Linear vs Circular Economy
The European Investment Bank defines a linear economy as a system in which people buy a product, use it, and then throw it away. This model became dominant in the late 18th century during the Industrial Revolution, where mass production contributed to the economic growth of societies. A linear economy follows the “take-make-waste” approach, where raw materials are gathered and transformed to make products that consumers use and then discard as waste without being regenerated or reused. In contrast, the circular economy is based on three principles: reduce, reuse, and recycle. To expound its meaning, the Ellen MacArthur Foundation defines circular economy as a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. Its principles are driven by design which are to eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature.
Key Differences Between Linear and Circular Economies
When the linear economy created industrialized societies, it allowed mass production of goods, leading consumers to buy, use, and discard products, with most of these items ending up in landfills or being incinerated. Because of the one-way path of extraction, use, and disposal, it posed a threat to the planet with its high waste levels and environmental degradation. In the circular economy, resources used are minimized, being reused, and being recycled. This process ultimately leads to minimal waste and conservation of natural resources.
In the Philippines, examples of the linear economy include single-use plastic bags, fast fashion brands, and electronic gadgets designed for short lifespans. On the other hand, the circular economy is represented by initiatives such as clothing swaps, repairable appliances, and businesses using recycled materials for packaging, such as eco-friendly alternatives like glass for food and beverage packaging, amber glass bottles, crates, corrugated packaging, caps, and closures.
Several local businesses are already adopting circular economy practices. For instance, Healthy Options provides a ₱5 discount when customers refuse a disposable paper bag, encouraging waste reduction. Similarly, Prescripto Perfumes offers a ₱10–₱20 discount for returned bottles in good condition, promoting reuse. The beverage industry has long practiced a deposit system for soft drink and beer bottles, with rebates ranging from ₱2.50–₱5 per bottle, incentivizing consumers to choose reusable glass over PET bottles and aluminum cans. Even in corporate settings, the shift toward digital calling cards and online business catalogs reduces reliance on printed materials, aligning with sustainability goals.
The main difference between the two economic models is that the linear economy revolves around products designed for short lifespans and disposal, while the circular economy prioritizes durability, repairability, and recyclability. From an economic perspective, the linear model relies on continuous consumption, whereas the circular model focuses on sustainability and resource efficiency. The environmental impact of the linear economy results in resource depletion and pollution, whereas the circular economy helps preserve resources and minimize environmental damage.
How should businesses and consumers proceed?
In today’s rate of consumer goods consumption, the transition from a linear to a circular economy is no longer optional. Sustainable practices are now necessary more than ever. By practicing the principles of circular economy, businesses and consumers can mutually benefit through waste reduction, resource conservation, and environmental harm mitigation. The responsibility to preserve the planet's resources must be shared equally by businesses and consumers. Brands can look for innovative production processes while consumers can make sustainable consumption choices. At Manbrella, we aim to continuously improve our sustainable solutions towards our triple bottom line commitment - for the people, planet, and profit of businesses who trust our work.
