"The UK construction industry is entering a defining moment, balancing the drive for increased output with the urgent need to achieve sustainability goals. Our research makes clear that closed-loop supply chains must be central to that future"
- Kaziwe Kaulule - Holcim
New research shows the construction industry is placing greater emphasis on circularity, with businesses setting more ambitious targets and showing a growing appetite for products that reduce reliance on virgin materials.
The findings come from Holcim UK’s annual Circularity Survey, which polled 500 industry decision makers in both 2024 and 2025. Almost all respondents, 97%, said embracing the circular economy at their organisation is important, up from 79% last year. More than half, 58%, now view it as “very important”, compared with 35% in 2024.
This increase is mirrored in operational targets. Some 57% of businesses reported having circularity goals in place across all areas of operation, a rise from 21% last year. Only 2% said they had no plans to introduce such targets.
Despite the stronger focus, respondents also identified key obstacles.
34% cited increased costs from disassembling materials.
29% pointed to the complexity of circularity.
26% said a lack of specialist labour remained a barrier.
Ongoing labour shortages are seen as limiting progress towards using more products made from post-consumer or industrial waste. At the same time, companies are stepping up their efforts to improve internal expertise. Investment in employee awareness and education rose from 21% in 2024 to 30% in 2025.
Survey participants also highlighted the role of government support. Around one-third, 33%, said specialist skills training should be prioritised, while 31% called for greater investment in awareness and education.
Holcim said the survey is intended to provide an annual benchmark and help identify barriers to wider adoption of circular products. It forms part of the company’s broader strategy to develop closed-loop supply chains, including its ECOCycle® range, which recycles construction demolition materials into new products.
“The UK construction industry is entering a defining moment, balancing the drive for increased output with the urgent need to achieve sustainability goals. Our research makes clear that closed-loop supply chains must be central to that future,” said Kaziwe Kaulule, managing director of Holcim UK’s aggregates and CDM divisions. “Driven by our clear purpose of leading the way in circular construction, we are working hand-in-hand with partners across the value chain to remove barriers, accelerate progress, and make sustainable building practices the industry standard.”
Survey results suggest the availability of circular products is becoming a decisive factor in supplier selection. This year, 94% of respondents said it influences their choice of supplier, compared with 73% in 2024. Over half, 53%, now consider access to such products to be “very important”, nearly doubling from 28% last year.
Cost challenges remain, particularly in recycling during the demolition process, but most respondents appear willing to absorb higher prices. A large majority, 87%, said they would pay more for products and services from firms with strong circularity credentials.
Respondents also showed rising interest in transparency. Some 97% said it is important to understand full circularity information for all components and products, including recycled material content. More than half, 53%, said this was “very important”, compared with 27% last year.
Developing a circular economy remains central to Holcim’s strategy. Its ECOCycle® range of aggregates, cement, and concrete contains at least 10% recycled demolition materials, with a target of 20% of products made from recycled materials by 2030.
“Circularity is fast becoming a fundamental expectation from our customers, and together we’re proving that high-performance products can also be low-carbon and circular,” said Danny King, managing director of Holcim UK’s asphalt division. “To ensure wider adoption within UK construction projects, solutions must be commercially viable, simple to access and underpinned by vital product data and technical support. Through innovations like ECOCycle® and significant investment in our CDM capability, we are embedding circularity at the core of everything we do in partnership with our customers.”
