A Typology of Circular Economy Startups in Agri-Food Supply Chains: An Analysis of 79 Innovative Startups

Abstract

Startups, as key drivers of innovation towards a circular economy (CE) transition, are gaining momentum in the agri-food industry. However, an inclusive classification framework for circular agri-food startups is still lacking, despite its crucial role in articulating their contribution and informing tailored policies to facilitate a smoother CE shift in the agri-food sector. This research aims to shed light on circular agri-food startups by developing a comprehensive typology that identifies their key characteristics and contributions to the CE. In this regard, a two-tiered method, combining content analysis and hierarchical clustering, was employed to examine 79 circular agri-food startups based on their supply chain position, adopted CE strategy, business model innovation orientation, technological approach, and customer segment. As a result, an inclusive typology was developed, categorizing startups into three distinct groups, namely, biotech-driven sustainable producers, digital CE enablers, and circular packaging pioneers. Biotech-driven sustainable producers primarily operate in the upstream food supply chain, adopting repurposing or upcycling strategies with a technology-oriented business model. Digital CE enablers leverage digital solutions across various stages of the supply chain to implement reduction strategies through a platform-oriented business model. Circular packaging pioneers, operating with a product- or service-oriented business model, focus on sustainable packaging solutions through reuse strategies. The insights provided support agri-food stakeholders and policy-makers in crafting strategic policies that put the potential of circular startups into effect, thereby fostering a more resilient, sustainable, and circular agri-food supply chain. Finally, future research directions are proposed to support startups on the road towards a circular agri-food system.