Is REUSE of packaging economically viable?

The answer is Yes! If you look at a recent report published by New Reuse Alliance and Reloop. The report covers the reuse of packaging for beverages & food packaging, ecommerce, and transport packaging.

In the last two years cost of packaging has spiked by 23% and there is no sign of costs coming down due to regulatory pressure and focus on decarbonization. World Economic Forum article explains this succinctly.

The viability of REUSE of packaging is a function of:

  1. Number of times the container is used
  2. Return rates
  3. Transport means and distance traveled
  4. Washing and filling processes

A number of uses give the opportunity to create a robust packaging container that might cost more than a single-use container but can be used at least 20 times in case of 20-liter containers and 80 times for 1-liter containers.

Return rates can be increased significantly through the effective implementation of packaging standardization and a deposit refund scheme. Packaging standardization offers opportunities to help reduce operational costs, create necessary economies of scale, and maximize the environmental benefits of reusable packaging systems. Germany has implemented this scheme effectively and sees return rates in upwards of 95%.

We have to now shift to a decentralized distribution model to bring viability to REUSE of packaging. Decentralized distribution effectively means cleaning of used containers and filling of products in containers has to be done on a cluster basis rather than the existing centralized system. Adopting such a system reduces transport costs significantly.

Early studies and pilots on the REUSE of packaging are encouraging. We need to now bring in economies of scale through packaging standardization, shared supply chain, and innovation in product distribution strategies. REUSE is the new normal!

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