Circular economy marketing (CEM) represents an innovative approach to aligning business strategies with sustainability objectives. This paper explores the role of CEM as a driver of green marketing innovation, emphasising strategies that minimise environmental impact on business competitiveness while enhancing consumer engagement. Using a systematic literature review based on the PRISMA methodology, we identified 39 high-impact studies across multiple industries, categorising findings into key themes, theoretical frameworks, and marketing strategies. The analysis highlights emerging trends, including the shift toward product-service systems (PSSs), behavioural nudging, transparent sustainability branding, and integration of digital technologies such as AI and blockchain to enhance traceability and consumer trust. Findings reveal that while circular economy marketing presents opportunities for businesses to differentiate themselves and build long-term sustainability strategies, significant challenges remain, including scalability issues, consumer scepticism, and risks of greenwashing. Moreover, gaps in standardising impact measurement and industry-specific adaptation hinder wider implementation. Business model innovation, policy support, and collaborative efforts are crucial in overcoming these barriers. This study provides insights for businesses, policymakers, and researchers, highlighting how CEM fosters green innovation and competitiveness. Future research should compare the effectiveness of various strategies to accelerate the transition toward sustainable marketing practices through regulation and interdisciplinary collaboration.
The increasing emphasis on sustainability has led businesses to integrate circular economy (CE) principles into marketing strategies, creating a new paradigm known as circular economy marketing (CEM) (e.g.,
[1][2][3][4][5][1,2,3,4,5]). This concept represents a transformative approach to aligning business practices with sustainability goals, offering innovative strategies to address pressing environmental challenges such as resource depletion, climate change, and pollution
[3][5][6][7][8][9][3,5,6,7,8,9]. By integrating principles of waste reduction, material reuse, and ecosystem regeneration, CEM goes beyond promoting eco-friendly products—it redefines how businesses create and communicate value throughout the product lifecycle
[10][11][12][13][14][10,11,12,13,14].
Studies have emphasised the role of green marketing in promoting eco-friendly practices and influencing consumer behaviour
[15][16][15,16]. Environmental education has been shown to impact students’ sustainable consumption habits, offering insights into green marketing strategies
[17]. The intersection of CE and marketing spans themes such as green marketing, remanufacturing, product-service systems, and neuromarketing tools
[18]. Design frameworks can be used to analyse and develop marketing strategies for circular products and services
[1]. Sustainable marketing aligned with CE principles faces challenges in implementation, particularly in avoiding greenwashing accusations
[19]. Innovation in sustainability marketing is crucial, focusing on creating value across the value chain and aligning with societal expectations
[20]. Therefore, based on the extended literature review, several research questions guided this study:
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R1: How does CEM contribute to sustainability and green marketing innovation?
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R2: What key marketing strategies are used to integrate circular economy principles across different industries?
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R3: What are the main challenges businesses face when implementing circular economy marketing, and how can they be addressed?
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R4: How do consumer perceptions and behavioural changes influence the success of circular economy marketing initiatives?
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R5: What roles do digital technologies (e.g., AI, blockchain, IoT) play in enhancing transparency and effectiveness in circular economy marketing?
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R6: What are the gaps in current research and policy frameworks related to circular economy marketing, and how can they be bridged?
Key strategies in CEM include product life extension through repair and resale, design for recyclability, closed-loop systems, and collaborative consumption models like leasing and sharing platforms
[6][21][22][6,21,22]. These approaches minimise environmental impact and enhance consumer engagement through transparency and sustainability storytelling
[23][24][23,24]. As consumer demand for ethical consumption grows, businesses adopting these strategies are poised to gain competitive advantages and unlock new market opportunities
[25]. Integrating advanced technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) further drives innovation in CEM by enabling enhanced traceability, personalisation, and efficiency
[26]. However, businesses face challenges, including greenwashing risks, scaling sustainable solutions, and transitioning traditional supply chains to circular models
[8][22][8,22].
The answers to the research questions are crucial due to their profound implications for sustainability, business transformation, and global environmental challenges.
This paper explores the role of circular economy marketing as a catalyst for green innovation, examining emerging trends, challenges, and actionable strategies. This research addresses the pressing need to transition from a linear economy (take–make–dispose) to a circular economy (reduce–reuse–recycle) by integrating marketing strategies that promote sustainability.
A systematic literature review analyses the theoretical frameworks, case studies, and practical applications to provide valuable insights for businesses, policymakers, and researchers aiming to drive sustainability and accelerate the shift toward circular economy marketing
[6][27][6,27].