IKEA Circular Value Chain Model
IKEA Circular Value Chain Model
IKEA offers a clear example of how circularity can be embedded across a global value chain. Its approach moves beyond product-level improvements to a systemic shift in how materials are sourced, products are designed, services are structured, and end-of-life is managed.
At the design stage, IKEA applies circular principles to ensure that products can be reused, repaired, remanufactured, or recycled. Internal guidelines and evaluation tools help teams integrate these requirements consistently across categories, aiming to extend product life and reduce waste.
Materials are a major focus, as they account for a significant share of the company’s overall environmental footprint. IKEA is increasing the use of renewable and recycled inputs and testing alternative materials to reduce dependency on virgin resources and fossil-based components.
The company is also scaling services that enable customers to participate in circular practices. This includes expanding buy-back programs, resale initiatives, and spare parts availability, as well as improving product designs to simplify disassembly and repair.
To support broader change, IKEA is involved in policy dialogue and cross-sector collaboration. Through its partnerships and platforms, the company is contributing to discussions on harmonized standards, recycled material markets, and waste infrastructure.
As part of its long-term strategy, IKEA recently committed significant capital through its investment arm to strengthen recycling capabilities across key materials such as plastics, textiles, wood, and mattresses. This aims to address structural barriers and accelerate access to quality secondary materials.
These investments are already supporting the development of closed-loop systems in several markets, while also contributing to emissions reductions and supply chain resilience. The focus is on building scalable infrastructure that aligns with IKEA’s circularity and climate goals.
The IKEA Circular Value Chain Model reflects a strategic shift from ambition to execution. It provides a practical framework for operationalizing circularity at scale, grounded in product design, material innovation, customer engagement, and long-term investment.
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