Sustainability remains a pressing issue in many industries around the world, and the coffee sector is no exception.
Coffee professionals and consumers are increasingly focused on ways to improve their social and environmental impact. This ranges from using more sustainable processing methods on farms to using recyclable and compostable packaging.
A large part of this revolves around the concept of the circular economy. Essentially, this model encourages the continuous use of resources for as long as possible with the aim of reducing waste production.
When implemented effectively, a circular economy minimizes environmental impact. With growing concerns about the future of the coffee industry, adopting more sustainable business practices has never been more important.
To learn more about a circular economy model for coffee, I spoke to Mark Zhou, founder of sustainable packaging company MTPak Coffee. Read on to find out what he had to say.
You may also like our article on how sustainable coffee packaging is.
What is a circular economy?
The practice of reusing and recycling materials has been practiced by many communities around the world for centuries. However, the term “circular economy” has only recently been officially defined.
The Ellen MacArthur Foundation is widely credited with creating a more formal definition of the model. According to the foundation, the circular economy model is based on three principles:
- Eliminate waste and pollution
- circulate products and materials (at their highest value)
- regenerate nature
In essence, the model aims to move away from a linear “take-make-waste” system by encouraging the reuse and recycling of materials. This in turn can extend the life of materials rather than discarding them after minimal use.
Done correctly over the long term, this can reduce waste and lead to more conscious consumption.
Sustainability has become an increasingly important purchasing factor for consumers in recent years. According to Nielsen’s Trend Watch 2023: Sustainability report, 46% of consumers expect brands to take the first step in creating lasting change. In addition, a growing number of consumers want evidence of real, impactful progress in reducing their environmental footprint.
The same applies to consumers in the coffee industry. Whether they want to know more about where their coffee comes from or are demanding more recyclable, biodegradable and compostable packaging, consumers expect coffee companies to adopt more sustainable business practices.
How can coffee companies contribute to a circular economy?
Some coffee shops and roasters have been operating in a circular economy for decades. For example, reusing and recycling coffee grounds into biofuel, compost or fertilizer is already a popular way to minimize waste production.
This is especially important considering that 300g of brewed coffee yields around 18g of used coffee grounds. And with 10.88 million 60kg bags of coffee exported in December 2022, reducing waste is becoming a key discussion.
Mark explains that when it comes to coffee, a circular economy often starts at the farm level. He says that recently, producers have started looking for more ways to reuse and reduce the by-products of coffee growing. This can include wastewater (used for processing) and coffee husks.
In some cases, these by-products serve as compost or fertilizer, while other producers make products like cascara tea or coffee leaf tea to diversify their income.
“Environmental sustainability is important to consumers across the board, not just when it comes to coffee,” explains Mark. “However, as one of the commodities most at risk of extinction due to climate change, coffee tends to receive more attention than others.”
Why should roasters and coffee shops be more sustainable?
According to the International Coffee Organization, the world consumed more than 170 million 60 kg bags of coffee in 2022. Arabica accounts for most of the market share, and while it is of higher quality, this type of coffee is not particularly resilient to the effects of climate change.
This is of particular concern given recent research into how climate change will affect coffee production. The 2022 expected global suitability of coffee, cashew and avocado due to climate change revealed that the world’s five largest coffee-producing countries will decrease in both the size and suitability of their Arabica-growing country by 2050.
“Obviously, people are very concerned that one day their favorite drink will become unavailable — or at least become increasingly difficult to buy,” says Mark.
“As such, it is in their best interests to select companies that share their concerns and are making concerted efforts to not only reduce their environmental impact, but also to create a more sustainable future.”
Mark adds that he sees more and more roasters and cafes finding more and more innovative ways to reduce their carbon footprint – thereby promoting a circular economy.
He tells me about a Scottish roaster that uses MTPak Coffee’s sustainable packaging. The company runs all of its equipment – including the roaster – on solar power. In addition, the roaster also delivers its products with an electric vehicle – making it the first CO2-neutral coffee roaster in the country.
“Another of our customers in the US bikes their coffee to every customer within 10 miles of the roastery,” adds Mark. “If every roaster took a similar approach, we would see far fewer emissions in the coffee industry.”
The Circular Economy Scholarship
Inspired by the work already being done to create a more sustainable coffee industry, MTPak Coffee is proud to announce its Circular Economy Grant.
“The purpose of the MTPak Coffee Circular Economy Grant is to raise awareness of our mission and encourage others to join us on our journey to create a more sustainable coffee supply chain,” says Mark.
The program recognizes and rewards small, independent roasters and coffee shops that use their business to drive sustainability in the specialty coffee sector.
“In other words, it’s for companies that reject a take-make-waste approach and strive to keep products and materials in use for as long as possible or achieve their maximum value,” he explains.
“The grant is designed to reward those working towards the same goal as us – to create a more sustainable coffee supply chain – and to recognize that we are on the same journey,” adds Mark.
The program invites applicants to share their efforts to contribute to and promote a circular economy. A jury of experts makes the selection a roastery or a café and award them either $5,000 in cash or $15,000 in credit to spend MTPak coffee Productsincluding coffee bags and cups to go.
How can you apply?
In order to apply, you must meet certain criteria:
- You own a coffee roastery or a café.
- You have been in business for at least 12 months.
- You actively seek to minimize your environmental impact and contribute to a circular economy.
- Your efforts have had a clear and measurable impact.
The MTPak coffee The application form for the circular economy grant can be found here Here. The The application deadline is July 1, 2023.
There is no doubt that sustainability will continue to be a priority for producers, roasters, baristas and consumers alike for years to come.
However, to successfully implement a circular economy model in the coffee industry, it is clear that we all need to work together to drive real change.
Would you like to apply for MTPak Coffee Circular Economy Scholarship? Then learn more here And fill out the application form here.
Copyright: Jordan Montgomery, MTPak Coffee
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Please Note: MTPak Coffee is a sponsor of Perfect Daily Grind.
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