Circular Economy: A new economic model with a 40-year history

Since the breakout of the Industrial Revolution at the end of the 18th century, consumer society has grown under the mantra: produce, use and throw away. A linear paradigm that has caused an unprecedented environmental impact and that has come up against the finite quantity of raw materials.

As an alternative to this production system, the model of the circular economy emerged, whose first references date back to the early 1980s, which is committed to sustainability and environmental efficiency. A model that has been gaining popularity and that the European Union has made one of its objectives, through the European Green Pact and Agenda 2030, in order to shape a “resource-efficient Europe”.

But what is the circular economy model?

This system is based on the reuse of resources, so that products, materials and resources are retained, for as long as possible, in the economy.

The circular economy is committed to the use of resources, under the rules of the 3Rs: Reuse, Repair and Recycle.

Logifruit began its activity joining this model, already in 1996 and was born with the vision of contributing to have a more sustainable world. Throughout our history we have become an example of the circular economy, adding three “R’s” of our own to the traditional ones of the Circular Economy, to create our own 6R system: Rationalize, Reduce, Redesign, Reuse, Repair and Recycle. An expanded system that is the result of the experience and knowledge of the model that has led us to work to create a connected, digital, sustainable logistics network that aims to create a positive impact on society.

Circular economy should not only be considered from the environmental point of view since it is a model that generates economic and productive benefits. According to the European Union, “is the main strategy of Europe to generate growth and employment,” with a commitment to the reindustrialization of the old continent.

Currently, companies whose business model responds to the circular economy generate four million jobs in the European Union, with a growth of 5% in the last six years. According to forecasts for the next decade, the sector will generate “580,000 stable and quality jobs”, of which 120,000 will be created in Spain alone. These forecasts are mainly the result of the 8% increase in annual turnover for circular companies in the European Union.

In our case, in the last two decades, Logifruit has multiplied by twelve the number of container movements, from 26 million movements in the year 2,000 to 300 million today. This fact has also led to a tenfold increase in the company’s workforce, from 125 employees at the beginning of the century to the current 1,185.  

Reusing is one of the premises of the circular economy. It is more efficient to use again than to create from scratch. For this reason, Logifruit’s boxes, crates and pallets are designed in a modular way, so that the system can replace or repair damaged parts. And in case of irreparable damage, the material is recycled for the production of new containers.

Finally, the implementation of the circular economy also brings benefits to consumers, as they have access to lower cost products, due to the consequent reduction in production costs. The companies also add a differential value to their brand, highlighting their environmental and social commitment and linking themselves to an efficient and committed economic model.