The closed-loop economy is gradually replacing the traditional linear economy. If in a linear economy the product is produced, consumed, and the waste from the product is disposed of, then in a closed-loop economy the products are used as efficiently as possible, reducing the resources for their production, and the waste is recycled and reused. It is the linear model of the economy that is in demand in Ukraine, with only 4-6% of waste being recycled.
The circular model solves the problems of high raw material prices and natural resources shortages. It is particularly topical during quarantine and closed borders. This model is also very convenient when there is a risk of discontinuing the usual interaction in the production process. Under the closed-loop economy concept, the distribution and delivery channels can be at a short distance from the production site.