What have you researched?
'I was keen to find out how FMCG companies operating in the Netherlands can most efficiently transition to a circular economy. My findings clearly show that the transition to a circular economy not only brings environmental gains but also offers opportunities for operational cost savings, market differentiation, and improved brand perception. '
What are the biggest obstacles and opportunities for companies striving for more circular practices?
'The transition to a circular economy encounters several obstacles. Technologically, there are problems such as the need for product designs for reuse and insufficient waste management. Economically, there are high investment costs and a need for market structures. There are also institutional barriers, such as inconsistent regulations and lack of support. Finally, there is the cultural factor: there is often resistance to change initially and a need for more awareness among consumers.
However, it is unwise to be held back by these obstacles. Indeed, the circular economy also offers many opportunities for companies in the FMCG sector. They can differentiate themselves with eco-friendly packaging and by developing products that use fewer resources or are recycled. Circularity also offers strategic advantages, such as learning how to use scarce resources better with innovations. Moreover, they can often take advantage of tax breaks.'
What were the main conclusions from your research?
Dutch FMCG companies can best transition to a circular economy by seeing waste as a valuable raw material and integrating it into their processes, such as with recycled packaging and waste projects. This switch offers both environmental gains and better performance, with benefits such as cost savings and an improved market position.
Dutch companies are well-positioned to embrace and benefit from the circular economy due to their innovative strength and national focus on sustainability. However, there are challenges, such as consumer acceptance, promoting sustainable behaviour, dealing with complex regulations and combining brand identity with sustainability. This requires a holistic approach, where collaboration between stakeholders, from government to consumers, is a crucial success factor.
How can Boer & Croon play a role in this?
Boer & Croon can play a crucial role in helping companies transition to circularity, as required by EU regulations coming into force around 2050. Our expertise in process optimisation and change management enables us to guide companies in converting waste into valuable raw materials, saving costs, and strengthening their market position.
How can companies integrate circular economy principles into their business model? What is your first piece of advice?
'FMCG companies need to embrace these principles, not only for the environment but also to remain competitive. This means being open about their sustainability efforts, educating consumers about sustainability and thinking about standardising packaging to facilitate recycling. Collaborations with startups and academic institutions can help find new solutions, but keeping the dialogue with regulators is critical. It is also essential for companies to adapt their practices internally and set themselves ambitious sustainability targets. In the long term, they must focus on reducing waste and reusing materials while continuing to innovate and collaborate with others.'
