The circular economy (CE) proposes an economic framework based on circular flows of products and materials. Transition towards a CE is underway, therefore, understanding the nature and state of this transition is important for creating effective policies and business strategies. Some studies have focused on specific contexts and pockets of good practice. This exploratory, survey-based study of 77 companies investigates the shift towards the CE using a taxonomy of practices and barriers. Results show that firms favour practices related to resource and energy utilisation efficiency, while practices related to investment recovery, green purchasing and customer cooperation are less prevalent. Eco-design and internal environmental management practices have a medium level of implementation. The significant upfront investment cost, lack of awareness or sense of urgency were identified as implementation barriers. Results suggest the CE is driven by economic not environmental considerations, and the deployment of practices remains within a firm rather than across the supply chain.

Purpose: In recent years, circular economy (CE) has come to prominence as an alternative to the classic approach of “make-use-dispose”. How companies can exploit the opportunities of CE to position themselves better are not well articulated in the literature. The purpose of this paper, therefore, is to identify the barriers and opportunities of CE in the manufacturing sector through a socio-political, economic, legal and environmental perspective. Design/methodology/approach: The study adopts a positivist approach, which is deductive in nature. A survey questionnaire was designed and distributed to manufacturing companies operating in the UK and EU. The study used FAME database and social networking platform LinkedIn to identify manufacturing companies. More than 200+ companies were approached for this study and data collection lasted over two months. Findings: The study provides a comprehensive review of the CE literature and identifies a number of barriers and opportunities to CE implementation from a socio-political, economic, legal and environmental perspective. The findings highlight key barriers, opportunities and benefits of CE for the manufacturing industries operating in the UK and EU. Research limitations/implications: The findings are limited to 63 responses from the survey questionnaire distributed to manufacturing companies in the UK and EU. The present study aims to equip manufacturers with necessary understanding of the key opportunities and barriers to address the challenges encountered during the implementation of CE. Originality/value: This study adds to the limited empirical literature on CE barriers and opportunities to manufacturing organisations operating in the UK and EU. The paper also identifies barriers and opportunities of CE from a socio-political, economic, legal and environmental lens.