Balancing Profitability and Sustainability in Circular Business Models Local Circular Production Systems as a Pathway to Closing the Loop on Marine Plastic

Abstract

This study explores the design and implementation of sustainable circular business models within Local Circular Production Systems (LCPSs) that transform marine plastic waste into valuable products. Through a field study in Peniche, Portugal, and interviews with twelve globally distributed organizations, the research identifies four distinct typologies of LCPSs: Hyper-local Integrated Systems, Hub-and-Spoke Distributed Systems, Adaptable Collaborative Networks, and Circular Infrastructure Providers, each defined by unique configurations of value chains, partnership dynamics, and local integration. The research aims to understand the structure and viability of LCPSs, addressing three research questions: (1) What types of Local Circular Production Systems exist for recycling marine plastic waste, and what value chain components define them? (2) How can business model strategies enable Local Circular Production Systems to achieve long-term economic sustainability while maintaining environmental and social impact? (3) What are the key success factors when implementing circular business models? Findings reveal that LCPSs are not merely local production units, but dynamic, networked interventions that redistribute agency over material flows and embed circularity within communities often excluded from global value chains. Successful models combine iterative, modular business strategies with strong local partnerships, participatory storytelling, entrepreneurial spirit and diversified revenue streams, while responding to regulatory, infrastructural, and cultural conditions. As Europe confronts tightening waste regulations and the imperative to internalize plastic valorization, LCPSs emerge as critical infrastructure for circular transition. Positioned at the intersection of environmental stewardship, social inclusion, and economic resilience, they represent a practical and scalable pathway toward a more equitable, regenerative, and locally grounded blue economy. This study contributes a transferable framework to support implementation of LCPSs as resilient business ecosystems capable of turning ecological urgency into circular opportunities to close the loop on marine plastic.