“Reconciling economics”: Zero Waste Europe and Searious Business call for reusable packaging rise

29 Jun 2023 --- Reusable packaging is an economically viable alternative to single-use packaging, found Zero Waste Europe (ZWE) and Searious Business in a study published today. 

The research found that reusable takeaway food containers are cheaper for service users, and system providers achieve a return on investment between years three and four. In secondary transport packaging, results show that the return on investment for a systems provider is achieved between years two and three, and the user costs are similar. 

The study also identified reusable beverage containers as economically advantageous for users, and the return on investment for system providers can be reached between years five and six. 

The results prove the business case for investing in reusable business models as a system provider and that reuse will be profitable for all stakeholders in the longer term, asserts ZWE. Based on current regulatory developments in Europe, the organizations believe that the price for single-use packaging will increase, meaning reusable packaging will continue to gain economic advantage. 

Packaging users often overestimate the risk of switching to reusable packaging, says Searious Business CEO Peeters. Reuse good or bad?
By clarifying costs and benefits, the study intends to inform businesses and policymakers in future decision-making to “confidently support reuse.”

Nathan Dufour, reuse systems manager at ZWE, says: “Today the question is not ‘if’ but ‘how’ we need to make prevention and reuse a living reality in Europe and beyond. This study is yet another clear demonstration that in a matter of only a few years, well-designed high-performing systems for reuse will help reconcile economics with pressing environmental concerns.”

However, paper-packaging producer DS Smith has found in a recent report that proposals to increase mandatory packaging reuse in the EU could result in a massive rise in plastic use and backtrack years of progress.

Alex Manisty, group head of Strategy & Innovation at DS Smith, said: “We support the aims of the Green Deal and the new legislation, but amendments that mandate reuse targets for paper and cardboard would compromise the European corrugated cardboard industry, embed a plastic economy into the single market, and hold the EU back on climate change.”

Informing businesses and policymakers
The cost-benefit analysis titled “The economics of reuse systems – a study into what makes a financially viable reusable packaging system” conducted by Searious Business, identified three key performance indicators in creating a financially healthy reuse system – return rates, number of average use cycles and retention time. 

Three open-loop packaging categories were investigated: Food containers for takeaway food (PP), secondary transport packaging (FIBC) and beverage containers (PET bottles). Spain, Italy and Germany were used as archetype countries for the study. 

The economic viability was based on return on the investment for a reuse systems provider and the accumulated costs of single-use plastic packaging versus reusable plastic packaging for a system user. 

Willemijn Peeters, CEO and founder of Searious Business, states: “Packaging users often overestimate the risk of switching to reusable packaging. This study mathematically proves that reuse is financially viable, and it doesn’t even begin to consider the external costs of continuing business as usual. Reuse must be a priority to prevent plastic waste before it becomes pollution.”

Edited by Natalie Schwertheim