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

Abstract

The study focuses on defining desirable circular packaging innovations for fast-moving consumer goods in small and medium-sized enterprises. To achieve this goal, we conducted two phases of quantitative research involving 60 businesses and 200 consumers, with data analyzed using exploratory and confirmatory methods (ANOVA, Friedman test). The results show that the main drivers of innovation are consumers and the reduction of packaging costs, while barriers include businesses’ concerns about unacceptable prices and consumers’ reluctance to participate in collection, sorting, or returning packaging and to accept packaging-free sales. The most suitable innovation is replacing non-recyclable materials with 100% recyclable or biodegradable alternatives, which is preferred by both businesses and consumers. However, consumer attitudes strongly depend on their environmental awareness—returnable packaging is advisable for “green” customers. The most successful innovations will be those requiring minimal changes in shopping behavior and imposing limited burdens on businesses. These insights can help companies implement packaging innovations within the circular economy framework.