Circular economy and frugal innovation: application of banana pseudostem in the textile industry

Purpose This study aims to analyze the relationship between circular economy, frugal innovation and the application of banana pseudostem in the textile industry, identifying how alternative natural fibers can strengthen circularity and resilience in the global textile sector. Design/methodology/approach A qualitative integrative review based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses protocol, with a systematic search conducted in four databases (SciSpace, ScienceDirect, Scopus and Web of Science). A total of 120 articles with an impact factor = 2 (2010–2025) were analyzed and categorized into four thematic axes: circular economy (13 articles), frugal innovation (10 articles), alternative natural fibers (8 articles) and banana pseudostem (7 articles). Findings The results highlight banana pseudostem as a strategic biomaterial for the textile industry, presenting high mechanical strength (600–800 MPa), strong biodegradability and compatibility with cotton and Tencel. Emerging countries such as India, Brazil and Bangladesh are at the forefront of scientific production, reflecting how access to raw materials supports frugal innovation practices The study demonstrates that integrating circular economy principles with frugal innovation strengthens local production chains, reduces environmental impacts and generates sustainable socioeconomic value. Research limitations/implications The main limitation lies in the lack of empirical evidence regarding large-scale industrial applications, as most of the analyzed studies are experimental or conceptual. The analysis revealed significant shortcomings in public policies, funding mechanisms and regulatory standards that are essential for broader market adoption. In addition, methodological heterogeneity among the studies restricts direct comparison of technical and economic results, limiting broader generalizations about commercial feasibility. Practical implications From a managerial perspective, the study supports the adoption of circular supply chains based on agricultural waste. Companies may explore textile blends, adopt decentralized extraction processes and invest in R&D to lower production costs. For policymakers, the findings inform the development of regulatory and fiscal incentives. For designers and industry players, the research opens an innovation pipeline for sustainable materials with strong market potential. Social implications The valorization of banana pseudostem generates positive social impacts, particularly in rural areas, by creating new income opportunities for farmers and promoting productive inclusion. The frugal innovation approach reinforces local economies, fosters social entrepreneurship and supports inequality reduction. This approach also expands market access to sustainable products for low-income segments, ensuring alignment with the Sustainable Development Goals. Originality/value This study consolidates knowledge on circular economy, frugal innovation and natural fibers, focusing on the banana pseudostem as an underutilized resource. The interdisciplinary integration demonstrates how frugal innovation drives scalable solutions in emerging contexts, providing an international overview and a foundation to transform the textile industry into a more sustainable sector.