The utilization of Industry 4.0 technologies to enhance the circular economy through the engagement of stakeholders in Brazilian food technology companies

Tiago Hennemann Hilario da Silva and Simone Sehnem

Business Strategy and the Environment, 2025, vol. 34, issue 1, 129-161

Abstract: Sustainable business models tend to have greater potential for the transition to the circular economy. The present study aims to investigate how Brazilian startups in the food segment foodtech are integrating Industry 4.0 technologies to boost the circular economy, emphasizing the importance of stakeholder engagement in the process. The choice of this unit of analysis is associated with companies that were born recently, with a high chance of having sustainable and circular business models. The research involved eight food technology startups, using questionnaires, interviews, and content analysis to collect data on circular supply chain practices, Industry 4.0 technologies adopted, and the level of stakeholder engagement. The results indicate that foodtech startups are progressively incorporating technologies such as automation, big data, biotechnology, and the Internet of Things, to promote circular economy initiatives. The active participation of stakeholders has been fundamental, contributing to innovation and efficiency in processes. However, the complete transition to the circular economy and the full adoption of Industry 4.0 technologies are challenged by obstacles, including high costs and regulatory barriers. The study found that startups play a crucial role in this transition, due to their agility and capacity for innovation, which can serve as an example for larger companies. Collaboration between businesses, regulators, academic institutions, and society is essential to overcome these challenges and facilitate effective transformation. This work offers valuable practical insights for foodtech startups looking to adopt circular practices, highlighting technologies, and practices that can result in economic and environmental benefits. Startups emerge not only as adopters of new technologies but also as agents of change in industrial practices, shaping a more sustainable future for the food sector. It is recommended that future research explore the impact of regulatory policies and incentives on accelerating the adoption of these technologies by startups, in addition to evaluating the long‐term economic viability of these technological innovations in promoting a more circular economy.

Date: 2025
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