©2022. Market data copyright held by GlobalData PLC and reproduced under license.
Reusable packaging and systems enabling refill have a key role to play in reducing packaging and packaging waste. They offer a complementary solution to currently effective recycling systems.
UNESDA is committed to using more reusable packaging and systems enabling refill by 2030 (compared to 2020), but also studying the best environmental and economic pathways to increase the use of reusable nad refillable models.
THE RETURNABLE REFILLABLE SOLUTION:
A WHOLE-SCALE BUSINESS MODEL CHANGE FOR THE SOFT DRINKS INDUSTRY
Returnable refillable beverage bottles is a sustainable packaging model whereby consumers buy their refillable bottles and return them to designated collection points, such as the point of purchase, specific drop-off locations, or through a reverse logistics system.
To date, this refillable system has been mostly developed for glass containers, but there are also opportunities for reusable PET bottles.
In almost all EU 27 countries the current share of reusable PET is 0%. This means that in many countries significant investments will be required to build the right foundations for reusable packaging. In the years to come, Europe’s soft drinks sector is committed to offering more reusable solutions where it makes sense for the environment, and consumers.
©2022. Market data copyright held by GlobalData PLC and reproduced under license.
As part of its commitment to increase the offer of reusable solutions, UNESDA commissioned a study from PwC to assess the implications and associated costs of moving to an increasingly returnable refillable business model for the European soft drinks sector. Based on different scenarios targeting between a 10% and 30% market share of off-trade returnable refillable PET carbonated soft drinks bottles, the study concludes that key operational changes and investments are required at each stage of the soft drinks industry’s supply chain. This includes new bottling lines, blowing machines and crate production lines along with increased operational and logistical costs and additional space for bottling, packaging and storing the bottles and crates.
In addition, the environmental impact of refillable beverage packaging, compared to its single-use circular alternative, may only prove to be positive in certain situations.
The cost of this business model change to the soft drinks sector is estimated to be €18.7bn for a market share of 20% reusable PET bottles by 2030 at EU level: €12.5bn in estimated additional capital expenditure and €6.2bn in estimated additional operating expenditure.
Our summary with the key findings from the PwC report is available here.
HOW CAN THE EU MAKE MORE REUSABLE BEVERAGE PACKAGING A REALITY?
The following enabling conditions are needed to help the soft drinks sector to successfully increase the use of reusable solutions in Europe:
Taking a collective approach that ensures a wide range of reusable solutions is offered on the market to stimulate consumer behaviour change and increase the positive effects of the measures taken on reusable packaging. This means that all sectors where the increased use of reusable packaging would bring net environmental benefits should be encouraged and incentivised to do so. It also means that the whole value chain of distribution, including HORECA and retail, needs to be working towards the same goal.
Covering the full scope of reusable beverage solutions (and not only return on-the-go) and focusing on PET and glass for returnable refillable packaging, while giving to the targeted sectors enough flexibility to invest where the most potential sits (currently only in PET and glass).
Setting an efficient monitoring and reporting system (including tailored calculation method).
Further incentivising and promoting innovation to offer more reusable solutions.
Ensuring a well-managed integration with a realistic timing and supported by efficient collection schemes, investment support, guidance, and consumer education. Incentives and financial support should be available to all concerned companies.
WHY ASSESSING THE ENVIRONMENTAL IMPACT OF REUSABLE BEVERAGE PACKAGING IS ESSENTIAL
Understanding the environmental impact of reusable beverage packaging is key in helping determine under which circumstances it brings net environmental benefits. The use of reusable packaging should only increase when and where it makes sense for our environment. In this context, any measure adopted at EU level should provide the necessary flexibility to enable the soft drinks sector to decide if and where reusable packaging should be offered.
EXPLORING THE DIFFERENT TYPES OF REUSABLE AND REFILLABLE BEVERAGE SYSTEMS
There are different reusable and refillable beverage systems, all having the potential to reduce packaging waste and single-use packaging. For UNESDA, all reusable beverage systems should be considered in the EU strategy to reduce and reuse packaging. Innovative reusable solutions should also be further promoted as they respond to changing consumption habits while helping to increase consumer acceptance for new types of reusable solutions.
- Refill at home: Users refill their reusable container at home (e.g. with refills delivered through a subscription service or purchased directly).
- Return from home: Packaging is picked up from home by a pick-up service (e.g. by a logistics company).
- Refill on the go: Users refill their reusable container away from home (e.g. at an in-store dispensing system).
- Return on the go: Users return the packaging at a store or drop-off point (e.g. in a deposit return machine or mailbox).
- Refill at home: Users refill their reusable container at home (e.g. with refills delivered through a subscription service or purchased directly).
- Return from home: Packaging is picked up from home by a pick-up service (e.g. by a logistics company).
- Refill on the go: Users refill their reusable container away from home (e.g. at an in-store dispensing system).
- Return on the go: Users return the packaging at a store or drop-off point (e.g. in a deposit return machine or mailbox).