Living in a DRS world: Consumers willing to embrace plastic bottle recycling, finds Suntory

06 Jul 2022 --- A study conducted by Suntory Beverage & Food has found that it takes UK consumers approximately seven weeks to start perceiving plastic bottles as recyclable items through deposit return schemes (DRS) rather than waste.

More specifically, the study named “Deposit Return Schemes: What’s in Store?” reveals that when DRS is introduced, consumers need time to internalize the change and won’t move toward bottle recycling immediately.

“It [DRS] is going to revolutionize the way people shop. Placing an extra value on drink containers to encourage more responsible behavior is going to change the whole relationship between drinks manufacturers, shoppers and retailers,” says Matthew Dane, head of trade marketing at Suntory. 

Consumers and recycling 
The study aims to give an early steer and reassurance on how businesses can embrace and thrive through the introduction of DRS. Suntory’s ambition is for DRS to achieve a 90% redemption rate after three years or sooner.

Innova Market Insights data shows that 44% of UK consumers have increased their household recycling behavior within the last twelve months.However, last year Tetra Pak revealed more than half (58%) of UK consumers do not understand what the incoming DRS entails, potentially undermining the UK government’s flagship recycling policy. Moreover, 59% of people who had a view on the issue would be confused by the DRS unless it was “consistent with household recycling collection.”

Meanwhile, a survey by Innova Market Insights shows that 44% of UK consumers have increased their household recycling behavior within the last twelve months.

Understanding consumer behavior 
Suntory’s research shows that consumer behavior can be split into three distinct phases. Each phase is short but “impactful,” and it won’t take long for shoppers to change their behavior once they get accustomed to DRS. 

In a controlled mini-public study of 104 people living with DRS rules, Suntory discovered that people changed their relationship with drinks containers in just seven weeks. Shoppers were incentivized to return their empties and redemption rates hit 88% in this time. 

The company has split consumer acceptance of DRS into three phases: 

• Phase 1: The first phase lasts around three weeks. Shoppers who aren’t already aware of the legislation will be surprised at a potential increase in price at the point of purchase and are being asked to return their container to earn back that increase.
• Phase 2: The “Review” phase lasts around 3-4 weeks. Initially, it overlaps with the “Surprise” phase but then plays out over time as the full implications of DRS become clearer.
• Phase 3: Once shoppers have navigated their surprise over DRS and reviewed their purchasing behaviors, some revised shopping habits will emerge. The “Reset” behavior will consist of both new routines and new choices.

The UK governments’ DRS aims to increase recycling rates and reduce litter. Regional discrepancies
The UK governments’ DRS aims to increase recycling rates, increase the quality of recycling to encourage “closed loop” recycling and reduce litter. 

Suntory explains that across the UK, some elements of the planned DRS will remain consistent. However, there is variation across the different countries regarding the timing of the implementation and what container or material types are likely to be included within the schemes. 

The elements that it says are likely to form the basis of each scheme are the commitment of stores to take back containers and setting a return charge. 

The majority of stores that sell soft drinks will be required to take back used drinks containers. One method used by shops for collection is a reverse vending machine, which can identify the item being returned and ensure the appropriate amount of money is returned. Alternatively, retailers can choose to accept manual returns. 

On the return of each container, the consumer will receive the charge back. This is set at 20p in Scotland, while these amounts have yet to be finalized in other nations.

Furthermore, the return charge may take the form of a voucher, cash or even an optional donation to charity. The retailer will also receive a retailer handling fee for every container they accept and process. 

By Natalie Schwertheim