Circular Packaging Strategies

1. Foundations of Circular Packaging

Circular packaging strategies aim to generate both environmental and business value, but this outcome is conditional and never automatic. It is crucial to distinguish between stated objectives and actual results.

2. Linear vs Circular Economy

Key idea: Circular economy is not just recycling; recycling is only one part and occurs late in the process. Circularity begins well before the product reaches end-of-life.

3. Why Focus on Packaging?

Packaging represents a significant environmental challenge due to its volume and material use:

• Packaging accounts for 40% of plastics consumption.
• Packaging represents 50% of paper usage.

These figures highlight the critical importance of addressing packaging within circular economy strategies.

To remember: Circular packaging can create environmental and business value only under certain conditions; it is never automatic. Always separate what companies say they want to achieve from what actually happens.

1. Circular Economy vs. Linear Economy

• Linear economy follows a take-make-dispose model: raw materials are extracted, transformed into products, used once, then discarded as waste.
• Circular economy aims to keep materials in use as long as possible, minimizing waste and resource extraction by designing for reuse, repair, and recycling.

2. Packaging: A Strategic Environmental Challenge

• Packaging represents a huge and highly visible waste stream, subject to increasing regulation.
• Only about 14% of plastic packaging is collected for recycling in Europe.
• Approximately 95% of the material value of plastic packaging is lost after a single use (Ellen MacArthur Foundation, 2016).
• The EU Packaging and Packaging Waste Regulation (PPWR, Regulation 2025/40) will become generally applicable in August 2026, making circular packaging an obligation rather than an option.

Key point: Packaging is not a minor detail but a strategic issue in waste management and circular economy efforts.

3. Research Question & Main Message

• Research question: To what extent can circular packaging strategies help companies reduce environmental impact while creating commercial value and supporting sustainable business models?
• Answer: Circular packaging strategies can significantly reduce environmental impact and create value, but this is conditional, not automatic.

Key point: The value generated by circular packaging depends on how strategies are implemented, not just on their existence.

4. Summary Table: Linear vs. Circular Economy

5. Active Recall Questions

1. Difference between linear and circular economy?
   Linear economy is a one-way flow ending in waste; circular economy keeps materials in use longer through reuse and recycling.

2. Why is packaging relevant?
   Because only 14% of plastic packaging is recycled, and 95% of its material value is lost after one use.

3. Main message in one sentence?
   Circular packaging creates significant environmental and business value, but only under certain conditions.

This distillation highlights the importance of packaging in circular economy efforts, the regulatory shift making circular packaging mandatory, and the conditional nature of value creation through circular strategies.

1. The 9R Framework: Prioritizing Circularity

• R2 — Reduce: Use less material to minimize resource input.
• R3 — Reuse: Reemploy or refill packaging to extend its life.
• R8 — Recycle: Process materials to reintroduce them into production.

Key idea: The lower the R-number, the more circular the strategy. Recycling (R8) is relatively low on the circularity ladder, proving that circularity is not synonymous with recycling.

2. Framework 2: Narrowing, Slowing, Closing (Bocken et al., 2016)

This framework simplifies circular strategies into three actions:

Key idea: Use both the 9R framework and the Narrowing/Slowing/Closing framework to evaluate circular packaging strategies comprehensively.

3. The Three Technical Traps in Circular Packaging

1. Rebound Effect

   • A lighter or cheaper package may increase sales volume, negating environmental gains.
   • Environmental benefit per unit is offset by higher consumption.

2. Reuse Break-Even Point (Coelho et al., 2020)

   • A reusable package must be used enough times to compensate for the environmental costs of washing and transport.
   • If not, reusable packaging can be worse than single-use.

3. Greenwashing (Delmas & Burbano, 2011)

   • Distinguish between companies that lie and those that communicate imprecisely.
   • Example: Coca-Cola’s “100% recycled” claim applied only to the bottle body, excluding cap and label, corrected under EU pressure in 2025.

Key idea: Environmental value is never automatic; it can be canceled by rebound effects, insufficient reuse, or misleading communication.

To remember: Circular packaging strategies must be critically assessed using both frameworks and awareness of technical traps to ensure true environmental benefits.

1. Technical Traps and Implementation Barriers

Key concepts: narrowing, slowing, closing

• Narrowing = using less material or energy in a product or process.
• Slowing = extending the lifespan of products or components.
• Closing = recycling materials to re-enter the production cycle.

