Navigating Complexity in the Circular Economy: A Systems Perspective on Scotch Whisky

Despite ambitious circular economy (CE) policies in Scotland, translating national commitments into effective industrial implementation remains a critical challenge. This study examines how Scotland’s emerging CE policies enable or constrain CE adoption within Scotch whisky - an industry characterized by export orientation, premium packaging, and untapped potential to valorize by-products. Drawing on systems thinking, we apply causal loop diagrams (CLDs) to analyze qualitative data from semi-structured interviews with stakeholders, using a four-step coding process to translate interview data into feedback structures. Our analysis reveals twelve interconnected feedback loops across three thematic domains: bio-based distilling resource circularity, product packaging circularity, and industry-wide knowledge-sharing dynamics. The findings demonstrate how operational priorities, brand heritage, and export-oriented business models create distinct barriers for the CE transition of Scotch whisky. This research contributes an empirical systems analysis of CE adoption in Scotch whisky and a methodological pathway for systems-based CE research applicable to other industrial sectors.