CC-BY-NC-NDMilošević, IsidoraStojanović, AnđelkaArsić, SanelaNikolić, IvicaRakić, Ana2023-12-212023-12-212023978-86-6305-140-9https://ioc.tfbor.bg.ac.rs/public/2023/Proceedings_IOC_2023.pdfhttps://repozitorijum.tfbor.bg.ac.rs/handle/123456789/16The circular economy is an emerging concept based on the circulation of materials in the economy, in which waste is recycled, reused, or repaired. By recycling waste, new raw materials are obtained from which products or certain materials can be made, and devices can have alternative uses. A circular economy is needed to change outdated business practices based on a linear production-consumer paradigm into creative, innovative semi and final products. Industry 5.0 puts people at the center of the production process and uses innovative technical advances to ensure a sustainable and resilient path to smart manufacturing. Therefore, the circular economy and Industry 5.0 lay the foundations of intelligent and sustainable production based on real-time data collection, contributing to society's smart industry. This paper examines whether companies need to transform from a linear production-consumer paradigm to a circular economy to achieve sustainable development in the era of the new industrial revolution known as Industry 5.0.enCircular economyIndustry 5.0Sustainable developmentTransformconferenceObject