2. Common Technical Traps in Circular Packaging

3. Implementation Barriers

• Imprecise communication: Claims on packaging (e.g., "100% recyclable") may not reflect actual recyclability, leading to consumer confusion. This is not necessarily a lie, but an imprecise or misleading communication.
• Technical incompatibilities: Different materials or additives in packaging components can prevent effective recycling or reuse.
• Consumer behavior: Lack of awareness or motivation to properly sort and recycle packaging reduces circularity effectiveness.
• Economic constraints: High costs of redesigning packaging or implementing circular systems can hinder adoption.

To remember: Narrowing means using less, slowing means extending use, and closing means recycling materials back into production.

4. Important references to cite on traps and barriers

• Potting et al. (2017): Introduced the 9R framework, highlighting strategies from refuse to recycle.
• Bocken et al. (2016): Discussed business model challenges in circular economy implementation.
• Coelho et al. (2020): Analyzed communication issues and consumer perception of circular claims.
• Delmas & Burbano (2011): Explored corporate social responsibility and greenwashing risks in sustainability claims.

5. Summary Table: Narrowing, Slowing, Closing

1. Frameworks for Circular Packaging Strategies

Two main frameworks guide the classification and analysis of circular packaging strategies:

Note: The 9R framework is pronounced “nine R,” not “nine hour.” Narrowing means “use less,” not “useless.”

2. The 9R Framework (Potting et al.)

• R0 Refuse: Avoid using the material altogether.
• R1 Rethink: Redesign to reduce resource use.
• R2 Reduce: Minimize material input.
• R3 Reuse: Use the product multiple times.
• R8 Recycle: Recover materials at end-of-life.

Key insight: Circularity is not the same as recycling; recycling ranks lower (R8) in circularity than refusal or reuse.

3. Sustainable Business Model Archetypes (Bocken et al. 2014)

• Provides foundational concepts for analyzing business models focused on sustainability.
• Supports the business-model perspective on circular packaging strategies.

4. Critical Nuances for Circular Packaging

To remember: Potting et Bocken provide your two essential measurement rulers for circularity; understanding the nuances from Coelho, Delmas & Burbano, and ElHaffar is critical for a critical (not just descriptive) analysis.

1. Critical Nuances and Consumer Behavior

Three Key Barriers to Circular Packaging Adoption

• Physical barrier: Product rotations and logistics can hinder circular packaging implementation.
• Communication barrier: Greenwashing creates consumer skepticism, reducing trust in circular claims.
• Human barrier: Consumer behavior and attitudes often resist change despite circular strategies.

A successful circular packaging strategy can fail commercially if these three barriers are not addressed.

2. Methodological Justifications

Key insight: Yin + Eisenhardt explain why comparative case studies are used; Braun & Clarke + Bowen explain how data is analyzed.

3. Consumer Behavior Insights

• Reuse break-even point: The threshold at which reuse becomes environmentally and economically beneficial (source: Delmas & Burbano).
• Greenwashing nuance: Not all greenwashing is outright deception; some claims may be misleading but not entirely false.
• Attitude-behavior gap: Consumers often express positive attitudes toward circular products but fail to translate this into actual purchasing behavior.

To retain: Addressing physical, communication, and human barriers is essential for circular packaging strategies to succeed commercially.

1. Methodological Foundations

a) Choice of Method: Case Study

• Case study method chosen for its ability to explore complex, real-life phenomena within their contexts.
• Supported by Eisenhardt (1989), who highlights case studies as ideal for building theory from contrasting cases.
• Enables identification of regularities across diverse sectors and strategies.

b) Data Analysis Approach

• Data analyzed through a structured framework focusing on four dimensions:
  1. Dominant strategy (core circular approach)
  2. Environmental value (actual vs. intended impact)
  3. Business value (commercial benefits)
  4. Barriers & trade-offs (challenges and compromises)
• This sequence helps link strategy to outcomes and obstacles systematically.

c) Key Theoretical References

d) The 9R Framework (Potting et al.)

• A hierarchy of circular strategies ranked by narrowing, slowing, closing resource loops:

• Correct order and pronunciation are essential for clarity.

e) Practical Application: Case Studies

• Cases chosen are contrastive: different sectors, dominant strategies, and outcomes.
• This contrast enables emergence of generalizable insights.

f) Example: L’Occitane (Cosmetics)

• Dominant strategy: Refill and reuse (eco-refills since 2008, refill fountains since 2020, aluminium “Forever Bottle”).
• Environmental value: Significant plastic reduction (~200 tonnes saved), but partial impact.
• Business value: Eco-refills reduce plastic by ~85%, supporting cost and brand value.
• Barriers: Implementation challenges and trade-offs between convenience and sustainability.

