Challenges in Adopting a Circular Economy model in Born-Sustainable Micro and Small Enterprises. Study on Food-Tech sector in Sweden

Abstract: The agri-food system has driven economic development and supported the growing population, but it has also significantly contributed to greenhouse gas emissions. Moreover, the system is vulnerable and faces challenges that hinder innovation and sustainability. Transitioning from a linear to a circular economy model in the food system can effectively restore biodiversity, combat climate change, and promote the development of healthy cities. However, this transition poses challenges especially for small enterprises. This thesis examines the challenges associated with adopting circular economy strategies in born-sustainable micro and small-sized enterprises in the food-tech sector in Sweden. It is based on qualitative research with empirical evidence from 11 diverse enterprises, including producers of food, beverages, supplements, and edible packaging in Sweden. The results highlight the five critical dimensions as challenges to transitioning to a circular economy, including customer behaviour, raw material sourcing, supply chain, technology-innovation, and legislation. An explanatory framework model was developed to illustrate the potential adoption of a circular economy model in the agri-food system, aiming to promote sustainable supply chains, regenerative food sourcing, local prioritization, healthier product design, and production in Sweden. Policy interventions and collaboration in the food-tech sector can further accelerate the adoption of circular economy practices. However, additional research is needed to understand the perspectives of key stakeholders such as farmers, distributors, and consumers.