Circular Strategies in the Swedish Furniture Industry – A Business Modelling Approach

Paper in proceeding, 2024

The interest in circularity and circular strategies is increasing in the furniture industry. Wood is a climate-smart and sustainable material, partly because it has many environmental advantages compared to other materials such as plastic or metal, partly because it is a highly renewable material. Today, the technical lifespan of wood products such as furniture is not fully utilized. Today, the technical lifespan of wood products such as furniture is not fully utilized, which could be explored through circular strategies. By extending the life of products, components, and materials, the environmental impact could be significantly reduced. However, several challenges have been identified that hinder the establishment of circular strategies. Inconsistent policies and obstructive legislation, high initial costs and long payback periods, low consumer awareness, and lack of collaboration in the value chain are examples of main challenges. The research question addressed in this paper is How to facilitate the circular development of the Swedish furniture industry by promoting circular business models? This paper discusses the barriers and drivers of circularity with specific focus on the characteristics of the furniture industry in the Swedish context. A conceptual approach for establishing circular strategies in the furniture industry based on the 10R model, the business model canvas, and the product-service system approach is proposed. The approach facilitates the identification of relevant circular strategies that can be developed into circular business models. The paper concludes that circular strategies and business models entail positive economic, environmental, and social sustainability impacts for customers, companies, as well as on the society, but to achieve the benefits, organizational and technical solutions addressing the barriers on organizational, industry, and societal level must be developed. Circular business models are a way to overcome several of the barriers while promoting industrial and value chain collaboration.