Most circular economy conversations in FMCG start and end with a single number: the percentage of packaging that's recyclable, or the percentage of waste diverted from landfill. It's an easy figure to put in a sustainability report, and a poor one to build a strategy on, because it tells you almost nothing about where material and value are actually leaking out of the business.
A more useful starting point is a material flow analysis: mapping what comes into the business, what happens to it through operations, and where it actually ends up, whether that's recycled, incinerated, landfilled, exported, or lost somewhere in between. For a packaged goods business, that usually means breaking packaging down by format rather than treating it as one material. Flexible film, rigid plastics, glass, and fibre-based packaging all behave completely differently once they leave the business, and a single blended rate hides that difference, often in the business's favour, which is part of why it doesn't hold up under scrutiny.
Once that flow picture exists, the strategy work tends to follow the same shape regardless of sector: identify the gap between current material flows and where the business needs to be, by format rather than in aggregate; assess where circular business models (reusable or refillable packaging, take-back schemes, design-for-recyclability, supplier collaboration on material substitution) could reduce dependency on virgin inputs; identify the capability gaps standing in the way, whether that's packaging engineering expertise, supplier relationships that support closed-loop recovery, or the data systems to track flows over time; then sequence all of it into a roadmap with named initiatives and owners, rather than a single open-ended ambition to "go circular."
Done properly, this work pays for itself in more than one way. It reduces exposure to virgin material price volatility, which for packaging-intensive businesses is a real and growing cost line. It surfaces waste reduction opportunities that a top-level diversion rate never would, because those opportunities live inside individual packaging formats and process steps, not in the aggregate. And it produces a far more defensible disclosure than a blended percentage — one that can actually withstand a stakeholder or investor asking how the number was calculated.
We build material flow maps like this as an early diagnostic step for clients, and pair internal data with public circularity benchmarks, such as Eurostat's circular material use rate and sector packaging recycling data, so a business can see not just what's happening inside its own operations, but how that compares to the wider market it competes in.
If your business handles packaging or product waste and isn't sure where the leakage is, a material flow analysis is usually the fastest way to find out. See how circularity strategy fits into our approach, or get in touch to talk about what this could look like for your business.