There is a need for economic restructuring (also called transformation) to safeguard our natural resources, which our economy relies upon. To address global challenges in the use of bio-resources, the three dimensions of sustainable development need to be accounted for: environmental, social, economic. System thinking is the foundation of a sustainable circular bio-economy. Having the entire forestry sector, which is the entire forest product value system, in view is needed to (i) enable biomass use in a series, and to (ii) manage conflicts over the various forest demands. Sustainable resource allocation depends on the context. To implement a sustainable circular bio-economy there is no one best option. Depending on the given situation, there are various resource value retention (R) strategies that can be combined in various cascades. The literature studied for this report, recommends governments to better coordinate policies, within and across domains, to drive the transition to a sustainable circular bio-economy. The focus should be on reducing waste instead of on managing waste, using market incentives and targets. Businesses are advised to integrate technological innovations in circular business models, based on a diversity of products and partners for an increased resilience. Innovations should focus on extending product and resource life-time for maximal resource valorisation. Researchers could speed up innovations through the collection of data across the complex supply chain network, and by coordinating research across disciplines. A transition towards a sustainable circular bio-economy can bring many potential benefits. Resource value retention strategies, enabling wood use in multi-stage cascades can secure jobs, resource supply as well as healthy ecosystems. The biggest hindrance for action, so far, is the not well thought out path. Therefore, this report ends with a guide to start discussions, across the forestry sector, on all practicalities and consequences of a transition. Only in this way, the concrete meaning of a transition for forest resource supply and use can become clear, opening the way for action plans.