> The case study method, combined with a structured four-dimension analysis, allows for nuanced understanding of circular packaging strategies across diverse contexts.

1. L'Occitane Circular Packaging Strategy

• 2025 targets not met: rPET content reached ~32%, in-store take-back ~47%. The company acknowledges this in its FY2025 ESG report and postpones targets by about 2 years.

• Business value: Primarily strategic and reputational:

  • Enhances brand image
  • Supports B Corp certification
  • Increases customer loyalty through refill programs
  • No specific financial figures disclosed

• Barriers & trade-offs:

  • Main obstacle is consumer adoption, especially convenience
  • Even technically sound strategies can fail without user uptake

Key takeaway: Consumer convenience is critical for circular packaging success; technical solutions alone are insufficient.

2. Coca-Cola European Circular Packaging Strategy (for comparison)

Distinction: The Coca-Cola Company sets global targets; bottlers execute locally, making European scope relevant for EU regulations.

3. Summary for L'Occitane

Overall insight: L'Occitane’s circular packaging efforts highlight the importance of aligning technical solutions with consumer behavior to achieve sustainability goals.

1. Case Study: Coca-Cola

Key challenges and risks:

• Coca-Cola’s circular packaging strategy faces significant barriers and trade-offs, notably in collection infrastructure and achieving the reuse break-even point (Coelho et al., 2020).
• There is a gap between announced targets and actual execution: The Coca-Cola Company (TCCC) has lowered several sustainability targets, postponed them to 2035, and even dropped its reusable-packaging target.
• The 2025 sanction on the “100% recycled” claim highlights that communication can backfire, putting part of the company’s value “at risk.”

2. Summary Table: Coca-Cola’s Circular Packaging Challenges

Strong intent alone does not guarantee success; execution gaps and communication risks can undermine circular packaging strategies.

1. Case Study: IKEA

Alignment of Environmental and Commercial Value
IKEA exemplifies the case where environmental goals and business value converge clearly. Their focus on reduction at source minimizes packaging materials upfront, which reduces costs and environmental impact simultaneously.

Key Conditions for Success
Two critical factors repeatedly emerge for circular packaging success:

• Collection infrastructure: Efficient systems to collect used packaging are essential.
• Consumer adoption: Consumers must accept and participate in circular packaging schemes.

Without these, circular packaging struggles to generate value.

Regulatory Influence
EU regulations, notably Regulation EU 2025/40, the Single-Use Plastics (SUP) Directive, and Deposit Return Schemes (DRS), act as a common driver. They shift circular packaging from a voluntary option to a mandatory obligation, accelerating adoption and innovation.

Circular packaging creates commercial value primarily when environmental benefits align with cost savings, supported by robust collection systems and consumer participation, underpinned by regulatory mandates.

2. Active Recall Questions (IKEA Focus)

1. Why is IKEA’s case where environmental and business value align most clearly?
   Because IKEA’s strategy focuses on reducing packaging at the source, which simultaneously lowers costs and environmental impact, creating a clear win-win.

2. What two conditions are essential for circular packaging success?
   The presence of collection infrastructure and consumer adoption.

3. What role does EU regulation play in IKEA’s circular packaging strategy?
   It acts as a common driver that transforms circular packaging from an option into a regulatory obligation, encouraging companies like IKEA to implement sustainable packaging solutions.

3. Summary Table: Circular Packaging Value Drivers in IKEA

1. Research Design

• The study uses a qualitative, exploratory, comparative case study approach.
• Qualitative and exploratory because the research question is about "how" and "under what conditions", focusing on understanding practices in context rather than measuring variables quantitatively (Yin, 2018).
• Exploratory due to the lack of existing theory on the economic conditions enabling circular packaging (Eisenhardt, 1989).

2. Multi-Case Design

3. Case Selection

• Purposive / theoretical sampling: Cases selected for theoretical relevance, not statistical representativeness.
• Four criteria for selection:
  1. Public communication on circular packaging (ensures material to analyze).
  2. Availability of data (sustainability reports, CSR, official websites).
  3. Contrasting forms of circularity (reuse, refill, recycled content).
  4. [Fourth criterion incomplete in source, but generally involves relevance to research question].

