Profitable Circular Economy Practices in the Food Industry. A Case Study of Kimia Faravaresh Company in Iran.

Abstract

In recent years, the circular economy has become one of the most popular strategies for promoting sustainable industries. Implementing circular economy methods in business is one of the main aspects of this strategy. However, the concept is still new, especially in developing countries. Therefore, the purpose of this thesis was to examine the use of circular economy practices in pursuit of profitability, specifically in developing countries by studying Kimia Faravaresh company in Iran. Kimia Faravaresh company is a significant producer of essential oils and flavoring for the food industry and is using principles of circular economy as part of their production methods. This study analyzes the profitability of coffee-flavored essential oil that is made from used coffee grounds, compared to mango-flavored essential oil that is produced with traditional methods. Data for this study were collected using the company's record books, and data analysis was carried out with the help of Excel and Power BI, focusing on production costs, sales figures, and profit. The results of the thesis indicate that most of the Kimia Faravaresh company's profit is from coffee-flavored essential oil, even compared to the previously most popular product, mango-flavored essential oil. In conclusion, the results show that it is possible to have a circular economy business approach without sacrificing profitability.

Keywords Circular economy, profitability, essential oils Pages 28 pages and appendices two pages