Understanding customer behavior in the circular economy

In the dynamic landscape of sustainable innovation, circular products and services are taking center stage. But just creating them isn’t enough. Companies need to understand what makes consumers embrace or ignore these solutions. At the core of this challenge is the need to design the value proposition effectively. What makes it stand out? Why should customers care? This is deeply intertwined with how emotional and rational thinking influence consumer behavior. In circular offerings, the real appeal often lies in how well they match consumer values, like sustainability, efficiency, and long-term benefits. Moreover, consumers can be part of the solution. But aligning with values isn’t a one-and-done task. It requires an ongoing commitment to life cycle management, ensuring products stay relevant as trends and expectations shift.

The role of nudging to overcome consumer resistance

Even the most compelling value propositions and best circular products won’t gain traction if consumers don’t see how they fit into their lives. That’s where nudging comes in—small, intentional efforts to steer behavior toward sustainable choices. Whether it’s through smart product design, engaging marketing that speaks to both logic and emotion, or incentives for responsible use that reinforce their role in the solution, nudging helps bridge the gap between good intentions and real action.

Of course, not everyone will immediately jump on board with circular products. Some consumers are hesitant, skeptical, or simply unaware of the benefits. In these cases, companies need to meet customers where they are—sparking conversations, offering education, and providing the right tools to make informed decisions that empower them as part of the change. This ongoing refinement is a key part of life cycle management, ensuring products continue to meet consumer needs.

Paving the path to circular success

At the end of the day, winning in the circular economy is about more than just great products—it’s about understanding people. If you’re ready to take your circular strategy to the next level, now is the time to act. Start by evaluating your value proposition, test new approaches, and fine-tun your life cycle management strategy. Need help? Let’s collaborate to drive real impact and innovation together. With the right mix of consumer insights and gentle nudges, companies can create solutions that not only meet demand but also drive real change. And with continuous adaptation and smart life cycle management, they can stay ahead of the curve while making a lasting impact, paving the way toward a more sustainable future for all.

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Belgium and Europe leading the charge in recycling innovation

The circular economy is a transformative shift in how we design, produce, and consume products. Moving away from the linear ‘take-make-dispose’ model, it focuses on eliminating waste and pollution, keeping materials in use, and regenerating resources. Europe and Belgium lead the way in PET and aluminum recycling, with Belgium achieving a remarkable 93,7% collection rate for PET bottles, well above the EU average. Most of these bottles are recycled domestically, with a significant portion used in closed-loop systems to create new bottles. Similarly, aluminum can recycling rates are high, with Europe leading globally in this effort. Recycling aluminum saves energy while maintaining quality, making it a key component in circular systems.

Europe and Belgium’s high recycling rates didn’t happen by chance, they’re the result of reliable collection systems, proactive industry efforts, and growing consumer awareness. Enhancing sorting, using more recycled materials in products, and continuing to educate the public will take these efforts to the next level. Focusing on PET and aluminum recycling is about creating a future with less waste, smarter resource use, and new economic opportunities. However, shifting to a truly circular economy is no small task. That’s where pilots come in, offering a practical way to test, learn, and improve.

Pilots in action: the Litterbits success story

Litterbits is a shining example of how technology can be harnessed to drive positive environmental change. This Belgian initiative by Twintag, Verhaert Strategic Innovation, and Cegeka, showcases that a digital deposit return system (DDRS) incentivizes recycling. Litterbits tackled inconveniences and inefficiencies like low return rates and public littering. Its success story began with a pilot project at Corda Campus in Hasselt, Belgium, demonstrating the feasibility of the system’s potential:

• High participation: Employees actively used the app and smart bins, boosting return rates
• Reduced litter: Beverage container waste on campus dropped significantly
• Valuable insights: The pilot captured valuable data on user behavior, recycling patterns, and system efficiency

Following this success, Litterbits expanded to other environments, including vacation parks and municipalities, while refining the system for inclusivity with diverse user groups.

