While neither circular economy nor IoT is new to the industrial world, the way they are simplifying sustainable, tech-enabled growth trajectories for CPG companies is remarkable. The most noteworthy fact is that while AI, ML, and IoT are driving innovation on several fronts, they are at the forefront of carving a circular economy in this industry.
In this blog, we have assessed recent industry developments and early research to highlight how the Internet of Things (IoT) is accelerating the adoption of the circular economy in the consumer packaged goods (CPG) industry.
Assessing the Growing Relevance of Circular Economy in CPG Manufacturing
The circular economy shifts away from the conventional linear "take-make-dispose" framework. The new approach emphasizes reuse, recycling, remanufacturing, and ethical product designing and packaging. Since the CPG sector is characterized by high product turnover and significant packaging waste, adopting sustainability is both imperative and a business opportunity. IoT technologies have emerged as enablers of this shift, offering a technological foundation for monitoring, optimizing, and tracing materials and product lifecycles.
