The Circular Economy: small start ups that are making a big impact

~ By Izabela Lachut~

The circular economy has established itself as one of the key pillars of sustainability in the business world. Giants such as Ikea are ambitious about implementing this business model as opposed to the traditional linear model of the past through projects such as remanufacturing and utilising functional sustainability to ensure product longevity (Ikea,2024). Yet it is vital we do not overlook the smaller businesses which are implementing innovative circular economy models into their operations. This article takes a worldwide journey to shine a spotlight on small but mighty startups which are disrupting the industries they operate in.

Venturing into Latin America, we find the start up “4 Habitos Para Mudar o Mundo”, located in Brazil.They state  “We are an ecosystem created to help global corporate companies face the challenge of turning their business into Zero Landfill by 2030, turning their garbage into value through sustainable solutions(4 Habitos Para Mudar o Mundo,2024). They have already had a significant impact in a short period of time with 187 tons of recovered waste across 19 cities, showing no signs of slowing down. The start up outlines the 4 habits as “to separate,to reduce,to recover and to multiply value”. Above all, 4 Habitos Para Mudar o Mundo clearly understands the importance of innovation through utilisation of artificial intelligence as a means of evaluating the waste chain.

Moving onto a startup that transforms plastic into consumer products, we find the Uganda based start up Taktaka Plastics. Due to high transportation costs in Gulu, Uganda often plastic such as polyethylene terephthalate (PET) used to make bottles was being burned, buried, or littered. According to the start-up, “No industries in East Africa can recycle PET because its chemical properties make it very difficult to process (Taktaka Plastics,2024). Takataka (meaning “waste” in Swahili) creates a solution to this problem through utilising technology that processes this plastic waste - they are able to transform it into various products for consumers. Some of their creations include bathroom tiles, coasters and chairs. Additionally, they keep the Sustainable Development Goals in mind , focusing primarily on targeting responsible consumption and production as well as industry ,innovation and infrastructure.

Filaret is a unique start-up from Estonia which seeks to give cigarettes a new lease of life. Filaret operates through sale of their specialised branded cigarette bins to partners which collects the cigarette butts. They then turn butts into new bioplastics, 3D printing filament and hand crafted paper (Filaret,2024). The start-up focuses on utilising 3D printing technology in order to extend the life of one of the most littered product on the planet. Let’s hope we see more of their “buttboxes” beyond Estonia!

9 billion Kg of coffee consumed yearly worldwide is treated as waste, yet the start-up Coffee Resurrect (based in Ethiopia) has the goal of taking the everyday coffee and transforming it into something more. They aim to transform coffee ground waste into personal care, nutraceuticals and food ingredients in a sustainable way (Coffee Resurrect,2024). By partnering with coffee shops in Africa, they organise waste collecting , utilising biotechnology to create natural ingredients that can then be used in a variety of ways. The start-up prioritises simplicity above all, striving to show consumers that waste can still have immense value and with some creativity, be transformed into something brand new.

All of these innovative start ups have the same goal in mind - utilising technological advancements to create simple yet effective solutions to extend the product lifecycle.With mounting pressure to evolve or be left behind, large corporations that have a linear business model are striving to incorporate a circular one where possible. In an article by Boston Consulting Group, it outlines the importance in consumers driving this shift alongside businesses. Consumption will need to shift further from single use to long term use. (BCG,2024). Extending the product life cycle will look different from industry to industry. Renting may be a popular choice for those who cannot commit to a long term purchase - as seen with the likes of John Lewis and Selfridges implementing the ability to rent designerwear. Additionally, BCG proposes subscription models as a means to address dynamic consumer needs. The issue that continually arises is that of striking a balance between sustainable innovation and profitability - an endeavour easier said than done.