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Brewing a better future: How a circular economy model could transform the coffee industry

Innovative solutions can revolutionize coffee into a force for good, positioning the industry as a leader in redefining sustainability

Carlos Oyanguren, president of Nespresso Canada. (Courtesy Nespresso Canada)
Carlos Oyanguren, president of Nespresso Canada. (Courtesy Nespresso Canada)

GUEST SUBMISSION: Imagine a life without your daily morning coffee. This simple, comforting ritual could become a casualty of climate change. The effects are already being felt in coffee-producing regions, and research paints a stark picture of the future.

While the demand for coffee is projected to more than double by 2050, the land suitable for coffee cultivation could be halved in the same timeframe. This looming crisis threatens not only our daily caffeine fix but also the livelihoods of millions who depend on coffee production.

This potential loss of vital agricultural land and the devastating impact on communities demands action. We can no longer take our coffee supply for granted. A fundamental shift is needed — in both industry practices and consumer behavior — toward regenerative agriculture and a circular economy.

The circular economy is based on the principle of "reduce, reuse, recycle". This simple idea could reshape our economy while also helping the planet. By conserving resources and lowering carbon emissions, research suggests a circular economy could add $4.5 trillion to the global economy by 2030, benefiting consumers, the environment and economies alike. Working with suppliers, startups and consumers will play a significant role in unlocking this potential.

The coffee industry has immense potential for positive global impact, extending far beyond your daily cup. To make the transition to a circular value chain, it’s imperative for companies, including Nespresso, to rely on innovation to not only improve resource efficiency and environmental performance, but also to strengthen stakeholder relationships, including with consumers to help empower them to be a part of the change.

How is this done? 

It starts with the bean, through regenerative coffee cultivation. These are farming principles and practices that increase biodiversity, enrich soils, conserve local water supplies and enhance ecosystem services.

For example, Nespresso’s AAA Sustainable Quality Program, in partnership with the Rainforest Alliance, provides technical training on that matter, empowering farmers to improve both the quality and quantity of their harvests while emphasizing regenerative agriculture practices. This program offers a potential model for industry-wide adoption, supporting ecosystems, sequestering carbon and diversifying incomes. 

Next is a focus on circularity. Systems thinking and environmental stewardship are core concepts to the circular economy. Sustainability doesn’t just end with the coffee bean; it also carries over to the packaging in which it is sold to the consumer.

Using materials like aluminum has many benefits. Not only does this protect the coffee’s freshness, but it allows the capsules to be recycled and reintroduced into the aluminum market for a second life. These recycling programs also allow for coffee grounds go back to the earth as a compost, while the aluminum itself is used to create various second-life items.

Developing innovations based on consumer behaviours and preferences give customers the power to be a part of sustainability practices. A recent Nespresso Canada survey showed that 76 per cent of Canadians believe organizations should do more to repair and refurbish their products, and over half (55 per cent) are more likely to support companies that do so.

This insight into customers shows that secondhand shopping is here to stay, with three-quarters of Canadians surveyed having purchased secondhand products in the last month. We put this model into practice with our Nespresso RELOVE program, where we refurbish and sell select pre-owned Nespresso machines. This reduces electronic waste, provides customers with access to high-quality machines at a reduced price, and keeps machines in circulation longer, conserving valuable resources. 

Businesses can work to be a powerful catalyst for a healthier planet and a more equitable society. They, along with policymakers and consumers, can help support policies that promote circularity, embrace innovative recycling solutions, and make conscious consumption choices that prioritize sustainability.

While there is an overall threat to the production of the coffee bean, companies can make small changes to ensure the longevity of the coffee industry.

Together, we can brew a better future, one cup at a time.



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