The implementation of the Circular Economy: Barriers and enablers in the coffee value chain

Abstract

The Circular Economy (CE) promises an alternative to the current ‘take-make-dispose’ economic model of high energy consumption and waste production. There are a range of examples of CE implementation in literature, but few focus on complex product value chains. Consequently, there is a lack of sector-specific understanding of barriers and enablers. This research addresses this gap with a case study from the coffee industry. Over a 7-month period, we observed a business model experimentation (BME) in the value chain of an Amsterdam based specialty coffee importer. The BME is aimed at changing both the producing and consuming side of the value chain, with the intention to minimize waste and balance ecological with social and financial sustainability. It was concluded that coherence in governmental policies, “silo thinking” of industries and standardization of circular design remain major barriers. Having a common awareness and vision as well as designing solid business models were found to be crucial enablers. Next to this, additions to existing literature are presented. Firstly, the sensitivity to identity and market perception of companies with regards to the adoption of CE initiatives was observed as a barrier. Secondly, “knowledge” in CE literature often refers to the technical barrier, where it was found that more specific fact-based communication can be an enabler for CE initiatives when perceptions of a linear economy are false. Thirdly, clear interaction between barriers and enablers was observed, which additionally allowed a clear role for the focal firm. The study at hand complements existing literature on CE with a sector-specific perspective of the coffee industry.