A circular economy is a model of resource production and consumption in any economy that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. The concept aims to tackle global challenges such as climate change, biodiversity loss, waste, and pollution by emphasizing the design-based implementation of the three base principles of the model. The three principles required for the transformation to a circular economy are: designing out waste and pollution; keeping products and materials in use, and regenerating natural systems. CE is defined in contradistinction to the traditional linear economy. The idea and concepts of a circular economy have been studied extensively in academia, business, and government over the past ten years. It has been gaining popularity because it can help to minimize carbon emissions and the consumption of raw materials, open up new market prospects, and, principally, increase the sustainability of consumption.

Reuse is the action or practice of using an item, whether for its original purpose or to fulfill a different function. It should be distinguished from recycling, which is the breaking down of used items to make raw materials for the manufacture of new products. Reuse—by taking, but not reprocessing, previously used items—helps save time, money, energy and resources. In broader economic terms, it can make quality products available to people and organizations with limited means, while generating jobs and business activity that contribute to the economy.