Circular Economy: A Competitive Advantage for Evolving Businesses

​In Latin America, sustainability is often associated with institutional campaigns or external regulations. However, the principles of the circular economy represent a real strategic opportunity for companies seeking to adapt, differentiate themselves, and strengthen their resilience in the face of new challenges.

This approach moves away from the traditional “take, make, dispose” model, aiming instead for a system where resources remain in use for as long as possible. It involves redesigning processes, reusing materials, and discovering new value streams from what was previously considered waste.

In Paraguay, where many small and medium-sized enterprises face structural limitations, applying these principles can translate into concrete advantages:

• Lower operational costs.
• New revenue streams from waste or by-products.
• Greater competitiveness with customers and international actors who value sustainability.

Real-world examples: When circularity cuts costs and generates revenue

These benefits are not hypothetical. There are already real cases, both regionally and locally, that show how this model delivers tangible results.

In Chile, the company Algramo managed to reduce the price of daily consumer products by up to 30% through the use of smart refillable containers. Over 200,000 plastic containers have been avoided, and the model has led to new partnerships with major brands like Unilever.¹

Another outstanding initiative is EcoCarga, which has eliminated more than 100 tons of plastic through cleaning product refill stations. The system not only saves consumers money, but also improves margins for distributors.²

In Paraguay, TyD Recycling turns end-of-life tires into steel, mulch, and rubber. This avoids landfilling or burning waste while providing direct employment to 22 people and opportunities for over 350 local recyclers and suppliers.³

A compelling agro-industrial innovation comes from Maigotex, which has started producing plant-based leather from mango waste. What was once discarded is now a cost-free raw material with high added value.⁴

Several of these projects have received funding from the Circular Opportunities program, driven by the European Union, Koga, and GIZ, offering up to €30,000 per initiative.⁵

Globally, it is estimated that an industrial transition to circular models could unlock up to $4.5 trillion in economic value by 2030.⁶

Circular economy is not just an environmental trend; it is a concrete business strategy. Companies that embrace these principles will not only be better positioned to meet future market demands, but will also discover smarter, more efficient, and responsible ways to grow.

Mario Contreras
Club Networking
Strategic analysis and sustainable business development

Sources

1. Algramo – Circular impact case studies
2. EcoCarga – Plastic-free refill systems
3. Circular Opportunities Program – GIZ Paraguay (2023)
4. Maigotex – Circular economy in action
5. Circular Opportunities – EU + Koga + GIZ
6. Ellen MacArthur Foundation (2015): Growth Within: A Circular Economy Vision for a Competitive Europe​

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