> Cross-case analysis reveals patterns and transversal lessons by comparing multiple, theoretically relevant cases, enabling theory building in underexplored areas.

1. Research Design and Methodology

a) Case Selection

• Focus on three contrasting sectors where packaging poses major environmental and commercial challenges:
  • L’Occitane: refill strategy
  • Coca-Cola: recycled content, reduction, deposit
  • IKEA: reduction and elimination

b) Data Collection and Bias Handling

• Use of secondary data: critically read and triangulated to ensure reliability.
• Document analysis (Bowen, 2009):
  • Documents are stable, non-reactive sources; analyzing them does not alter the object.
  • Must be read critically as they are produced with specific purposes.
• Triangulation (Bowen, 2009):
  • Company data systematically cross-checked with independent sources (academic, NGO, LCA, third-party certification).
  • Protects against greenwashing.
  • Unverifiable data are explicitly flagged.

Key point: Triangulation is essential to validate self-declared company data and identify potential greenwashing.

c) Data Analysis

• Method: Thematic analysis (Braun & Clarke, 2006) using a four-dimension grid.
• Six phases of analysis:
  1. Familiarisation
  2. Coding
  3. Generating themes
  4. Reviewing themes
  5. Defining themes
  6. Writing up
• Coding is guided by four predefined dimensions:
  • Dominant strategy
  • Environmental value
  • Business value
  • Barriers & trade-offs
• These dimensions are applied consistently across cases for comparability.
• Emergent themes (e.g., announcement–execution gap) are added when revealed by data.
• Reminder: Dimensions guide coding; themes emerge from the data.

d) Reliability, Validity, and Limits

Key point: Transparency and triangulation underpin the study’s rigor, ensuring findings are credible and transferable analytically.

1. Data Collection and Analysis Approach

Qualitative method chosen because it allows in-depth understanding of circular packaging strategies, capturing complex, contextual insights that quantitative data cannot provide.

Three cases selected to explore diverse approaches and enable theoretical generalisation rather than statistical representativeness. Cases were chosen for their contrasting strategies and data availability.

Limits of the study:

• Company reports tend to present a favourable picture, risking bias.
• Packaging-specific financial data are difficult to obtain, limiting economic analysis.
• Only three cases studied, so findings cannot be statistically generalised.
• Thematic analysis involves researcher interpretation, introducing subjectivity.

Generalisation is aimed at theory development, not sector-wide conclusions.

2. Key Definitions and Concepts

• Qualitative research: Focuses on understanding meanings, experiences, and processes rather than numerical measurement.
• Triangulation: Combining multiple data sources or methods to enhance validity and reduce bias.
• Thematic analysis: Identifying, analysing, and reporting patterns (themes) within qualitative data.
• Theoretical generalisation: Extending findings to broader theory rather than to populations.

3. Summary Table: Data Collection and Analysis Approach

The main limitation accepted is the small number of cases and reliance on company reports, justified by the exploratory nature of the research and focus on theory development.

1. Personal Perspective and Critical Reflection

a) Key Reflection Points

• Identify a fact that changed your initial idea about circular packaging strategies. Common starting assumptions include:
  • Recycling ranks low in the 9R hierarchy.
  • Companies sometimes delay or avoid their sustainability goals.
  • Reuse is not always environmentally superior due to break-even points.

Example expressions:
“What surprised me was…”
“At first I thought … but the data showed …”

b) Formulating Your Own Answer to the Research Question

• Base your answer on your central insight or "red thread" (e.g., “both environmental and business value, but conditionally”).
• State your personal conviction about the most critical condition for success, such as:
  • Collection infrastructure quality
  • Consumer adoption rates
  • Cost convergence (e.g., IKEA’s model)

Example expressions:
“In my view, the key condition is…”
“My personal conclusion is that…”

c) Critical Reflection on Limits and Future Steps

• Acknowledge a real limitation from your analysis or case study.
• Propose a concrete next step to address it, for example:
  • Interviewing packaging managers
  • Adding a fourth case from a different sector
  • Seeking detailed cost data

Example expressions:
“If I had more time, I would…”
“A limit I’m aware of is…”

2. Useful Vocabulary and Methodological Terms

3. Key Authors to Reference

• Yin (2018) — Case study methodology
• Eisenhardt (1989) — Building theories from cases
• Braun & Clarke (2006) — Thematic analysis
• Bowen (2009) — Document analysis and trustworthiness

These references support rigorous qualitative research and critical reflection in circular packaging studies.