The Role of Consumers in Circular Supply Chains: A Multi-Sector Case Study

The transition from a linear to a circular economic model is a critical response to growing environmental concerns and resource scarcity. The circular economy (CE) promotes sustainability by integrating reuse, recycling, and remanufacturing practices, with circular supply chains playing a fundamental role in ensuring continuous reintegration of materials. However, closing circularity loops remains a challenge, largely due to inconsistent consumer engagement. This paper investigates the role of consumers in CE across three industries - furniture (IKEA), cosmetics (Sephora), and fashion (Gruppo Calzedonia) - through a multiple case study approach. Findings reveal that while businesses have implemented various CE initiatives, consumer participation is inconsistent due to logistical, financial, and behavioral barriers. IKEA’s circular supply chain strategy includes take-back and resale programs to extend product lifecycles, yet convenience issues hinder full consumer adoption. Sephora’s circularity loop for cosmetic packaging faces limitations due to a lack of financial incentives, impacting consumer motivation. Gruppo Calzedonia’s closed-loop textile recycling system has demonstrated effectiveness in incentivizing customer participation through discount-based take-back schemes, though awareness remains a challenge. This study highlights the importance of financial incentives, convenience, and consumer education in fostering engagement with CE initiatives. Theoretical contributions include integrating behavioral economics into CE research and emphasizing the need for interdisciplinary approaches that connect consumer psychology, circular supply chain management, and sustainability studies. From a managerial perspective, businesses should streamline take-back programs, enhance incentive structures, and leverage digital tools to facilitate consumer participation in circularity loops. Additionally, regulatory frameworks must support consumer-centric policies, such as standardized labeling and tax incentives for sustainable purchasing behavior. By providing a comparative cross-sector analysis, this research offers valuable insights into improving consumer participation in circular supply chains and strengthening circularity loops. Future studies should explore cultural and regional differences in consumer engagement, the role of emerging technologies in supporting CE models, and strategies to overcome behavioral resistance to sustainability practices.