By Joyce Gachugi Waweru
The conversation about the future of business is often dominated the ardent of the fourth industrial revolution. The advent of artificial intelligence is upon us and the speculation about its potential to revolutionize industries, automating processes, enhancing efficiency, and, as many fear, replacing human workers continues. Manufacturing, production, marketing, and advertising are just some of the sectors expected to see a significant shift as machines take over tasks traditionally handled by people. While this narrative continues to shape strategic business discussions, there is another equally powerful force at play, one that is not as widely acknowledged but is just as critical in defining business success in the years ahead.
The concept of a circular economy is no longer vague. What was once viewed as a futuristic idea is now fast becoming a reality. More than just an environmental initiative, it represents a fundamental shift in how businesses operate, how products are designed, and how consumers engage with brands. Sustainability and circular economy are no longer corporate buzzwords but business imperatives, driven by changing consumer behaviours, emerging regulatory frameworks, and climate change.
Today’s consumers, particularly younger generations, are rewriting the rules of engagement between brands and their audiences. Studies show that Gen Z and Millennials are the most sustainability-conscious consumers in history. They are not just paying attention; they are actively seeking out brands that align with their values. According to a report by First Insight, a staggering 73% of Gen Z shoppers are willing to pay more for sustainable products, and 62% prefer to buy from brands with a demonstrated commitment to sustainability.
And yet, it is not just young people driving this change. The impact of the COVID-19 pandemic caused a profound shift in how consumers think about sustainability across all generations. A 2021 report from the IBM Institute for Business Value (The Last Call for Sustainability) found that 93% of global respondents said the pandemic influenced their views on sustainability, making it a top consideration in purchasing decisions. A McKinsey survey, Sustainability in Packaging: Inside the Minds of US Consumers, further reinforced this shift, revealing that more than 60% of consumers are willing to pay extra for products with sustainable packaging.
Several key enablers can help businesses become future-ready, with technology, particularly AI, leading the way. Often associated with automation and job displacement, AI is emerging as a powerful driver of the circular economy. It is already being leveraged to redesign products for recyclability, optimize resource utilization, and even develop entirely new business models centered on circularity. AI can analyze material efficiency, predict waste generation, and recommend sustainable alternatives, making it an essential tool for businesses looking to align with future sustainability demands. According to research published by Springer Nature, AI-driven design tools are helping businesses create eco-friendly products, streamline waste management, and enhance circular supply chains. This intersection of technology and sustainability is where forward-thinking businesses will find their competitive edge.
Beyond technological advancements, regulatory frameworks are accelerating the shift toward sustainable business practices. Governments worldwide are embedding circular economy principles into law at an increasing pace. The Netherlands has set an ambitious goal to become 100% circular by 2050, with an interim target of reducing primary raw material use by 50% by 2030 (Circular Economy EU). In Australia, according to an article by Planet Ark on Building a sustainable future with Australia’s first dedicated circular economy investment fund, there are initiatives aimed at raising $1 billion by 2030 to invest in businesses that promote sustainability, reduce carbon emissions, and drive circularity.
Kenya, too, is stepping up. The country’s Extended Producer Responsibility (EPR) Regulations, set to be implemented in May 2025, will reshape how businesses operate. These regulations require producers, importers, and manufacturers to take responsibility for the waste their products generate. It is a bold step toward a cleaner, more sustainable economy, one that will not only benefit the environment but also position Kenyan businesses as global leaders in sustainable trade. Kenya Private Sector Alliance (KEPSA) has noted that aligning with EPR regulations will enhance ESG (Environmental, Social, and Governance) reporting, making businesses more attractive to investors and consumers alike.
What does this mean for businesses in Kenya? Success in the future will go beyond adopting AI and automation; it will require a shift toward sustainability-driven business models. This includes designing products for recyclability, implementing take-back schemes, which would require registering with organizations like the Packaging Producer Responsibility Organisation (PAKPRO), investing in waste-tracking technology, and actively educating consumers on the circular economy to drive behaviour change in waste disposal.
Consumer awareness is at an all-time high. People are actively choosing brands that align with their values. They are reading labels, questioning packaging choices, and demanding accountability. As climate change continues to impact daily life, this consciousness will only grow stronger. Brands that position themselves as leaders in environmental responsibility will not only secure customer loyalty but will also future-proof themselves against stricter regulations and evolving market demands.
Companies that adopt sustainable practices today will secure a competitive advantage as global trade increasingly favors environmentally responsible brands. The message is clear: Those who fail to adapt risk becoming irrelevant. Brands that stay ahead of these shifts and actively embrace circular economy principles will establish themselves as market leaders. Ultimately, sustainability is no longer just a moral responsibility, it is the cornerstone of long-term business success.
The writer is the CEO of the Packaging Producer Responsibility Organisation (PAKPRO). She can be reached at ceo@pakpro.co.ke.