The comprehensive circularity indicator for FMCG packaging: Accounting for systemic realities in the CE transition

Transitioning to a circular economy (CE) is key to minimise fast-moving consumer goods packaging waste and its environmental impact. Micro-level circularity indicators are key to guide this transition. However, existing indicators are often not tailored for packaging and do not capture the feasibility of CE strategies and the extent of resource flow recirculation within or beyond the system. As a result, they tend to overestimate circularity for packaging formats that are incompatible with real-world end-of-life (EoL) systems. To address this gap, we develop the comprehensive circularity indicator (CCI), a novel micro-level metric designed specifically for packaging. The CCI extends existing indicators by: incorporating the distribution, use and regeneration stages in its system boundary; assessing EoL packaging at the component- and component feature-level; linking CE strategies to systemic CE elements such as regional EoL infrastructure and regulations; and quantifying the quality and exchange of recirculating materials. Sensitivity analyses and a case study across packaging formats, business models, and European regions demonstrate that the CCI captures the influence of packaging design and regional systems on circularity, thereby extending the scope of existing indicators. The CCI assigns lower circularity values than existing indicators when packaging: includes features incompatible with EoL infrastructure; does not comply with regulations; results in low recyclate quality; and is recovered but not absorbed by the market. The CCI provides industry and policymakers with a strategic decision-support tool that help identify not only packaging circularity, but also performance hotspots and effective intervention strategies.