Abstract: as a countermeasure to the linear model of production and consumption, which has become one of the causes of current global problems, the concept of a circular economy has been actively developing in the last decade, aiming at resource-efficient production, waste-free consumption, reduction of the negative consequences of human life for the environment, preservation of products and their parts in closed production and sales cycles. The application of the principles of the circular economy in practice is supported by digital technologies that contribute to the alignment of social, economic and environmental goals of sustainable development. At the same time, today the global circularity is estimated at 8.6%, which shows the low realization of the potential and benefits of the circular economy, while simultaneously increasing climate change, carbon dioxide emissions into the atmosphere, waste and its ineffective management. Therefore, this study is aimed, firstly, at the analysis of the conditions for the development of a circular economy as a tool in solving current global problems; secondly, at the systematization of the fundamental elements of circular production; third, at the analysis of the possibilities and threats of the formation of consumption models in the circular economy.
Keywords: circular economy, production and consumption models, sustainable development, global problems, digital transformation