3 steps to de-risk innovation with functional pilots

Functional pilots are the perfect way to test your circular business model in a real-world, controlled setting before committing to full-scale implementation. Innovation is tricky and new business creation is a complex process with many risks. As small-scale trials, our pilots offer you a safe space to experiment, collect valuable data, and learn from missteps without heavy financial stakes. Here’s why pilots are essential for a smooth circular transition:

1. Facing failure to find success: The path to circularity is paved with good intentions. Not every innovation works on the first try, and that’s okay. Pilots let you test assumptions, identify potential hurdles, and fine-tune your approach before scaling up, saving time and resources in the long run.

2. Nudging towards new behaviors: Circular models often ask consumers to change how they interact with products: joining take-back programs, using repair services, or embracing product-as-a-service models. Pilots help you explore what works, gather real-world feedback, and refine strategies to foster these new behaviors.

3. Conceptualizing and testing as a continuous journey: Transitioning to circularity isn’t a one-and-done effort, it’s an ongoing process of learning and adaptation. Pilots allow you to test different aspects of your model, gather meaningful data, and continually improve.

Functional pilots aren’t just a test run, they’re the foundation for sustainable, scalable success.

Innovation pilots, your key to sustainable business growth

Innovation comes alive when ideas turn into action, and functional pilots are the testing ground for connecting ambition to real-world impact. Starting small allows businesses to take calculated risks, refine their strategies, and build toward lasting circular success. Europe and Belgium’s strides in recycling highlight the power of collaboration, cutting-edge technology, and a shared commitment to sustainability. Yet, there’s still more to learn and adapt. Initiatives like Litterbits show how testing and improving with pilot projects in controlled environments can unlock scalable, inclusive solutions. The circular economy isn’t just an end goal, it’s an ongoing journey, and every pilot brings us one step closer to a sustainable future. It’s time to embrace this journey! Start testing, learning, and contributing to the circular economy today.

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Everyone agrees that sustainable innovation is the cornerstone to addressing environmental challenges and lasting economic growth. The truth is that making meaningful changes is difficult and sometimes feels like speeding ahead and hitting the brakes at the same time. What’s holding us back? In this track, you’ll dive into the tricky obstacles slowing down progress and shine a light on fresh, forward-thinking approaches that can break the cycle. Check out the presentations from the Innovation Day of 2024 on:

• Design for sustainability, from an incremental toward a more radical strategy
  By Jeroen Wilms, Consultant MechLab at Verhaert Product Innovation
• The search for sustainability impact
  By David Pas, Customer Success Manager at Verhaert Strategic Innovation and Laurien Wolfswinkel, Head of Operations at Beacon Masters in Innovation

View the presentation

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Innovation thrives on this shared optimism, the conviction that change is possible. In our industry, it’s the spark that empowers people, companies, and organizations to turn ambitious ideas into impactful solutions for the planet’s most pressing challenges. Together, we’re not just imagining a better world, we’re building it.

Meet Gen Z, rewriting the rules of engagement and sustainability

In Wunderman Thompson Intelligence’s Regeneration Rising report, 66% of respondents shared deep concerns about the personal impacts of climate change, rising to 72% of Gen Z. Yet rather than letting fear dictate their future, this generation is choosing action and optimism. An impressive 85% of respondents believe it’s essential to rethink how we live and spend money to address the climate crisis, and 70% are ready to change their behavior to make a difference. Driven by purpose and pragmatism, Gen Z is shaping a new wave of sustainability that is as proactive as it is hopeful.

Born between 1997 and 2012, Gen Z, often called ‘Zoomers’, are true digital natives, with smartphones in hand and a world of information at their fingertips from a young age. Far from passive consumers, they’re socially conscious, empowered and entrepreneurial, bringing a fresh perspective to everything from business to sustainability. As the new wave of consumers and innovators, they’re pushing for change that’s as dynamic and connected as they are.

From hashtags to real change: climate optimism is changing innovation

As Gen Z channels climate anxiety into optimism and action, brands face a clear call: go beyond surface-level changes and deliver real, innovative solutions. This generation’s influence is already reverberating across social media, where climate-related content is surging. By January 2023, hashtags like #climatechange had garnered 4.1 billion views, #eco hit 2.3 billion, and #ecotok, a thriving TikTok community of climate advocates, reached nearly 835 million views.

