Driving Circularity through Digitalization: A Case Study of Henkel´s Hair Care Brands

This thesis explores how digital technologies can serve as key enablers of circular economy practices within the fast-moving consumer goods (FMCG) sector, focusing specifically on Henkel’s hair care brands. In a time where sustainability and resource efficiency are becoming business imperatives, circular economy offers a regenerative alternative to the traditional linear “take-make-dispose” model. The first chapter presents the conceptual foundation, introducing sustainability and the principles of circular economy, followed by an examination of its benefits and challenges. The second chapter investigates innovation as a critical driver for circular transformation, analyzing eco-innovation, new sustainable business models and sustainable packaging. Chapter three centers on the role of digitalization and Industry 4.0 technologies (such as AI, IoT, digital twins, and blockchain)in enabling new circular business models. It emphasizes how these technologies support smarter resource management, transparency, and the extension of product life cycles. The final chapter presents a case study of Henkel, where I had the opportunity to gain experience during my internship, exploring its sustainability strategy, digital transformation initiatives, and innovations in the hair care market. The study concludes that digital innovation not only accelerates the transition to circularity but also creates measurable value for both consumers and the environment, positioning Henkel as a leading example of sustainable transformation in the beauty industry.