across the developing world. In Tanzania, reusable glass bottles are returned and refilled multiple times, reducing waste and production costs. In Brazil, electronic waste collection systems help recycle used devices and appliances, while in Türkiye, textile manufacturers are transforming discarded clothing into new fabrics and products. These initiatives demonstrate the practical application of circular economy principles in different industries.
Despite growing global interest, investment remains heavily concentrated in a small number of countries. Of the nearly $198 billion tracked, only $14 billion, or approximately 7%, flowed into low- and middle-income countries. This highlights a significant financing gap, especially considering that many developing economies stand to benefit from job creation, resource efficiency, and improved resilience through circular economy development.
Investment within emerging markets is also highly concentrated. Nearly 90% of all circular economy investment directed toward low- and middle-income countries was received by just five countries: China, India, Mexico, Thailand, and Türkiye. These nations generally possess stronger industrial sectors, larger domestic markets, and more developed policy frameworks that attract investors.
Africa remains one of the least-funded regions despite its growing interest in circular business models. The continent attracted only a tiny share of tracked global investment, and most transactions were relatively small. Limited industrial capacity, weaker investment ecosystems, and regulatory challenges are among the factors that continue to constrain larger-scale investment flows.
The data also shows that most circular economy transactions remain small in size. Around three-quarters of all recorded deals were valued at $10 million or less. While smaller projects can generate meaningful local impact, they often do not meet the scale requirements of large institutional investors, creating challenges for mobilizing significant amounts of capital.
Experts suggest that expanding circular economy investment will require stronger pipelines of investable projects, clearer market standards, better policy support, and innovative financing mechanisms such as blended finance and project aggregation. Improved access to reliable market data can also help investors identify opportunities and reduce perceived risks.