We’re noticing the same urgency and awareness in our customers. They understand both the gravity of the climate crisis and the unique opportunity for impactful change. Our proven innovation methodology helps clients define and validate value propositions that resonate, with behavioral design as a powerful driver to accelerate adoption. Because while innovation excites, change can be challenging, especially when shifting behaviors is the goal. Yet with focused, purpose-driven strategies, we’re moving from climate concerns to climate solutions, one step at a time.

The search for sustainability impact

How does the quest for sustainability play out in practice? Large companies, in particular, face a unique challenge: big impact demands big opportunities, but the most valuable ideas often start small, like uncut diamonds. At our Innovation Day, we’ll explore how corporations can adopt startup-inspired thinking to identify hidden gems and transform small beginnings into substantial sustainability wins. Join us for an inspiring dive into strategies that turn humble ideas into significant sustainability breakthroughs.

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With the growing emphasis on sustainability and circularity, companies must lead with innovative solutions. On June 11th, David Pas, Coordinator Strategic Innovation at Verhaert, and Els Fonteyne, Expert circular economy at Agoria, joined forces to share best practices and key insights on integrating circularity into innovation, strategy, and R&D.

Sustainable innovation thrives on collaboration and user engagement. Discover how pilot projects accelerate circular economy adoption by testing and optimizing new technologies before large-scale implementation. Learn from industry examples to advance circularity. How can you develop sustainable products, extend product life cycles, and create circular business models? How can you redefine value chains and processes to minimize waste and optimize resources?

Access the recording and presentation to get essential fundamentals and practical tools to drive positive change and shape a sustainable future!

Watch the recording

View the presentation

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Together towards circularity

Discover how strategic pilot projects accelerate innovation in a circular economy through collaboration and user engagement. Learn from industry examples to progress towards circularity.

How do you develop sustainable products, extend product life cycles and create circular business models? How do you redefine value chains and processes to produce less waste and optimize resources? This session will provide you with essential fundamentals and practical tools to create positive change and shape a sustainable future.

In pursuing sustainable transformations, companies often notice a mismatch between their business model and product offerings. How to bridge this gap and connect circular business models with sustainable product design? Verhaert’s innovation consultants will give you practical applications and concrete insights to seamlessly integrate with your business operations.

Connect. Learn. Innovate.

The Agoria Connect & Learn session takes place on Tuesday, June 11 from 16h to 19h at Verhaert in Kruibeke. Participation is free, but registration is required due to the limited number of available places.

• 16h00: Welcome & event introduction
• 16h15: The opportunities of the circular economy (Els Fonteyne, Expert Circular Economy at Agoria)
  Global challenges demand a shift to circular economy models, turning crises into opportunities. Explore the Butterfly Model and the European Green Deal’s role. Beyond recycling, discover design principles: use less, use longer, use again. Maintain value to ascend the ‘Value Hill’, finding value beyond company boundaries. Prepare for tomorrow’s circular economy ecosystem today.
• 16h35: The importance of strategic pilot projects in a circular economy (David Pas, Coordinator Strategic Innovation at Verhaert)
  Strategic pilot projects play a significant role in transitioning from vision to actionable plans through conceptualization and validation. Creating a roadmap toward circularity focuses on 5 pillars and their role within the value chain, from business models to product lifecycle and end-of-life responsibilities.
• 17h15: Company tour
• 17h45: Networking

Filled with knowledge-sharing and networking fun, we’re eager to connect, learn, and innovate with you!

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Sustainability is hotter than ever, yet it contains a paradox of balancing environmental, economic, and technological factors. To overcome this paradox it’s crucial to understand your customer’s willingness to pay, their desire for a greener future, and how to change your business or service model. This requires redefining your development methods.

During ‘The Sustainability Paradox’ seminar on March 5th, we invited Prof. Thomas Müller-Kirschbaum (Circular Valley), Marleen Rombouts (VITO), Victor Verlinden (Verhaert), Bjorn Robbens (C-Battery), Toon Van Ingelghem (DEME), Karine Van Doorsselaer (UA) and Jan Willem Dik (BEACON) to dive into ecodesign, a source of innovation and competitive advantage.

Access the recording and presentation below to dive into ecodesign, a source of innovation and competitive advantage, and move your business toward sustainability!

