“Reuse Barometer” report shows high return rates, collaboration and profitability throughout Europe

26 Sep 2024 --- A new report reveals that 80% of reusable packaging solutions boast return rates above 75%, while 65% of the solutions operating in the retail sector have reached profitability. With the reuse industry showing such strong potential, industry stakeholders say they are optimistic about Europe’s circular economy and sustainability efforts.

The report was conducted by Planet Reuse, Zero Waste Europe, In Off Plastic and New ERA. Titled the “European Reuse Barometer,” it evaluates the economic, environmental and social impacts of 90 reusable packaging solutions across the continent and reveals trends in the reusable packaging industry across Europe. 

The findings also emphasize that greater support from both the public and private sectors is essential for the reuse model to achieve large-scale adoption.

Nathan Dufour, reuse systems manager at Zero Waste Europe and leader of the ReuSe Vanguard Project, tells Packaging Insights:  “Scaling reuse systems means teaming up with local businesses and municipalities to curtail logistical roadblocks and build the infrastructure we need. Shared facilities for collection and washing are key to cutting costs and making reuse work.”

Leading sectors for reuse systems

One of the standout sectors is takeaway food. Clubzerø, a major player in reusables, reports that its reusable packaging has prevented 2.6 million single-use items from ending up in landfills, savings of 39 tons of CO2 and 260 cubic meters of water, demonstrating the potential for large-scale environmental impact when single-use packaging is replaced by reusable alternatives. 

Clubzerø partnered with Barclays at this year’s Wimbledon Championships, serving customers strawberries and cream ice-cream in its latest packaging innovation, the “Perfect Pot.” Throughout the tournament, they were serviced daily by Zedify’s emission-free electric vehicles.

In Denmark, Tomra also introduced a new Deposit Return Scheme system in collaboration with local foodservice providers, transitioning from single-use to reusable takeaway packaging. The system allows food packaging from various restaurants to be returned at automated collection points.

F&B packaging with reusable claims has surged in the past couple of years.However, Zero Waste Europe’s latest report emphasizes the practice that has yet to be widely adopted by the takeaway foodservice sector. It stresses the crucial role public authorities play in promoting such reuse systems.

Returnable e-commerce 

E-commerce is another area that has been showing innovation in packaging returns. According to the report, half of the e-commerce solutions analyzed have made the return process easier for consumers by enabling the use of national mailboxes to return packaging. 

François Chartier-Kastler, co-founder and managing director of In Off Plastic, tells Packaging Insights that reuse solutions have only recently emerged predominantly in the e-commerce and takeaway sectors, with the majority being developed within the past decade.

“The biggest challenge for the companies to achieve profitability is to continue proving the soundness of their value propositions to consumers, clients and policymakers. While legislation already exists in the retail sector, especially on beverage packaging and will be reinforced by the Packaging and Packaging Waste Regulation (PPWR), legislation on takeaway packaging is still nonexistent and legislation on e-commerce packaging will only start to appear in the PPWR.” 

According to Dufour, 44% of takeaways and 25% of e-commerce platforms examined in the report proved to be profitable. “There will always be challenges with respect to operational costs, having washing facilities on-site to cater to the demand, and without economies of scale, it’s hard to keep costs down.”

“National legislation and infrastructure are also factors. For example, in countries like Germany, there’s already a strong network of reverse vending machines that make returning packaging easier. But in many countries, this critical infrastructure is still lacking. And while all of this is good, it would mean nothing if convenience wasn’t present. For reuse to be valuable, it needs to be local and convenient,” says Dufour.

Improving return rates

Financial incentives are effective in driving high return rates, particularly in the takeaway and e-commerce sectors, where rates often exceed 95%, according to the report. Upfront deposit systems, used by 81% of the cases studied, are a common method to encourage consumers to return reusable packaging. 

However, the report highlights that deposit systems — where consumers are charged a fee if packaging is not returned within a specified timeframe — tend to achieve higher return rates. Seventy-seven percent of post-paid systems successfully reclaim packaging within five days.

“One of the key advantages of reusable packaging is that it can reduce raw material consumption and GHG emissions, it is key for reuse solutions to assess and communicate about their environmental impact compared to single-use packaging,” highlights Chartier-Kastler. 

“Solutions report that to enable reuse solutions to be massively used by consumers and corporations, a strong legislative intervention is needed. This can lead consumers to massively change their habits and shift away from relying on single-use packaging.” 

Expanding across Europe

Looking ahead, future editions of the “European Reuse Barometer” aim to expand their focus to Central and Eastern Europe. Efforts are underway to establish local partnerships with organizations in each country to intensify its business outreach, enhancing the granularity and impact of this market analysis initiative. The report also invites new partners to join in driving sustainable reuse practices throughout Europe.

As the first European online platform for professionals in the field, Planet Reuse is continuing its work to enable a large-scale transition to reusable packaging. François Chartier-Kastler, co-founder and managing director of In Off Plastic.

“Though Eastern and Central Europe benefit from mature reuse models in the Hotel, Restaurant, and Café/Catering sector and in B2B transportation, there are fewer solutions in retail, e-commerce and takeaway than in Western Europe,” Chartier-Kastler explains.

“There is a need to communicate about the benefits of reuse in these sectors and to foster connections to facilitate the creation and growth of new reuse solutions. This is the aim of Planet Reuse, which has been working in the past two years to foster reuse models in Eastern and Central Europe and has initiated the creation of local reuse hubs in Georgia, Poland, Estonia, Romania, Ukraine and the Czech Republic.”

Dufour suggests that Eastern and Central Europe are “bursting with potential,” adding that success lies in local solutions and digital platforms that make returns effortless. 

“Standardized packaging and tech aren’t just helpful—they’re game-changers, streamlining operations and driving both consumer buy-in and business growth,” he concludes.

By Sichong Wang