Master Thesis: Particularities of Circular

Economy Strategies in FMCG industry in

Developed market exemplified by Zara and
H&M in Spain and Sweden
 Structure of the paper
CHAPTER 1 CHAPTER 2 CHAPTER 3
• 1. Theoretical aspects of circular • 2. Analysis of circular economy strategies of 3. Findings and recommendation of
economy strategies in FMCG industry FMCG industry in developed countries particularities of circular economy
in Developed Market exemplified by Zara and H&M in Spain and strategies in FMCG industry in Developed
Sweden
• 1.1 Literature review of circular Market
economy strategies in FMCG industry • 2.1 Overview of FMCG market • 3.1 Findings regarding particularities of
• 1.2 Theoretical background of circular• 2.2 Case of Zara in Spain and Sweden circular economy strategies in FMCG
economy strategies in FMCG industry industry in developed market
• 2.3 Case of H&M in Sweden and Spain • 3.2 Recommendations to FMCG
• 1.3 Previous research of
• 2.4 Comparative analysis of Zara and H&M brands using circular economy
particularities circular economy in
in Spain and Sweden strategies in developed market
FMCG industry in Developed market
• 3.3 Limitations and recommendation
for further research
• Object of research: • Subject of research:
Circular economy strategies of • Circular economy strategies in
developed market FMCG industry
Research Question:
What are the particularities of
circular economy strategies that
are implemented by Zara and
H&M in Spain and Sweden?
Existing research
• CE PRINCIPLES
 OVERVIEW OF THE FMCG INDUSTRY
The FMCG industry is composed of some of the most well-known brands worldwide
As of 2017, World’s Largest FMCG Companies:

1.Nestlé – $91.1 billion in revenues Brand Value of the leading FMCG brands
worldwide in 2022
2.Procter & Gamble – $64.5 billion (in Million U.S dollars)
3.PepsiCo – $63.5 billion Danone 9.528

4.Unilever – $60.5 billion Gillete 10.211

5.AB InBev – $56.4 billion Colgate 10.83

6.JBS – $49.6 billion NESTLE 10.921

7.Tyson Foods – $38.2 billion LEGO 11.846

8.Coca-Cola – $35.4 billion Loreal 12.915

9. L’Oréal – $29.3 billion Pampers 13.832

10.Philip Morris – $28.7 billion

0 2 4 6 8 10 12 14 16

Source:(Statista 2024)
Market Overview
REPORT ATTRIBUTE DETAILS FMCG MARKET SEGMENT BY REGION
Market Size 2022 11.087.37 Billion (%) 2020

Market Size 2023 11.738.44 Billion

Market Size 2030 18.365.22 Billion
10%
Compound Annual 6.60% (2023-2030) 26%
Growth Rate ( CAGR)
23%
Forecast Period 2023-2030
Forecast Unit Value ( USD Million) 7%

34%

North America South America Asia-Pacific Europe Rest of the World

Source: (industryarc.com, Statista 2024)

Global Fast Moving Consumer Goods Market
Overview
• FMCG Market Size was valued at
USD 15,315.25 billion in 2021. The
FMCG market industry is projected
to grow from USD 15,829.84 billion
in 2022 to USD 22,863.25 billion by
2030, exhibiting a compound annual
growth rate (CAGR) of 6.60% during
the forecast period (2023 - 2030).
The rising middle class population
across the globe along with trend of
digitalization in rural markets are
driving the market growth.
• The FMCG sector is the fourth
largest sector and is primarily
divided into three segments:
food and beverages (19%),
healthcare (31%), and household
and personal care (50%).
• Digital advertising, in particular,
is expected to experience
significant growth within the
FMCG sector
ANALYSIS OF CIRCULAR ECONOMY STRATEGIES
OF ZARA AND H&M IN Sweden AND SPAIN
• One of the key differences
between H&M and Zara is the way they
design and produce their
clothing. H&M relies heavily on outside
designers and suppliers to create their
clothing collections, which allows them to
produce a wide range of styles at low
costs. On the other hand, Zara has a more
vertically integrated business model, which
means they design, produce, and distribute
their own clothing. This allows Zara to
have a more nimble response to changes in
fashion trends and to have a more direct
control over the quality of their products.
ANALYSIS OF ZARA AND H&M CIRCULAR STRATEGIES IN
SPAIN AND SWEEDEN
ZARA H&M
Number of employees 164,997 150.000
Revenue (2022) 23 Billion 22.10 Billion
Industry FMCG FMCG
Number of store 3000 4,801
Headquarters Arteixo (Spain) Stockholm (Sweden)
Circular economy strategies Closing the Loop, Zero Waste, and Circular & Climate Positive, Leading
Green to Pack. the Change, and Fair and Equal

Goal To achieve 80% of consumption form They want to be leaders in energy

renewable sources in their facilities by
2025, and in 2019 they had achieved
63% of electricity. The reduction of
GHG emissions of Scopes 1 and 2 was
of 35% per m2 emissions
efficiency and use as little energy as
possible across their entire value
chain

Source: ( Orbis data base, Zara-Annual Report, H&M- Annual report)

 Circular & Climate KPIs
H&M Circular & Climate Positive KPIs
(2019,2020)

64.00%
% of stores with waste system
62.00%

85.00%
% of facilities with water efficient equipment
67.00%

90.00%
renewable electricity
96.00%

18.00%
change in CO-2 emission in %
8.00%

5.80%
recycled materials of total packaging used
2.20%

64.00%
recycled materials
57.00%
0% 20% 40% 60% 80% 100% 120%

2020 2019