Watch the recording

View the presentation

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Direct air capture (DAC): extracting CO₂ from the atmosphere

Imagine a world where we possess the power to extract carbon dioxide (CO₂) directly from the air. Although the technology has existed for years, the concept might sound like science fiction, right? However, it’s a tangible reality: the groundbreaking technology is called direct air capture. Imagine DAC as a giant vacuum cleaner of the atmosphere, snatching up CO₂ molecules as you effortlessly vacuum dust from your carpet.

The power of DAC: contributing to clean energy solutions

Ventilation systems are integral to direct air capture (DAC) processes, especially in large buildings or factories where they play a crucial role. These systems actively draw in substantial amounts of air, using specialized filters to absorb carbon dioxide (CO₂). These filters are key components composed of solid or liquid materials with an affinity for trapping CO₂.

Once these filters have absorbed a sufficient amount of CO₂, the challenge is to release it. Heat becomes the solution as it’s utilized to extract and expel the captured CO₂ from the filters. This process involves leveraging the thermal energy to facilitate the release of the trapped carbon dioxide.

Direct air capture (DAC) offers more than air cleansing capabilities. When combined with bioenergy processes, carbon capture and storage facilitates the production of emission-free green energy, including hydrogen-based fuels. This symbiotic integration provides clean power for homes and vehicles, further solidifying DAC as a solution contributing to environmental sustainability and the energy sector.

A transformative solution, balancing economic intelligence with environmental sustainability

Playing a crucial role in the battle against climate change, direct air capture (DAC) contributes to reducing CO₂ levels and, in essence, provides the Earth with fresh air.

Direct air capture (DAC) stands out for its economic promise, particularly when integrated with current heating and cooling infrastructure and tapping into residual thermal energy. It becomes increasingly cost-efficient, especially with the financial incentives offered through emission trading schemes and carbon removal credits. The challenge lies in developing durable filter materials. Yet, with ongoing technological advancements and supportive regulatory frameworks, DAC is up for a transformative role, offering substantial benefits for businesses and the environment.

What makes DAC even more remarkable is its economic viability. Leveraging existing ventilation systems and utilizing residual heat, DAC has proven to be a cost-effective solution, adding a touch of economic magic to its environmental impact. Here, there is a potential breakthrough technology. By making direct air capture (DAC) small and affordable enough and integrating it into air conditioning systems (which already provide air circulation and heating/cooling – exactly what our DAC needs), this technology could be a game-changer.

However, another challenge arises: how do we ensure that something meaningful happens with the captured CO₂ in all these air conditioning systems? This question shows the need for a comprehensive approach to address besides the capture also the subsequent utilization or storage of the collected carbon dioxide. It opens the door to exploring innovative solutions and creating a holistic framework to manage effectively the captured CO₂ within carbon capture systems (both direct air capture DAC, as well as point source capture).

In addressing the sustainability challenge, DAC unravels a paradox. It showcases that being environmentally conscious and economically savvy are not mutually exclusive. DAC serves as a model that demonstrates the harmonious coexistence of eco-friendliness and economic intelligence.

So, next time you hear about DAC, remember it’s like a superhero vacuum cleaner that cleans our air and powers our future!

‘The Sustainability Paradox’ seminar

Intrigued by the potential of DAC? We invite you to join our upcoming seminar ‘The Sustainability Paradox’.  This seminar aims to provide you with a guide on how companies, both large and small, can navigate the challenges and opportunities presented by DAC.

Source: VITO

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Circular business innovations

If you were part of this Innovation Day in 2023, you likely already investigated how outcome-based innovation can be the secret to positioning your business for success. This comes along with necessitating a reevaluation and transformation of traditional models, to prepare yourself for the transition to a net-zero economy profoundly impacts various facets of businesses.

In terms of business models, organizations are compelled to adopt circular and sustainable frameworks that prioritize the focus on sustainable outcomes through resource efficiency, waste reduction, and responsible sourcing. This shift not only aligns with environmental goals but also presents opportunities for innovative revenue streams. Companies that integrate circular principles into their business models can differentiate themselves in the market, appealing to environmentally conscious consumers and investors.

