About a 5 minute read

Economic Models and Consumer Behavior: Shifting Towards a Circular Economy

Introduction

Economic models shift slowly, and consumer habits are hard to break. However, businesses can play a crucial role in helping consumers adopt sustainable behaviors and transition towards a circular economy. This article explores the concept of a circular economy, the intention-action gap among consumers, and how businesses can bridge this gap.

The Concept of a Circular Economy

A circular economy is gaining significant traction as consumers seek to incorporate sustainable habits into their daily lives. In a circular economy, materials are continually reused and repurposed, extending their lifespan and reducing waste. Many companies have already found circular solutions in various sectors, such as sustainable fashion, reusable packaging, and glass bottle return and recycling programs.

The Intention-Action Gap

While there is evidence that consumers want to shift towards a sustainable and circular economy, there remains a gap between their intentions and actions. Economic models shift slowly, and consumer habits are difficult to change. A study conducted by ING in 2022 revealed that consumers are willing to make sustainable buying decisions but are more likely to do so when minimal effort is required.

How Businesses Can Help

Businesses can play a crucial role in bridging the intention-action gap by providing convenient solutions. By reducing the necessary behavior change, businesses can enable consumers to make sustainable choices by default. For example, a survey by Two Sides North America showed that most consumers prefer paper-based packaging for its environmental benefits. Paper is inherently renewable, recyclable, and biodegradable, fitting seamlessly into a circular economy.

Paper’s Circular Utility

Paper packaging is visually appealing, premium-feeling, and associated with sustainability. It can be recycled and repurposed to create new paper products. Companies like Sustana address consumer needs by using sustainable, recycled fiber for food packaging that complies with FDA standards for direct food contact packaging. Achieving circularity requires a shift in pricing, standards, and supply, with an emphasis on switching to high-quality, recyclable materials.

Conclusion

Shifting from a linear to a circular economy takes time, but businesses can take tangible steps to help consumers change their behaviors today. By providing convenient and sustainable solutions, businesses can reduce the intention-action gap and make circularity the standard. It’s a gradual process, and impactful changes can be made along the way.

Sustainable Development Goals (SDGs)

1. SDG 12: Responsible Consumption and Production
2. SDG 13: Climate Action
3. SDG 14: Life Below Water
4. SDG 15: Life on Land

Sources

• Sustana
• Circular Economy – Sustainable Brands
• Sustainable Fashion
• Reusable Packaging
• Glass Bottle Return and Recycling Programs
• ING Study – Learning from Consumers: How shifting demands are shaping companies’ circular economy transition
• McKinsey Survey – Sustainability in Packaging
• Two Sides North America Survey – From Plastic to Paper: The Eco-Conscious Evolution of U.S. and Canadian Packaging Trends
• Google – Operating Sustainably: Circular Economy
• Amazon – Replacing Plastic Air Packaging with Recyclable Paper Filler
• Sustainable Packaging Coalition – The Paperization of Everything
• Sustana – Sustainable, Recycled Fiber for Food Packaging
• European Environment Agency Report – Accelerating the Circular Economy

Sponsored Content

This article is sponsored by Sustana. This article, produced in cooperation with the Sustainable Brands editorial team, has been paid for by one of our sponsors.

Published Aug 27, 2024 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
• SDG 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.
• SDG 13.3: Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.
• SDG 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 12.2: Material footprint and material footprint per capita
• Indicator for SDG 12.5: Waste generation per capita
• Indicator for SDG 13.3: Number of countries with national disaster risk reduction strategies
• Indicator for SDG 15.2: Forest area as a proportion of total land area

Table: SDGs, Targets, and Indicators

Source: sustainablebrands.com