IKEA moves towards circular business

IKEA is moving towards becoming an enterprise operating according to a circular business model (replacing the concept of “end of life” of products with reducing, reusing, recycling and recovering materials in production, distribution and consumption at all levels from producer to consumer) by 2030. The second-hand store will offer damaged furniture that is repaired and refurbished from a IKEA store nearby. Stores repair and repackage products damaged in transit, returned by customers, and even furniture for resale or donation to charities.

Previously, in 2019, IKEA launched a furniture rental pilot project in some markets. In addition to the worldwide furniture recycling project, IKEA is making efforts to make its products environmentally friendly to address concerns about the flat pack business model.

IKEA is known as the pioneering brand that introduced the concept of “flat pack” – flat packaging – into the furniture field, providing quality products at the lowest possible price. Furniture products are divided into small parts, neatly arranged in carton boxes, accompanied by installation instructions, and shipped to customers, who will also assemble the final product. IKEA Sweden’s sustainability director Jonas Carlehed said the pilot project will be re-evaluated regularly and IKEA aims to reduce its climate impact per product by an average of 70% by 2030.