Combining sustainable consumption with the circular economy concept could help tackle challenges, such as resource scarcity and climate change by reducing resource throughput and increasing cycling of products and materials within the economic system, thereby reducing emissions and virgin material use. To achieve sustainable consumption in a circular economy, production and consumption practices need to change. Business models can potentially influence both practices as it defines how a company conducts business and shapes the company-consumer relationship. This paper developed future business models for sustainable consumption through two rounds of semi-structured interviews with experts from academia, industry, and policy. During the first interview round, four business model elements that are important for sustainable consumption were identified: Resource strategy, Revenue model, Consumer effort, and Objective to (decrease/increase) consumption level. Based on these elements, we developed a comprehensive business model framework. Using this framework, experts envisioned future business models for sustainable consumption of clothing during the second interview round. The findings of this study suggest, that the most promising business models for sustainable consumption are those that reduce overall consumption levels and consumer effort. Further, we found that a diverse range of business models in the market can potentially enable different customer segments to consume sustainably.

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The circular economy is poised to transform economic systems and contribute to sustainable development. Most of the attention has focussed on how production can become circular by developing innovative business models, processes and products that close material loops. However, although these solutions are required to inspire radical changes, the lack of demand for such offerings (both perceived and real) has been highlighted in literature as a significant barrier. Enabling such demand necessitates a deep understanding of the consumer and the processes by which consumption patterns, and the social practices they result from, are transformed. It requires an understanding of the actors that need to be involved in such processes, as well as tools and design interventions that will contribute to a circular economy. In this chapter, we provide insights regarding these aspects based on existing and ongoing research that focuses on consumption-related aspects of the circular economy. We first introduce some consumer behaviours in a circular economy, and examine factors which may influence adoption or acceptance of circular products and services. We then describe some strategies and concepts for introducing circularity to consumers, in the form of business models, design and communications strategies, and finally we discuss some of the challenges of circular consumption.

Access-based product-service systems (AB-PSS) are business models that can potentially decouple the satisfaction of consumer needs from environmental impacts. Hence, they have been promoted for the circular economy. Their sustainability potential has not yet been realised because consumer adoption is lagging. Although this challenge has been studied for two decades, knowledge to identify and address AB-PSS adoption barriers that matter to consumers is lacking. We hypothesise that the duration of use, the time a consumer obtains exclusive access to a specific product (short-term vs. long-term) and the type of product (bicycles vs. clothing) moderate the importance of AB-PSS adoption barriers to consumers. We compared several adoption barriers across four AB-PSS and found that the duration of use and the type of product significantly moderated the importance of some AB-PSS adoption barriers.More specifically, the Effort to access has a higher influence on consumer preference for short-term AB-PSS, whereas Product quality has a higher influence on consumer preference for long-term AB-PSS. We also found that Effort to access and Product characteristics were more important for bicycle AB-PSS, whereas Contamination and Product quality were more important for clothing AB-PSS. These insights help companies to identify and design out key AB-PSS consumer adoption barriers.

Access-based product-service systems (AB-PSS) have the potential to lower environmental impacts. Currently, a lack of consumer acceptance and, consequently, low adoption levels of AB-PSS are challenges preventing the realisation of their sustainability potential. This study proposes temporary product customisation to lower barriers for the acceptance of AB-PSS. We investigated whether customisation through modifying the appearance of an easily changeable attribute of a typical product, and thereby changing the product personality, could improve consumer acceptance while limiting the impact on sustainability. To explore this, a 3 × 1 between-group design experiment was conducted with consumers who are familiar with offerings similar to the AB-PSS we tested. The results indicate that respondents have a strong preference, as is widely recognised, for typical products in an AB-PSS. Infusing meaning and intangible value into accessed products through customisation can simultaneously lead to wider acceptance in the market and individual consumers’ satisfaction. Our findings confirm that consumer acceptance increases if a product fulfils intangible needs along with functionality needs. The results can be used to think about new ways in which product design can enhance the diffusion of AB-PSS in the consumer market.