Circular economy adoption challenges in the food supply chain for sustainable development

• Published in: Business strategy and the environment 2023-05, Vol.32 (4), p.1334-1356
• Main Authors: Kumar, Mukesh, Raut, Rakesh D., Jagtap, Sandeep, Choubey, Vikas Kumar
• Format: Article
• Language: English
• Subjects: Challenges; Circular economy; Decision making; Decision theory; DEMATEL; Deterioration; Economic impact; Environmental degradation; Environmental regulations; Food; Food chains; Food consumption; Food industry; Food processing industry; Food supply; food supply chain; Food waste; Grey's relational theory; Hunger; Incentives; interpretive structural modeling; Logistics; Regulation; Reverse logistics; Social responsibility; Supply; Supply chains; Sustainability; Sustainable consumption; Sustainable development; sustainable development goal (SDG); Sustainable use; Uncertainty; Wastes
• ISSN: 0964-4733; 1099-0836
• DOI: 10.1002/bse.3191

Food loss and waste are major issues in the food industry, and they affect all stages of the food supply chain (FSC). Food loss and waste are linked to environmental deterioration, economic loss, and an increase in hunger. Therefore, the food industry requires sustainable consumption and production (SCP) to reduce losses and waste. The circular economy (CE) concept has become a popular strategy for reducing food waste and boosting sustainability. Therefore, with efficient reverse logistics in the FSC, food producers can help achieve sustainable development goals (SDGs) like SCP and zero hunger. In literature, minimal research has been available in identifying the CE adoption challenges in FSC. This research identifies 15 critical challenges from the literature and discussion with the panel of experts. The relationship between the challenges has been established through an interpretive structural modeling (ISM) technique. The challenges were characterized in cause–effect according to their relational intensity obtained using the grey decision‐making trial and evaluation laboratory (DEMATEL) technique. Grey's relational theory is applied in DEMATEL to minimize uncertainty and vagueness of the expert judgment. The findings of this study suggest that creating policy from the government, providing incentives, and strictly enforcing environmental regulations are the most critical challenge. Hence, by focusing on the above, the effective adoption of the CE principle is achieved. This result also suggests that by addressing the challenges of CE, corporate social responsibility (CSR) can be performed. This study provides some recommendations for the practitioners to adopt CE towards sustainable development targets.