Ellen MacArthur Foundation identifies alarmingly low reusable packaging growth in 2021 Global Progress Report

(All infographics from the Ellen MacArthur Foundation 2021 Global Progress Report) 

18 Nov 2021 --- The Ellen MacArthur Foundation is “alarmed” at how signatories to its Global Commitment have failed to prioritize reusable packaging models in the past year. 

According to the organization’s 2021 Global Progress Report, 56% of its 65 brands and retailers did not launch any reuse pilots in 2020. Of those who have, only 22% distributed more than 3% reusable plastic packaging in their portfolios. 

The UK registered charity has previously said converting 20% of plastic packaging into reuse models is a US$10 billion business opportunity, benefiting customers and representing a crucial element in eliminating plastic waste.

Simultaneously, signatories’ virgin plastic use appears to have “peaked” in 2021. Moreover, the report indicates virgin plastic use is set to fall by almost 20% in absolute terms by 2025 compared to 2018 benchmarks. 

This transition could translate into avoiding 8 million metric tons of virgin plastic being produced annually by 2025 when combined with existing commitments.

“We need to use a whole range of solutions available to us if we want to achieve a circular economy of plastics and thereby tackle plastic pollution,” Lily Shepherd, program manager at the Ellen MacArthur Foundation’s New Plastics Economy, tells PackagingInsights.

Progress with recycled content
For Shepherd, it’s been “encouraging” to see recycled material uptake increase significantly despite COVID-19 disruptions. 

The pace of progress on post-consumer recycled plastic is high, starting at 5.2% in 2018, jumping to 6.3% in 2019 and landing at 8.2% in 2020. 

Recyclers are simultaneously increasing their output of recycled plastic. What was 1 million metric tons in 2018 to 1.5 million metric tons in 2020.

Likewise, the virgin plastic reduction targets signatories have introduced this year are “ambitious,” says Shepherd. For example, Nestlé, L’Oréal, Henkel, Colgate-Palmolive and Danone have pledged to reduce 33% of their virgin plastic by 2025, followed by other FMCG giants Mars (25%), Coca-Cola (20%) and PepsiCo (5%). 

Unilever also stands out for having set a dual target. Recently identified as Break Free From Plastic’s third top global plastic polluter this year, the company made a 50% virgin reduction target and aims to eliminate 100,000 metric tons in the next three years. 

“[Unilever’s targets] are ambitious considering it comes off the back of decades of exponential growth and the amount of plastic and packaging the industry uses,” Shepherd comments.

All signatories have committed to a 2025 reduction target, with Unilever setting a dual goal.Not enough reusables 
Setting a reduction target has also become mandatory for all the Global Commitment signatories in 2021. However, current and planned progress is driven largely by switching from virgin plastic to recycled plastic as opposed to reusable rollouts.

Experts have repeatedly warned the US recycling system is “broken”, with others calling for brands and retailers to take advantage of the financial benefits of reuse models for business.

The overall share of signatories’ reusable plastic packaging decreased from 1.8% in 2019 to 1.6% in 2020. While this overall decline was mostly driven by Coca-Cola, the rest of the group did not demonstrate consistent growth, with just 23% of brand and retail signatories grew their percentage of reusable packaging in 2020.

According to Innova Market Insights, the majority of global consumers (52%) believe reusable packaging is the most environmentally sustainable model, followed by recyclable (50%) and recycled (39%), biodegradable (31%) and compostable (24%).

The overall share of signatories’ reusable plastic packaging decreased 0.2 percentage points, “mostly driven by Coca-Cola,” reads the report.Easy wins for refill models
The beverage, household and cosmetic packaging sectors are the most obvious “easy wins” for reusable success, according to Shepherd. 

“Coca-Cola is a good example, [the company] has returnable glass bottles and reusable plastic bottles. They also use a lot of refill-based solutions,” she notes.

She also highlights Pepsi’s SodaStream investments and Danone’s return-based reusable water jugs business. “So beverages are a clear [win].”

Three cosmetics companies in the Global Commitment are “very active on reuse,” Shepard continues. “They have some quite big recyclability challenges because their packaging tends to be small, which is not great for recycling. So they’ve pushed quite hard on reuse in recognition of that.”

Cosmetics signatories collectively reported the highest average proportion of reusable packaging at 17.4% – up from 10.5% the prior year, driven by the roll out of refill stations in stores and refill-at-home models. 

Furthermore, detergents, household and personal care products are “quite well adapted” for reuse and refill options, says Shepherd, “whether that’s in-store or at-home models.”

“From our point of view, those are definitely categories that should be relatively easy wins. I wouldn’t say there’s any particularly good reason for some of those easy-win categories not to be explored,” Shepherd underscores.

The cosmetic industry has the potential to lead the reusable revolution, given beauty products can be difficult to recycle.Cynicism nor optimism
The report communicating a “peak” in virgin plastic use, as well as a 20% decline estimated by 2025, may result in false hope that the plastic pollution crisis may be receding – something Shepherd is keen to avoid.

“It’s crucial to send the message that [eliminating virgin plastic] can be done and there are businesses which are [committed]. But we don’t want to suggest everyone is doing it and the problem is solved. We definitely don’t feel that is the case,” she says.

The signatories to the Global Commitment make up a demonstrating group, covering just 20% of all plastic packaging produced globally. Four-fifths of the plastics industry has not joined the initiative. 

“They’re (the non-signatories) not reporting transparently on what they’re doing. You can be fairly confident the vast majority of them are not doing this. Our 20% could reduce to zero [virgin plastic] but if the 80% would continue to increase it, then there’s still a long way to go.” 

“There’s always some good news,” concludes Shepherd, “but equally there’s so much more that needs to be done and with such urgency. It’s a balancing act.”

By Anni Schleicher

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