CIRCULAR PACKAGING INNOVATION FROM BUSINESS AND CONSUMER PERSPECTIVES: DESIRABLE DIRECTIONS FOR INNOVATION IN SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

Purpose: The aim of the paper is to identify desirable circular packaging innovations for fast-moving consumer goods in small and medium-sized enterprises.
Methodology: We carried out two quantitative surveys among 60 enterprises and 200 consumers in two separate phases. The data were processed by exploratory analysis and the significance of the detected differences was verified by confirmatory analysis (ANOVA, Friedman test).
Results: We found that the main innovation drivers are consumers themselves and reduction in packaging costs. The main barriers to innovation are concerns held by businesses regarding unacceptable product prices and consumer unwillingness to engage in collection, sorting and return of packaging, and to accept packaging-free sales. Replacing non-recyclable materials in packaging with 100% recyclable or biodegradable alternatives can be considered the most appropriate packaging innovation that is preferred by businesses and consumers. However, consumer attitudes depend significantly on their inclination to protect the environment. In other words, it is also advisable for green customers to implement use of returnable packaging.
Conclusion: The most successful innovations will be those that require minimal changes in consumer shopping behaviour and are not overly burdensome for businesses. The results can help companies develop packaging innovations under the circular economy paradigm.