The 21st century is largely determined by the current phenomenon of globalization. It is gaining more powerful valences, have caused environmental issues that require a global sustainable solution. Limited natural resources, rapid deterioration of air quality, water, soil, global warming, deteriorating ozone layer, melting of glaciers, the loss of biodiversity - are just some of them. Looking beyond the current `take-make-waste` model, humannity continues to consume more resources and contribute more to environmental degradation. The linear economy, which relies exclusively on resource extraction, is no longer a viable option. Circular economic model is the solution to do things differently, in a sustainable manner. It is an economic system aimed at eliminating waste and ensure continual use of resources through repairing, refurbishing, recycling and reusing existing materials and products. This paper aims to improve the understanding of the circular economy concept based on an extensive literature review, as well as its various dimensions, concepts and principles.