Circularity as a strategic imperative

Why material strategies determine competitiveness

17.04.2026

Material innovation and the circular economy are now closely linked. The impulse webinar of the Materials of the Future topic block of the event series "Transformation. In dialog." showed how important it is for companies to set the right course for their strategic orientation.

Whether energy, mobility or digitalization: materials are the basis of every innovation. After all, materials determine what is technically possible, how products can be designed and how resilient value chains really are in the end. This is currently more evident than ever before: geopolitical tensions, regulatory requirements and volatile supply chains are increasing the pressure on companies to rethink their materials strategies.

Material strategy is business strategy

Materials are no longer an operational detail, but determine innovation capability, supply chain stability and technological sovereignty. Thinking strategically about materials ensures long-term competitiveness.

"At the heart of this is the question of technological sovereignty: those who know critical materials, master recyclates and alternative materials, use bio-based materials and combine process, AI and digital process technologies with the necessary know-how will secure their long-term innovative ability and competitive strength," emphasizes Astrid Lang, Project Manager in the Material Innovation Network at Bayern Innovativ. "Circularity is therefore evolving from a sustainability issue to a strategic imperative. It's no longer just about using resources more efficiently - it's about designing material cycles in a targeted manner, reducing dependencies and tapping into new value creation potential," says the materials expert.

The vehicle interior as a space for innovation

Just how far-reaching this transformation is in the materials sector is exemplified by vehicle interiors. Vehicle interiors are increasingly evolving from functional spaces to living and experience spaces - with increasing demands on comfort, individualization and functionality.
Textile materials play a key role here. "They not only enable new design and comfort solutions, but are also increasingly taking on technical functions - from acoustics and air conditioning to integrated sensor technology," explains Dr. Carsten Uthemann, who, together with his colleague Patrick Böhler, is driving forward research work on car interiors at RWTH Aachen University.
At the same time, according to Dr. Uthemann, this reveals a central dilemma: the increasing variety of materials and complexity make recycling considerably more difficult. Multi-material systems, composite structures and components that are difficult to separate have so far prevented high-quality recycling. As a result, the use of recyclates remains low despite increasing regulatory requirements.

Recycling fails because of the system - not the technology

Dr. Matthias Wilhelm, Head of Plastics Recycling and R&D at waste management company Lober GmbH & Co. KG, goes one step further: in his opinion, the challenge is not primarily a lack of technology, but the fact that the current system is reaching its limits in several areas.
On the one hand, there is a lack of sufficiently available, qualitatively suitable material flows. Although large quantities of plastic waste are produced, only a fraction of it can actually be used for high-quality applications. Secondly, unclean material flows, material mixtures and a lack of design for recycling make efficient recycling difficult. Many products are simply not made for high-quality recycling at the end of their life cycle.

The circular economy comes down to design - not recycling

The biggest hurdles lie not in the use of new technologies, but in rethinking "design for recycling", which combines function, recyclability and bio-based and alternative materials.

There is also an economic area of tension: while initiatives such as the European Union's Circular Economy Action Plan set ambitious targets for the use of recyclates, it is already clear how difficult these are to achieve. For example, the recycling target of 10 million tons of plastic was missed - not least because of cheap primary materials on the global market.
The result: a structural imbalance between political goals and industrial reality.

Design for recycling is becoming a must-have

The decisive lever therefore lies at the beginning of the value chain: in product design. "Design for recycling must become much more important," demands materials scientist Dr. Carsten Uthemann. The aim must be to design products right from the development phase in such a way that they can be efficiently dismantled, sorted and recycled at the end of their life cycle.
Practical examples show that this is technically possible: by using homogeneous material systems, detachable connections and alternative design approaches, products can be developed that are both functional and recyclable. However, this approach requires a rethink - away from isolated optimizations and towards a holistic understanding of the system, in which functionality and recyclability are considered in equal measure.

New technologies expand the scope

At the same time, new technological options are emerging. In addition to traditional mechanical recycling, chemical and solvent-based processes are becoming increasingly important. They make it possible to separate even complex or contaminated material streams at a molecular level and return them to high-quality applications.

Transformation can only succeed in an ecosystem

No company can solve the challenges alone. Successful companies are those that cooperate along the entire value chain - from material development to production and recycling - and actively use networks.

These technologies are an important building block - especially for the transition phase in which existing product generations are not yet designed for recycling.

Transformation requires collaboration

One thing is clear across all perspectives: the transformation cannot succeed in isolation. What is needed is close cooperation along the entire value chain - from material manufacturers, OEMs and suppliers to disposal companies and recyclers.
Equally crucial is the connection between research and industry in order to bring new technologies into application more quickly and at the same time address real needs. "Networks and platforms therefore play a central role: they pool knowledge, identify needs and bring the right players together," says Network Manager Astrid Lang.

From cost factor to competitive advantage

Perhaps the most important finding, however, is that circularity is not a cost factor, but a strategic competitive advantage. Companies that focus on recyclable materials, robust supply chains and innovative recycling strategies at an early stage not only create regulatory certainty, but also differentiation in the market, while at the same time creating the opportunity to anchor value creation more regionally and become less dependent on global risks.
Those who see materials as a strategic resource, think consistently about cycles and actively shape cooperation create the basis for sustainable innovation and long-term competitiveness. In other words, the transformation of the industry will not only be decided by new technologies or business models - but also by the way materials are handled.

Your contact

Christoph Kirsch
+49 911 20671-151
Transformation, Marketing, Bayern Innovativ GmbH, Nuremberg

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