It's not chilling investment – the circular economy is growing

Consumers are increasingly pushing for sustainable business practices in retail, driving businesses to reassess what they produce — and how. From ingredient upcycling to plastic alternatives to smart trash cans, we look at the technologies placing sustainability at the center of retail products and processes.

The fashion industry generates over 92M metric tons of waste every year. Global food waste totals around 1.6B metric tons. It’s no secret that industries in the retail sector are some of the most wasteful and polluting in the world.

Consumers are increasingly demanding change:

Fifty-two percent of textile industry experts say consumers are driving the heightened focus on sustainability in fashion, which includes more transparent supply chains, alternative materials, and secondhand shopping.

Similarly, 65% of consumers say they want food products that are sustainable, from alternative proteins to compostable packaging.

Investors are pouring money into the retail space, with dollars more than doubling from 2020 to 2021. Much of this is focused on sustainability efforts, from supply chain tech to tackling food waste.

Regulatory agencies are also driving the shift to a circular economy focused on waste reduction. For example, the European Union is creating a strategy for sustainable textiles that aims to create products that are more durable, reusable, recyclable, and energy-efficient. It’s set to be adopted in early 2022. In the US, President Joe Biden signed an executive order in 2021 directing federal institutions to draft regulations that protect the consumer’s right to repair electronic devices and other tools. This could reduce electrical waste and lengthen product life cycles.

The shift to a circular economy will doubtlessly pose major challenges for retailers, but it’s also a massive opportunity — and new tech solutions are emerging all the time to make the transition easier. From resale platforms to regenerative farming to autonomous delivery vehicles, we examine how technology is shaping the future of sustainable retail.