Survey shows rising demand for circular economy in construction

Photo: Holcim

The survey of more than 500 UK stakeholders across the construction industry found that 97% recognise the importance of circular practices, up from 79% in 2024.

More than half (57%) said their businesses have specific circularity targets across all areas of operation, compared with just 21% last year, while only 2% have no plans to introduce targets.

Despite growing commitment, increased costs from disassembling materials (34%), complexity around circularity (29%) and a shortage of specialist labour (26%) remain significant barriers to progress.

The research also shows that demand for circular products that reduce reliance on “virgin materials” has risen sharply over the past year.

Availability of such products is now a key factor in supplier selection, with 94% of respondents saying it influences their choice between brands – up from 73% in 2024. Over half (53%) now view access to circular products as “very important”, compared with 28% last year.

Buyers are also willing to pay more for sustainable options. Some 87% of respondents said they would pay a premium for products and services from companies with strong circularity credentials.

Meanwhile, 97% said it is important to have full circularity information on all components and products, including the level of recycled content used in manufacturing, with over half (53%) calling this “very important,” up from 27% in 2024.

Investment in skills and awareness is also increasing, with the proportion of companies investing in employee education on the circular economy rising from 21% in 2024 to 30% in 2025.

A third (33%) of respondents called for greater focus on developing specialist skill sets, while 31% said more government funding is needed for training and awareness programmes.

Kaziwe Kaulule, managing director of Holcim UK’s aggregates and CDM divisions, said, “The UK construction industry is entering a defining moment, balancing the drive for increased output with the urgent need to achieve sustainability goals.

Our research makes clear that closed-loop supply chains must be central to that future. Driven by our clear purpose of leading the way in circular construction, we are working hand-in-hand with partners across the value chain to remove barriers, accelerate progress, and make sustainable building practices the industry standard.”

Holcim, which aims for 20% of its products to be made from recycled materials by 2030, said it commissioned the survey to help industry and government better understand the barriers to circularity and to provide an annual benchmark for progress.