Customer loyalty through sustainability

The impact on customer experience is substantial, as consumers increasingly prioritize sustainability in their purchasing decisions. Businesses must now deliver seamless and transparent experiences that reflect a commitment to eco-friendly practices. This shift in customer expectations requires companies to rethink their supply chains, packaging, and overall product life cycles. User behavior transforms as well, with a growing demand for sustainable and ethical products. Consumers are more likely to engage with brands that demonstrate a clear dedication to environmental responsibility. Consequently, organizations need to anticipate and respond to these evolving user preferences to ensure continued loyalty and market relevance. The evolution of products and services is inevitable in this context, with a heightened emphasis on the outcome ie now including the climate impact of the product. This translates to eco-friendly design, energy efficiency, and the integration of technologies that support sustainability. Companies that innovate in these areas not only contribute to a net-zero future but also gain a competitive edge in a market increasingly driven by environmentally conscious consumers.

Net-zero economy starts today

In the pursuit of a net-zero economy, Verhaert Strategic Innovation’s Circular Canvas emerges as a guiding framework for your outcome-based innovation in the realm of net-zero innovation projects. Together companies, supply chains, and consumers can build a future where innovation and sustainability go hand in hand, creating a lasting impact on industries and the planet. Download our Circular Canvas and embark on the outcome-based innovation journey towards a cleaner, greener, and more innovative tomorrow.

Download the Circular Canvas

Curious about other insights from our Innovation Day? Dive into the insights from a product engineering or digital innovation perspective.

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Innovation is the lifeline of FMCG

Johannes Kieven Senior, an industry expert, emphasizes that digital innovation plays a critical role in the FMCG sector. Without innovation, FMCG brands would struggle to survive in today’s highly competitive marketplace. In his words, “Innovation is the lifeline of the FMCG industry. It allows companies to stay ahead of the competition, anticipate consumer needs, and create products that truly resonate with their target audience.”

When it comes to Henkel‘s approach to innovation within its laundry and home care division, Kieven reveals that fostering a culture of innovation is a top priority. Henkel achieves this by encouraging cross-functional collaboration and empowering employees to think creatively. The company also invests significantly in research and development, staying at the forefront of digital and technological advancements. Moreover, Henkel actively seeks out partnerships with start-ups and external innovators, like Verhaert, to leverage fresh perspectives and expertise. This collaborative and forward-thinking approach enables Henkel to drive innovation and develop products that meet consumer needs and embrace digital paths.

Consumers are more conscious about sustainability

The conversation with Kieven also sheds light on how consumer behavior and expectations have influenced the need for innovation in the FMCG industry. Today’s consumers are more conscious about sustainability, demand greater product transparency, and expect personalized experiences. These shifting expectations require FMCG companies to innovate across various dimensions, including product formulation, packaging, and marketing with digital trends in mind. By embracing consumer insights and leveraging data-driven approaches, FMCG companies can deliver on these expectations, build customer loyalty, and stay ahead of the competition.

Henkel’s commitment to sustainability emerges as a key component of its innovation strategy. Kieven highlights that Henkel prioritizes the development of products that are not only effective but also environmentally friendly. The company invests in research to reduce the ecological footprint of its products, explores alternative materials, and optimizes manufacturing processes to minimize waste and energy consumption. By prioritizing sustainable innovation, FMCG companies actively contribute to environmental preservation while meeting the demands of an increasingly eco-aware consumer base.

Embracing technological advancements is crucial

Technology plays a transformative role in driving innovation within the FMCG industry, as affirmed by Kieven. Advanced analytics, artificial intelligence, and smart connected devices offer new possibilities to enhance products, offer digital layers optimize supply chains, and deliver more personalized experiences. Embracing these technological advancements is crucial for companies aiming to stay ahead in this competitive landscape. By leveraging technology, FMCG brands can create innovative solutions that not only meet consumer expectations but also drive operational efficiency and customer satisfaction.

In conclusion, innovation remains a driving force within the FMCG industry. The insights shared by Johannes Kieven from Henkel highlight the importance of embracing (digital) innovation to anticipate consumer needs, foster sustainability, and deliver even more personalized experiences. By fostering a culture of innovation, investing in research and development, and leveraging digital technologies, FMCG companies can stay at the forefront of the industry, meet evolving consumer demands, and shape the future of FMCG innovation.

If you want to learn more about how we’ve helped Henkel stay at the forefront of innovation, or how we can help solve your innovation challenge, we’re all ears!

Curious to hear the insights from Johannes himself? Check out the full interview here!

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