Bio In, Garbage Out? A Review of Paradoxes and Trade‐Offs in the Circular Bioeconomy

ABSTRACT

The circular bioeconomy (CBE) is increasingly presented as a promising way to advance corporate environmental sustainability by combining the use of renewable, bio‐based resources with circular economy principles of resource efficiency and lifecycle management. However, despite growing interest in the CBE, limited attention has been paid to the tensions that emerge in its implementation across the value cycle. This gap matters, as the transition to the CBE requires substantial technological, organizational, regulatory, and market changes that create competing yet interdependent demands for firms and other stakeholders. Drawing on paradox theory as a detective theoretical lens, this study systematically reviews 58 articles to identify and map the tensions characterizing the CBE. In doing so, we distinguish between trade‐offs and paradoxes, examine where these tensions are located, and assess how they concentrate across the CBE value cycle. Our findings indicate that tensions arise unevenly—with the highest concentration occurring during the procurement and processing of raw materials—and that issues related to resource availability, technological development, supply chain adaptation, and regulatory uncertainty are particularly significant. By providing a systemic account of tensions within the CBE, this study extends research on sustainability transitions and offers a foundation for understanding the contradictory demands that firms must navigate as they pursue circular bio‐based strategies.