Integrating circular economy principles into new product development: challenges and opportunities for business innovation in the household appliance sector

The household appliance sector faces growing pressure to reduce its environmental footprint, due to intensive resource consumption and the rapid increase in electrical and electronic waste (e-waste). Regulatory frameworks such as the Circular Economy Action Plan (CEAP) and the Ecodesign for Sustainable Products Regulation (ESPR) are pushing manufacturers toward more sustainable and circular innovation models. However, the integration of Circular Economy (CE) principles into New Product Development (NPD) processes remains fragmented and underexplored. This study presents a systematic literature review, conducted following the PRISMA protocol, to investigate how circular strategies, tools, and practices are currently adopted in NPD, with a specific focus on the household appliance sector. The analysis highlights key opportunities for embedding circularity at the early stages of product development, especially within the fuzzy front-end, and emphasises the crucial role of designers as facilitators of cross-functional collaboration. The study identifies major enablers such as leadership commitment and interdisciplinary competencies, alongside persistent barriers including organisational silos, technical knowledge gaps, and cost-related challenges. The findings provide strategic insights for companies aiming to embed circular principles into NPD and call for further research into actionable implementation frameworks tailored to the sector's specific needs.