Since the start of the industrial revolution, a massive expansion of economic activity has taken place exacerbating such global environmental issues as climate change, deforestation, loss of biodiversity, air, water and land pollution and others. The main reasons behind that are current consumption and production patterns, which to a major extent are according to the linear economic model. It consists of the extraction of resources, production, consumption and disposal. Since Industrial Revolution economic growth has been achieved on increasing extraction of natural resources, production of standardized goods, overconsumption of these goods and disposal at the end of their initial lifetime. Many scholars and practitioners have warned society of limitations of linear growth, but the way of operation has not experienced significant change. The idea of circular economy has developed from the first half of 20th century, and this concept is considered to be a key for our future that by eliminating waste, reusing products and components and recirculating materials can lead society towards climate goals and conservation of natural resources. Within the concept of circular economy, the emphasis is on the use of renewable resources. The non-renewable resource reserves are depleted each time they are mined to extract materials for production. In circular economy these materials are recycled and returned back into the economy reducing the pressure on non-renewable resource reserves. In an ideal circular economy tools and machinery should use renewable energy, thus vanishing the need for fossil fuels. Results reveal that circular economy implementation is a gradual process and the greatest barriers are social and financial.