Transitioning toward sustainability: The emergence and transformation of business models in France's plastic packaging industry

Plastic pollution has become a critical global concern, highlighting the broader challenges posed by chemical contaminants and their impact on planetary boundaries. In response, political initiatives, such as France's Anti-Waste and Circular Economy Law, aim to promote a circular economy to mitigate these environmental risks. This study examines how the transition to a circular economy is reshaping France's plastic packaging value chain. By focusing on the interactions between micro (companies), meso (value chain) and macro (public policies) levels, the research provides a comprehensive analysis of how these dynamics are reshaping the industry. Drawing on a multi-level perspective and the systemic approach of business models, the study investigates how niche innovations—such as bio-based plastics and chemical recycling— drive the evolution of business models and contribute to a sociotechnical transition. Through qualitative research with key stakeholders in the plastic packaging value chain and innovation intermediaries, the findings elucidate how emerging niche innovations challenge traditional business practices. These innovations create opportunities for new business models and simultaneously impact incumbent firms, which are compelled to transform their business models to align with the growing demand for sustainability. In some cases, incumbents integrate these innovations into their existing business models, provided that they are compatible with the current sociotechnical system. However, not all incumbents are embracing change—some are maintaining the status quo. This analysis highlights the challenges of systemic change and the critical role of innovation in promoting sustainable practices in the plastic packaging industry. The dynamic interactions between innovative business models, incumbent supply chain companies and policymakers play a defining role in shaping the transition path, collectively shaping the transition towards a novel plastic packaging value chain.