What Are Circular Business Models and Why Do They Matter in Europe?

Circular business models (CBMs) represent a fundamental shift from the traditional linear economy of take-make-dispose to a regenerative system where products and materials are kept in use for as long as possible. This approach minimizes waste, reduces resource consumption, and lowers environmental impact while fostering innovation and economic resilience. In Europe, where resource scarcity and climate change pressures are acute, CBMs such as product sharing, repair services, and reuse platforms are gaining traction as key pillars of the European Union's (EU) sustainability agenda.

Currently, Europe's circularity rate stands at around 12%, with ambitions to double it to 24% by 2030 under the EU's Clean Industrial Deal. These models encompass sharing (e.g., car-sharing apps like Zipcar or Turo), repair (extending product life through services like those offered by iFixit partners), and reuse (second-hand marketplaces such as Vinted or Facebook Marketplace). Consumer adoption is crucial, as businesses cannot succeed without widespread participation. Recent surveys indicate varying engagement levels: for instance, repair and reuse behaviors differ significantly across countries, with clothing reuse high in some Nordic nations but lagging elsewhere.

BOKU University's Latest Research Illuminates Consumer Motivations

The University of Natural Resources and Life Sciences Vienna (BOKU), a leading institution in sustainability studies, has released a pivotal study titled "Consumers' Intention to Use Circular Business Models: A Configurational Analysis," published in the prestigious journal Business Strategy and the Environment. Conducted by researchers Christof Falkenberg, Christian Garaus, Hanna Hellmayr, Sebastian Pöchtrager, and Petra Riefler from BOKU's Institute of Marketing and Innovation, this work stems from the Interreg Cradle-ALP project focused on Alpine regions.

The study draws on expectancy-value theory, positing that consumers weigh perceived benefits against costs when forming intentions. It reveals that no single factor dominates; instead, complex combinations of motivations drive adoption or rejection of CBMs. This nuanced configurational approach, using fuzzy-set Qualitative Comparative Analysis (fsQCA) and Necessary Condition Analysis (NCA), provides actionable insights for businesses and policymakers aiming to accelerate the circular transition.

Methodology: A Robust Pan-European Survey

To capture real-world behaviors, the BOKU team surveyed 2,049 consumers across six European countries, likely including Austria, Germany, Italy, France, Slovenia, and Switzerland, reflecting diverse cultural and economic contexts. Respondents evaluated specific CBMs: sharing (access over ownership), repair (fixing to extend life), and reuse (passing on used goods). Variables included product-related factors like perceived usefulness, convenience, and value for money, alongside psychological elements such as attitudes and habits.

This large-scale, multi-country dataset allows for comparative analysis, highlighting regional nuances. For example, convenience emerged as a bottleneck in some areas, while environmental attitudes boosted intent in others. The fsQCA method identified multiple pathways—unique factor mixes leading to high intention—emphasizing that one-size-fits-all strategies fail.

Core Factors Shaping Intent for Sharing Models

Product sharing, exemplified by platforms like BlaBlaCar or tool libraries, hinges on perceived usefulness and social norms. The BOKU study found that when consumers view sharing as convenient and cost-effective, intention surges. However, privacy concerns and hygiene issues form rejection configurations, particularly post-COVID. In Northern Europe, where trust in platforms is higher, sharing adoption reaches 30-40% for mobility services, per recent EU surveys.

Step-by-step, adoption follows: awareness via apps → trial through low-commitment shares → habit formation if value exceeds ownership costs. BOKU's analysis shows combinations like high usefulness + low hassle predict 70% of positive intents for sharing.

Repair Services: Convenience as the Make-or-Break Element

Repair models, popularized by right-to-repair laws, thrive where services are accessible. BOKU research identifies convenience (location, speed) and affordability as necessary conditions. Without them, even eco-conscious consumers opt for new purchases. Europe-wide, only 40% repair electronics, but initiatives like Repair Cafés in the Netherlands have fixed over 10 million items since 2009, saving resources equivalent to thousands of tons of CO2.

The study delineates processes: diagnose fault → access parts/tools → skilled repair → verify function. Factors like trust in repair quality amplify intent, with configurations covering 65% of cases.

Photo by Nils Schirmer on Unsplash

Reuse Platforms: Value for Money Leads the Way

Reuse via apps like Depop or local swaps excels when economic benefits shine. BOKU data underscores value for money as pivotal, combined with low transaction friction. In France and Germany, reuse clothing markets grew 20% in 2025, driven by Gen Z. Barriers include quality doubts, but positive experiences create loyalty loops.

• High perceived savings + easy resale = strong reuse intent
• Eco-attitudes alone insufficient without practicality

Regional Variations Across Europe

Intent varies: Nordic countries lead in sharing (high trust), while Southern Europe favors reuse for affordability. BOKU's six-country sample reveals Austria's balanced profile, with 55% intending CBM use under optimal conditions. Cultural context matters—collectivist societies embrace sharing more readily.

Business Implications: Designing Winning CBMs

Companies must tailor offerings: enhance convenience via pop-up repairs or app-based sharing. BOKU urges hybrid models, e.g., lease-with-repair guarantees. Success stories like Patagonia's repair centers (90% fix rate) or Peerby tool-sharing in Netherlands demonstrate scalability.Read the full BOKU study here. Firms adopting these see 15-20% loyalty gains.

Policy Support and EU 2026 Roadmap

EU's Circular Economy Act (2026) mandates digital product passports, boosting traceability for reuse. Textile EPR schemes target fast fashion, promoting repair. BOKU research informs these, advocating nudges like subsidies for repairs.EU Circular Economy Strategy. By 2030, these could cut waste 50%.

Challenges: Overcoming Barriers to Scale

Despite promise, habits favor linear consumption. BOKU identifies inertia and perceived risks as blockers. Solutions: education campaigns, incentives. Repair Cafés in Sweden fixed 85% items in trials, proving community potential.

Photo by Elena Shirnina on Unsplash

BOKU's Leadership in Sustainability Education

As a hub for circular research via projects like GRACE and CARE, BOKU trains future experts.Explore research jobs in Europe. Its interdisciplinary programs blend marketing, innovation, and ecology, positioning graduates for green careers.

Future Outlook: A Circular Europe by 2030

With BOKU's insights, consumer intent could propel CBMs mainstream. Projections: sharing economy to €300B by 2030. Universities like BOKU drive this via evidence-based strategies. Actionable: businesses pilot configs, policymakers incentivize.Higher ed opportunities in Europe