Paving the way for a circular economy in the consumer goods and retail industry

The concept of a circular economy (CE) is gaining traction in Kazakhstan, promoting a shift from the linear "take-make-dispose" model to more sustainable production and consumption methods.

Our research examines six key aspects of the transition to circular models: strategy, objectives, knowledge and resources, material flows, and government support. Kazakhstan has already implemented initiatives to foster the circular economy, including:

The "Taza Kazakhstan" Concept (2024–2029), aimed at building environmental awareness and increasing waste recycling rates to 38% by 2029.
National standards for the circular economy, developed by a technical committee on sustainable production and consumption.
The 2060 Carbon Neutrality Strategy, focused on reducing carbon emissions and advancing circular business models.
Urban pilot projects, such as the partnership between Ecosen and Leroy Merlin, focused on waste recycling in urban areas.

Implementing circular models can bring significant benefits to Kazakhstan, including job creation, green technology development, and strengthened international market presence.

Key recommendations for accelerating circularity

Our research reveals that while many C&R companies have circular ambitions, translating those ambitions into action requires a focused approach. Here are some key recommendations by sub-sector:

The consumer electronics sector demonstrates strong circularity readiness, ranking first across multiple indicators, highlighting its willingness to embedding circular practices.
Scaling up existing pilot take-back programs across broader geographies and product categories is crucial for the sector to achieve a more significant and lasting impact and to recover precious raw materials from existing electronic waste.
Translating ambitious circularity goals into actionable implementation roadmaps and measurable targets will be essential for driving continued progress in the sector.

The food and beverage sector excels in collaborative initiatives and communicating a clear circular vision, but faces challenges in improving resource inflow management and reducing food waste at the production and consumption stages.
Prioritizing regenerative agriculture practices, implementing nature-based solutions to have more resilient supply chains, and rethinking packaging strategies are crucial steps for the sector.
Educating consumers on waste reduction and leveraging technology to manage supply and demand will be essential for achieving a circular food and beverage industry.

While demonstrating a commitment to resource efficiency and circular design principles, the furniture sector's progress is hampered by a lack of ambitious targets and limited cross-industry collaboration.
Furniture companies should prioritize due diligence in sourcing sustainable materials, explore new production and sales models that emphasize durability and reuse, and actively participate in sectoral coalitions to advance circularity.
Embracing modular design, promoting furniture-as-a-service models, and strengthening Extended Producer Responsibility (EPR) programs will be key to unlocking circularity in the furniture sector.

The home & personal care sector has an opportunity to strengthen its circularity ambitions and embrace a more unified approach.
Simplifying packaging to enhance recyclability, piloting and scaling up take-back programs to promote circularity, and empowering consumers to adopt circular practices with reusable or refillable items are crucial areas for improvement.
Standardizing packaging designs, investing in robust collection and recycling infrastructure will be essential for driving circularity in the sector.

The luxury goods sector is making good progress in setting circular ambitions and piloting circular business models, but can further enhance its performance by strengthening target-setting, collaboration, and circular design practices.
Luxury brands should prioritize the responsible sourcing of raw materials, leverage technology to enhance transparency and traceability, and fully integrate circular targets into their business strategies.
Embracing longevity and repairability as brand attributes, and capitalizing on the growing pre-owned market will be key to advancing circularity in the luxury goods sector.

While demonstrating progress in setting circular goals and engaging in collaborative initiatives, the retail sector faces challenges in improving resource inflow management and fully embracing circular product offerings.
Retailers should prioritize the design and promotion of circular products and further explore innovative business models that extend product and packaging lifecycles.
Collaborating with suppliers to enhance product sustainability, educating consumers on circular practices, and embracing digital technologies to optimize resource use and reduce waste will be crucial for advancing circularity in retail.

How KPMG can help

Circular economy strategy development:

Circular economy strategy development is not a far-fetched goal, but a realistic ambition. We offer expert guidance to define strategies that are sustainable and profitable, ensuring they align with your business objectives, industry context, and market opportunities.

Circular economy measurement and steering:

Effective circularity transformation relies on data-driven insights. We provide the tools and sector expertise to help you track your circular performance, measure impact, and make informed decisions to optimize your strategy.

Operational Transformation:

Translating circular ambitions into operational reality is a challenge that requires a structured approach. Our execution and delivery services simplify the complexity of adopting circular practices, helping you transform your operations, engage your supply chain, and embed circular practices into your business DNA.

Circular maturity assessments:

Understanding your starting point can be crucial for effective circular transformation. Leveraging our robust assessment framework, we provide tailored circular maturity readiness assessments that pinpoint strengths, identify risks and opportunities, and chart a clear path forward on your circularity journey.