Scaling Returnable Packaging: Keys to Making it a Reality
Large-scale reusable packaging systems can lead to savings of up to 69% in greenhouse gas emissions and up to 76% in water and materials. A study led by the Ellen MacArthur Foundation provides data, knowledge, and recommendations for designing and scaling returnable packaging, in a transition where it will be crucial for businesses, politicians, and financial entities to work hand in hand.
Advancing towards packaging reuse models is critical to reducing plastic pollution, the consumption of virgin raw materials, greenhouse gas emissions, and water consumption. Despite some initiatives, progress towards reuse models is currently slow, and one of the main challenges to accelerate it is scaling reuse to make it viable and profitable. Now, the Ellen MacArthur Foundation, a global leader in the circular economy, and the companies Sistemiq and Eunomia, have just published Unlocking a reuse revolution: scaling returnable packaging, a report that provides data and knowledge supported by sixty organizations worldwide, as well as recommendations for designing and scaling returnable packaging. According to the study’s authors, “reuse needs to scale urgently,” and “to make the economics work, collaboration [understood as collaboration between businesses, politicians, and financial entities] is essential.”
Unlocking a reuse revolution: scaling returnable packaging focuses on B2C (business to consumer) packaging and packaging in the context of acquiring products by customers as they normally would. In this case, however, products are presented in returnable and reusable packaging that the customer would return, and that would be professionally cleaned and refilled before returning to the points of sale.
The study has defined various reuse scenarios with different levels of ambition. Environmental and economic modeling of return systems has been conducted, specifically for each sector type (beverages, personal care, fresh produce, and pantry). The study found that, in the best-case scenario—meaning large-scale reuse, highly collaborative systems, and standardized packaging— compared to single-use plastic packaging, the savings in greenhouse gas emissions are between 35% and 69%, and in water and materials, between 45% and 76%, respectively.
The report has identified three key drivers to maximize the potential of return systems:
- – A shared and scaled infrastructure, not only for cost-sharing but to offer a consistent and easy experience for customers. New models will be adopted much more easily when customers don’t have to separate packaging or interact with different systems.
- – Packaging standardisation and pooling. This means harmonizing the structural design of containers and packaging within a product category through a single container. Brands and product lines would differentiate themselves with labels and closures, as beer brands did in Germany years ago. This would increase system efficiency by ensuring a higher flow of containers and reducing the need for large individual inventories. It would also reduce and optimize sorting, cleaning, and storage costs.
- – High return rates. To achieve this, returning needs to be incentivized, and the return experience should be smooth.
Beyond these three key drivers, according to the study, the key to success will be “a joint effort,” a “new approach is required where industry peers, policymakers, and financial institutions work together to build shared systems.” First, because companies own and are responsible for packaging throughout the reuse and return model and play a fundamental role in designing these shared systems optimally and encouraging their adoption by customers; politicians, on the other hand, have a “crucial” role in creating the conditions for this, and financial entities in supporting and investing in the infrastructure. However, as the Ellen MacArthur Foundation, Sistemiq, and Eunomia report concludes, “a major profound transition won’t happen overnight.”
What does inèdit do regarding packaging reuse?
At Inèdit, we have been working for years to make this transition possible with various companies. Each sector faces different challenges based on product conservation and safety, and these need to be addressed with prior knowledge of the company’s context, sales points, and consumer habits. Additionally, regulations can sometimes be a barrier to implementing a reuse system. Nevertheless, common challenges include achieving a profitable and sustainable system, often relying on reverse logistics and distribution systems. This is why it is necessary to differentiate between refill systems and reuse depending on geographical contexts and be aware of their effects throughout the value chain, especially in the use of raw materials for packaging, storage, logistics, container return rates, and cleaning. The more times the same container is used, the more its carbon footprint per unit of container will be reduced. Therefore, as Sofía Garín, Head of Eco-design and Circular Business Projects at inèdit, points out, “it is necessary to incentivize returns and ensure that the material does not lose properties during maintenance and sanitization processes or during consecutive uses.”