A new study by VU researchers revealed how consumers engage in circular economy practices Business

A survey of consumers in the Scandinavian and Baltic countries revealed that awareness of circular economy practices was clearly good in all countries, regardless of whether the term itself was known. Consumers mentioned different practices associated with the circular economy: composting, recycling, waste sorting and management, sustainable consumption, quality products, buying local food, responsible behavior, caring for nature.

In addition, as the dissemination of information about the necessity of separation of biological waste in the society increased, many consumers in the three Baltic countries associated the circular economy specifically with the management of household waste.

Too little attention to the role of consumers

In the political discourse of today’s Europe, as well as in Lithuania, the concept of the circular economy is becoming more and more established, according to which it is perceived as one of the most important tools for solving various ecological challenges: climate change, increasing pollution, exploitation of resources, loss of biodiversity, etc.

The circular economy model, which is based on the reuse of materials and products in economic activities, is opposed to the linear economic model, where raw materials are used only once to create products and end their cycle in the form of garbage and waste. Meanwhile, the circular economy promotes the economical use of resources and products by recycling, repairing, and renewing them.

In the European Union, the policy of transition to a circular economy is consistently implemented. Both in 2019 presented the European Commission’s (EC) Green Course, which emphasizes the importance of circular economy development for sustainable economy and environmental protection, both in 2020. Also, the New Circular Economy Action Plan presented by the EC shows that the development of circular economy models is associated with opportunities to reduce many ecological problems. Lithuania is also not far behind in this respect: the Ministry of the Environment in 2022 presented Lithuania’s transition to a circular economy until 2035. an action plan, which includes measures including the development of systems, knowledge and solutions that support the circular economy, the formation of demand for circular products, promoting industrial transformation and technological renewal, the use of environmentally friendly and friendly raw materials.

However, when looking at the political strategies for the implementation of the circular economy, it can be seen that they emphasize the reorganization of economic systems and the implementation of technological solutions in the development of the circular use of resources, but pay less attention to the transformation of the consumption practices of ordinary citizens, although it is about ecological education of the population, strengthening of environmental awareness, lower consumption promotion, resource saving.

Therefore, with their research, the VU researchers sought to fill this gap in circular economy research and investigate how consumers understand their role in the circular economy.

Consumers identified what motivates them to engage in circular practices

In order to find out how consumers understand the circular economy, how they get involved in it and what motivates them to do so, Lithuanian researchers conducted qualitative interviews with consumers in Estonia, Latvia, Lithuania, Norway and Ukraine. Also, in these countries, targeted workshops were organized on the aforementioned topics (focus) group discussions.

Consumer understanding and knowledge of the circular economy and engagement in its practices were really good in all the countries studied.

The study showed that the role of media and social networks is essential in shaping consumer knowledge about sustainability and circularity.

Channels such as television, social media and opinion leaders were most often cited as the most significant sources of information dissemination and consumer opinion formation.

Research participants revealed what motivates them to engage in circular practices. They singled out caring for their own health, their family members and future generations, realizing that there is a direct connection between consumption and garbage, their negative impact on the environment, and emphasized the importance of personal responsibility.

The interviewees also mentioned upbringing in the family, community initiatives, peer pressure, and the presence of an infrastructure favorable to circular practices as important factors for engaging in sustainable practices. Last but not least, there were negative and positive emotions as motivating factors.

The interviewees were asked to tell about what factors prevent them from participating in circular economy practices. Consumers cited the abundance of conflicting information that creates uncertainty and discourages potential users as the main obstacles. Similarly, consumer confidence is undermined by deceptive marketing by companies that exaggerate the sustainability of their products. One of the most emphasized points was the high cost of circular and sustainable products, especially in cases where consumers have doubts about the quality of the products.

The study revealed the transformational potential of circular economy development among consumers. Despite the obstacles and challenges, some consumers are already participating in various circular economy practices. The research is expected to help policymakers and businesses pay attention to the promotion and development of circular economy practices.